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Otsuka
(4768)
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Rating:75Outperform
Price Target:
¥5,069.00
▲(43.23% Upside)
Action:Reiterated
Date:10/27/26
The score is driven primarily by strong financial performance, led by a conservatively financed balance sheet and consistent profitability alongside solid multi-year revenue growth. Technicals support the uptrend, but very overbought momentum raises near-term pullback risk. Valuation is a modest headwind with a P/E around 25, partly offset by a ~2.2% dividend yield.
Positive Factors
Multi-year revenue growth
The sustained revenue uptrend indicates durable demand and expanding scale across Otsuka’s IT solutions and support activities. Continued top-line growth can broaden the customer base, support operating leverage over time, and provide a foundation for reinvestment in systems, services, and customer coverage.
Negative Factors
Gross margin pressure
The decline in gross margin shows that revenue growth has not translated into stronger unit economics. If this trend persists, higher delivery costs or limited pricing power could restrain profit growth, making it harder for Otsuka to expand earnings at the same pace as sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
The sustained revenue uptrend indicates durable demand and expanding scale across Otsuka’s IT solutions and support activities. Continued top-line growth can broaden the customer base, support operating leverage over time, and provide a foundation for reinvestment in systems, services, and customer coverage.
Read all positive factors
Otsuka (4768) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.71T
Dividend Yield2.22%
Average Volume (3M)1.27M
Price to Earnings (P/E)25.1
Beta (1Y)0.42
Revenue Growth12.33%
EPS Growth10.68%
CountryJP
Employees10,079
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)177.11
Shares Outstanding380,004,240
10 Day Avg. Volume1,545,730
30 Day Avg. Volume1,274,313
Financial Highlights & Ratios
PEG Ratio0.94
Price to Book (P/B)3.11
Price to Sales (P/S)0.93
P/FCF Ratio13.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,826.67Price Target Upside8.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)178.14
Revenue Forecast (FY)¥1.41T
Otsuka Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1961, Otsuka Corporation offers a comprehensive range of technology services within Japan. Its operations are primarily divided into two main segments: System Integration and Service & Support. The System Integratio...
Otsuka Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39T | 1.32T | 1.11T | 977.37B | 861.02B | 851.89B |
| Gross Profit | 261.95B | 252.18B | 224.47B | 203.98B | 184.17B | 176.89B |
| EBITDA | 104.65B | 99.86B | 82.33B | 72.87B | 64.84B | 66.21B |
| Net Income | 67.16B | 64.30B | 53.48B | 47.45B | 40.02B | 39.93B |
Balance Sheet | ||||||
| Total Assets | 823.30B | 729.20B | 684.85B | 565.20B | 526.13B | 490.20B |
| Cash, Cash Equivalents and Short-Term Investments | 257.02B | 252.06B | 229.53B | 229.66B | 203.31B | 205.78B |
| Total Debt | 8.28B | 7.18B | 6.86B | 8.19B | 8.44B | 8.85B |
| Total Liabilities | 403.97B | 329.61B | 309.60B | 218.25B | 203.40B | 188.43B |
| Stockholders Equity | 413.81B | 394.32B | 370.80B | 343.11B | 319.39B | 298.74B |
Cash Flow | ||||||
| Free Cash Flow | 86.58B | 87.85B | 34.49B | 67.66B | 27.95B | 52.67B |
| Operating Cash Flow | 89.61B | 92.22B | 37.71B | 71.65B | 29.20B | 57.87B |
| Investing Cash Flow | -31.26B | -20.48B | -11.95B | -21.47B | -8.36B | -9.16B |
| Financing Cash Flow | -34.40B | -47.61B | -25.89B | -23.84B | -23.31B | -21.96B |
Otsuka Technical Analysis
Positive
3539.00
Price Trends
3704.26
Positive
3331.51
Positive
3159.03
Positive
Market Momentum
197.95
Negative
87.04
Negative
88.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4768, the sentiment is Positive. The current price of 3539 is below the 20-day moving average (MA) of 3941.65, below the 50-day MA of 3704.26, and above the 200-day MA of 3159.03, indicating a bullish trend. The MACD of 197.95 indicates Negative momentum. The RSI at 87.04 is Negative, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4768.
Otsuka Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥268.63B | 7.90 | 18.73% | 2.98% | 24.06% | 105.61% | |
75 Outperform | ¥1.71T | 25.12 | 17.08% | 2.22% | 12.33% | 10.68% | |
69 Neutral | ¥20.42B | 11.33 | ― | 4.40% | 9.27% | -55.70% | |
69 Neutral | ¥68.28B | 17.38 | ― | 2.94% | 12.94% | 85.20% | |
64 Neutral | ¥46.32B | 41.04 | 2.09% | 1.56% | -0.53% | 121.05% | |
64 Neutral | ¥48.64B | 15.66 | ― | 3.39% | 2.80% | -33.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Otsuka Corporate Events
Otsuka Corporation Delivers Higher First-Half Earnings and Raises Dividend Outlook
Aug 3, 2026
Otsuka Corporation reported a 9.0% year-on-year increase in net sales to ¥757.5 billion for the six months ended June 30, 2026, with operating profit up 8.0% to ¥53.1 billion and profit attributable to owners of the parent rising 8.4% to...
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.