Chugai Pharmaceutical Co (4519) AI Stock Analysis

• Market Cap: ¥14.47T
• Dividend Yield: 1.17%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.80
• Revenue Growth: 6.25%
• EPS Growth: 2.62%
• Country: JP
• Employees: 5,026
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 78.03
• Shares Outstanding: 1,679,057,600
• 10 Day Avg. Volume: 3,088,480
• 30 Day Avg. Volume: 2,774,486
• PEG Ratio: 2.60
• Price to Book (P/B): 6.70
• Price to Sales (P/S): 10.78
• P/FCF Ratio: 43.31
• 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: ¥9,656.45
• Price Target Upside: 9.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 84 Outperform
• Price Target: ¥10,297.00 ▲(17.00% Upside)

The score is driven primarily by very strong financial performance (high margins, fortress balance sheet, solid cash generation) and supportive technical strength (price above key moving averages with constructive momentum). The main offset is valuation, as the P/E is relatively high despite a moderate dividend yield.

Positive Factors

Strong Financial Health

The company's strong financial health, characterized by low leverage and high returns on equity, ensures stability and capacity for future investments.

Solid Balance Sheet

A strong balance sheet with minimal debt enhances financial flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

High Profit Margins

High profit margins reflect efficient operations and pricing power, supporting sustained profitability and competitive positioning in the market.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit the company's ability to reinvest in its business and return capital to shareholders if the trend persists.

Slight Decline in Gross Profit Margin

A decrease in gross profit margin may indicate rising costs or pricing challenges, which could impact future profitability if not addressed.

Potential Cost Pressures

Cost pressures could erode margins over time, affecting the company's ability to maintain its profitability levels and competitive edge.

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

Strong overall fundamentals: industry-leading profitability (2025 gross margin ~71%, net margin ~35%), a near debt-free balance sheet with strong returns on equity, and consistently positive operating/free cash flow. Offsets are uneven year-to-year revenue growth and some recent cash conversion/free cash flow softness in 2025.

Income Statement

Revenue has expanded strongly over the long term (up from 2020 to 2025), with a brief dip in 2023 followed by a return to growth in 2024–2025. Profitability is a clear standout: 2025 gross margin is ~71% and net margin is ~35%, with operating profitability also very high and improving versus 2023–2024. The main weakness is growth consistency—revenue growth has been uneven year-to-year, which can introduce volatility despite excellent margins.

Balance Sheet

The balance sheet is exceptionally conservative with minimal leverage: debt-to-equity is near zero across the period and total debt is effectively negligible by 2025. Equity and assets have grown materially over time, indicating a strengthening capital base. Returns on equity remain strong (roughly ~20%+ across years), though they have moderated from the peak levels seen earlier in the period, which is the primary offset to an otherwise fortress-like profile.

Cash Flow

Cash generation is solid, with consistently positive operating cash flow and free cash flow. Free cash flow generally tracks net income well (free cash flow is roughly 70%–90% of net income across the years), supporting earnings quality. However, cash conversion is not perfectly steady—operating cash flow fell below net income in 2025 (coverage below 1x) and free cash flow declined in 2025 after growth in 2024, pointing to some working-capital/cash-timing volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26T	1.17T	1.11T	1.26T	999.76B
Gross Profit	894.25B	830.75B	693.01B	783.06B	660.27B
EBITDA	631.37B	574.80B	475.64B	562.66B	450.30B
Net Income	434.01B	387.32B	325.47B	374.43B	303.00B
Balance Sheet
Total Assets	2.47T	2.21T	1.93T	1.87T	1.54T
Cash, Cash Equivalents and Short-Term Investments	979.70B	996.35B	738.98B	503.11B	471.97B
Total Debt	0.00	10.90B	13.46B	14.11B	16.04B
Total Liabilities	442.86B	306.87B	306.97B	445.37B	350.68B
Stockholders Equity	2.03T	1.90T	1.63T	1.42T	1.19T
Cash Flow
Free Cash Flow	313.18B	396.68B	335.67B	172.87B	206.76B
Operating Cash Flow	389.45B	447.60B	409.93B	244.11B	279.63B
Investing Cash Flow	-204.87B	-227.37B	-37.29B	-145.99B	-118.93B
Financing Cash Flow	-307.46B	-141.01B	-139.33B	-145.64B	-107.41B

