Chugai Pharmaceutical Co (4519) AI Stock Analysis

• Market Cap: $14.17T
• Dividend Yield: 1.15%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.01
• Revenue Growth: 17.96%
• EPS Growth: 25.65%
• Country: JP
• Employees: 5,026
• Sector: Healthcare
• Sector Strength: 50
• Industry: Drug Manufacturers - General
• EPS (TTM): 59.09
• Shares Outstanding: 1,679,057,600
• 10 Day Avg. Volume: 2,791,920
• 30 Day Avg. Volume: 2,739,080
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8,242.03
• Price Target Upside: 0.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Chugai Pharmaceutical's overall score reflects its robust financial performance, characterized by high profitability and strong financial stability. While technical indicators show positive momentum, valuation concerns limit immediate upside potential. The recent earnings call underscores record-breaking results and promising future guidance, though risks such as domestic sales decline and biosimilar competition remain.

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 Co. generates revenue primarily through the sale of its pharmaceutical products, which include both in-house developed drugs and those co-developed with its parent company, Roche. Its key revenue streams are derived from prescription drug sales, royalties, and licensing fees. The company's strategic focus on biologics, particularly in oncology and immunology, contributes significantly to its earnings. Additionally, Chugai benefits from its collaboration with Roche, which provides access to global markets and shared research initiatives, thereby enhancing its product pipeline and market penetration.

Chugai Pharmaceutical Co Financial Statement Overview

Summary

Chugai Pharmaceutical exhibits strong financial health, characterized by consistent revenue growth, high profitability margins, and stable cash flow. The company's low leverage and impressive return on equity enhance its financial resilience. Despite a slight decrease in free cash flow, the overall financial position remains robust.

Income Statement

Chugai Pharmaceutical shows robust financial performance with a strong revenue growth trend over the years. The TTM figures reflect a gross profit margin of 71% and a net profit margin of 33.6%, indicating efficient cost management and profitability. The company achieved a 9.9% revenue growth rate compared to the previous period, demonstrating solid business expansion. EBIT and EBITDA margins of 47.7% and 49.4%, respectively, highlight strong operational efficiency.

Balance Sheet

The balance sheet reveals strong financial stability with a low debt-to-equity ratio of 0.007, showcasing minimal leverage risk. The return on equity is impressive at 21.5%, reflecting effective use of shareholder funds. The equity ratio stands at 89.1%, indicating a solid capital structure primarily financed through equity, reducing financial risk.

Cash Flow

Chugai Pharmaceutical's cash flow statement reflects a positive cash flow trajectory, with a free cash flow growth rate of -10.9%, indicating slight decreases in free cash flows over the recent periods. However, the operating cash flow to net income ratio remains strong at 1.01, demonstrating sufficient cash generation relative to profits. The free cash flow to net income ratio of 0.86 supports the company's ability to fund operations and investments without reliance on external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.17T	1.11T	1.26T	999.76B	786.95B
	Gross Profit
831.20B	698.06B	783.70B	661.61B	513.48B
	EBIT
542.00B	439.17B	533.31B	421.90B	301.23B
	EBITDA
568.39B	475.64B	562.66B	450.30B	328.72B
	Net Income Common Stockholders
387.32B	325.47B	374.43B	303.00B	214.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
996.35B	738.98B	503.11B	471.97B	378.62B
	Total Assets
2.21T	1.93T	1.87T	1.54T	1.24T
	Total Debt
0.00	13.46B	14.11B	16.04B	11.28B
	Net Debt
-540.20B	-458.67B	-208.06B	-251.71B	-201.05B
	Total Liabilities
306.87B	306.97B	445.37B	350.68B	255.50B
	Stockholders Equity
1.90T	1.63T	1.42T	1.19T	980.00B
Cash Flow		Free Cash Flow
396.68B	335.67B	172.87B	206.76B	143.62B
	Operating Cash Flow
447.60B	409.93B	244.11B	279.63B	205.03B
	Investing Cash Flow
-227.37B	-37.29B	-145.99B	-118.93B	-98.31B
	Financing Cash Flow
-141.01B	-139.33B	-145.64B	-107.41B	-99.50B

Chugai Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8219.00
• 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 8219 is above the 20-day moving average (MA) of 7725.90, above the 50-day MA of 7306.76, and above the 200-day MA of 6919.70, indicating a bullish trend. The MACD of 389.45 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.95 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	79 Outperform	$14.17T	34.58	22.80%	1.15%	17.96%	25.65%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%

Chugai Pharmaceutical Co Corporate Events

Chugai Pharmaceutical Reports Strong Q1 2025 Results and Announces Special Dividend

Chugai Pharmaceutical Co. reported significant growth in its financial performance for the first quarter of 2025, with a 21.7% increase in revenue and a 36.8% rise in operating profit compared to the same period last year. The company also announced a special dividend in celebration of its 100th anniversary, indicating strong financial health and a commitment to rewarding its shareholders.

Chugai Pharmaceutical Adjusts Treasury Share Disposal Plan

Chugai Pharmaceutical Co., Ltd. announced corrections to its previously released ‘Notice of Disposal of Treasury Shares as Restricted Stock Compensation Plan.’ The corrections involve an increase in the number of shares to be disposed from 79,800 to 82,000 and a corresponding rise in the total value from ¥565,861,800 to ¥581,462,000. This adjustment is part of the company’s strategy to enhance executive motivation and align compensation with industry standards, potentially impacting the company’s operational efficiency and stakeholder interests.

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

Chugai Pharmaceutical Co., Ltd. announced that Eli Lilly’s oral GLP-1 drug, orforglipron, showed statistically significant efficacy and a safety profile consistent with injectable GLP-1 medicines in a Phase 3 trial for type 2 diabetes. The trial results, which will be presented at the ADA’s Scientific Sessions, indicate potential for orforglipron in diabetes management and weight control, with regulatory submissions expected soon. This announcement is not anticipated to affect Chugai’s financial results for the fiscal year ending December 2025.

Chugai Pharmaceutical Considers Investment Unit Reduction

Chugai Pharmaceutical Co., Ltd. is considering reducing its investment unit to enhance market liquidity and attract a broader investor base. The company plans to evaluate market trends and its stock price to determine the appropriate timing and decision for this reduction, in compliance with Tokyo Stock Exchange regulations.

Chugai Pharmaceutical Announces Disposal of Treasury Shares for Compensation Plan

Chugai Pharmaceutical Co., Ltd. has announced the disposal of 79,800 treasury shares as part of a restricted stock compensation plan, aimed at aligning the interests of its directors and employees with long-term business performance. This move is expected to enhance motivation and retain talent within the company, potentially strengthening its market position and operational effectiveness.