Suzuken Co (9987) AI Stock Analysis

• Market Cap: ¥374.99B
• Dividend Yield: 1.6%
• Average Volume (3M): 163.97K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.40
• Revenue Growth: 1.37%
• EPS Growth: -1.55%
• Country: JP
• Employees: 13,086
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 211.65
• Shares Outstanding: 72,167,206
• 10 Day Avg. Volume: 143,650
• 30 Day Avg. Volume: 163,966
• PEG Ratio: 0.40
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -4.48
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 452.83
• Revenue Forecast (FY): ¥2.49T

• Rating: 69 Neutral
• Price Target: ¥7,234.00 ▲(14.15% Upside)
• Action: Reiterated Date: 08/30/25
• Date: Action: Reiterated 08/30/25

Suzuken Co's overall stock score reflects a strong balance sheet and moderate valuation, but is tempered by significant revenue decline and cash flow challenges. Technical indicators suggest a stable market position, but the lack of earnings call data and corporate events limits further insights.

Positive Factors

Very low leverage and healthy equity base

An extremely low debt-to-equity ratio and a healthy equity ratio give Suzuken durable financial resilience. Minimal leverage reduces insolvency risk and preserves capacity to fund working capital, make targeted investments, or absorb shocks during a revenue downturn without pressuring interest coverage.

Stable gross margins and improving operating metrics

Consistent ~8% gross margin and modest improvements in EBIT/EBITDA indicate disciplined cost control and operational efficiency. These margin dynamics support long-term profitability even if top-line growth weakens, enabling the company to defend cash generation and reinvest in logistics or IT.

Extensive distribution network and service diversification

A broad distribution network and strong provider relationships are structural advantages that sustain recurring sales and high customer retention. Complementary healthcare IT services and partnerships create cross-sell opportunities and make the business less vulnerable to single-product cycles over a multi-month horizon.

Negative Factors

Large recent revenue decline

A ~45% drop in reported revenue is a material structural weakness: it reduces scale advantages, strains fixed-cost absorption, and can trigger margin pressure if not reversed. Sustained revenue erosion would impair strategic investments and weaken competitive positioning over the coming months.

Negative operating and free cash flows

Negative operating and free cash flows signal persistent cash generation problems that limit internal funding for inventory, capex, or IT upgrades. Even with low debt, weak cash flow forces reliance on external financing or asset sales, constraining strategic flexibility and dividend policy sustainability.

Revenue concentration in pharmaceutical wholesale

Heavy dependence on pharmaceutical wholesale concentrates exposure to pricing pressure, manufacturer terms, reimbursement changes, and regulatory shifts. Limited revenue diversification makes top-line and margin recovery more difficult if market structure or customer procurement practices change.

Suzuken Co Business Overview & Revenue Model

Company Description

Suzuken Co., Ltd., together with its subsidiaries, primarily engages in the wholesale of pharmaceuticals in Japan and internationally. The company operates in four segments: Pharmaceutical Distribution Business, Pharmaceutical Manufacturing Business, Pharmacy Business, and Healthcare-Related Services Business. The Pharmaceutical Distribution Business segment procures ethical drugs, diagnostic reagents, medical equipment and supplies, and other health-related items from manufacturers and supplies to medical institutions and pharmacies. The Pharmaceutical Manufacturing Business segment engages in the research and development, manufacturing, and marketing of ethical pharmaceuticals and diagnostic products focusing on the areas of diabetes and kidney diseases. The Pharmacy Business segment provides services through family pharmacists, as well as improves the operations of local pharmacies and provides educational support. The Healthcare-Related Services Business segment provides manufacturer support services, such as contract distribution for manufacturers; distribution of orphan drugs; and nursing care services, as well as develops, manufactures, and sells electrocardiographs, sphygmomanometers, stethoscopes, medical materials, and health promotion equipment. Suzuken Co., Ltd. also publishes medical magazines for medical institutions. The company has collaboration with Bushu Pharmaceuticals Ltd. provide contract specialty drug services. Suzuken Co., Ltd. was founded in 1932 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Suzuken generates revenue primarily through the wholesale distribution of pharmaceutical products, which constitutes the bulk of its sales. The company has established a comprehensive supply chain, enabling efficient delivery and logistics services to healthcare institutions. Key revenue streams include the sale of prescription medications, over-the-counter drugs, and medical devices. Additionally, Suzuken earns income from its healthcare information systems by providing software solutions that improve operational efficiencies for healthcare providers. Strategic partnerships with pharmaceutical manufacturers and healthcare organizations further enhance its revenue potential, as these collaborations can lead to exclusive distribution agreements and innovative product offerings.

