Chugai Pharmaceutical Co (4519) AI Stock Analysis

• Market Cap: $13.76T
• Dividend Yield: 1.15%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.86
• Revenue Growth: 6.25%
• EPS Growth: 2.62%
• Country: JP
• Employees: 5,026
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 76.31
• Shares Outstanding: 1,679,057,600
• 10 Day Avg. Volume: 3,088,480
• 30 Day Avg. Volume: 2,774,486
• 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: 0.71
• Enterprise Value/Revenue: 8.14
• Enterprise Value/Gross Profit: 11.57
• Enterprise Value/Ebitda: 17.43
• 1Y Price Target: $8,879.71
• Price Target Upside: 6.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥9,035.00 ▲(7.89% Upside)

Chugai Pharmaceutical Co's strong financial performance and positive earnings call sentiment are the primary drivers of its solid stock score. While technical indicators suggest potential overbought conditions, the company's robust financial health and strategic initiatives provide a positive outlook. The high P/E ratio indicates potential overvaluation, which slightly tempers the overall score.

Positive Factors

Strong Cash Flow Management

The company's ability to efficiently convert net income into cash and maintain high free cash flow relative to profits ensures financial flexibility and supports future investments.

Successful R&D Milestones

Successful R&D milestones indicate a strong pipeline and potential for future revenue growth, enhancing Chugai's competitive position in the pharmaceutical industry.

Low Leverage Risk

Low leverage reduces financial risk and increases the company's ability to invest in growth opportunities without the burden of high-interest obligations.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth suggests potential challenges in maintaining market share or product competitiveness, which could impact long-term financial performance.

Impact of NHI Drug Price Revisions

Price revisions and generic competition in domestic markets can pressure margins and reduce revenue, challenging Chugai's profitability in its home market.

Discontinuation of Projects

Project discontinuations may indicate resource allocation challenges and could slow innovation, potentially impacting the company's long-term growth prospects.

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 sale of its patented drugs and biologics, which are marketed in Japan and other international markets. The company benefits from a robust pipeline of new therapies that are developed through its extensive research and development efforts. Additionally, Chugai earns income through licensing agreements and collaborations, particularly with Roche, which enhances its research capabilities and expands its reach in global markets. The company's revenue model is largely driven by the success of its innovative medicines, alongside strategic partnerships that contribute to its financial performance.

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: Positive
• Last Price: 8374.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 8374 is above the 20-day moving average (MA) of 7740.75, above the 50-day MA of 7236.72, and above the 200-day MA of 7122.32, indicating a bullish trend. The MACD of 389.45 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 79.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	$13.76T	34.67	20.99%	1.15%	6.25%	2.62%
4507	76 Outperform	¥2.43T	13.74	12.22%	2.54%	4.48%	11.08%
4503	73 Outperform	¥3.57T	28.44	7.97%	4.61%	13.24%	127.88%
4568	70 Outperform	$6.28T	22.46	16.66%	1.64%	12.56%	14.58%
4502	66 Neutral	¥7.19T	210.09	0.54%	4.63%	-2.84%	-88.29%
4151	65 Neutral	$1.25T	34.17	4.27%	2.24%	-3.36%	-55.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Chugai Pharmaceutical Co Corporate Events

Chugai Pharmaceutical Acquires Renalys Pharma to Expand IgA Nephropathy Treatment

Chugai Pharmaceutical Co., Ltd. has announced the acquisition of Renalys Pharma, Inc., making it a wholly-owned subsidiary to secure exclusive rights for the development and commercialization of sparsentan in Japan, South Korea, and Taiwan. This strategic move aims to strengthen Chugai’s pipeline in treating IgA nephropathy, a chronic kidney disease, by offering multiple treatment options and addressing unmet medical needs, thereby enhancing its corporate and shareholder value.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen8050.00 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 Q3 Results and Announces Special Dividend

Chugai Pharmaceutical Co. reported a 5% increase in revenue for the nine months ending September 30, 2025, with operating profit and net income also seeing modest growth. The company announced a special dividend to mark its 100th anniversary, reflecting strong financial performance and a commitment to rewarding shareholders. The forecast for the full year 2025 remains positive, with expectations of continued revenue and profit growth.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen8050.00 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 Role in Roche’s Q3 2025 Sales Announcement

Roche announced its third-quarter sales for 2025, which includes the performance of its subsidiary, Chugai Pharmaceutical Co., Ltd. This announcement highlights Chugai’s integral role within the Roche Group, reflecting its impact on the overall financial results and strategic positioning in the pharmaceutical market.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen8050.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Partners with Rani Therapeutics for Innovative Oral Biologics

Chugai Pharmaceutical Co., Ltd. has entered into a collaboration and license agreement with Rani Therapeutics to develop and commercialize an oral formulation using Rani’s RaniPill® technology and Chugai’s rare disease antibody. This partnership aims to transform biologics delivery, traditionally limited to injections, into oral therapies, enhancing patient convenience and adherence. The agreement includes a potential deal value of over $1 billion if all options are exercised, though it is not expected to impact Chugai’s financial forecast for 2025.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7879.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Eli Lilly’s Orforglipron Shows Superior Results in Diabetes Trial

Chugai Pharmaceutical Co., Ltd. announced that Eli Lilly’s Phase 3 clinical trial results for orforglipron, an oral GLP-1 treatment for type 2 diabetes, showed superior efficacy in reducing HbA1c levels and promoting weight loss compared to oral semaglutide. The trial results, which demonstrated significant improvements in glycemic control and weight management, are expected to bolster Eli Lilly’s position in the diabetes treatment market, although they will not impact Chugai’s financial forecast for 2025.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen7186.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

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

Chugai Pharmaceutical Co., Ltd. announced that Eli Lilly’s investigational oral GLP-1 receptor agonist, orforglipron, showed positive results in the Phase 3 ATTAIN-2 trial for adults with obesity or overweight and type 2 diabetes. The trial demonstrated significant weight loss, HbA1c reduction, and improvements in cardiometabolic risk factors, with a safety profile consistent with existing GLP-1 medicines. This development is not expected to impact Chugai’s financial forecast for the fiscal year ending December 2025.

The most recent analyst rating on (JP:4519) stock is a Hold with a Yen6500.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.