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Santen Pharmaceutical Co (4536) AI Stock Analysis

JP:4536

Santen Pharmaceutical Co

(TSE/TYO:4536)

Select Model
Rating:69Neutral
Price Target:JPY 1,823.00â–²(1.87% Upside)
Action:downgraded
Date:08/09/26

The score is primarily supported by improved profitability and returns alongside a low-leverage balance sheet. Offsetting factors are softer cash-flow conversion and declining TTM free-cash-flow versus prior highs, while technical indicators point to weak near-term momentum despite some longer-term trend support. Valuation is reasonable with a modest dividend yield.

Positive Factors
Profitability RecoveryThe strong recovery in profitability provides a more durable earnings base than the company had in 2023. Healthy operating and net margins, together with improved returns on equity, should support reinvestment, brand development, and resilience across the ophthalmology portfolio.
Negative Factors
Weaker Cash ConversionThe gap between operating profit and cash generation indicates weaker cash conversion than ideal, while the decline from 2024–2025 suggests less consistent working-capital or earnings conversion. If sustained, this could constrain internally funded investment despite reported profitability.

Santen Pharmaceutical Co (4536) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:4536+20.24%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 3.53B
Dividend Yield
2.24%
Average Volume (3M)
1.23M
Price to Earnings (P/E)
15.0
Beta (1Y)
0.39
Revenue Growth
-0.72%
EPS Growth
30.44%
Country
Japan
Employees
3,968
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - General

Santen Pharmaceutical Co Business Overview & Revenue Model

Company Description

Santen Pharmaceutical Co., Ltd. is a global enterprise engaged in the research, development, manufacturing, and marketing of both pharmaceutical products and medical devices. The company's primary focus lies in ophthalmic solutions, addressing a vari...

How the Company Makes Money

Santen primarily makes money by selling ophthalmic prescription pharmaceuticals (and, where applicable, related eye-care products) to wholesalers, hospitals, clinics, and pharmacies, generating revenue when products are shipped and/or when control tr...

Santen Pharmaceutical Co Financial Statement Overview

Summary

Overall financials are healthy with a strong rebound in profitability and returns (TTM net margin ~12.8%, EBIT margin ~17.0%, ROE ~13.2%) and a conservative balance sheet (debt-to-equity ~0.12). The main offset is weaker cash conversion and negative TTM free-cash-flow growth versus prior periods, plus earnings volatility highlighted by a net loss in 2023.

Income Statement

78Positive

Balance Sheet

84Very Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue291.48B300.00B291.62B301.96B279.04B266.26B
Gross Profit156.58B163.21B160.97B163.88B156.57B146.85B
EBITDA62.21B66.51B67.79B48.88B11.94B52.92B
Net Income31.42B36.26B37.37B26.64B-14.95B27.22B
Balance Sheet
Total Assets389.14B409.28B423.03B435.70B421.18B459.98B
Cash, Cash Equivalents and Short-Term Investments63.56B93.00B80.88B94.58B57.90B83.01B
Total Debt35.63B33.95B34.75B35.16B35.96B22.00B
Total Liabilities115.53B124.10B127.02B130.33B127.88B123.13B
Stockholders Equity274.77B286.24B296.99B306.05B293.98B337.49B
Cash Flow
Free Cash Flow38.82B54.27B36.66B63.33B19.87B28.70B
Operating Cash Flow46.19B60.93B43.50B72.65B37.15B46.04B
Investing Cash Flow-13.32B-8.22B-12.97B-6.14B-26.78B-35.17B
Financing Cash Flow-57.04B-53.31B-49.35B-34.03B-37.22B5.56B

Santen Pharmaceutical Co Technical Analysis

Technical Analysis SentimentPositive
Last Price1789.50

Price Trends

50DMA1754.59Positive
100DMA1869.18Negative
200DMA1793.83Negative

Market Momentum

MACD7.58Negative
RSI62.43Neutral
STOCH84.02Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4536, the sentiment is Positive. The current price of 1789.50 is above the 20-day moving average (MA) of 1715.25, above the 50-day MA of 1754.59, and below the 200-day MA of 1793.83, indicating a neutral trend. The MACD of 7.58 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 84.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4536.

Santen Pharmaceutical Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:4536 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5889JP:588973OutperformJPY 50.91B11.81―4.06%15.36%5.16%
JP:4536JP:453669NeutralJPY 574.81B15.0313.39%2.24%-0.72%30.44%
JP:4503JP:450364NeutralJPY 4.63T12.6220.41%3.07%16.93%347.13%
JP:7780JP:778062NeutralJPY 140.23B19.137.70%1.52%5.05%50.43%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
JP:8086JP:808641NeutralJPY 240.39B15.815.35%2.27%2.68%144.20%
JP:4890JP:489038UnderperformJPY 6.31B-9.03――-71.21%-485.42%

* Healthcare Sector Average

Performance Comparison

-25%0%25%50%75%JP:4536JP:4503JP:7780JP:8086JP:4890JP:5889Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4536 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4536Santen Pharmaceutical Co 1789.50314.8821.35%
JP:4503Astellas Pharma2571.001008.6264.56%
JP:7780Menicon Co 1843.00659.8955.78%
JP:8086Nipro Corporation1363.00-110.97-7.53%
JP:4890Tsubota Laboratory Incorporated243.00-84.00-25.69%
JP:5889Japan Eyewear Holdings Co.,Ltd.2093.00158.558.20%

Santen Pharmaceutical Co Corporate Events

Santen Completes Treasury Share Disposal for Performance-Linked Executive Stock Plan

Sep 30, 2026

Santen Pharmaceutical Co., Ltd., a long-established Japanese ophthalmic specialist, operates globally with a portfolio that spans key eye conditions including glaucoma, dry eye, infection, allergy, age-related macular degeneration, and myopia. Its ex...

Santen to Dispose of Treasury Shares for Performance-Linked Executive Stock Plan

Sep 3, 2026

Santen Pharmaceutical will dispose of 68,912 treasury shares on September 30, 2026, at 1,867.5 yen per share, totaling about 128.7 million yen, to deliver stock-based remuneration under its Performance Share Unit plan for three directors and seven co...

Santen boosts profits in Q1 and maintains upbeat full-year outlook

Aug 6, 2026

Santen Pharmaceutical Co., Ltd. reported stable revenue of ¥68.96 billion for the three months ended June 30, 2026, a 0.3% increase year on year, while core operating profit rose 9.3% and net profit attributable to owners surged 22.4%. Earnings...

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 09, 2026