Chugai Pharmaceutical Co Ltd (JP:4519)
:4519
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Chugai Pharmaceutical Co
(4519)
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Rating:77Outperform
Price Target:
¥8,450.00
▲(1.21% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by outstanding financial performance (best-in-class profitability, strong returns, low leverage) and supportive FY2026 guidance from the latest earnings call. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a relatively high P/E despite a moderate dividend yield.
Positive Factors
Very high and sustainable margins
Extremely high gross and net margins provide durable cash generation and pricing flexibility. These margins allow Chugai to fund R&D, pay elevated dividends, and absorb pricing pressure on legacy drugs, supporting long-term profitability and strategic reinvestment across product lifecycles.
Negative Factors
Safety event and Elevidys launch delay
A fatal safety event that delays a gene therapy launch creates lasting regulatory scrutiny, potential label restrictions, and reputational impact. Such delays push out revenue realizations, raise development and monitoring costs, and can materially alter commercial timelines for novel therapeutic platforms.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high and sustainable margins
Extremely high gross and net margins provide durable cash generation and pricing flexibility. These margins allow Chugai to fund R&D, pay elevated dividends, and absorb pricing pressure on legacy drugs, supporting long-term profitability and strategic reinvestment across product lifecycles.
Read all positive factors
Chugai Pharmaceutical Co (4519) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.99T
Dividend Yield1.17%
Average Volume (3M)2.77M
Price to Earnings (P/E)30.7
Beta (1Y)0.77
Revenue Growth5.65%
EPS Growth10.24%
CountryJP
Employees5,026
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)274.78
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
¥10,377.27Price Target Upside24.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)309.36
Revenue Forecast (FY)¥1.38T
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...
How the Company Makes Money
Chugai makes money primarily by selling prescription pharmaceuticals and related products. Its revenue model is driven by (1) product sales in Japan, where it markets and distributes medicines and records revenue from shipments to wholesalers/medi...
Chugai Pharmaceutical Co Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The earnings call presented a strongly positive financial and operational picture: record FY2025 revenue, operating profit and margin, robust FY2026 guidance, significant clinical and pipeline progress (notably NXT007, giredestrant, Enspryng, orforglipron), and disciplined cost control. Key risks were acknowledged — a serious safety event delaying Elevidys launch, biosimilar and generic pressure on legacy products (Actemra, Avastin), several project discontinuations, and some uncertainty around royalty/milestone timing and cash reduction after special dividends. On balance the call emphasized sustained growth, high profitability and a focused R&D strategy while noting manageable but material risks that warrant monitoring.Positive Updates
Record financial results for FY2025
Revenue JPY 1,257.9 billion (exceeded initial forecast by 5.7%; Taniguchi reported +7.5% year-on-year), core operating profit JPY 623.2 billion (+12.1% YoY), operating profit margin a record 49.5%, and net income JPY 451.0 billion (+13.6% YoY).
Negative Updates
Safety issue and launch delay for Elevidys
Elevidys launch was delayed after a fatal acute liver failure case in an overseas nonambulatory patient; company strengthened safety measures and is coordinating with authorities, which may delay commercial timing despite eventual regulatory approval.
Read all updates
Q4-2025 Updates
Positive
Negative
Record financial results for FY2025
Revenue JPY 1,257.9 billion (exceeded initial forecast by 5.7%; Taniguchi reported +7.5% year-on-year), core operating profit JPY 623.2 billion (+12.1% YoY), operating profit margin a record 49.5%, and net income JPY 451.0 billion (+13.6% YoY).
Read all positive updates
Company Guidance
Management guided FY2026 revenue of JPY 1,345.0 billion (up JPY 87.1 billion or 6.9% vs FY2025 JPY 1,257.9 billion) and core operating profit of JPY 670.0 billion (up JPY 46.8 billion or 7.5% vs FY2025 core OP JPY 623.2 billion), aiming to sustain a high operating margin after a record FY2025 margin of 49.5% (operating profit JPY 623.2 billion; net income JPY 451.0 billion). They expect domestic product sales to rise by JPY 25.6 billion (domestic sales were JPY 472.4 billion in FY2025), overseas product sales to be broadly flat with a slight JPY 3.4 billion headwind (Actemra biosimilar pressure offset by Hemlibra/NEMLUVIO), and a large increase in other revenues (management flagged ~JPY 64.9 billion uplift driven by royalties/profit‑share and milestone income, noting FY2025 other revenue was JPY 180.1 billion). Additional FY2025 context provided: pharmaceutical product sales JPY 1,077.8 billion (+8.0%); overseas product sales JPY 605.4 billion (+12.8%); cost of sales JPY 351.5 billion (pharmaceutical cost ratio improved to 32.6%, −1.3 pp); R&D JPY 180.1 billion; SG&A JPY 103.2 billion; ROIC 43.9%; ROE 22.1%; total assets JPY 2,468.6 billion (+JPY 260.2 billion); cash down ~JPY 160.6 billion vs end‑FY2024. They also announced a FY2025 total dividend of JPY 272 per share (interim JPY 125; year‑end JPY 147 = ordinary JPY 72 + JPY 75 commemorative) and plan a FY2026 ordinary dividend of JPY 132 per share, targeting an average payout ratio of 45% of core EPS.Chugai Pharmaceutical Co Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.29T | 1.26T | 1.17T | 1.11T | 1.26T | 999.76B |
