Chugai Pharmaceutical Co (4519) AI Stock Analysis

• Market Cap: ¥13.63T
• Dividend Yield: 1.16%
• Average Volume (3M): 2.77M
• Price to Earnings (P/E): 34.4
• Beta (1Y): 0.89
• 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: 1.57
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 9.84
• P/FCF Ratio: 29.04
• 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: ¥8,786.79
• Price Target Upside: 5.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥9,169.00 ▲(10.59% Upside)

Chugai Pharmaceutical Co's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and a solid balance sheet. Technical analysis indicates moderate bullish momentum, while valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

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

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	1.21T	1.17T	1.11T	1.26T	999.76B	786.95B
Gross Profit	843.28B	830.75B	693.01B	783.06B	660.27B	511.77B
EBITDA	575.67B	574.80B	475.64B	562.66B	450.30B	328.72B
Net Income	397.20B	387.32B	325.47B	374.43B	303.00B	214.73B
Balance Sheet
Total Assets	2.18T	2.21T	1.93T	1.87T	1.54T	1.24T
Cash, Cash Equivalents and Short-Term Investments	882.45B	996.35B	738.98B	503.11B	471.97B	378.62B
Total Debt	12.10B	10.90B	13.46B	14.11B	16.04B	11.28B
Total Liabilities	293.48B	306.87B	306.97B	445.37B	350.68B	255.50B
Stockholders Equity	1.89T	1.90T	1.63T	1.42T	1.19T	980.00B
Cash Flow
Free Cash Flow	352.58B	396.68B	335.67B	172.87B	206.76B	143.62B
Operating Cash Flow	411.80B	447.60B	409.93B	244.11B	279.63B	205.03B
Investing Cash Flow	-59.57B	-227.37B	-37.29B	-145.99B	-118.93B	-98.31B
Financing Cash Flow	-307.28B	-141.01B	-139.33B	-145.64B	-107.41B	-99.50B

Chugai Pharmaceutical Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8291.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8291 is below the 20-day moving average (MA) of 8307.60, above the 50-day MA of 7728.96, and above the 200-day MA of 7213.57, indicating a neutral trend. The MACD of 144.52 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 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
4507	75 Outperform	¥2.39T	13.53	12.22%	2.28%	4.48%	11.08%
4519	74 Outperform	¥13.63T	34.35	20.99%	1.16%	6.25%	2.62%
4151	71 Outperform	¥1.33T	36.30	4.27%	2.33%	-3.36%	-55.41%
4503	69 Neutral	¥3.78T	30.12	7.97%	3.62%	13.24%	127.88%
4502	66 Neutral	¥7.30T	213.29	0.54%	4.30%	-2.84%	-88.29%
4568	63 Neutral	¥6.15T	22.00	16.66%	2.09%	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 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.

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.

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.

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.

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.

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.