Otsuka Holdings Co (4578) AI Stock Analysis

• Market Cap: ¥4.54T
• Dividend Yield: 1.53%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.77
• Revenue Growth: 6.56%
• EPS Growth: 201.49%
• Country: JP
• Employees: 35,338
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 234.69
• Shares Outstanding: 542,988,900
• 10 Day Avg. Volume: 945,960
• 30 Day Avg. Volume: 1,068,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥9,633.96
• Price Target Upside: 18.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥9,366.00 ▲(14.92% Upside)

Otsuka Holdings Co's stock is well-positioned with strong financial performance, positive technical indicators, and reasonable valuation. The company's robust revenue and profit growth, coupled with stable financial metrics, are the most significant factors driving the score. Technical analysis supports a positive outlook, while the valuation remains attractive. The absence of earnings call and corporate events data does not impact the overall assessment.

Otsuka Holdings Co Business Overview & Revenue Model

Company Description

Otsuka Holdings Co., Ltd. is a global healthcare company based in Japan, primarily engaged in the pharmaceutical and nutraceutical sectors. The company operates through two main segments: Pharmaceuticals, which focuses on the development of innovative drugs in areas such as central nervous system disorders, oncology, and cardiovascular health; and Nutraceuticals, which offers products designed to enhance health and wellness, including functional foods and beverages. Otsuka is known for its commitment to research and development, aiming to improve the quality of life through advanced medical solutions and nutritional products.

How the Company Makes Money

Otsuka Holdings generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications and treatments for various medical conditions. Key revenue streams come from the commercialization of innovative drugs, particularly in the areas of psychiatry, nephrology, and oncology, as well as from its nutraceutical offerings. The company also engages in strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which can lead to shared development costs and expanded market access. Additionally, Otsuka benefits from licensing agreements and royalties associated with its patented products, further enhancing its earnings potential.

Otsuka Holdings Co Financial Statement Overview

Summary

Otsuka Holdings Co exhibits strong financial health with impressive revenue and profit growth, a stable balance sheet with low leverage, and robust cash flow generation. Minor concerns include a slight increase in debt and cost pressures affecting EBIT margins.

Income Statement

Otsuka Holdings Co has demonstrated strong revenue growth, with a TTM revenue growth rate of 35.6%. The company maintains healthy profitability metrics, with a gross profit margin of 72.2% and a net profit margin of 14.7% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet of Otsuka Holdings Co is solid, with a low debt-to-equity ratio of 0.095, indicating conservative leverage. The return on equity is strong at 13.3%, reflecting effective use of shareholder funds. The equity ratio stands at a healthy level, showcasing financial stability. However, the slight increase in total debt over the period could be monitored for future leverage trends.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, with a TTM growth rate of 382.6%. The operating cash flow to net income ratio is stable, and the free cash flow to net income ratio is strong at 66.9%, indicating efficient cash conversion. The company has shown resilience in generating cash, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.40T	2.33T	2.02T	1.74T	1.50T	1.42T
Gross Profit	1.73T	1.67T	1.41T	1.17T	1.00T	983.08B
EBITDA	515.32B	452.62B	224.20B	266.93B	244.25B	273.37B
Net Income	408.85B	343.12B	121.62B	133.91B	125.46B	148.14B
Balance Sheet
Total Assets	3.79T	3.74T	3.36T	3.10T	2.82T	2.63T
Cash, Cash Equivalents and Short-Term Investments	411.11B	426.17B	513.34B	471.63B	410.68B	356.85B
Total Debt	211.51B	189.38B	214.19B	194.16B	212.45B	226.08B
Total Liabilities	1.00T	961.09B	924.93B	840.17B	775.73B	744.38B
Stockholders Equity	2.72T	2.73T	2.39T	2.23T	2.01T	1.85T
Cash Flow
Free Cash Flow	340.80B	225.28B	168.56B	104.06B	115.71B	134.96B
Operating Cash Flow	434.32B	354.64B	283.23B	211.85B	228.86B	232.84B
Investing Cash Flow	-239.59B	-268.27B	-190.54B	-81.58B	-95.29B	-99.86B
Financing Cash Flow	-246.53B	-186.89B	-60.17B	-95.47B	-95.84B	-104.93B

Otsuka Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8150.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4578, the sentiment is Positive. The current price of 8150 is below the 20-day moving average (MA) of 8267.55, below the 50-day MA of 8185.28, and above the 200-day MA of 7500.63, indicating a bullish trend. The MACD of 87.82 indicates Negative momentum. The RSI at 58.37 is Neutral, neither overbought nor oversold. The STOCH value of 76.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4578.

