Santen Pharmaceutical Co., Ltd. (4536) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Astellas Pharma, Inc.

Chugai Pharmaceutical Co., Ltd.

Shionogi & Co., Ltd.

Otsuka Holdings Co., Ltd.

Ono Pharmaceutical Co., Ltd.

Eisai Co., Ltd.

Kyowa Kirin Co., Ltd.

Santen Pharmaceutical Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Santen Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.50%

The company has been able to generate a Return on Equity (avg) of 6.50% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.92

Poor long term growth as Operating profit has grown by an annual rate 4.56% of over the last 5 years

Flat results in Jun 25

RAW MATERIAL COST(Y) Grown by 5.87% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.49%
NET SALES(Q) Lowest at JPY 68,737 MM

With ROE of 12.52%, it has a very attractive valuation with a 1.95 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.72%, its profits have risen by 34.3% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -6.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Santen Pharmaceutical Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.43%

EBIT Growth (5y)

4.56%

EBIT to Interest (avg)

20.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.91

Tax Ratio

24.14%

Dividend Payout Ratio

34.62%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

16.84%

ROE (avg)

6.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.95

EV to EBIT

9.29

EV to EBITDA

6.84

EV to Capital Employed

2.41

EV to Sales

1.55

PEG Ratio

0.38

Dividend Yield

0.03%

ROCE (Latest)

25.95%

ROE (Latest)

12.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

ROCE(HY)

Highest at 10.71%

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 5.87% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49%

NET SALES(Q)

Lowest at JPY 68,737 MM

OPERATING PROFIT(Q)

Lowest at JPY 12,028 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.5 %

PRE-TAX PROFIT(Q)

Fallen at -44.61%

NET PROFIT(Q)

Fallen at -44.72%

EPS(Q)

Lowest at JPY 17.28

Here's what is not working for Santen Pharmaceutical Co., Ltd.

Net Sales

Lowest at JPY 68,737 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 12,028 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 17.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 7,450 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

Fallen at -44.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 5,878 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

Fallen at -44.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 17.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Lowest at 2.49%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales