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Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

JP:4538

Fuso Pharmaceutical Industries,Ltd.

(TSE/TYO:4538)

Select Model
Rating:62Neutral
Price Target:JPY 2,410.00â–²(14.33% Upside)
Action:reiterated
Date:08/17/26

The overall score of 62 reflects a mixed picture. Financial performance is the primary drag, with concerning cash flow and rising leverage offsetting modest revenue growth. However, technical indicators suggest bullish momentum, and valuation appears attractive with a low P/E and solid dividend yield. Investors should weigh the near-term positive signals against the underlying financial risks.

Positive Factors
Strong Revenue GrowthA sustained upward revenue trend indicates expanding demand for Fuso’s prescription medicines. The FY2026 acceleration provides a stronger top-line base, which can support operating leverage if production efficiency and pricing remain controlled.
Negative Factors
Rising LeverageThe faster increase in debt than equity has reduced balance-sheet flexibility. Higher leverage can constrain investment capacity and increase vulnerability if profitability weakens, making future earnings recovery more important to financial stability.

Fuso Pharmaceutical Industries,Ltd. (4538) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:4538+3.07%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.99B
Dividend Yield
4.27%
Average Volume (3M)
18.82K
Price to Earnings (P/E)
8.2
Beta (1Y)
0.56
Revenue Growth
2.29%
EPS Growth
―
Country
Japan
Employees
1,370
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - Specialty & Generic

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company Description

Fuso Pharmaceutical Industries, Ltd. is a Japanese firm primarily involved in the development and commercialization of pharmaceutical goods. Their product range encompasses prescription medications, particularly injectables and solutions for artifici...

How the Company Makes Money

Fuso Pharmaceutical Industries makes money primarily by selling prescription pharmaceutical products in Japan. Its revenue model is centered on (1) product sales of medical-use drugs—especially hospital-oriented formulations such as injectables—suppl...

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary

Fuso Pharmaceutical shows modest revenue growth but thin profitability (Income Statement score 48). Leverage has increased significantly (Balance Sheet score 35) and operating cash flow is negative, with free cash flow deeply negative for three years (Cash Flow score 12). This raises liquidity concerns and indicates below-average financial health.

Income Statement

48Neutral

Balance Sheet

35Negative

Cash Flow

12Very Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue62.85B62.31B60.56B55.41B51.02B49.63B
Gross Profit16.11B15.99B16.19B13.52B13.36B12.91B
EBITDA5.50B5.38B-2.98B3.67B4.63B4.47B
Net Income2.19B2.01B-3.29B1.38B1.60B1.48B
Balance Sheet
Total Assets87.47B90.32B82.52B76.46B72.81B69.66B
Cash, Cash Equivalents and Short-Term Investments4.57B4.85B6.26B5.12B8.01B7.35B
Total Debt26.31B28.46B21.29B12.72B11.41B12.09B
Total Liabilities51.72B55.26B49.48B39.79B37.15B35.12B
Stockholders Equity35.75B35.06B33.04B36.66B35.65B34.53B
Cash Flow
Free Cash Flow0-7.49B-5.43B-2.62B1.32B2.20B
Operating Cash Flow0-6.22B-3.31B627.00M2.87B3.61B
Investing Cash Flow0-1.51B-3.17B-3.54B-1.39B-1.66B
Financing Cash Flow06.32B7.62B14.00M-813.00M-1.67B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2108.00

Price Trends

50DMA2180.29Negative
100DMA2137.84Negative
200DMA2183.18Negative

Market Momentum

MACD-21.11Negative
RSI41.63Neutral
STOCH41.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4538, the sentiment is Negative. The current price of 2108.00 is below the 20-day moving average (MA) of 2120.50, below the 50-day MA of 2180.29, and below the 200-day MA of 2183.18, indicating a bearish trend. The MACD of -21.11 indicates Negative momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:4538 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4524JP:452482OutperformJPY 8.95B11.40―2.96%0.98%69.36%
JP:4538JP:453862NeutralJPY 18.48B8.21―4.27%2.29%―
JP:4574JP:457461NeutralJPY 13.02B18.99―1.27%13.30%66.38%
JP:2929JP:292959NeutralJPY 18.40B9.29―3.46%-3.12%406.78%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
JP:4539JP:453947NeutralJPY 5.47B-44.12―3.30%0.31%-194.72%
JP:4512JP:451245NeutralJPY 10.52B30.73―1.16%25.89%―

* Healthcare Sector Average

Performance Comparison

-20%0%20%JP:4538JP:2929JP:4512JP:4524JP:4539JP:4574Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4538 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4538Fuso Pharmaceutical Industries,Ltd.2107.0063.793.12%
JP:2929Pharma Foods International Co., Ltd.635.00-147.04-18.80%
JP:4512Wakamoto Pharmaceutical Co., Ltd.303.0015.425.36%
JP:4524Morishita Jintan Co., Ltd.2195.00138.016.71%
JP:4539Nippon Chemiphar Co., Ltd.1515.0030.292.04%
JP:4574Taiko Pharmaceutical Co., Ltd.260.00-15.00-5.45%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Delivers Strong Q1 Profit Jump but Keeps Cautious Full-Year Outlook

Aug 10, 2026

Fuso Pharmaceutical Industries reported solid first-quarter non-consolidated results for the three months ended June 30, 2026, with net sales up 3.5% year-on-year to ¥16,046 million and operating profit surging 63.0% to ¥972 million, liftin...

Fuso Pharmaceutical Profit Falls Despite Higher Sales as Dividend Rises

May 18, 2026

Fuso Pharmaceutical reported a 2.9% rise in net sales to ¥62.3 billion for the year ended March 31, 2026, but saw operating profit drop 36.1% to ¥2.64 billion and ordinary profit fall 37.9% to ¥2.35 billion, even as it swung from a los...

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 17, 2026