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Daito Pharmaceutical Co., Ltd.
(4577)
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Rating:67Neutral
Price Target:
¥1,497.00
▲(10.40% Upside)
Action:Reiterated
Date:07/11/26
The score is driven primarily by mixed financial performance: a strong, low-leverage balance sheet and improved (now positive) free cash flow are offset by a sharp ~22.8% TTM revenue decline and weaker profitability versus prior peaks. Valuation is a positive contributor (P/E ~12.6 and ~3.2% yield), while technicals are only moderately supportive given the short-term strength but weaker longer-term trend (below the 100/200-day averages).
Positive Factors
Conservative Balance Sheet
Low leverage and a substantial equity buffer reduce financial risk and preserve flexibility. This should help Daito withstand demand or pricing volatility and continue investing in pharmaceutical manufacturing capabilities without excessive balance-sheet strain.
Negative Factors
Sharp Revenue Contraction
A large top-line decline signals weaker production volumes, contract mix or customer demand and can reduce operating leverage. Sustained contraction would constrain growth, utilization and the company’s ability to rebuild prior profitability levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a substantial equity buffer reduce financial risk and preserve flexibility. This should help Daito withstand demand or pricing volatility and continue investing in pharmaceutical manufacturing capabilities without excessive balance-sheet strain.
Read all positive factors
Daito Pharmaceutical Co., Ltd. (4577) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.67B
Dividend Yield2.9%
Average Volume (3M)63.87K
Price to Earnings (P/E)12.8
Beta (1Y)0.23
Revenue Growth0.01%
EPS Growth71.37%
CountryJP
Employees1,073
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)107.46
Shares Outstanding28,854,880
10 Day Avg. Volume54,390
30 Day Avg. Volume63,866
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.65
Price to Sales (P/S)0.68
P/FCF Ratio6.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)91.5
Revenue Forecast (FY)¥54.50B
Daito Pharmaceutical Co., Ltd. Business Overview & Revenue Model
Company Description
Daito Pharmaceutical Co.,Ltd. is a global entity primarily involved in the creation and sale of a diverse range of pharmaceutical products. Their offerings span active pharmaceutical ingredients (APIs) and chemical intermediates, alongside both pr...
How the Company Makes Money
Daito Pharmaceutical primarily makes money by providing pharmaceutical manufacturing services to other companies, earning revenue through contract-based fees tied to (1) development and formulation work (e.g., process/formulation development and r...
Daito Pharmaceutical Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.65B | 50.64B | 46.90B | 45.10B | 43.46B |
| Gross Profit | 9.90B | 8.47B | 9.67B | 10.15B | 11.31B |
| EBITDA | 8.02B | 7.41B | 7.92B | 8.96B | 10.04B |
| Net Income | 3.16B | 1.91B | 3.29B | 3.60B | 4.67B |
Balance Sheet | |||||
| Total Assets | 73.29B | 78.00B | 77.71B | 70.55B | 64.94B |
| Cash, Cash Equivalents and Short-Term Investments | 954.00M | 2.21B | 2.73B | 3.61B | 4.38B |
| Total Debt | 9.29B | 11.88B | 8.72B | 4.89B | 3.44B |
| Total Liabilities | 20.35B | 25.93B | 25.44B | 19.58B | 17.26B |
| Stockholders Equity | 52.89B | 52.00B | 52.07B | 50.67B | 47.31B |
Cash Flow | |||||
| Free Cash Flow | 5.53B | -957.00M | -1.04B | -1.35B | -257.00M |
| Operating Cash Flow | 9.38B | 5.90B | 5.18B | 4.16B | 4.37B |
| Investing Cash Flow | -4.39B | -7.37B | -5.93B | -5.57B | -4.33B |
| Financing Cash Flow | -6.29B | 1.00B | -183.00M | 616.00M | 921.00M |
Daito Pharmaceutical Co., Ltd. Technical Analysis
Positive
1356.00
Price Trends
1274.92
Positive
1264.06
Positive
1300.16
Positive
Market Momentum
29.77
Negative
72.58
Negative
87.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4577, the sentiment is Positive. The current price of 1356 is above the 20-day moving average (MA) of 1304.10, above the 50-day MA of 1274.92, and above the 200-day MA of 1300.16, indicating a bullish trend. The MACD of 29.77 indicates Negative momentum. The RSI at 72.58 is Negative, neither overbought nor oversold. The STOCH value of 87.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4577.
Daito Pharmaceutical Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥113.49B | 12.69 | 5.81% | 2.34% | 14.72% | 52.55% | |
67 Neutral | ¥39.67B | 12.84 | ― | 2.75% | 0.01% | 71.37% | |
66 Neutral | ¥57.11B | 12.88 | ― | 2.52% | ― | -7.20% | |
60 Neutral | ¥48.08B | 15.65 | 5.06% | 2.56% | 20.36% | -5.53% | |
54 Neutral | ¥5.68B | -45.84 | ― | 3.21% | 0.60% | -131.22% | |
52 Neutral | ¥62.06B | 30.95 | ― | 4.71% | -4.71% | -78.91% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4577
Daito Pharmaceutical Co., Ltd.
1,380.00
174.22
14.45%
JP:4554
Fuji Pharma Co., Ltd.
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27.59%
JP:4534
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7.74%
JP:4539
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0.24%
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KYORIN Pharmaceutical Co.,Ltd.
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-19.93%
JP:4886
ASKA Pharmaceutical Holdings Co., Ltd.
2,138.00
-244.70
-10.27%
Daito Pharmaceutical Co., Ltd. Corporate Events
Daito Pharmaceutical Completes ¥605 Million Share Buyback to Boost Capital Efficiency
Jul 13, 2026
Daito Pharmaceutical has completed a share buyback under its Medium-Term Management Plan as part of efforts to enhance shareholder returns and improve capital efficiency. The company acquired 484,000 shares, equivalent to about 1.7% of its outstan...
Daito Pharmaceutical Launches Targeted Share Buyback to Boost Capital Efficiency
Jul 10, 2026
Daito Pharmaceutical has approved a share buyback as part of its capital policy under its Medium-Term Management Plan, aiming to enhance shareholder returns and improve capital efficiency. The move signals a proactive approach to capital allocatio...
Daito Pharmaceutical Overhauls Board and Executive Structure to Bolster Governance and Growth
Jul 10, 2026
Daito Pharmaceutical announced a wide-ranging leadership reorganization, including the planned retirement of current Chairperson Yasunobu Otsuga as Representative Director and his move to the role of Honorary Chairman after the August 27, 2026 sha...
Daito Pharmaceutical Lifts Profitability on Flat Sales, Guides Modest Growth
Jul 10, 2026
Daito Pharmaceutical reported flat net sales of ¥50.65 billion for the year ended May 31, 2026, but significantly improved profitability, with operating profit up 38.8% and profit attributable to owners of parent jumping 65.7%. Earnings per s...
Daito Pharmaceutical Cancels 4.1% of Outstanding Shares to Tighten Equity Base
Jun 1, 2026
Daito Pharmaceutical has completed the cancellation of 1,242,000 shares of its common stock, representing 4.1% of the total shares outstanding before the transaction. Following the cancellation, which was approved by the board and executed on May ...
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.