Otsuka Holdings Co Ltd (OTSKY)
OTHER OTC:OTSKY
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Otsuka Holdings Co
(OTC:OTSKY)
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Rating:81Outperform
Price Target:
$42.00
▲(41.46% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by strong financial quality—high margins with a clear earnings recovery and a very low-leverage balance sheet—tempered by less consistent cash conversion and a small recent dip in free cash flow growth. Technicals add support via a clear uptrend and positive MACD, though momentum looks somewhat stretched. Valuation is reasonably attractive on P/E, but the low dividend yield reduces the valuation score.
Positive Factors
High & improving margins
Sustained high gross and improving operating/net margins indicate durable pricing power and cost structure advantages across segments. This margin profile supports reinvestment in R&D and commercial expansion, and provides a long-term earnings cushion versus cyclical headwinds.
Negative Factors
Inconsistent cash conversion
Operating cash flow lags net income and free cash flow growth has slightly turned negative, suggesting working-capital timing or structural conversion issues. That variability weakens predictability of cash available for dividends, buybacks, or incremental R&D over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High & improving margins
Sustained high gross and improving operating/net margins indicate durable pricing power and cost structure advantages across segments. This margin profile supports reinvestment in R&D and commercial expansion, and provides a long-term earnings cushion versus cyclical headwinds.
Read all positive factors
Otsuka Holdings Co (OTSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.29B
Dividend Yield1.48%
Average Volume (3M)4.89K
Price to Earnings (P/E)14.8
Beta (1Y)>-0.01
Revenue Growth6.33%
EPS Growth10.79%
CountryUS
Employees35,338
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.58
Shares Outstanding1,085,977,800
10 Day Avg. Volume2,307
30 Day Avg. Volume4,892
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.55
Price to Sales (P/S)1.82
P/FCF Ratio14.23
Enterprise Value/Market Cap146.21
Enterprise Value/Revenue2.19
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda9.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.8
Revenue Forecast (FY)$16.17B
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,...
How the Company Makes Money
Otsuka makes money mainly by selling products across two core segments: (1) Pharmaceuticals and (2) Nutraceuticals/Consumer health (often referred to as nutraceuticals). In pharmaceuticals, revenue is generated from the sale of prescription medici...
Otsuka Holdings Co Earnings Call Summary
Earnings Call Date:Aug 01, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance in both pharmaceutical and nutraceutical segments with significant revenue and profit growth, and positive strategic expansions such as the acquisition for drug discovery. However, there were challenges such as impairment losses and increased SG&A expenses.Positive Updates
Significant Revenue and Profit Growth
Revenue increased by 17.0% to JPY 1,108.9 billion, and business profit grew by 37.8% to JPY 213.6 billion year-on-year, highlighting strong performance in pharmaceutical and nutraceutical segments.
Negative Updates
Impairment Loss Impact
Operating profit was impacted by an impairment loss on AVP-786, which led to strategic discontinuation of its development.
Read all updates
Q2-2024 Updates
Positive
Negative
Significant Revenue and Profit Growth
Revenue increased by 17.0% to JPY 1,108.9 billion, and business profit grew by 37.8% to JPY 213.6 billion year-on-year, highlighting strong performance in pharmaceutical and nutraceutical segments.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for 4578.T, significant financial growth was highlighted, with revenue increasing by 17.0% to JPY 1,108.9 billion and business profit rising by 37.8% to JPY 213.6 billion year-on-year, driven by strong performance in pharmaceutical and nutraceutical segments. Despite an impairment loss on AVP-786 affecting operating profit, net profit climbed by 5.1% due to finance income. The pharmaceutical business saw revenue increase by 17.9% to JPY 766.7 billion, bolstered by products like ABILIFY MAINTENA and JYNARQUE, while LONSURF achieved significant gains through colorectal cancer treatment guidelines endorsements. Nutraceuticals experienced over 20% growth, with revenue reaching JPY 271.8 billion, fueled by a 56.9% rise in the For Women's Health category. The company revised its full-year forecast, raising revenue expectations by JPY 175 billion to JPY 2,315 billion and business profit projections by JPY 60 billion to JPY 390 billion, aiming to maintain momentum through strategic investments and addressing social issues.Otsuka Holdings Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.55T | 2.59T | 2.33T | 2.02T | 1.74T | 1.50T |
| Gross Profit | 1.82T | 1.86T | 1.67T | 1.41T | 1.17T | 1.00T |
| EBITDA | 580.19B | 554.23B | 452.62B | 246.96B | 279.83B | 231.43B |
| Net Income | 381.66B | 380.76B | 343.12B | 121.62B | 133.91B | 125.46B |
Balance Sheet | ||||||
| Total Assets | 4.23T | 4.20T | 3.74T | 3.36T | 3.10T | 2.82T |
| Cash, Cash Equivalents and Short-Term Investments | 540.63B | 535.01B | 458.08B | 529.40B | 489.12B | 430.76B |
| Total Debt | 195.47B | 307.25B | 189.38B | 214.19B | 194.16B | 212.45B |
| Total Liabilities | 1.04T | 1.10T | 961.09B | 924.93B | 840.17B | 775.73B |
| Stockholders Equity | 3.12T | 3.04T | 2.73T | 2.39T | 2.23T | 2.01T |
Cash Flow | ||||||
| Free Cash Flow | 320.05B | 331.04B | 225.28B | 168.56B | 104.06B | 115.71B |
| Operating Cash Flow | 414.97B | 423.14B | 354.64B | 283.23B | 211.85B | 228.86B |
| Investing Cash Flow | -56.60B | -169.42B | -265.79B | -190.54B | -81.58B | -95.29B |
| Financing Cash Flow | -139.13B | -144.00B | -189.37B | -60.26B | -95.47B | -95.84B |
Otsuka Holdings Co Technical Analysis
Neutral
29.69
Price Trends
33.55
Negative
31.33
Positive
28.79
Positive
Market Momentum
-0.04
Positive
46.28
Neutral
23.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTSKY, the sentiment is Neutral. The current price of 29.69 is below the 20-day moving average (MA) of 34.25, below the 50-day MA of 33.55, and above the 200-day MA of 28.79, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OTSKY.
Otsuka Holdings Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $38.29B | 14.79 | 12.90% | 1.48% | 6.33% | 10.79% | |
71 Outperform | $27.94B | 21.12 | 7.28% | ― | 2.11% | -7.88% | |
71 Outperform | $123.71B | 11.57 | 39.27% | 4.11% | 1.78% | 33.76% | |
69 Neutral | $112.68B | 15.55 | 14.41% | 4.58% | 11.19% | -0.23% | |
68 Neutral | $104.53B | 12.08 | 37.19% | 3.41% | 9.19% | 98.98% | |
65 Neutral | $162.40B | 17.94 | 41.01% | 2.52% | 2.51% | 1682.88% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OTSKY
Otsuka Holdings Co
35.81
9.04
33.78%
BIIB
Biogen
187.06
65.26
53.58%
BMY
Bristol-Myers Squibb
58.22
10.54
22.11%
GILD
Gilead Sciences
131.65
31.50
31.46%
GSK
GlaxoSmithKline
51.61
14.25
38.14%
SNY
Sanofi
46.08
-6.82
-12.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.