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Daito Pharmaceutical Co., Ltd. (4577) AI Stock Analysis

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JP:4577

Daito Pharmaceutical Co., Ltd.

(TSE/TYO:4577)

Select Model
Rating:67Neutral
Price Target:JPY 1,430.00â–²(8.09% Upside)
Action:downgraded
Date:10/11/26

The overall score of 67 reflects a stable company with a strong financial foundation. The most significant positive factors are the robust balance sheet and improving cash flow generation, which indicate low financial risk. This is supported by an attractive valuation with a low P/E ratio and a healthy dividend yield. The primary constraint is the neutral technical picture and historically flat revenue growth, which temper the score despite recent earnings improvements.

Positive Factors
Conservative balance sheetLow leverage and a substantial equity buffer reduce financial strain during demand or pricing volatility. This gives Daito greater resilience, preserves borrowing capacity, and supports continued investment or other capital allocation choices over the next several quarters.
Negative Factors
Sharp revenue contractionA contraction of this magnitude is a material challenge to the company’s growth profile and future operating leverage. Prolonged top-line weakness could reduce scale benefits, constrain investment capacity, and make it harder for earnings to return to prior peak levels.

Daito Pharmaceutical Co., Ltd. (4577) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:4577+9.63%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 37.39B
Dividend Yield
3.02%
Average Volume (3M)
78.13K
Price to Earnings (P/E)
12.2
Beta (1Y)
0.22
Revenue Growth
-2.83%
EPS Growth
65.69%
Country
Japan
Employees
1,085
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - Specialty & Generic

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 presc...

Daito Pharmaceutical Co., Ltd. Financial Statement Overview

Summary

Financial performance is solid, driven by a strong balance sheet (Score: 85) with low leverage and improving cash flows (Score: 75) that turned positive. The income statement (Score: 58) shows recent recovery with a 65% net income increase, though historical revenue growth has been flat. Overall, the foundation is stable with positive earnings momentum.

Income Statement

58Neutral

Balance Sheet

85Very Positive

Cash Flow

75Positive
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue49.53B50.65B50.64B46.90B45.10B43.46B
Gross Profit9.53B9.90B8.47B9.67B10.15B11.31B
EBITDA7.05B8.02B7.41B7.92B8.96B10.04B
Net Income3.17B3.16B1.91B3.29B3.60B4.67B
Balance Sheet
Total Assets71.65B73.29B78.00B77.71B70.55B64.94B
Cash, Cash Equivalents and Short-Term Investments1.69B954.00M2.21B2.73B3.61B4.38B
Total Debt8.45B9.29B11.88B8.72B4.89B3.44B
Total Liabilities19.16B20.35B25.93B25.44B19.58B17.26B
Stockholders Equity52.42B52.89B52.00B52.07B50.67B47.31B
Cash Flow
Free Cash Flow5.53B5.53B-957.00M-1.04B-1.35B-257.00M
Operating Cash Flow9.38B9.38B5.90B5.18B4.16B4.37B
Investing Cash Flow-4.39B-4.39B-7.37B-5.93B-5.57B-4.33B
Financing Cash Flow-6.29B-6.29B1.00B-183.00M616.00M921.00M

Daito Pharmaceutical Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1323.00

Price Trends

50DMA1325.80Negative
100DMA1286.86Positive
200DMA1310.65Positive

Market Momentum

MACD0.20Positive
RSI48.94Neutral
STOCH22.95Neutral

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 1323.00 is below the 20-day moving average (MA) of 1331.25, below the 50-day MA of 1325.80, and above the 200-day MA of 1310.65, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 22.95 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:4577 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4534JP:453468NeutralJPY 111.78B12.676.64%2.51%14.72%52.55%
JP:4577JP:457767NeutralJPY 38.17B12.15―3.02%-2.83%65.69%
JP:4886JP:488666NeutralJPY 52.85B11.96―3.27%―-7.20%
JP:4554JP:455460NeutralJPY 48.76B15.726.04%2.15%20.36%-5.53%
JP:4569JP:456952NeutralJPY 58.17B29.23―4.25%-4.71%-78.91%
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%

* Healthcare Sector Average

Performance Comparison

-20%0%20%40%60%JP:4577JP:4554JP:4534JP:4539JP:4569JP:4886Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4577 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4577Daito Pharmaceutical Co., Ltd.1323.00118.199.81%
JP:4554Fuji Pharma Co., Ltd.1870.00328.9821.35%
JP:4534Mochida Pharmaceutical Co., Ltd.3285.00406.9714.14%
JP:4539Nippon Chemiphar Co., Ltd.1515.00-100.80-6.24%
JP:4569KYORIN Pharmaceutical Co.,Ltd.1105.00-256.96-18.87%
JP:4886ASKA Pharmaceutical Holdings Co., Ltd.1986.00-47.74-2.35%

Daito Pharmaceutical Co., Ltd. Corporate Events

Daito and Partners Launch JV to Acquire KYORIN Generic Drug Unit

Sep 30, 2026

Daito Pharmaceutical has joined with Meiji Seika Pharma and the Development Bank of Japan to form Pharmatech Co-creation Platform, Inc., a new joint venture that will acquire KYORIN Pharmaceutical’s consolidated subsidiary KYORIN Rimedio, exclu...

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 outstandin...

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: Oct 11, 2026