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Chugai Pharmaceutical Co
(4519)
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Rating:78Outperform
Price Target:
¥7,807.00
▲(5.27% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by exceptionally strong financial quality (high margins, strong ROE, and minimal leverage) and a constructive earnings call with strong H1 execution and pipeline momentum. Offsetting these positives, the stock’s technical trend is notably weak (below major moving averages) and valuation is on the higher side, even with a supportive dividend yield.
Positive Factors
Exceptional profitability and margins
Sustained very high gross and operating margins and strong ROE indicate durable pricing power, efficient R&D/manufacturing leverage and strong earnings quality. These structural margins support reinvestment, dividends and buffer shocks over the next several quarters.
Negative Factors
Revenue growth volatility and royalty timing
Top‑line swings and uneven cash conversion reflect dependence on product cycles, one‑time royalties and timing differences with partners. Persistent volatility complicates planning, capital allocation and makes sustainable organic growth harder without continual new launches.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability and margins
Sustained very high gross and operating margins and strong ROE indicate durable pricing power, efficient R&D/manufacturing leverage and strong earnings quality. These structural margins support reinvestment, dividends and buffer shocks over the next several quarters.
Read all positive factors
Chugai Pharmaceutical Co (4519) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥11.41T
Dividend Yield3.07%
Average Volume (3M)2.77M
Price to Earnings (P/E)24.2
Beta (1Y)0.86
Revenue Growth12.25%
EPS Growth19.19%
CountryJP
Employees5,104
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)286.43
Shares Outstanding1,679,057,600
10 Day Avg. Volume3,088,480
30 Day Avg. Volume2,774,486
Financial Highlights & Ratios
PEG Ratio2.60
Price to Book (P/B)6.70
Price to Sales (P/S)10.78
P/FCF Ratio43.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥9,372.73Price Target Upside26.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)308.88
Revenue Forecast (FY)¥1.39T
Chugai Pharmaceutical Co Business Overview & Revenue Model
Company Description
Chugai Pharmaceutical Co., Ltd. is a prominent global pharmaceutical company, operating subsidiaries involved in the full lifecycle of drug development, from research and manufacturing to sales, import, and export, serving both Japanese and intern...
How the Company Makes Money
Chugai primarily makes money by selling prescription pharmaceuticals and earning income tied to partnered products and intellectual property. Key revenue streams include: (1) Product sales (domestic and international): revenue from marketing and d...
Chugai Pharmaceutical Co Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented strong financial performance (material YoY increases in revenue, operating profit and net income), robust product sales growth, multiple clinical and regulatory milestones (Phase III starts, positive readouts, orphan designations, FDA Fast Track for AQUA07) and a disciplined capital allocation stance with continued dividend increases. Headwinds include pricing pressure from NHI revisions and generic competition for legacy products, some cost increases, visibility challenges around partner royalty timing (notably NEMLUVIO), and uncertainty from international pricing policy changes. On balance, the positive operational and pipeline progress and solid financials outweigh the negatives.Positive Updates
Strong Revenue Growth
First-half revenue of JPY 663.3 billion, up JPY 84.8 billion or 14.7% year‑on‑year, driven by increases across domestic, overseas and other revenue.
Negative Updates
Pricing Pressure and NHI Revisions
Certain legacy products faced declines due to NHI drug price revisions and generic penetration; Avastin continued to decline and Perjeta decreased (partly offset by Phesgo).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
First-half revenue of JPY 663.3 billion, up JPY 84.8 billion or 14.7% year‑on‑year, driven by increases across domestic, overseas and other revenue.
