Kaken Pharmaceutical Co (4521) AI Stock Analysis

• Market Cap: ¥138.46B
• Dividend Yield: 4.74%
• Average Volume (3M): 154.12K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.30
• Revenue Growth: 30.52%
• EPS Growth: 71.75%
• Country: JP
• Employees: 1,135
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -140.89
• Shares Outstanding: 44,139,730
• 10 Day Avg. Volume: 167,230
• 30 Day Avg. Volume: 154,123
• PEG Ratio: -0.33
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,599.71
• Price Target Upside: 45.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥4,216.00 ▲(9.68%Upside)

Kaken Pharmaceutical Co's overall stock score reflects its strong financial performance and attractive valuation. However, the bearish technical indicators suggest caution. The positive financial metrics provide a strong foundation, but market sentiment and technical trends indicate potential risks.

Kaken Pharmaceutical Co Business Overview & Revenue Model

Company Description

Kaken Pharmaceutical Co., Ltd. produces, markets, and sells medical products, medical devices, and agrochemicals in Japan and internationally. It offers pharmaceutical products and medical devices, such as Clenafin, a topical treatment for onychomycosis; Artz, an anti-osteoarthritis agent; Seprafilm, a semitransparent film-type absorbable adhesion barrier, which is applied to damaged tissue; Fiblast, a spray-on drug for the treatment of pressure ulcers and other skin ulcers; Regroth, a medicinal product for periodontal regeneration; and Hernicore for the treatment of lumbar disc herniation. The company also provides Adofeed, a pain- and inflammation-relieving plaster; Ebrantil for the treatment of dysuria and hypertension; Procylin, an oral-use prostaglandin I2 analog; Lipidil, an anti-hyperlipidemia agent; Mentax, an anti-trichophyton agent; and Loxoprofen Na Tape, a pain-relieving and anti-inflammatory plaster. In addition, it offers Ropion, a pain relief injection; and agrochemicals and animal health products, including Polyoxins that is used as fungicide; Pentoxazone, a rice herbicide; and Salinomycin, an anti-coccidial feed additive for chicken. Further, the company is developing BBI-4000 that has completed phase III clinical trial for primary axillary hyperhidrosis; KMW-1, which is in phase III clinical trial for the removal of eschar with thermal burns; KAR for treatment of hide lice infestation; and KP-607, which is in phase II clinical trial for the treatment of onychomycosis. Additionally, it is involved in the rental of Bunkyo Green Court, a commercial complex. The company offers its products under the Mentax Lotrimin Ultra, Mentax Butena, Mentax, Kaifen, Fiblast, and Jublia brands. It has license agreements with Corbus Pharmaceuticals Holdings, Inc. and Arbor Pharmaceuticals, LLC. Kaken Pharmaceutical Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kaken Pharmaceutical Co. generates revenue through the sale of its pharmaceutical products, which include a variety of prescription medications focused on dermatology and orthopedics. The company's revenue streams are strengthened by its commitment to innovation in medical treatments, maintaining a strong pipeline of new drugs and therapies. Additionally, Kaken may engage in strategic partnerships and collaborations with other pharmaceutical firms to enhance its product offerings and market reach. The company also benefits from its sales in the agrochemical sector, which supplements its primary pharmaceutical business.

Kaken Pharmaceutical Co Financial Statement Overview

Summary

Kaken Pharmaceutical Co exhibits strong financial performance with robust profitability, solid revenue growth, and a stable balance sheet with low leverage. It demonstrates efficient cash management, though some historical volatility in revenue and cash flow suggests a need for cautious planning.

Income Statement

Kaken Pharmaceutical Co has demonstrated strong revenue growth, with a significant increase from the previous year, and robust profitability metrics. The Gross Profit Margin and Net Profit Margin improved significantly, standing at 61.96% and 14.83% respectively in the latest year. EBIT and EBITDA margins also showed solid performances at 22.37% and 23.42%. However, the revenue growth has been somewhat volatile in the past, indicating potential market fluctuations.

Balance Sheet

The company maintains a very healthy balance sheet with a low Debt-to-Equity Ratio of 0.025, which indicates low leverage and financial stability. Return on Equity is strong at 9.14%, reflecting efficient use of equity. The Equity Ratio stands at a healthy 80.16%, signifying a strong equity base. These metrics indicate a stable financial position with minimal financial risk.

Cash Flow

Kaken Pharmaceutical Co has seen substantial growth in Free Cash Flow, with a remarkable increase in the latest year. The Operating Cash Flow to Net Income Ratio is strong at 2.14, indicating good cash generation relative to net income. Despite these strengths, historical fluctuations in cash flow and a dip in Free Cash Flow in 2024 suggest potential volatility in cash generation.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
93.35B	94.03B	72.04B	72.98B	76.03B	74.98B
	Gross Profit
57.87B	58.26B	38.54B	39.56B	41.58B	40.91B
	EBIT
26.06B	21.04B	9.51B	8.00B	17.06B	17.79B
	EBITDA
28.71B	22.02B	12.57B	10.57B	16.38B	20.11B
	Net Income Common Stockholders
20.52B	13.95B	8.03B	5.44B	9.55B	13.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.75B	70.08B	65.32B	74.26B	74.62B	77.31B
	Total Assets
193.42B	190.42B	171.62B	166.33B	165.18B	163.33B
	Total Debt
3.85B	3.85B	3.85B	3.85B	3.85B	3.85B
	Net Debt
-59.21B	-50.24B	-46.77B	-55.71B	-57.17B	-59.86B
	Total Liabilities
38.16B	37.78B	27.87B	29.49B	26.86B	27.08B
	Stockholders Equity
155.26B	152.63B	143.75B	136.26B	137.75B	136.26B
Cash Flow		Free Cash Flow
0.00	25.64B	410.00M	7.05B	10.08B	12.09B
	Operating Cash Flow
0.00	29.78B	2.58B	9.25B	13.34B	14.38B
	Investing Cash Flow
0.00	-19.65B	-5.85B	-2.63B	-7.89B	-1.64B
	Financing Cash Flow
0.00	-5.37B	-5.66B	-6.99B	-8.13B	-8.75B

Kaken Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3844.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4521, the sentiment is Neutral. The current price of 3844 is above the 20-day moving average (MA) of 3828.35, below the 50-day MA of 4108.23, and below the 200-day MA of 4093.42, indicating a neutral trend. The MACD of -91.84 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 70.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4521.

Kaken Pharmaceutical Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	$150.35B	7.92	11.38%	2.75%	13.89%	17.38%
4547	75 Outperform	$181.11B	15.65	5.47%	2.44%	16.87%	11.20%
4521	74 Outperform	¥138.46B	10.52	9.44%	4.74%	30.52%	71.75%
4887	69 Neutral	¥177.64B	9.66		2.97%	-3.69%	76.69%
4534	67 Neutral	¥101.85B	18.66	4.35%	2.76%	5.31%	90.37%
4551	65 Neutral	$178.11B	32.08	4.56%	2.13%	9.56%	5.09%
Sector *	53 Neutral	$5.22B	3.32	-45.04%	2.83%	16.81%	-0.27%