Kobayashi Pharmaceutical Co (4967) AI Stock Analysis

• Market Cap: ¥410.64B
• Dividend Yield: 2.13%
• Average Volume (3M): 282.93K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 0.31
• Revenue Growth: -8.36%
• EPS Growth: -38.35%
• Country: JP
• Employees: 3,615
• Sector: Healthcare
• Sector Strength: 59
• Industry: Household & Personal Products
• EPS (TTM): 21.86
• Shares Outstanding: 78,050,000
• 10 Day Avg. Volume: 329,060
• 30 Day Avg. Volume: 282,926
• PEG Ratio: 12.09
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,149.86
• Price Target Upside: -6.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥5,963.00 ▲(7.69%Upside)

Kobayashi Pharmaceutical exhibits a solid financial foundation with low leverage but faces challenges in profitability and cash flow. While technical indicators show current bullish momentum, the high P/E ratio suggests overvaluation concerns. The overall score reflects these mixed signals, highlighting the importance of monitoring financial performance and market conditions closely.

Kobayashi Pharmaceutical Co Business Overview & Revenue Model

Company Description

Kobayashi Pharmaceutical Co., Ltd., together with its subsidiaries, manufactures and sells consumer products in Japan and internationally. The company provides products in the areas of healthcare, skincare, body warmer, and household. It also offers Ammeltz, a topical analgesic; Inochi no Haha, a women's health medicine; Shirt Coola, a summer cooling spray for cloths; Sarasaty lingerie soap; Bluelet Decoral, a toilet bowl cleaner and freshener; Nightmin Nasal Respiration Tape; Naishitol, a Chinese medicine; Eaude Muge, a medicated lotion for preventing acne; Itoyoji, a dental floss pick; BreathCare, an oral breath freshener capsule; Eybon, an eye wash; Netsusama sheet, a cooling gel sheet for forehead; and Sawaday, a toilet air freshener. Additionally, the company manufactures and sells pharmaceuticals, quasi-drugs, cosmetics, hygiene and paper products, health foods, and processed synthetic resin products; markets nutritional supplements and skin care products through sales promotional campaigns, such as advertising and direct mail; and sells skincare products, health foods, and other items through e-commerce channels. Further, it engages in transportation, real estate management, and advertising planning and production businesses. Kobayashi Pharmaceutical Co., Ltd. was founded in 1886 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kobayashi Pharmaceutical Co. generates revenue through the sale of its diverse range of products across multiple categories. The company's primary revenue streams are derived from its healthcare and household product segments. In the healthcare segment, Kobayashi offers OTC medications, supplements, and medical devices, which provide consistent revenue from consumer purchases. The household products segment includes a variety of personal care and home maintenance products, which contribute significantly to the company's total earnings. Additionally, the company benefits from strategic partnerships and distribution agreements that expand its market reach both domestically and internationally. Kobayashi Pharmaceutical leverages its strong brand reputation and continuous innovation to maintain a competitive edge and ensure steady revenue growth.

Kobayashi Pharmaceutical Co Financial Statement Overview

Summary

Kobayashi Pharmaceutical maintains a strong balance sheet with low debt levels and robust equity. However, challenges include declining net profit margins, negative revenue growth, and negative free cash flow, which indicate pressure on profitability and cash flow management.

Income Statement

Kobayashi Pharmaceutical has demonstrated stable revenue generation with a moderate gross profit margin of around 53% for 2024. However, there is a notable decline in net profit margin from 11.7% in 2023 to 6.1% in 2024, indicating pressure on profitability. The revenue growth rate was negative at -4.53% from 2023 to 2024, signaling a contraction. EBIT and EBITDA margins are reasonably healthy but show slight declines, reflecting increased operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.004, reflecting minimal leverage risk. The equity ratio remains robust at approximately 80.4%, indicating strong financial stability and shareholder equity. Return on equity (ROE) has decreased to 4.7% in 2024, reflecting reduced net income relative to equity.

Cash Flow

Free cash flow has turned negative in 2024, a significant drop from the positive free cash flow of 4.79 billion yen in 2023, signaling cash flow challenges. The operating cash flow to net income ratio remains positive, indicating that operating activities are still generating sufficient cash relative to net income, but free cash flow to net income ratio is negative, highlighting concerns over capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
165.60B	173.46B	166.26B	155.25B	150.51B
	Gross Profit
87.60B	96.38B	92.33B	88.77B	85.27B
	EBIT
24.86B	25.78B	26.67B	26.07B	25.94B
	EBITDA
32.73B	33.65B	31.86B	30.79B	29.91B
	Net Income Common Stockholders
10.07B	20.34B	20.02B	19.71B	19.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.75B	79.84B	104.53B	109.05B	94.34B
	Total Assets
265.37B	267.47B	255.83B	252.55B	238.37B
	Total Debt
846.00M	987.00M	792.00M	630.00M	688.00M
	Net Debt
-50.03B	-70.55B	-95.44B	-94.39B	-77.56B
	Total Liabilities
51.90B	62.66B	57.93B	56.95B	55.78B
	Stockholders Equity
213.47B	204.82B	197.90B	195.60B	182.58B
Cash Flow		Free Cash Flow
-14.81B	4.79B	15.69B	18.23B	19.84B
	Operating Cash Flow
11.25B	18.36B	31.91B	22.42B	23.99B
	Investing Cash Flow
-18.41B	-19.58B	-14.31B	7.99B	-12.66B
	Financing Cash Flow
-7.77B	-19.46B	-20.76B	-10.38B	-6.02B

Kobayashi Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5537.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4967, the sentiment is Positive. The current price of 5537 is above the 20-day moving average (MA) of 5305.75, above the 50-day MA of 5348.02, and below the 200-day MA of 5592.48, indicating a neutral trend. The MACD of 70.79 indicates Negative momentum. The RSI at 61.90 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4967.

Kobayashi Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4967	65 Neutral	¥410.64B	38.41	5.17%	2.13%	-8.36%	-38.35%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
KOSCF		$2.29B	61.42	2.08%	0.01%	―	―
LIOPF		$2.91B	19.80	7.58%	1.85%	―	―
PCCOF		$1.74B	11.68	7.98%	2.48%	―	―
PORBF		$2.05B	42.37	4.49%	4.24%	―	―
RPHCF		$3.29B	16.49	12.05%	0.01%	―	―