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

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Wakamoto Pharmaceutical Co., Ltd.

(TSE/TYO:4512)

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Rating:59.25Neutral

Price Target:JPY 317.00▲(10.84% Upside)

Action:reiterated

Date:08/19/26

The score is held back primarily by weak cash generation (negative operating and free cash flow for three straight years) despite a very strong, low-leverage balance sheet and improved latest-year profitability. Technical indicators are broadly neutral with longer-term trend weakness, and valuation is only fair given a ~27.8 P/E alongside thin margins and a modest ~1.28% dividend yield.

Positive Factors

Revenue and profit recoveryThe latest period combines strong revenue growth with a return to positive EBIT and net income, indicating improved operating performance. If this recovery persists, greater scale can support reinvestment, reinforce the company’s market position, and improve earnings capacity over the next several quarters.

Negative Factors

Persistent cash burnThree consecutive years of negative operating and free cash flow raise a structural concern about cash conversion. Even with low debt, sustained cash use can consume reserves, constrain investment choices, and make reported earnings less useful as a measure of internally generated funding.

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

Market Cap: JPY 9.96B
Dividend Yield: 1.22%
Average Volume (3M): 40.02K
Price to Earnings (P/E): 28.8
Beta (1Y): 0.40
Revenue Growth: 23.41%
EPS Growth: 149.71%
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

Mixed fundamentals: the balance sheet is strong with very low leverage (supports an 84 balance-sheet score), and the latest year shows improved profitability and strong revenue growth (~27%). However, results have been volatile with thin net margins (~2%) and cash generation is a major concern, with negative operating and free cash flow for three consecutive years (driving the low 32 cash-flow score).

Income Statement

63Positive

Balance Sheet

84Very Positive

Cash Flow

32Negative

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 SentimentNegative

Last Price286.00

Price Trends

50DMA298.86Negative

100DMA285.65Positive

200DMA303.32Negative

Market Momentum

MACD-3.20Positive

RSI40.98Neutral

STOCH49.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4512, the sentiment is Negative. The current price of 286.00 is below the 20-day moving average (MA) of 296.75, below the 50-day MA of 298.86, and below the 200-day MA of 303.32, indicating a bearish trend. The MACD of -3.20 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 8.92B	11.51	―	2.94%	-0.47%	50.82%
JP:4574	69Neutral	JPY 13.07B	18.99	―	1.27%	13.30%	66.38%
JP:4577	67Neutral	JPY 37.73B	12.05	―	3.05%	-2.83%	65.69%
JP:4538	64Neutral	JPY 18.70B	8.35	―	4.22%	2.29%	―
JP:4512	59Neutral	JPY 9.96B	28.80	―	1.22%	23.41%	149.71%
JP:2929	57Neutral	JPY 16.51B	8.30	―	3.88%	-3.12%	406.78%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* 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.	286.00	2.39	0.84%
JP:2929	Pharma Foods International Co., Ltd.	566.00	-211.24	-27.18%
JP:4524	Morishita Jintan Co., Ltd.	2214.00	141.45	6.82%
JP:4538	Fuso Pharmaceutical Industries,Ltd.	2132.00	45.50	2.18%
JP:4574	Taiko Pharmaceutical Co., Ltd.	259.00	-39.00	-13.09%
JP:4577	Daito Pharmaceutical Co., Ltd.	1310.00	98.41	8.12%

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