Sumitomo Pharma (4506.T) up 7.49% on JPX 05 Jan 2026: low PE 5.95 flags value
Sumitomo Pharma Co., Ltd. (4506.T) led Japan’s top gainers on JPX, closing up 7.49% at JPY 2467.00 on 05 Jan 2026 as investors reacted to stronger-than-expected earnings and a clear valuation gap. The 1-day move followed a 172.00 JPY rise on volume 7768900.00, well above intraday levels. The 4506.T stock rally reflects improving revenue beats in 2025 and a low price-to-earnings ratio 5.95 that analysts say points to embedded upside if growth stabilises. Meyka AI’s market tools flagged this move as the healthcare sector outperformed peers today Investing.com and price interest showed on broader data Yahoo Finance.
Price action and market context
Sumitomo Pharma (4506.T) closed at JPY 2467.00, a 7.49% increase from the previous close of JPY 2295.00. The session high was JPY 2509.50 and the low JPY 2352.00, with volume at 7768900.00 versus average volume 8347573.00. The move placed the share above its 50-day average JPY 2235.44 and well above its 200-day average JPY 1386.42, signalling short-term momentum.
Earnings beats driving the rally
Recent quarterly reports show repeated beats: EPS JPY 134.53 (29 Jan 2025) and EPS JPY 28.21 (31 Jul 2025) compared with estimates. The July 2025 result reported EPS 28.21 versus estimate 19.72 and revenue JPY 108002000000.00 versus estimate JPY 74593333330.00, pushing investor sentiment and linking earnings strength directly to price gains.
Valuation snapshot and fundamentals
Valuation remains a focal point: Sumitomo Pharma trades at PE 5.95 with EPS TTM JPY 389.42 and market cap JPY 920917404064.00. Key ratios include price-to-sales 2.07 and price-to-book 3.47. Free cash flow yield is 2.50% and debt-to-equity is 0.99, underlining a mixed picture of strong profitability (net margin 34.75%) but material leverage.
Technical setup
Technically, RSI sits at 49.51, MACD histogram is negative at -11.98 and ADX 16.71 indicates no clear trend. Bollinger Bands middle band is JPY 2348.40 and ATR 108.51, which points to higher intraday volatility. The stock clearing the 50-day average with above-average volume supports the short-term breakout thesis.
Meyka AI rating and model forecast
Meyka AI rates 4506.T with a score of 71.89 out of 100 (B+, BUY). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Meyka AI’s forecast model projects a monthly estimate JPY 2350.08 and a quarterly estimate JPY 1966.51; compared with the current price JPY 2467.00 those imply downside of -4.74% and -20.29% respectively. Forecasts are model-based projections and not guarantees.
Risks and short-term catalysts
Upside catalysts include further earnings beats, regulatory approvals for pipeline assets and Roivant partnership developments. Key risks are volatile R&D outcomes, tightening BoJ rates affecting market multiples, and inventory cycles: days of inventory on hand at 176.84 signals working capital pressure that could affect cash flow.
Final Thoughts
Sumitomo Pharma’s 4506.T stock closed the session at JPY 2467.00 after a 7.49% intraday gain driven by repeated earnings beats and value-focused buying. The company shows strong profitability metrics (net margin 34.75%, ROE 79.61%) and an attractive PE 5.95 relative to many healthcare peers; that combination explains why investors moved quickly. Our scenario-based price targets use current EPS JPY 389.42: if the market re-rates to PE 10 the implied price is JPY 3894.20 (upside 57.96%), while a conservative PE 15 scenario gives JPY 5841.30 (upside 136.86%). Meyka AI’s near-term monthly forecast JPY 2350.08 implies a short-term downside of -4.74% versus the close; this divergence highlights model sensitivity to corporate seasonality and suggests traders should watch upcoming earnings announcements and pipeline news. Investors should weigh the strong cash generation and low PE against debt levels and inventory cycles. These dynamics make 4506.T a candidate for value-oriented portfolios, while active traders should monitor volume and upcoming company updates for confirmation.
FAQs
4506.T rose 7.49% on 05 Jan 2026 after recent earnings beats and stronger-than-expected revenue. Higher volume and the stock moving above the 50-day average intensified buying from value and momentum traders.
At PE 5.95 and EPS JPY 389.42, 4506.T looks inexpensive versus many healthcare peers. Valuation appears attractive, but investors should consider debt-to-equity 0.99 and working capital metrics before deciding.
Scenario targets: re-rating to PE 10 implies JPY 3894.20, PE 15 implies JPY 5841.30. Short-term model forecasts include monthly JPY 2350.08. These are model-based, not guarantees.
The next scheduled earnings announcement in the full quote data is dated 30 Jan 2026 (UTC). Investors should confirm the company release calendar for exact local timings.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