Suzuken Co Financial Statement Overview

Summary

Suzuken Co's financial performance is marked by a strong balance sheet with low leverage and effective equity utilization. However, the sharp decline in revenue growth and cash flow issues are significant concerns that need addressing to ensure liquidity and operational sustainability.

Income Statement

Suzuken Co's income statement shows a stable gross profit margin of around 8% over the years, indicating consistent cost management. The net profit margin has improved slightly, reaching 1.44% in the latest year, reflecting better profitability. However, the revenue growth rate has turned negative at -45.2%, which is a significant concern. EBIT and EBITDA margins have shown slight improvements, suggesting operational efficiencies.

Balance Sheet

The balance sheet of Suzuken Co is strong, with a very low debt-to-equity ratio of 0.0044, indicating minimal leverage and financial risk. The return on equity has improved to 8.47%, showing effective use of equity to generate profits. The equity ratio is healthy, suggesting a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the latest period, indicating liquidity issues. The free cash flow to net income ratio is positive, suggesting that despite negative cash flows, the company is generating sufficient net income. However, the operating cash flow to net income ratio is negative, highlighting potential cash flow management issues.

Breakdown	TTM	Mar 2026	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.41T	2.40T	2.39T	2.31T	2.23T	2.13T
Gross Profit	192.18B	192.23B	185.25B	179.69B	167.33B	157.84B
EBITDA	49.42B	62.38B	51.40B	39.48B	32.55B	22.92B
Net Income	33.32B	34.50B	29.02B	20.34B	14.39B	7.89B
Balance Sheet
Total Assets	1.15T	1.11T	1.23T	1.15T	1.14T	1.11T
Cash, Cash Equivalents and Short-Term Investments	142.20B	141.58B	242.11B	192.70B	201.46B	212.12B
Total Debt	23.85B	1.80B	1.80B	1.80B	2.12B	2.28B
Total Liabilities	744.12B	706.41B	812.26B	734.57B	723.66B	696.51B
Stockholders Equity	402.16B	407.29B	416.31B	411.21B	417.69B	417.05B
Cash Flow
Free Cash Flow	0.00	-83.73B	71.58B	19.53B	-4.77B	7.74B
Operating Cash Flow	0.00	-65.08B	87.22B	37.27B	9.52B	15.60B
Investing Cash Flow	0.00	20.38B	10.35B	-46.36B	1.44B	-14.59B
Financing Cash Flow	0.00	-35.48B	-31.72B	-26.22B	-11.60B	-7.39B

Suzuken Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6337.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9987, the sentiment is Positive. The current price of 6337 is below the 20-day moving average (MA) of 6376.30, above the 50-day MA of 6304.98, and above the 200-day MA of 5817.53, indicating a bullish trend. The MACD of 44.43 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 78.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9987.

Suzuken Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2784	78 Outperform	¥511.23B	14.47	4.94%	2.69%	5.11%	-20.51%
7649	75 Outperform	¥676.63B	15.36	15.71%	0.96%	21.81%	67.76%
9987	69 Neutral	¥374.99B	13.41	7.09%	1.60%	1.37%	-1.55%
9989	69 Neutral	¥493.65B	15.85	11.50%	3.04%	6.32%	8.19%
7459	68 Neutral	¥556.39B	15.27	6.39%	2.27%	3.88%	-10.72%
3549	67 Neutral	¥388.58B	21.76	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Suzuken Co Corporate Events

Suzuken Reshapes Pharmaceutical Logistics with Intra-Group Split and New Subsidiary

Suzuken will restructure its intra-group logistics operations by carving out S.D. Collabo’s manufacturer logistics services into a new wholly owned subsidiary, Collabo CREATE Co., Ltd., while leaving S.D. Collabo focused on its specialty drug contract distribution business. The move aims to deepen specialization, strengthen logistics frameworks for pharmaceutical clients, and support further growth in a competitive market.

