Kobayashi Pharmaceutical Co (4967) AI Stock Analysis

• Market Cap: ¥432.37B
• Dividend Yield: 1.95%
• Average Volume (3M): 221.72K
• Price to Earnings (P/E): 118.5
• Beta (1Y): 0.27
• Revenue Growth: -3.33%
• EPS Growth: 13.76%
• Country: JP
• Employees: 3,615
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -42.41
• Shares Outstanding: 78,050,000
• 10 Day Avg. Volume: 218,190
• 30 Day Avg. Volume: 221,720
• PEG Ratio: -1.73
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 32.71
• 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: ¥5,281.00
• Price Target Upside: -1.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 189.85
• Revenue Forecast (FY): ¥173.01B

• Rating: 65 Neutral
• Price Target: ¥5,952.00 ▲(10.88% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by a very strong, low-debt balance sheet and improving 2025 cash generation, alongside moderately positive price momentum. Offsetting these positives are the sharp deterioration in profitability since 2023 and a very high P/E valuation.

Positive Factors

Conservative balance sheet

Minimal debt and large stable equity provide durable financial resilience. Low leverage reduces solvency risk, preserves borrowing capacity for capex or M&A, and supports ongoing operations and payouts during cyclical weakness, strengthening strategic optionality over months.

Improved cash generation (2025)

A material rebound in operating cash flow and return to positive free cash flow improves funding reliability. Sustained cash generation supports reinvestment in product development, marketing and distribution, lowers reliance on external financing, and underpins longer-term operational plans.

Stable branded consumer business

Core sales of everyday OTC and household brands sold through broad retail and online channels produce recurring demand. Brand recognition and repeat purchase behavior support predictable revenue streams and margin stability, aiding planning and resilience across multi-month horizons.

Negative Factors

Sharp profitability deterioration

A steep multi-year decline in net income signals material margin pressure and weakening operating performance. Persistently lower profits constrain reinvestment, limit flexibility on pricing or promotions, and erode long-term returns unless structural cost or revenue drivers are restored.

Volatile cash conversion

Large swings in free cash flow indicate inconsistent conversion of earnings into liquidity. Such volatility complicates capital allocation, may force short-term funding measures or deferrals of investment, and raises execution risk for multi-month growth or restructuring plans.

Low growth and weakening returns

Moderate top-line growth and a marked drop in ROE to ~4.7% reflect reduced capital efficiency. Over the medium term this limits the company's ability to generate attractive returns on incremental investment and may require strategic changes to restore growth and profitability.

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., Ltd. generates revenue primarily through the sale of its over-the-counter (OTC) medications, household products, and personal care goods. The company markets a diverse portfolio of products that target everyday health and hygiene needs, such as cold remedies, pain relief medications, and skin care solutions. It also engages in the development and sale of health supplements. The company's revenue model is driven by its strong distribution network, brand recognition, and its ability to consistently launch innovative products that meet consumer demands. Additionally, strategic partnerships and collaborations may also play a role in expanding its market reach and enhancing its product offerings.

Kobayashi Pharmaceutical Co Financial Statement Overview

Summary

Financials are mixed: an exceptionally conservative balance sheet with minimal debt supports resilience, and operating/free cash flow improved in 2025. However, profitability has deteriorated sharply since 2023 (large declines in operating profit and net income), which meaningfully drags the overall financial profile.

Income Statement

Revenue has been broadly stable with low growth (2025 up ~2.6% after a small decline in 2024). However, profitability has deteriorated sharply: net income fell from ~¥20.3B (2023) to ~¥10.1B (2024) and ~¥3.7B (2025), and operating profit also dropped materially versus prior years. While the business historically showed strong margins (2020–2023), the recent step-down in earnings meaningfully weakens the income statement profile.

Balance Sheet

The balance sheet is very conservatively financed. Debt is minimal (well under 1% of equity in recent years) and equity is large and stable (~¥205–213B) against total assets (~¥255–275B). Returns on equity were strong around ~10% in 2020–2023, but weakened to ~4.7% in 2024, reflecting the recent earnings pressure rather than leverage risk.

Cash Flow

Cash generation is volatile. Operating cash flow rebounded strongly in 2025 (~¥25.6B) versus 2024 (~¥11.2B), but free cash flow swung from positive in 2020–2023 to deeply negative in 2024 (about -¥14.8B) before recovering to positive in 2025 (~¥12.3B). The 2024 shortfall versus net income indicates weaker cash conversion that year, even though the latest period shows improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	161.48B	165.74B	165.60B	173.46B	166.26B	155.25B
Gross Profit	82.30B	79.44B	87.60B	96.38B	92.33B	88.77B
EBITDA	28.46B	23.59B	21.96B	33.65B	33.33B	32.49B
Net Income	11.79B	3.66B	10.07B	20.34B	20.02B	19.71B
Balance Sheet
Total Assets	260.71B	275.33B	265.37B	267.47B	255.83B	252.55B
Cash, Cash Equivalents and Short-Term Investments	69.67B	70.61B	65.75B	79.84B	104.53B	109.05B
Total Debt	749.00M	678.00M	846.00M	987.00M	792.00M	630.00M
Total Liabilities	52.47B	64.32B	51.90B	62.66B	57.93B	56.95B
Stockholders Equity	208.24B	211.00B	213.47B	204.82B	197.90B	195.60B
Cash Flow
Free Cash Flow	0.00	12.34B	-14.81B	4.79B	15.69B	18.23B
Operating Cash Flow	0.00	25.59B	11.25B	18.36B	31.91B	22.42B
Investing Cash Flow	0.00	-154.00M	-18.41B	-19.58B	-14.31B	7.99B
Financing Cash Flow	0.00	-7.92B	-7.77B	-19.46B	-20.76B	-10.38B

Kobayashi Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5368.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5368 is below the 20-day moving average (MA) of 5542.35, below the 50-day MA of 5461.76, and above the 200-day MA of 5310.89, indicating a bullish trend. The MACD of 96.92 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 91.32 is Negative, 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
4912	76 Outperform	¥498.97B	18.43	9.77%	1.73%	2.18%	60.81%
4527	71 Outperform	¥566.93B	16.01	13.22%	1.53%	18.35%	31.87%
4452	70 Outperform	¥3.02T	25.64	11.70%	2.41%	4.62%	47.68%
4922	69 Neutral	¥355.71B	23.54	2.72%	2.61%	1.37%	-5.60%
4967	65 Neutral	¥432.37B	118.54	5.37%	1.95%	-3.33%	13.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4911	58 Neutral	¥1.32T	-32.41	―	2.11%	-1.20%	-2896.72%