Wakamoto Pharmaceutical Co., Ltd. (4512) AI Stock Analysis

Wakamoto Pharmaceutical Co., Ltd.

(TSE/TYO:4512)

Select Model

Rating:51Neutral

Price Target:JPY 305.00▲(0.66% Upside)

Action:reiterated

Date:08/19/26

Wakamoto Pharmaceutical receives a score of 51, driven primarily by its severe cash burn and razor-thin margins, which overshadow its exceptionally clean balance sheet. An unappealing valuation with a high P/E ratio and weak long-term technical momentum further restrict its near-term upside potential.

Positive Factors

Revenue and profit recoveryLatest-year revenue grew about 27% and EBIT and net income returned to positive territory. If sustained, this recovery would expand the company’s earnings base and provide more resources to support products, distribution, and future growth.

Negative Factors

Persistent negative cash flowThree consecutive years of negative operating and free cash flow raise concerns about earnings conversion and the cash required by working capital or investment. Continued weakness could consume reserves and constrain internally funded growth despite the company’s low debt.

Wakamoto Pharmaceutical Co., Ltd. (4512) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 10.52B
Dividend Yield: 1.16%
Average Volume (3M): 40.89K
Price to Earnings (P/E): 30.7
Beta (1Y): 0.33
Revenue Growth: 25.89%
EPS Growth: ―
Country: Japan
Employees: 303
Sector: Healthcare
Sector Strength: 51
Industry: Drug Manufacturers - Specialty & Generic

Wakamoto Pharmaceutical Co., Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, Wakamoto Pharmaceutical Co., Ltd. specializes in the production and distribution of both prescription and over-the-counter pharmaceuticals across the country. Their diverse offerings include Strong Wakamoto, a widely re...

How the Company Makes Money

Wakamoto Pharmaceutical makes money primarily by manufacturing and selling products under its consumer healthcare (OTC) and pharmaceutical-related businesses. A major revenue stream comes from domestic sales of OTC medicines and health/nutrition prod...

Wakamoto Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Despite a pristine, debt-free balance sheet and a recent 27.2% revenue surge, the company's financial profile is deeply impaired by three consecutive years of severe cash burn and razor-thin profit margins.

Income Statement

65Positive

Balance Sheet

80Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.98B	9.91B	7.79B	7.74B	8.66B	8.38B
Gross Profit	3.75B	4.73B	3.62B	3.54B	4.11B	4.36B
EBITDA	397.01M	701.22M	438.68M	570.97M	657.90M	755.52M
Net Income	-177.67M	227.22M	64.44M	108.96M	138.26M	238.54M
Balance Sheet
Total Assets	15.25B	16.50B	15.00B	15.42B	15.71B	14.95B
Cash, Cash Equivalents and Short-Term Investments	3.56B	2.01B	2.95B	3.66B	3.88B	3.23B
Total Debt	100.00M	400.00M	100.00M	130.73M	529.00K	2.65M
Total Liabilities	3.55B	4.49B	3.39B	3.39B	3.80B	3.47B
Stockholders Equity	11.70B	12.01B	11.61B	12.03B	11.91B	11.48B
Cash Flow
Free Cash Flow	0	-1.05B	-1.04B	-663.02M	420.76M	-28.97M
Operating Cash Flow	0	-486.91M	-592.45M	-107.34M	631.92M	339.17M
Investing Cash Flow	0	-657.56M	-13.50M	-2.35M	17.13M	50.57M
Financing Cash Flow	0	195.88M	-103.94M	-104.99M	-1.61M	-1.62M

Wakamoto Pharmaceutical Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price303.00

Price Trends

50DMA299.38Positive

100DMA282.97Positive

200DMA303.56Negative

Market Momentum

MACD1.26Positive

RSI55.11Neutral

STOCH63.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4512, the sentiment is Positive. The current price of 303.00 is above the 20-day moving average (MA) of 300.20, above the 50-day MA of 299.38, and below the 200-day MA of 303.56, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4512.

Wakamoto Pharmaceutical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:4512 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4524	82Outperform	JPY 8.95B	11.40	―	2.96%	0.98%	69.36%
JP:4577	67Neutral	JPY 38.17B	12.15	―	3.02%	-2.83%	65.69%
JP:4538	64Neutral	JPY 18.48B	8.21	―	4.27%	2.29%	―
JP:4574	61Neutral	JPY 13.02B	18.99	―	1.27%	13.30%	66.38%
JP:2929	59Neutral	JPY 18.40B	9.29	―	3.46%	-3.12%	406.78%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4512	51Neutral	JPY 10.52B	30.73	―	1.16%	25.89%	―

* Healthcare Sector Average

Performance Comparison

JP:4512 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4512	Wakamoto Pharmaceutical Co., Ltd.	303.00	16.42	5.73%
JP:2929	Pharma Foods International Co., Ltd.	635.00	-129.75	-16.97%
JP:4524	Morishita Jintan Co., Ltd.	2195.00	126.34	6.11%
JP:4538	Fuso Pharmaceutical Industries,Ltd.	2107.00	69.56	3.41%
JP:4574	Taiko Pharmaceutical Co., Ltd.	260.00	-15.00	-5.45%
JP:4577	Daito Pharmaceutical Co., Ltd.	1323.00	118.19	9.81%

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.

Date of analysis: Aug 19, 2026

Wakamoto Pharmaceutical Co., Ltd. AI Stock Analysis