Santen Pharmaceutical Co (SNPHY) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: 2.02%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.03
• Revenue Growth: -3.03%
• EPS Growth: 27.51%
• Country: US
• Employees: 3,744
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.16
• Shares Outstanding: 322,273,960
• 10 Day Avg. Volume: 2,904
• 30 Day Avg. Volume: 1,010
• PEG Ratio: 0.32
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 9.12
• Enterprise Value/Market Cap: 149.90
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 8.53
• 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: 65 Neutral
• Price Target: $12.00 ▲(9.09% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is primarily driven by financial performance: strong leverage profile and profitability are offset by a pronounced TTM revenue decline and softer cash-flow momentum. Technicals and valuation are both neutral-to-slightly positive, offering limited additional support.

Positive Factors

Conservative Balance Sheet

Santen’s low debt-to-equity (~0.13) and sizable equity base provide enduring financial flexibility. This conservative financing lowers refinancing risk, supports continued R&D and manufacturing investment, and creates capacity to absorb shocks or pursue strategic deals without levering up.

Sustained Profitability

Healthy gross and operating margins and a return to positive net margins indicate durable underlying profitability. Recovery from the 2023 loss to consistent TTM profits suggests effective cost control and pricing in core ophthalmology franchises, supporting long-term cash generation and reinvestment capacity.

Strong Cash Generation

Robust absolute operating and free cash flows with FCF covering most net income underpin the company’s ability to self-fund operations, R&D and capital spending. Positive cash generation reduces reliance on external financing and supports sustainable investment or shareholder returns over time.

Negative Factors

Sharp Revenue Decline

A ~-74% TTM revenue contraction is a material structural headwind: it erodes market share, limits scale benefits, and undermines the sustainability of margins and R&D funding. Restoring top-line growth is essential for long-term earnings durability and competitive positioning.

Weakened Cash Conversion

Declining cash conversion and sharply negative free cash flow growth signal weakening operational cash momentum. Even with positive FCF in absolute terms, lower conversion reduces internal funding available for pipelines and capex, increasing exposure if revenue weakness persists.

Balance Sheet Contraction

A downward trend in total assets and equity suggests balance-sheet contraction that can limit strategic flexibility. Shrinking asset and equity bases reduce the company’s cushion against shocks, may constrain scale economies, and could signal structural challenges to long-term growth.

Santen Pharmaceutical Co Business Overview & Revenue Model

Company Description

Santen Pharmaceutical Co., Ltd. researches and develops, manufactures, and markets pharmaceuticals and medical devices in Japan and internationally. It offers various pharmaceutical products to treat glaucoma and ocular hypertension, such as DE-111, which is in Phase III clinical trial; DE-117 in Japan; DE-126 that is in Phase IIb clinical trial; DE-128 in Europe, as well as is in Phase II/III clinical trial in the United States; and DE-130A that is in Phase III clinical trial. In addition, the company provides DE-114A to treat allergic conjunctivitis; DE-076C for the treatment of vernal keratoconjunctivitis; and DE-109, which is in Phase III clinical trial to treat uveitis. Further, it offers DE-127 to treat myopia, which is in Phase II/III clinical trial in Japan, as well as is in Phase III in Asia; DE-089C, which has completed Phase III clinical trials for the treatment of dry eye; and STN1013400, which is in Phase I clinical trials for the treatment of myopia. Additionally, the company offers over-the-counter pharmaceutical products. The company was formerly known as Santendo Pharmaceutical Co., Ltd. and changed its name to Santen Pharmaceutical Co., Ltd. in 1958. Santen Pharmaceutical Co., Ltd. was founded in 1890 and is headquartered in Osaka, Japan.

