Chugai Pharmaceutical Co (4519) AI Stock Analysis

• Market Cap: $10.70T
• Dividend Yield: 1.64%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.91
• Revenue Growth: 10.29%
• EPS Growth: 11.37%
• Country: JP
• Employees: 5,026
• Sector: Healthcare
• Sector Strength: 51
• Industry: Drug Manufacturers - General
• EPS (TTM): 57.83
• Shares Outstanding: 1,679,057,600
• 10 Day Avg. Volume: 4,903,120
• 30 Day Avg. Volume: 3,998,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 9.50
• Enterprise Value/Gross Profit: 13.51
• Enterprise Value/Ebitda: 20.34
• 1Y Price Target: $8,154.68
• Price Target Upside: 25.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: ¥7,186.00 ▲(10.40% Upside)

Chugai Pharmaceutical Co's strong financial performance and positive earnings call sentiment are key strengths, contributing significantly to the overall score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation, which slightly offsets the positive aspects.

Chugai Pharmaceutical Co Business Overview & Revenue Model

Company Description

Chugai Pharmaceutical Co., Ltd., together with its subsidiaries, engages in the research, development, manufacturing, sale, importation, and exportation of pharmaceuticals in Japan and internationally. The company's products for oncology primarily include Avastin, Tecentriq, Perjeta, Alecensa, Herceptin, Kadcyla, Rituxan, Gazyva, and Xeloda; osteoporosis, including Actemra, Edirol, and Bonviva; renal diseases consist of Mircera and Oxarol; and neurology/other diseases comprise Hemlibra, CellCept, and Enspryng. It has various development product candidates in the areas of oncology, bone and joint diseases, autoimmune diseases, renal diseases, neurology, and other diseases. Chugai Pharmaceutical Co., Ltd. has strategic alliances with Roche Group; and collaboration and joint research with academia. The company was founded in 1925 and is headquartered in Tokyo, Japan. Chugai Pharmaceutical Co., Ltd. is a subsidiary of Roche Holding Ltd.

How the Company Makes Money

Chugai Pharmaceutical generates revenue primarily through the sales of its proprietary pharmaceutical products, particularly in oncology and other specialty therapeutic areas. A significant portion of its income comes from the commercialization of its innovative drugs, including those developed internally and through partnerships. The company has strategic collaborations with Roche, its largest shareholder, which allows for shared research and development costs, as well as access to international markets. Additionally, Chugai earns revenue through licensing agreements and royalties from its patented drug technologies. The company also invests in research to expand its pipeline of new therapies, further enhancing its future revenue potential.

Chugai Pharmaceutical Co Financial Statement Overview

Summary

Chugai Pharmaceutical Co exhibits strong financial health with robust profitability, low leverage, and effective cash flow management. While revenue growth has slowed, the company's strong margins and financial stability position it well for future growth opportunities.

Income Statement

Chugai Pharmaceutical Co shows strong profitability with a consistent gross profit margin around 71% in TTM, indicating efficient cost management. The net profit margin is robust at 33.56%, reflecting effective control over expenses. However, the revenue growth rate has declined by 2.12% in TTM, suggesting a need for growth strategies. EBIT and EBITDA margins are healthy, indicating strong operational performance.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0069 in TTM, highlighting financial stability and low leverage risk. Return on equity is strong at 22.29%, showcasing effective use of equity to generate profits. The equity ratio is solid, indicating a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Chugai Pharmaceutical Co demonstrates strong cash flow management with a 12.14% growth in free cash flow in TTM. The operating cash flow to net income ratio is nearly 2, indicating efficient conversion of net income into cash. The free cash flow to net income ratio is high at 85.43%, reflecting strong cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20T	1.17T	1.11T	1.26T	999.76B	786.95B
Gross Profit	841.80B	830.75B	693.01B	783.06B	660.27B	511.77B
EBITDA	558.97B	574.80B	475.64B	562.66B	450.30B	328.72B
Net Income	395.49B	387.32B	325.47B	374.43B	303.00B	214.73B
Balance Sheet
Total Assets	2.28T	2.21T	1.93T	1.87T	1.54T	1.24T
Cash, Cash Equivalents and Short-Term Investments	1.03T	996.35B	738.98B	503.11B	471.97B	378.62B
Total Debt	13.20B	10.90B	13.46B	14.11B	16.04B	11.28B
Total Liabilities	293.22B	306.87B	306.97B	445.37B	350.68B	255.50B
Stockholders Equity	1.99T	1.90T	1.63T	1.42T	1.19T	980.00B
Cash Flow
Free Cash Flow	397.33B	396.68B	335.67B	172.87B	206.76B	143.62B
Operating Cash Flow	464.10B	447.60B	409.93B	244.11B	279.63B	205.03B
Investing Cash Flow	-190.68B	-227.37B	-37.29B	-145.99B	-118.93B	-98.31B
Financing Cash Flow	-169.12B	-141.01B	-139.33B	-145.64B	-107.41B	-99.50B

