| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2043.39 | -20 |
| Intrinsic value (DCF) | 6253.63 | 144 |
| Graham-Dodd Method | 1148.12 | -55 |
| Graham Formula | 2929.19 | 15 |
Rohto Pharmaceutical Co., Ltd. is a leading Japanese manufacturer and marketer of pharmaceutical products, cosmetics, and functional foods, with a strong global presence. Founded in 1899 and headquartered in Osaka, Japan, Rohto specializes in eye care products, including medicated eye drops and contact lens solutions, as well as facial care products like cleansers and moisturizers. The company also produces internal medicines, herbal supplements, and beauty services, catering to both healthcare and personal care markets. Operating in the Consumer Defensive sector, Rohto benefits from stable demand for its essential products, particularly in over-the-counter (OTC) healthcare and skincare segments. With a diversified portfolio and strong brand recognition in Asia, Rohto continues to expand its footprint in international markets, leveraging innovation in pharmaceutical and cosmetic formulations. The company’s commitment to R&D and consumer-centric product development positions it as a key player in Japan’s household and personal products industry.
Rohto Pharmaceutical presents a stable investment opportunity within the Consumer Defensive sector, supported by its diversified product portfolio and strong brand equity in Japan and Asia. The company’s low beta (-0.366) suggests defensive characteristics, making it resilient to market volatility. With a market cap of ¥461 billion, solid revenue (¥270.8 billion), and net income (¥30.9 billion), Rohto demonstrates consistent profitability. Its healthy cash position (¥89.2 billion) and manageable debt (¥10.5 billion) provide financial flexibility. However, growth may be constrained by Japan’s aging population and intense competition in OTC pharmaceuticals and cosmetics. Investors should weigh its reliable dividend (¥36 per share) against moderate revenue growth prospects in saturated markets.
Rohto Pharmaceutical holds a competitive edge in Japan’s OTC pharmaceutical and personal care markets, particularly in eye care, where its branded products like Rohto C³ and Lycee enjoy strong consumer loyalty. The company’s vertically integrated operations—spanning R&D, manufacturing, and distribution—enhance cost efficiency and product quality control. Unlike global pharmaceutical giants, Rohto focuses on niche segments such as medicated skincare and eye health, allowing it to avoid direct competition with mass-market players. However, its international presence remains limited compared to multinational rivals like Johnson & Johnson or Kao Corporation. In Japan, Rohto competes with domestic firms such as Kao and Shiseido in cosmetics, while facing pressure from generics in OTC drugs. Its innovation in hybrid products (e.g., medicated cosmetics) differentiates it, but reliance on Japan (where ~70% of sales occur) exposes it to demographic risks. Expanding in high-growth Asian markets could offset domestic stagnation, but success depends on overcoming local competition and regulatory hurdles.