Want to see OTSKY full AI Analyst Report?
Top Page
Otsuka Holdings Co
(OTC:OTSKY)
Select Model
Select Model
Rating:80Outperform
Price Target:
$42.00
▲(23.31% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance—especially a very conservative balance sheet and improved recent profitability—tempered by less consistent cash conversion and historical variability in margins. Technicals are supportive with the price above major moving averages, though near-overbought momentum readings reduce the technical score. Valuation appears reasonable (mid P/E with a modest yield), providing a steady but not standout contribution.
Positive Factors
Conservative balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility. This minimizes refinancing and interest risks, supports sustained R&D and capex funding, and creates capacity for opportunistic M&A or shareholder returns without stressing earnings power.
Negative Factors
Weak cash conversion
Cash covers only ~55% of reported earnings, implying working-capital timing or non-cash profit components. Persistently weak conversion erodes earnings quality, limits internal funding for growth, and raises sensitivity to receivables or inventory swings over medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility. This minimizes refinancing and interest risks, supports sustained R&D and capex funding, and creates capacity for opportunistic M&A or shareholder returns without stressing earnings power.
Read all positive factors
Otsuka Holdings Co (OTSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.18B
Dividend Yield1.14%
Average Volume (3M)4.89K
Price to Earnings (P/E)15.7
Beta (1Y)0.22
Revenue Growth5.68%
EPS Growth-1.94%
CountryUS
Employees37,758
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)389.53
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.01
Revenue Forecast (FY)$16.60B
Otsuka Holdings Co Business Overview & Revenue Model
Company Description
Otsuka Holdings Co., Ltd. engages in the management of its group companies which are in the pharmaceuticals business. It operates through the following segments: Pharmaceuticals, Nutraceuticals, Consumer Products, and Others. The Pharmaceuticals s...
How the Company Makes Money
Otsuka Holdings makes money mainly by selling products through its operating subsidiaries across two core business areas: (1) Pharmaceuticals and (2) Consumer health/nutrition. In Pharmaceuticals, revenue is generated from sales of prescription dr...
Otsuka Holdings Co Earnings Call Summary
Earnings Call Date:Aug 01, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 04, 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
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.66T | 2.59T | 2.33T | 2.02T | 1.74T | 1.50T |
| Gross Profit | 1.91T | 1.86T | 1.67T | 1.41T | 1.17T | 1.00T |
| EBITDA | 625.50B | 554.23B | 452.62B | 246.96B | 279.83B | 231.43B |
| Net Income | 411.93B | 380.76B | 343.12B | 121.62B | 133.91B | 125.46B |
Balance Sheet | ||||||
| Total Assets | 4.40T | 4.20T | 3.74T | 3.36T | 3.10T | 2.82T |
| Cash, Cash Equivalents and Short-Term Investments | 505.94B | 569.00B | 458.08B | 529.40B | 489.12B | 430.76B |
| Total Debt | 194.20B | 227.97B | 189.38B | 214.19B | 194.16B | 212.45B |
| Total Liabilities | 1.09T | 1.10T | 961.09B | 924.93B | 840.17B | 775.73B |
| Stockholders Equity | 3.24T | 3.04T | 2.73T | 2.39T | 2.23T | 2.01T |
Cash Flow | ||||||
| Free Cash Flow | 328.28B | 331.04B | 225.28B | 168.56B | 104.06B | 115.71B |
| Operating Cash Flow | 417.70B | 423.14B | 354.64B | 283.23B | 211.85B | 228.86B |
| Investing Cash Flow | -210.16B | -169.42B | -265.79B | -190.54B | -81.58B | -95.29B |
| Financing Cash Flow | -168.60B | -144.00B | -189.37B | -60.26B | -95.47B | -95.84B |
Otsuka Holdings Co Technical Analysis
Positive
34.06
Price Trends
34.55
Positive
34.62
Positive
32.17
Positive
Market Momentum
1.39
Negative
65.02
Neutral
73.19
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 34.06 is below the 20-day moving average (MA) of 36.25, below the 50-day MA of 34.55, and above the 200-day MA of 32.17, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 73.19 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $41.18B | 15.66 | 13.24% | 1.27% | 5.68% | -1.94% | |
74 Outperform | $132.06B | 14.06 | 46.75% | 3.84% | 3.13% | 83.17% | |
72 Outperform | $100.64B | 15.15 | 28.35% | 3.50% | 8.82% | 48.32% | |
70 Outperform | $171.29B | -53.22 | -16.28% | 2.49% | 6.05% | -151.43% | |
69 Neutral | $106.05B | 23.09 | 5.52% | 5.58% | 23.68% | -30.90% | |
68 Neutral | $31.12B | 36.94 | 4.52% | ― | 0.53% | -45.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
OTSKY
Otsuka Holdings Co
37.82
11.26
42.39%
BIIB
Biogen
209.83
71.23
51.39%
BMY
Bristol-Myers Squibb
63.83
17.61
38.10%
GILD
Gilead Sciences
138.36
23.00
19.93%
GSK
GlaxoSmithKline
49.52
11.49
30.20%
SNY
Sanofi
43.72
-4.14
-8.65%
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.