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Otsuka Holdings Co.

OTSKY
73
Drug Manufacturers - General · Healthcare
Price
$38.45
-0.68 (-1.73%)
Market Cap
$40.40B
Exchange
Other OTC
Winston Score
73
Winston is happy
A high-quality business with solid fundamentals.
Data as of Sep 5, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
Growth
Good
Cash Flow
Strong
Stability
Exceptional
Valuation
Good
Dividends
Good
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Share count falling — buybacks

−2.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.08B (2021) → 1.06B (2025)

§Winston Score History

The full picture

Otsuka Holdings is a Japanese healthcare company best known for making prescription drugs, but it also sells consumer beverages and nutritional products. Its biggest drug is Abilify and its successor Rexulti, used to treat mental health conditions like schizophrenia and depression. The company also makes Pocari Sweat, a popular sports drink sold across Asia.

Otsuka earns money mainly by selling pharmaceutical products to hospitals, pharmacies, and healthcare systems worldwide, with additional revenue from its consumer products business. It is headquartered in Tokyo and operates in over 30 countries, with a market cap around $40 billion. Its strong position in psychiatry and neuroscience drugs gives it a specialized edge, though the company faces ongoing risk from patent expirations and the need to develop new drugs to replace aging blockbusters.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+19.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+34.9% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

¥369.9B/ year

↑ Rising (+18% vs prior year)

14.3% of revenue

Below sector average (18%)

Investing heavily in future products and technology

Insider Activity

58.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥1.1T cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Otsuka Holdings Co. is a rare growth stock that's already generating positive cash flow while growing at 19%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
72.7%
Premium pricing power — 72.7% gross margin
Profit after running costs
Operating Margin
20.8%
Excellent — 20.8% operating margin
Return on the money invested
ROCE
13.8%
Good — 13.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+10.9%
Steady sales growth (+10.9% YoY)
Profit growth
EPS YoY
+2.2%
Flat earnings

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
101%
Turns 101% of profit into real cash
Spare cash per sale
FCF Margin
12.3%
Converts sales into free cash efficiently (12.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.03
Conservative — low debt load (0.03)
Covers its interest
Interest Cover
54.41x
Comfortably covers interest (54.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
15.7x
Fair value — P/E 15.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.7
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
1.67%
Small dividend — 1.67% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+28.2%
Dividend growing fast (28.2% YoY)

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