Otsuka Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4578	79 Outperform	¥4.54T	10.21	16.30%	1.53%	6.56%	201.49%
4519	78 Outperform	$11.42T	28.79	20.99%	1.39%	6.25%	2.62%
4507	76 Outperform	$2.27T	12.85	12.22%	2.54%	4.48%	11.08%
4503	72 Outperform	$3.07T	24.43	7.97%	4.61%	13.24%	127.88%
4568	61 Neutral	$6.28T	22.46	16.66%	1.64%	12.56%	14.61%
4502	59 Neutral	¥6.65T	194.38	0.54%	4.63%	-2.84%	-88.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Otsuka Holdings Co Corporate Events

Otsuka Holdings Completes Strategic Share Transfer

Otsuka Holdings Co., Ltd. has completed the share transfer of its equity-method affiliate, Otsuka Medical Devices Co., Ltd., to Shanghai MedTech Medical Equipment Partnership Enterprise. This strategic move is expected to impact Otsuka’s operations by potentially enhancing its focus on core business areas and optimizing its investment portfolio.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen8975.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

FDA Issues Complete Response Letter to Otsuka and Lundbeck for PTSD Treatment

Otsuka Pharmaceutical Co., Ltd. and H. Lundbeck A/S have received a Complete Response Letter from the U.S. FDA for their supplemental New Drug Application for REXULTI in combination with sertraline for treating PTSD in adults. The FDA’s decision indicates that the application lacks substantial evidence of effectiveness, impacting Otsuka’s efforts to expand its product offerings in the mental health sector.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen8975.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Amends Share Transfer Agreement for Otsuka Medical Devices

Otsuka Holdings Co., Ltd. announced an amendment to its previously disclosed share transfer agreement involving Otsuka Medical Devices Co., Ltd. The amendment was necessitated by a request from one of the counterparties, Mr. Jonathan W. Chen, to postpone the closing date and change the contracting party to an entity he owns. This change aims to expedite the necessary procedures for the share transfer, impacting the scheduled transfer date and transferee details.

The most recent analyst rating on (JP:4578) stock is a Hold with a Yen8500.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Reports Strong Growth in H1 2025

Otsuka Holdings Co., Ltd. is a diversified healthcare company listed on the Tokyo Stock Exchange, primarily engaged in pharmaceuticals, nutraceuticals, and consumer products, with a focus on promoting well-being through innovative solutions. In its latest earnings report for the six-month period ending June 30, 2025, Otsuka Holdings reported a revenue increase of 6.5% to ¥1,180,766 million, driven by growth in its pharmaceuticals and nutraceuticals segments. Key contributors to this growth included the antipsychotic agent REXULTI/RXULTI and the long-acting injection ABILIFY ASIMTUFII, alongside a notable increase in business profit by 12% to ¥239,221 million. The company also saw a significant rise in operating profit by 91.7% to ¥242,118 million, largely due to the absence of impairment losses recorded in the previous year. Looking ahead, Otsuka Holdings anticipates continued growth, with a focus on strategic investments and product development, despite potential challenges from global economic conditions and regulatory changes.

Otsuka Holdings Reports Strong H1 2025 Financial Results and Increases Dividend Forecast

Otsuka Holdings reported a significant increase in its consolidated financial results for the first half of 2025, with revenue rising by 6.5% and operating profit surging by 91.7% compared to the previous year. The company also announced a revision in its dividend forecast, increasing the annual dividend per share to 140 yen, reflecting confidence in its financial stability and growth prospects.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen10400.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Increases Interim and Annual Dividend Forecast

Otsuka Holdings Co., Ltd. announced an increase in its interim dividend to JPY 70.00 per share, up from the previous JPY 60.00, based on strong financial results for the first half of FY2025. Additionally, the company revised its annual dividend forecast, raising the year-end dividend to JPY 70.00 per share, resulting in a total annual dividend of JPY 140.00 per share, reflecting a JPY 20.00 increase. This decision underscores Otsuka’s stable dividend policy and its aim to enhance shareholder returns.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen10400.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.

Otsuka Holdings Upgrades Financial Forecast for FY2025

Otsuka Holdings Co., Ltd. has revised its financial forecast for the first half of FY2025, projecting higher revenues and profits due to strong performance in its pharmaceutical and nutraceutical sectors. Despite the yen’s appreciation, key products like Rexulti and POCARI SWEAT have driven growth, and lower-than-expected expenses have contributed to the favorable outlook.

The most recent analyst rating on (JP:4578) stock is a Buy with a Yen10400.00 price target. To see the full list of analyst forecasts on Otsuka Holdings Co stock, see the JP:4578 Stock Forecast page.