Otsuka Holdings Co (OTSKY) AI Stock Analysis

• Market Cap: $30.70B
• Dividend Yield: 1.48%
• Average Volume (3M): 4.89K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.15
• 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: 0.86
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $33.00 ▲(11.15% Upside)

Otsuka Holdings Co's stock is supported by strong technical indicators and a solid valuation, which are the most significant factors contributing to the score. While the financial performance shows profitability and stability, concerns about revenue decline and cash flow growth slightly temper the overall score.

Positive Factors

Innovative Product Pipeline

The NDA submission for zipalertinib indicates a strong pipeline in oncology, enhancing Otsuka's competitive position and potential revenue growth.

Strong Profitability

High profit margins demonstrate efficient operations and strong pricing power, supporting long-term financial health and shareholder returns.

Robust Balance Sheet

A low debt-to-equity ratio indicates financial stability, providing flexibility for strategic investments and resilience in economic downturns.

Negative Factors

Revenue Decline

A sharp revenue decline can impact future profitability and market position, posing a challenge to maintaining growth momentum.

Decreasing Free Cash Flow

Reduced free cash flow growth may limit the company's ability to invest in new projects and return capital to shareholders, affecting long-term growth.

Cash Flow Concerns

A lower operating cash flow to net income ratio suggests potential cash generation issues, which could hinder operational flexibility.

Otsuka Holdings Co Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. is a Japanese multinational pharmaceutical and consumer goods company headquartered in Tokyo, Japan. Established in 1921, Otsuka operates primarily in two sectors: pharmaceuticals and nutraceuticals. The company is known for its innovative products, including prescription pharmaceuticals for mental health, oncology, and cardiovascular diseases, as well as consumer products like functional foods and beverages designed to promote health and well-being.

How the Company Makes Money

Otsuka Holdings generates revenue primarily through the sale of pharmaceutical products, which account for a significant portion of its income. The company markets a range of prescription drugs, with a strong focus on areas such as psychiatry, neurology, and oncology. Key revenue streams include the commercialization of patented drugs and ongoing sales of established products. Additionally, Otsuka diversifies its income through its nutraceutical segment, which includes health supplements and functional beverages. The company often engages in strategic partnerships and collaborations with other pharmaceutical firms, research institutions, and healthcare organizations to enhance its product offerings and expand market reach. This collaborative approach contributes to its earnings by enabling access to new technologies and markets, as well as sharing research and development costs.

Otsuka Holdings Co Financial Statement Overview

Summary

Otsuka Holdings Co shows strong profitability with high margins and a robust balance sheet with low leverage. However, a significant revenue decline and decrease in free cash flow growth are concerns that impact the overall financial performance score.

Income Statement

Otsuka Holdings Co shows strong profitability with a high gross profit margin of 71.72% and a net profit margin of 18.57% for TTM (Trailing-Twelve-Months). However, the company experienced a significant revenue decline of 25.68% in the latest period, which is a concern. The EBIT and EBITDA margins are healthy, indicating efficient operations, but the revenue contraction impacts the overall score.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.076, indicating low leverage and financial stability. The return on equity is strong at 16.39%, reflecting effective use of equity to generate profits. The equity ratio is solid, suggesting a strong capital structure. Overall, the balance sheet reflects financial health and stability.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 37.73% in the latest period, which is a concern. However, the operating cash flow to net income ratio is reasonable at 0.56, and the free cash flow to net income ratio is healthy at 0.77. Despite the decline in free cash flow, the company maintains a decent cash flow position relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78T	2.33T	2.02T	1.74T	1.50T	1.42T
Gross Profit	1.28T	1.67T	1.41T	1.17T	1.00T	983.08B
EBITDA	369.94B	452.62B	246.96B	279.83B	231.43B	291.03B
Net Income	325.82B	343.12B	121.62B	133.91B	125.46B	148.14B
Balance Sheet
Total Assets	26.81B	3.74T	3.36T	3.10T	2.82T	2.63T
Cash, Cash Equivalents and Short-Term Investments	3.33B	458.08B	529.40B	489.12B	430.76B	401.77B
Total Debt	1.48B	189.38B	214.19B	194.16B	212.45B	226.08B
Total Liabilities	7.00B	961.09B	924.93B	840.17B	775.73B	744.38B
Stockholders Equity	19.36B	2.73T	2.39T	2.23T	2.01T	1.85T
Cash Flow
Free Cash Flow	212.23B	225.28B	168.56B	104.06B	115.71B	134.96B
Operating Cash Flow	285.53B	354.64B	283.23B	211.85B	228.86B	232.84B
Investing Cash Flow	-56.18B	-265.79B	-190.54B	-81.58B	-95.29B	-99.86B
Financing Cash Flow	-241.65B	-189.37B	-60.26B	-95.47B	-95.84B	-104.93B

Otsuka Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 29.69 is above the 20-day moving average (MA) of 29.34, above the 50-day MA of 27.98, and above the 200-day MA of 25.98, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 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
BMY	78 Outperform	$111.38B	18.47	33.84%	4.84%	1.26%	―
GILD	78 Outperform	$155.92B	19.47	40.53%	2.52%	2.76%	6407.19%
GSK	77 Outperform	$98.33B	13.77	35.62%	3.41%	5.97%	128.66%
SNY	75 Outperform	$116.39B	12.02	8.39%	4.58%	-9.32%	120.62%
BIIB	74 Outperform	$25.87B	16.15	9.31%	―	5.00%	-1.03%
OTSKY	73 Outperform	$30.70B	10.36	15.51%	1.48%	7.51%	203.70%
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.