How the Company Makes Money

Santen Pharmaceutical generates revenue primarily through the sale of its ophthalmic products, which include prescription drugs, surgical devices, and consumer health products. The company's key revenue streams come from its portfolio of established medications, as well as new products launched in various markets. Additionally, Santen engages in strategic partnerships and collaborations with other pharmaceutical companies and institutions to co-develop new therapies and expand its market reach. These partnerships often involve licensing agreements and joint ventures that contribute to revenue through upfront payments, milestone payments, and royalties on sales. Furthermore, Santen invests in research and development to innovate and expand its product offerings, which helps drive long-term growth and profitability.

Santen Pharmaceutical Co Financial Statement Overview

Summary

Strong balance sheet with low leverage and a return to steady profitability, but the TTM revenue decline (~-74%) and weakening cash-flow momentum (sharply negative FCF growth and lower cash conversion vs recent annual results) materially reduce confidence in near-term durability.

Income Statement

Profitability is solid in TTM (Trailing-Twelve-Months) with healthy gross margin (~55%) and positive operating and net margins (~15% and ~11%). The company has also recovered meaningfully from the 2023 loss year to consistent profitability in 2024–TTM. The key weakness is growth: TTM revenue shows a very sharp decline (revenue growth rate ~-74%), and margins are down versus the most recent annual period, raising concerns about top-line durability and earnings momentum.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage (debt-to-equity ~0.13 in TTM) and a large equity base relative to debt. Returns on equity are positive in TTM (~11%) after the 2023 dip, indicating improved profitability without relying on heavy leverage. The main watch-out is that total assets and equity have trended down from prior years, suggesting some balance sheet contraction alongside the recent revenue pressure.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow (~34B) and free cash flow (~30B) remaining firmly positive and free cash flow covering most of net income (~86%). However, cash conversion has weakened versus recent annual results (operating cash flow is only ~55% of EBITDA in TTM), and free cash flow growth is sharply negative in TTM, signaling softer underlying cash momentum.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	290.51B	300.00B	301.96B	279.04B	266.26B	249.60B
Gross Profit	160.92B	171.03B	178.71B	166.09B	156.59B	151.38B
EBITDA	61.76B	59.01B	50.72B	12.95B	52.93B	70.28B
Net Income	30.89B	36.26B	26.64B	-14.95B	27.22B	6.83B
Balance Sheet
Total Assets	401.43B	409.28B	435.70B	421.18B	459.98B	402.35B
Cash, Cash Equivalents and Short-Term Investments	61.59B	93.99B	94.96B	58.68B	84.31B	63.41B
Total Debt	36.17B	34.23B	35.16B	36.21B	32.93B	10.15B
Total Liabilities	118.81B	124.10B	130.33B	127.88B	123.13B	95.30B
Stockholders Equity	283.58B	286.24B	306.06B	293.98B	337.49B	307.58B
Cash Flow
Free Cash Flow	30.10B	54.27B	61.96B	12.56B	10.20B	15.00B
Operating Cash Flow	34.21B	60.93B	72.65B	37.15B	46.04B	38.81B
Investing Cash Flow	-10.60B	-8.22B	-6.14B	-26.78B	-35.17B	-53.35B
Financing Cash Flow	-34.15B	-53.31B	-34.03B	-37.22B	5.56B	-16.68B

Santen Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.00
• 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 SNPHY, the sentiment is Neutral. The current price of 11 is below the 20-day moving average (MA) of 11.20, above the 50-day MA of 10.81, and above the 200-day MA of 10.75, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNPHY.

Santen Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZN	73 Outperform	£240.98B	31.05	22.34%	1.53%	10.20%	40.57%
GRFS	72 Outperform	$8.10B	15.83	6.93%	1.56%	9.45%	167.00%
BMY	71 Outperform	$121.64B	17.27	40.53%	4.84%	1.26%	―
SNY	69 Neutral	$110.69B	19.18	6.76%	4.58%	-9.32%	120.62%
GSK	67 Neutral	$123.00B	16.45	38.48%	3.41%	5.97%	128.66%
SNPHY	65 Neutral	$3.51B	17.90	10.89%	2.02%	-3.03%	27.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%