TSE:4548Pharmaceuticals
Seikagaku (TSE:4548) Stock Faces Profit Quality Doubts After One Off Gain
Seikagaku stock closed at ¥697 after a weak few weeks, with the share price down about 7% over seven days and lower across the past quarter. Yet the latest earnings tell a more complicated story. The key issue is earnings quality. The company is profitable over the last 12 months on paper, but that outcome leans heavily on a large one off gain of about ¥1.8b, while the underlying five year earnings trend shows an annual decline of 45.7%.
Concerned that Seikagaku’s headline profit leans so...