Chugai Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6509.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6509 is below the 20-day moving average (MA) of 6555.40, below the 50-day MA of 6911.44, and below the 200-day MA of 6963.81, indicating a bearish trend. The MACD of -189.85 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 79.94 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4519	72 Outperform	$10.70T	27.09	21.48%	1.64%	10.29%	11.37%
Sector *	51 Neutral	$7.86B	-0.26	-41.41%	2.22%	22.87%	-2.01%
ALPMF	―	$19.81B	35.11	5.46%	4.52%	―	―
DSKYF	―	$44.67B	22.33	18.32%	1.72%	―	―
KYKOF	―	$9.05B	34.81	4.61%	3.36%	―	―
SGIOF	―	$15.23B	12.80	13.71%	4.52%	―	―
TKPHF	―	$47.59B	45.09	1.99%	4.83%	―	―

Chugai Pharmaceutical Co Corporate Events

Chugai Highlights Eli Lilly’s Positive Phase 3 Results for Orforglipron

Chugai Pharmaceutical Co., Ltd. announced Eli Lilly’s positive Phase 3 trial results for orforglipron, an oral GLP-1 receptor agonist, which showed significant weight reduction in adults with obesity. The trial demonstrated that orforglipron achieved primary and secondary endpoints, with a safety profile consistent with existing GLP-1 medicines. This development is significant for Eli Lilly’s market positioning in weight management solutions, though it does not impact Chugai’s financial forecast for 2025.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7650.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Pharmaceutical to Build New Laboratory to Boost R&D and Environmental Goals

Chugai Pharmaceutical Co. announced plans to construct a new laboratory building, UKX, at its Ukima Site in Tokyo to enhance its manufacturing process development capabilities and advance environmental initiatives. This strategic move is part of Chugai’s growth strategy, TOP I 2030, aiming to double R&D output and achieve early proof of concept in clinical development. The new facility will support rapid clinical trial entry and innovation in drug manufacturing processes, particularly for mid-size molecules. Additionally, the environmentally friendly design of UKX aligns with Chugai’s Mid-Term Environmental Goals 2030, focusing on reducing CO2 emissions and phasing out halogenated hydrocarbons. This investment is not expected to impact the company’s financial forecast for 2025.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7650.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Pharmaceutical Reports Strong H1 2025 Results and Announces Special Dividend

Chugai Pharmaceutical Co. reported a strong financial performance for the first half of 2025, with significant increases in revenue, operating profit, and net income compared to the previous year. The company announced a special dividend to celebrate its 100th anniversary, highlighting its robust financial health and commitment to rewarding shareholders. This announcement underscores Chugai’s solid market position and its strategic focus on sustainable growth, which is likely to have positive implications for its stakeholders.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7650.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Pharmaceutical’s Performance Highlighted in Roche’s Half-Year Results

Chugai Pharmaceutical Co., Ltd., a key player in the pharmaceutical industry, is significantly influenced by its parent company, Roche Holding Ltd, which owns a majority of its shares. The recent announcement of Roche’s half-year results for 2025 includes Chugai’s performance, highlighting the integrated financial outcomes and strategic alignment between the two companies. This announcement underscores the operational synergy and market positioning of Chugai within the Roche Group, potentially impacting stakeholders by showcasing the company’s performance and strategic direction.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7650.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.