Read all positive updates
Company Guidance
Chugai reiterated guidance to achieve its FY2026 full‑year forecast after a strong H1: revenue JPY663.3bn (+JPY84.8bn, +14.7% YoY), core operating profit JPY329.1bn (+JPY57.1bn, +21%), product sales JPY566.5bn (+JPY55.1bn, +10.8%) with domestic sales JPY237.9bn (+JPY14.6bn, +6.5%) and overseas sales JPY328.6bn (+JPY40.5bn, +14.1%), other revenue JPY96.8bn (+JPY29.8bn); cost of sales JPY195.9bn (+JPY20.7bn; COGS ratio 34.6%, +0.3ppt), R&D JPY90.2bn (+JPY3.9bn), SG&A JPY49.0bn (+JPY3.6bn), operating margin 49.6% (+2.6ppt) and net income JPY238.4bn (+JPY44.9bn, +23.2%). Balance‑sheet highlights included total assets JPY2,449.9bn, equity ratio 82.8% and net cash JPY962.6bn, while FX added roughly JPY26.9bn to revenue and JPY19.8bn to operating profit. Management also signaled operational guidance: 8 regulatory filings completed with plans to target up to ~16 filings in 2026, initiation of 2 Phase III studies for NXT007, first patient dosed for AQUA07 (FDA fast‑track), continued pipeline readouts (e.g., divarasib, PiaSky), active strategic investment via a new Strategic Investment Department, and a proposed ordinary dividend of JPY132/share (10th consecutive annual increase).Chugai Pharmaceutical Co Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.34T | 1.26T | 1.17T | 1.11T | 1.26T | 999.76B |
| Gross Profit | 958.60B | 894.25B | 830.75B | 693.01B | 783.06B | 660.27B |
| EBITDA | 688.30B | 631.37B | 574.80B | 475.64B | 562.66B | 450.30B |
| Net Income | 471.37B | 434.01B | 387.32B | 325.47B | 374.43B | 303.00B |
Balance Sheet | ||||||
| Total Assets | 2.45T | 2.47T | 2.21T | 1.93T | 1.87T | 1.54T |
| Cash, Cash Equivalents and Short-Term Investments | 962.57B | 979.70B | 996.35B | 738.98B | 503.11B | 471.97B |
| Total Debt | 17.69B | 0.00 | 10.90B | 13.46B | 14.11B | 16.04B |
| Total Liabilities | 422.25B | 442.86B | 306.87B | 306.97B | 445.37B | 350.68B |
| Stockholders Equity | 2.03T | 2.03T | 1.90T | 1.63T | 1.42T | 1.19T |
Cash Flow | ||||||
| Free Cash Flow | 404.93B | 313.18B | 396.68B | 335.67B | 172.87B | 206.76B |
| Operating Cash Flow | 453.57B | 389.45B | 447.60B | 409.93B | 244.11B | 279.63B |
| Investing Cash Flow | -108.67B | -204.87B | -227.37B | -37.29B | -145.99B | -118.93B |
| Financing Cash Flow | -460.37B | -307.46B | -141.01B | -139.33B | -145.64B | -107.41B |
Chugai Pharmaceutical Co Technical Analysis
Negative
7416.00
Price Trends
7272.17
Negative
7740.56
Negative
8042.05
Negative
Market Momentum
-96.66
Negative
44.59
Neutral
81.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4519, the sentiment is Negative. The current price of 7416 is above the 20-day moving average (MA) of 7044.80, above the 50-day MA of 7272.17, and below the 200-day MA of 8042.05, indicating a bearish trend. The MACD of -96.66 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4519.
Chugai Pharmaceutical Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥11.41T | 24.20 | 24.02% | 2.87% | 12.25% | 19.19% | |
78 Outperform | ¥4.24T | 11.57 | 17.44% | 3.60% | 16.93% | 347.13% | |
74 Outperform | ¥1.14T | 14.98 | 8.54% | 3.28% | 1.55% | 77.55% | |
71 Outperform | ¥1.37T | 32.37 | 4.44% | 3.44% | 6.73% | -15.79% | |
64 Neutral | ¥8.96T | 49.12 | 2.61% | 3.54% | 3.10% | -218.63% | |
58 Neutral | ¥4.97T | 20.66 | 15.74% | 2.79% | 15.51% | -16.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4519
Chugai Pharmaceutical Co
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Chugai Pharmaceutical Co Corporate Events
Chugai Highlights FX Impact in Interim 2026 Financial Materials
Jul 24, 2026
Chugai Pharmaceutical released supplementary consolidated financial materials for the six months ended June 30, 2026 under IFRS, detailing the weighted average, market average and period-end exchange rates used for key currencies including CHF, EU...
Chugai Pharmaceutical Delivers Strong First-Half 2026 Results and Confirms Full-Year Outlook
Jul 24, 2026
Chugai Pharmaceutical reported strong interim results for the six months ended June 30, 2026, with revenue rising 14.7% year-on-year to ¥663.3 billion and operating profit up 16.9% to ¥319.6 billion. Net income attributable to shareholde...
Chugai Confirms H1 2026 Results Included in Roche Group Earnings
Jul 23, 2026
Chugai Pharmaceutical has highlighted that its financial results for the first half of 2026 are included in the half‑year figures released by its parent company, F. Hoffmann‑La Roche. Roche Holding, which controls nearly 60% of Chugai&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.