Otsuka Holdings Co (OTSKY) AI Stock Analysis

• Market Cap: $29.63B
• Dividend Yield: 1.19%
• Average Volume (3M): 4.89K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.21
• Revenue Growth: 7.51%
• EPS Growth: 203.70%
• Country: US
• Employees: 35,338
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.76
• Shares Outstanding: 1,085,977,800
• 10 Day Avg. Volume: 2,307
• 30 Day Avg. Volume: 4,892
• PEG Ratio: 0.07
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 20.55
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.01
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $30.00 ▲(9.77% Upside)

Otsuka Holdings Co's strong financial performance, characterized by robust revenue and profit growth, efficient operations, and effective cash flow management, is the most significant factor contributing to its score. The valuation suggests potential undervaluation, offering an attractive entry point for investors. Technical analysis indicates stability but lacks strong momentum, which slightly tempers the overall score.

Otsuka Holdings Co Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. engages in pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of oncology, cardiovascular system, renal system, digestive system, ophthalmology, diagnostics, and intravenous solutions, as well as medical devices businesses. It also provides EQUELLE, a product for women's health and beauty; BODYMAINTÉ Jelly, a conditioning food product; BODYMAINTÉ Drink, a drinkable-liquid; POCARI SWEAT, a drink; Calorie Mate, a nutritional food; OS-1, an oral rehydration solution; HINEX-R, a concentrated liquid diet; and Oronine H Ointment, a household antiseptic medicine. In addition, the company offers soft drinks, food products, and wines; chemicals; clinical testing and medical equipment; cosmetics; warehousing and transport services; analysis and measurement equipment; pharmaceutical intermediates; vehicle headlight testers; synthetic resin molded products; paper products; artificial turf; ceramic boards, ceramic walls, reliefs, terracotta, OT ceramics, and ceramic portraits and sign boards; functional films; stable isotopes; software and services to enhance management of mental healthcare systems; potassium titanate; polyolefin foams; spring and mineral water; industrial chemicals; hydrazine; insecticide and toiletry products; and adhesive tapes. Further, it operates a hotel. Otsuka Holdings Co., Ltd. was founded in 1921 and is based in Tokyo, Japan.

How the Company Makes Money

Otsuka Holdings generates revenue primarily through its pharmaceutical division, which offers prescription medications for various health conditions, leading to substantial sales from drug formulations, particularly in psychiatry and neurology. This segment is bolstered by ongoing research and development initiatives, resulting in new drug approvals and market expansions. Additionally, the company's consumer health division contributes significantly to its earnings through the sale of nutraceuticals and functional beverages, supported by brand strength and effective marketing strategies. Otsuka also engages in strategic partnerships and collaborations with other pharmaceutical companies for joint ventures, research efforts, and marketing, enhancing its revenue potential. Overall, the company's diverse portfolio and commitment to innovation help sustain its financial growth.

Otsuka Holdings Co Financial Statement Overview

Summary

Otsuka Holdings Co presents a strong financial profile with impressive revenue and profit growth, efficient operations, and a stable balance sheet. The company demonstrates effective cash flow management, supporting its growth and operational efficiency. While the financial statements reflect a positive outlook, continued monitoring of leverage and cash flow sustainability is advised to maintain financial health.

Income Statement

Otsuka Holdings Co has demonstrated strong revenue growth with a TTM growth rate of 35.6%, indicating robust expansion. The company maintains high profitability with a gross profit margin of 72.12% and a net profit margin of 17.02% in the TTM period. EBIT and EBITDA margins are also healthy at 16.89% and 21.46%, respectively, reflecting efficient operations. Overall, the income statement shows a positive trajectory with strong growth and profitability.

Balance Sheet

The balance sheet of Otsuka Holdings Co is stable, with a low debt-to-equity ratio of 0.0777, indicating conservative leverage. The return on equity is strong at 15.41%, showcasing effective use of equity to generate profits. The equity ratio stands at 71.85%, suggesting a solid capital structure. The company has managed to maintain a healthy balance between debt and equity, supporting its financial stability.

Cash Flow

Otsuka Holdings Co exhibits strong cash flow performance with a significant free cash flow growth rate of 382.6% in the TTM period. The operating cash flow to net income ratio is 0.64, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.78, reflecting strong cash conversion. Overall, the cash flow statement highlights robust cash generation and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40T	2.33T	2.02T	1.74T	1.50T	1.42T
Gross Profit	1.73T	1.67T	1.41T	1.17T	1.00T	983.08B
EBITDA	536.85B	452.62B	246.96B	279.83B	231.43B	291.03B
Net Income	408.85B	343.12B	121.62B	133.91B	125.46B	148.14B
Balance Sheet
Total Assets	3.79T	3.74T	3.36T	3.10T	2.82T	2.63T
Cash, Cash Equivalents and Short-Term Investments	436.65B	458.08B	529.40B	489.12B	430.76B	401.77B
Total Debt	211.51B	189.38B	214.19B	194.16B	212.45B	226.08B
Total Liabilities	1.00T	961.09B	924.93B	840.17B	775.73B	744.38B
Stockholders Equity	2.72T	2.73T	2.39T	2.23T	2.01T	1.85T
Cash Flow
Free Cash Flow	340.80B	225.28B	168.56B	104.06B	115.71B	134.96B
Operating Cash Flow	434.32B	354.64B	283.23B	211.85B	228.86B	232.84B
Investing Cash Flow	-237.53B	-265.79B	-190.54B	-81.58B	-95.29B	-99.86B
Financing Cash Flow	-248.59B	-189.37B	-60.26B	-95.47B	-95.84B	-104.93B

Otsuka Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.33
• 50DMA: Negative
• 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 OTSKY, the sentiment is Positive. The current price of 27.33 is above the 20-day moving average (MA) of 27.09, below the 50-day MA of 27.40, and above the 200-day MA of 25.48, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTSKY.

Otsuka Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	77 Outperform	$152.10B	19.00	40.62%	2.62%	2.71%	6407.19%
GSK	77 Outperform	$94.05B	13.25	35.62%	3.59%	5.97%	128.66%
SNY	76 Outperform	$120.76B	12.31	8.39%	4.45%	-9.32%	120.62%
OTSKY	74 Outperform	$29.63B	9.94	15.51%	1.19%	7.51%	203.70%
BIIB	74 Outperform	$22.51B	14.29	9.31%	―	5.00%	-1.03%
BMY	69 Neutral	$94.93B	15.75	33.84%	5.31%	1.26%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Otsuka Holdings Co Corporate Events

Otsuka Holdings Reports Strong Nine-Month Financial Results

Otsuka Holdings Co., Ltd. is a diversified healthcare company listed on the Tokyo Stock Exchange, operating primarily in the pharmaceuticals and nutraceuticals sectors, with a focus on innovative products that promote well-being. The company reported a solid financial performance for the nine-month period ending September 30, 2025, with revenue reaching ¥1,818,743 million, marking a 5.1% increase from the previous year. This growth was driven by strong sales in its pharmaceutical segment, particularly from its antipsychotic and anti-cancer agents, and a steady performance in its nutraceuticals business. Key financial highlights include a significant rise in operating profit by 56.1% to ¥407,421 million and a 55.3% increase in profit attributable to owners of the company, amounting to ¥297,658 million. The company’s strategic focus on expanding its product pipeline and enhancing its market presence was evident with increased research and development expenses and the acquisition of new subsidiaries. Looking ahead, Otsuka Holdings anticipates continued growth, supported by strong product demand and strategic investments, while navigating potential challenges such as pricing policies and tariffs in the U.S.