In parallel, Suzuken will absorb manufacturer logistics-related assets from S.D. Logi to the parent company to improve overall efficiency and talent development across the group’s logistics platform. The reorganization consolidates nearly two decades of logistics know-how into more clearly defined entities, positioning the group to better address social challenges such as cost control and stable supply in pharmaceutical distribution.

The most recent analyst rating on (JP:9987) stock is a Hold with a Yen7029.00 price target. To see the full list of analyst forecasts on Suzuken Co stock, see the JP:9987 Stock Forecast page.

Suzuken posts higher sales but weaker profits and lower equity ratio for nine months

Suzuken reported consolidated net sales of ¥1.89 trillion for the nine months to December 31, 2025, up 2.6% year on year, while operating and ordinary profits declined 8.6% and 5.2%, respectively. Profit attributable to owners of parent inched up 1.1% to ¥31.0 billion, with basic earnings per share rising to ¥439.74, aided by a lower average share count following share repurchases.

Total assets expanded sharply to ¥1.31 trillion from ¥1.11 trillion at the previous fiscal year-end, but the equity ratio fell to 31.0% from 36.6%, indicating higher leverage or liabilities on the balance sheet. The company kept its dividend policy unchanged, maintaining an annual forecast of ¥100 per share, and reiterated its full-year guidance, projecting modest 2.8% sales growth but mid‑ to high‑single‑digit declines in profits, suggesting margin pressure despite revenue expansion.

The most recent analyst rating on (JP:9987) stock is a Hold with a Yen7029.00 price target. To see the full list of analyst forecasts on Suzuken Co stock, see the JP:9987 Stock Forecast page.

Suzuken Updates Progress on Ongoing Share Repurchase Program

Suzuken Co., Ltd. reported the January 2026 progress of its ongoing share repurchase program, buying back 403,200 common shares on the Tokyo Stock Exchange during the month for a total of ¥2.54 billion. Under a previously approved resolution allowing repurchases of up to 5.2 million shares or ¥26 billion between May 2025 and March 2026, Suzuken has cumulatively bought back 3,978,800 shares for approximately ¥22.92 billion as of January 30, 2026, signaling continued execution of its capital allocation strategy and a focus on enhancing shareholder value through reducing shares outstanding.

The most recent analyst rating on (JP:9987) stock is a Hold with a Yen6869.00 price target. To see the full list of analyst forecasts on Suzuken Co stock, see the JP:9987 Stock Forecast page.

Suzuken Advances Toward Completion of ¥26 Billion Share Buyback Program

Suzuken Co., Ltd. reported that it repurchased 370,700 of its common shares on the Tokyo Stock Exchange during December 2025 for a total of approximately ¥2.27 billion, as part of an ongoing share buyback program authorized under Japan’s Companies Act. Cumulatively, under the buyback framework approved in May 2025, the company has acquired 3,575,600 shares for about ¥20.39 billion as of December 30, 2025, moving significantly toward its ceiling of 5.2 million shares or ¥26 billion and signaling continued emphasis on shareholder returns and capital efficiency.

The most recent analyst rating on (JP:9987) stock is a Buy with a Yen6800.00 price target. To see the full list of analyst forecasts on Suzuken Co stock, see the JP:9987 Stock Forecast page.

Suzuken Co. Updates on November 2025 Share Repurchase

Suzuken Co., Ltd. announced the results of its share repurchase program for November 2025, where it repurchased 471,900 common shares for approximately ¥2.77 billion. This activity is part of a larger repurchase plan initiated in May 2025, aiming to buy back up to 5.2 million shares by March 2026, reflecting the company’s strategy to enhance shareholder value.

The most recent analyst rating on (JP:9987) stock is a Buy with a Yen6800.00 price target. To see the full list of analyst forecasts on Suzuken Co stock, see the JP:9987 Stock Forecast page.