| Gross Profit | 922.57B | 894.25B | 830.75B | 693.01B | 783.06B | 660.27B |
| EBITDA | 666.61B | 631.37B | 574.80B | 475.64B | 562.66B | 450.30B |
| Net Income | 452.20B | 434.01B | 387.32B | 325.47B | 374.43B | 303.00B |
Balance Sheet | ||||||
| Total Assets | 2.27T | 2.47T | 2.21T | 1.93T | 1.87T | 1.54T |
| Cash, Cash Equivalents and Short-Term Investments | 850.10B | 979.70B | 996.35B | 738.98B | 503.11B | 471.97B |
| Total Debt | 17.51B | 0.00 | 10.90B | 13.46B | 14.11B | 16.04B |
| Total Liabilities | 357.39B | 442.86B | 306.87B | 306.97B | 445.37B | 350.68B |
| Stockholders Equity | 1.91T | 2.03T | 1.90T | 1.63T | 1.42T | 1.19T |
Cash Flow | ||||||
| Free Cash Flow | 378.64B | 313.18B | 396.68B | 335.67B | 172.87B | 206.76B |
| Operating Cash Flow | 445.51B | 389.45B | 447.60B | 409.93B | 244.11B | 279.63B |
| Investing Cash Flow | -4.98B | -204.87B | -227.37B | -37.29B | -145.99B | -118.93B |
| Financing Cash Flow | -456.57B | -307.46B | -141.01B | -139.33B | -145.64B | -107.41B |
Chugai Pharmaceutical Co Technical Analysis
Negative
8349.00
Price Trends
9131.30
Negative
8723.89
Negative
7785.77
Positive
Market Momentum
-146.25
Positive
39.45
Neutral
20.03
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 8349 is below the 20-day moving average (MA) of 8625.55, below the 50-day MA of 9131.30, and above the 200-day MA of 7785.77, indicating a neutral trend. The MACD of -146.25 indicates Positive momentum. The RSI at 39.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥12.99T | 30.70 | 22.23% | 1.17% | 5.65% | 10.24% | |
73 Outperform | ¥1.16T | 16.91 | 6.03% | 3.63% | 5.94% | 39.34% | |
70 Neutral | ¥8.26T | 18.42 | 0.54% | 4.11% | -2.50% | -45.28% | |
68 Neutral | ¥1.32T | 19.13 | 5.75% | 3.51% | 2.09% | -26.70% | |
67 Neutral | ¥4.14T | 25.93 | 7.97% | 3.61% | 11.87% | 474.27% | |
66 Neutral | ¥4.84T | 17.88 | 18.56% | 2.07% | 14.26% | 27.11% | |
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 Sets Terms for New Trust-Based Stock Compensation Plans
Apr 24, 2026
Chugai Pharmaceutical has approved detailed terms for a new trust-based stock compensation framework for its directors and those of its subsidiaries, following shareholder approval of a revised compensation system in March 2026. Under an Executive...
Chugai Results Reflected in Roche’s First-Quarter 2026 Sales Report
Apr 23, 2026
F. Hoffmann-La Roche, the Swiss healthcare group and parent of Chugai Pharmaceutical, has reported its sales for the first quarter of 2026, covering the period from January 1 to March 31. Chugai’s financial performance for the same period is...
Chugai Clarifies Strategic Alliance and Governance Structure Under Roche Control
Apr 1, 2026
Chugai Pharmaceutical has reiterated its position within the Roche Group, confirming Roche Holding Ltd. as its controlling shareholder with 61.12% of voting rights and detailing the framework of their strategic alliance. Under this partnership, Ch...
Chugai Weighs Investment Unit Cut to Boost Liquidity and Broaden Investor Base
Mar 26, 2026
Chugai Pharmaceutical has outlined its stance on reducing the size of its investment unit, describing such a move as an effective tool to enhance stock liquidity and broaden its investor base. The company plans to carefully assess stock market tre...
Chugai, Roche Halt Neuromuscular Trials of Emugrobart but Press On in Obesity
Mar 22, 2026
Chugai Pharmaceutical said partner Roche will discontinue development of GYM329 (emugrobart), an investigational anti-latent myostatin sweeping antibody, for spinal muscular atrophy and facioscapulohumeral muscular dystrophy after Phase II and Pha...
Chugai to Replace Restricted Stock with Trust-Based Equity Incentive Plan
Jan 29, 2026
Chugai Pharmaceutical has decided to abolish its existing restricted stock compensation system for directors, executive officers and employees, as well as for directors and employees of its subsidiaries, and replace it with a trust-based stock com...
Chugai Pharmaceutical Plans Sharp Dividend Hike with 100th Anniversary Payout, Signals Normalization in 2026
Jan 29, 2026
Chugai Pharmaceutical will propose a year-end dividend of ¥147 per share for the fiscal year ended December 31, 2025, comprising a regular dividend of ¥72 and a special ¥75 commemorative dividend for its 100th anniversary, bringing ...
Chugai’s 2025 Performance Reflected in Parent Roche’s Fiscal Results
Jan 29, 2026
F. Hoffmann-La Roche Ltd., the Swiss-headquartered parent company of Chugai Pharmaceutical, has announced its financial results for fiscal 2025, covering the period from January 1 to December 31, 2025. Chugai’s performance for the same perio...
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.