Kaken Pharmaceutical Co (KKPCF) Fair Value & Analysis

Healthcare · US · Market cap $985M

Below-average quality, and screening another 70% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($9.71). The favourable scenario is already priced in.
• Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range $19.58 – $31.99 · fair‑value band $5.83 – $9.71 · the $26.00 price screens above the $7.77 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Kaken Pharmaceutical Co (KKPCF) currently trades at $26.00, while our model-based Fair Value estimate is $7.77, implying the stock looks roughly 70.1% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Kaken Pharmaceutical Co generated revenue of $76.9B at a net margin of 2.8%. Revenue grew 6.7% year over year. It earns a return on equity of 1.4%. The balance sheet holds a net cash position of $41.1B. Fundamentals as of Jul 17, 2026

Our scenario range runs from $5.83 (bear case) to $9.71 (bull case); at $26.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 25% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -70%, KKPCF screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Asset-Based ($16.29) versus Earnings-Based ($2.94). Highest evidence: Growth-Adj P/E (68).

Key figures & financial health

Quality Score breakdown

About the company

Kaken Pharmaceutical Co., Ltd. produces, markets, and sells medical products, medical devices, and agrochemicals in Japan and internationally.

Full company description

Kaken Pharmaceutical Co., Ltd. produces, markets, and sells medical products, medical devices, and agrochemicals in Japan and internationally. The company offers pharmaceutical products and medical devices, such as Clenafin, a topical treatment for onychomycosis; Artz, an anti-osteoarthritis agent; Fiblast, a wound-healing agent; Ecclock for the treatment of primary axillary hyperhidrosis; Regroth, a periodontal regenerative agent; Hernicore for the treatment of lumbar disc herniation; and Seprafilm, an adhesion barrier used primarily in surgery and gynecology to reduce complications from post-operative adhesions. It also provides agrochemicals and animal health products, including Polyoxins, that are used as fungicides; Pentoxazone and Metamifop rice herbicides; Salinomycin, an anti-coccidial feed additive for chickens; and Uroston, a urinary stone dissolution and elimination acceleration agent for cattle. In addition, the company is developing KMW-1 for the removal of eschar; KAR, which is in phase III clinical trial for the treatment of head lice; KP-001, which is in phase III clinical trial for the treatment of refractory vascular malformations; Seladelpar that is in phase III clinical trial for primary biliary cholangitis; KP-483, which is in phase I clinical trial for the treatment of solid tumors; NM26-2198 that is in phase I clinical trial for the treatment of atopic dermatitis; KP-910, which is in phase I clinical trial for peripheral neuropathic pain; and Tildacerfont, which is in phase I clinical trial for congenital adrenal hyperplasia. Further, it is involved in the rental of Bunkyo Green Court. The company has a collaboration and licensing agreement with Alumis Inc. to develop, manufacture, and commercialize ESK-001, a selective oral tyrosine kinase 2 (TYK2) inhibitor for dermatology indications in Japan. Kaken Pharmaceutical Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kaken Pharmaceutical Co reported revenue of $77.4B in FY2026 versus $76.0B in FY2022, a compound +0.4%/yr. Reported net income was $2.2B in FY2026, compounding −31.1%/yr from FY2022.

KKPCF screens 70% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

Peer Group

Drug Manufacturers - Specialty & Generic · 626 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.