Chugai Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8801.00
• 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 8801 is above the 20-day moving average (MA) of 8459.90, above the 50-day MA of 8301.16, and above the 200-day MA of 7351.40, indicating a bullish trend. The MACD of 99.54 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 48.19 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	84 Outperform	¥14.47T	33.37	20.99%	1.17%	6.25%	2.62%
4507	75 Outperform	¥2.79T	13.86	12.22%	2.22%	4.48%	11.08%
4151	71 Outperform	¥1.31T	35.85	4.27%	2.33%	-3.36%	-55.41%
4503	69 Neutral	¥3.86T	30.75	7.97%	3.61%	13.24%	127.88%
4502	66 Neutral	¥8.31T	72.61	0.54%	4.11%	-2.84%	-88.29%
4568	63 Neutral	¥5.29T	17.29	16.66%	2.07%	12.56%	14.58%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Chugai Pharmaceutical Co Corporate Events

Chugai to Replace Restricted Stock with Trust-Based Equity Incentive Plan

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 compensation framework designed to better align management and staff incentives with medium- to long-term performance and corporate value. The new structure will use a Board Incentive Plan Trust for directors and an Employee Stock Ownership Plan Trust for employees, delivering company shares and equivalent cash based on predefined share delivery regulations, and will require approval at upcoming general shareholder meetings; once adopted, no new restricted stock will be issued under the old plan, though already granted shares will remain in place and the company aims to operate the new trusts on an ongoing basis through renewals and additional contributions.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9900.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Pharmaceutical Plans Sharp Dividend Hike with 100th Anniversary Payout, Signals Normalization in 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 the total annual dividend to ¥272 per share, a sharp increase from ¥98 the previous year. The move reflects the company’s ninth consecutive year of growth in core net income and a 13.6% year-on-year rise in Core EPS, resulting in a core dividend payout ratio of 99.3% for 2025 and a five-year average of 54.9%, while management reiterates its medium-term target of a 45% payout ratio and guides to a normalized annual dividend of ¥132 per share for 2026, implying a payout ratio of 44.7% and signaling both strong current performance and a planned step-down from one-off centennial payouts for future shareholder returns.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9900.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai’s 2025 Performance Reflected in Parent Roche’s Fiscal Results

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 period is consolidated within the Roche Group’s reported results, underscoring Chugai’s role as a majority-owned subsidiary whose financial and operational outcomes are reflected in the parent group’s disclosures to investors.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9900.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Pharmaceutical Completes Absorption-Type Merger of Renalys Pharma

Chugai Pharmaceutical has completed the process of making Renalys Pharma, Inc. a wholly owned subsidiary and has finalized an absorption-type merger, with Chugai as the surviving entity and Renalys Pharma as the dissolved company. The move consolidates Renalys Pharma’s operations and assets under Chugai’s corporate structure, streamlining its organization and potentially enhancing operational efficiency and integration of its pharmaceutical development activities.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9169.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.

Chugai Highlights Positive Phase 3 Results and FDA Filing for Lilly’s Oral GLP-1 Orforglipron

Chugai Pharmaceutical announced that Eli Lilly reported positive topline Phase 3 data from the ATTAIN-MAINTAIN trial of orforglipron, an oral GLP-1 drug originally discovered by Chugai and licensed exclusively to Lilly for development and commercialization. In the trial, orforglipron met its primary and all key secondary endpoints for weight maintenance versus placebo over 52 weeks following prior weight loss on Wegovy or Zepbound, with participants switching from Wegovy maintaining nearly all their weight reduction, and Lilly has submitted the drug to the U.S. Food and Drug Administration for obesity treatment, underscoring the potential commercial and strategic value of Chugai’s discovery in the growing obesity therapeutics market.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9169.00 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 Merge with Renalys Pharma to Boost Kidney Disease Drug Development

Chugai Pharmaceutical Co., Ltd. announced its decision to merge with Renalys Pharma, Inc., which it will acquire as a wholly-owned subsidiary. This strategic move aims to accelerate the development and commercialization of sparsentan, a drug for IgA nephropathy, in Japan, South Korea, and Taiwan. The merger is expected to streamline operations, enhance corporate value, and expedite the delivery of new treatment options for kidney disease patients.

The most recent analyst rating on (JP:4519) stock is a Buy with a Yen9035.00 price target. To see the full list of analyst forecasts on Chugai Pharmaceutical Co stock, see the JP:4519 Stock Forecast page.