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Eisai Co Ltd (JP:4523)
:4523
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Eisai Co
(4523)
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Rating:74Outperform
Price Target:
¥5,628.00
▲(12.04% Upside)
Eisai Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust revenue growth, efficient cost management, and solid balance sheet provide a stable foundation. However, the high P/E ratio suggests the stock may be overvalued, which is a key risk factor. The absence of earnings call data and corporate events means these components did not influence the score.
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.28T
Dividend Yield3.53%
Average Volume (3M)1.34M
Price to Earnings (P/E)25.4
Beta (1Y)0.88
Revenue Growth6.79%
EPS Growth22.14%
CountryJP
Employees11,067
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)36.02
Shares Outstanding291,649,140
10 Day Avg. Volume1,231,250
30 Day Avg. Volume1,336,443
Financial Highlights & Ratios
PEG Ratio2.35
Price to Book (P/B)1.40
Price to Sales (P/S)1.49
P/FCF Ratio64.63
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda10.56
Forecast
1Y Price Target
$5,679.34Price Target Upside13.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Eisai Co Business Overview & Revenue Model
Company DescriptionEisai Co., Ltd. is a global pharmaceutical company based in Japan, primarily focused on the research, development, manufacturing, and marketing of innovative drugs. The company operates in various therapeutic areas, including oncology, neurology, and gastrointestinal disorders. Eisai is known for its commitment to improving the quality of life for patients and has developed several key products, including the anti-Alzheimer's drug Aricept and the anticancer agent Lenvima.
How the Company Makes MoneyEisai generates revenue primarily through the sale of its pharmaceutical products, which are distributed globally across various markets. The company derives significant income from its flagship products, particularly in oncology and neurology. Additionally, Eisai engages in licensing agreements and collaborations with other pharmaceutical companies, allowing it to share research and development costs while also generating upfront payments and royalties from successful product sales. The company's strategic partnerships, particularly in the development of new therapies and clinical trials, play a crucial role in enhancing its product portfolio and revenue streams.
Eisai Co Earnings Call Summary
Earnings Call Date:―
(Q4-2025)
| Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong performance of their global brands and significant global expansion of LEQEMBI, contributing to positive revenue growth. However, challenges in controlling cost of sales, slower-than-expected U.S. market expansion, and concerns about competitive threats were notable downsides.Q4-2025 Updates
Positive Updates
Strong Performance of Global Brands
Three global products, LENVIMA, Lemborexant, and LEQEMBI, achieved ¥426.5 billion in revenue, with a year-over-year increase of 24%.
LEQEMBI Global Reach
LEQEMBI was approved in 44 countries and is under regulatory review in 12 countries, marking significant global expansion.
Positive Revenue Growth
The company achieved ¥789.4 billion in revenue, a 6% increase from the previous year, exceeding forecasts.
LEQEMBI Revenue Exceeded Forecast
Global LEQEMBI revenue for FY 2024 was ¥44.3 billion, exceeding the full-year forecast.
LENVIMA's Double-Digit Growth
LENVIMA achieved over ¥328 billion in global revenue with a 28% year-over-year growth in the Americas.
Negative Updates
Increased Cost of Sales
Cost of sales increased by 1.7 percentage points due to the Inflation Reduction Act related expenses for Lenvima and product mix changes.
Challenges in U.S. Market Expansion
LEQEMBI's penetration in the U.S. was slower than expected, with the market just approaching the end of the demand stimulation phase.
High R&D and SG&A Expenses
Significant resources were allocated to LEQEMBI, impacting operating profit, although R&D expenses for LEQEMBI are expected to decrease.
Concerns About Competitive Threats
Questions were raised about the competitive impact from other products like Cassella, although the company downplayed the threat.
Company Guidance
In the recent financial results briefing session for Eisai Co. Limited, the company reported exceeding its revenue and profit forecasts for fiscal year 2024, driven mainly by its global brands: LENVIMA, Lemborexant (Dayvigo), and LEQEMBI, which together achieved a year-on-year revenue increase of 24%, contributing ¥426.5 billion. LEQEMBI alone saw a substantial revenue increase of ¥40 billion. Despite a 0.5 percentage point rise in the cost of sales due to one-time revenue decreases, the company managed to reduce its R&D expenses ratio by 1.6 percentage points, largely because of the closure of inactive research laboratories. SG&A expenses increased by 1.2 percentage points due to ongoing investments in LEQEMBI's marketing, yet the company controlled these expenses within anticipated limits. Globally, LEQEMBI's revenue was reported at JPY 44.3 billion, surpassing the full-year forecast. The company also highlighted LEQEMBI's approval in 44 countries, with plans to launch in Europe, particularly Germany and Austria, in the second half of fiscal year 2025. For the upcoming fiscal year 2025, Eisai forecasts LEQEMBI's global revenue to reach ¥76.5 billion, with significant contributions expected from the United States and Japan as they enter the demand expansion phase.Eisai Co Financial Statement Overview
Summary
Eisai Co exhibits strong financial performance with robust revenue growth and efficient cost management. The balance sheet is stable with low leverage and a strong equity base, while cash flow generation is improving. There is potential for enhancing profitability and cash conversion efficiency.Income Statement
Eisai Co has demonstrated strong revenue growth in the TTM (Trailing-Twelve-Months) with a 1.73% increase, indicating a positive trajectory. The gross profit margin remains robust at 78.62%, reflecting efficient cost management. The net profit margin of 6.27% and EBIT margin of 8.44% are healthy, though there is room for improvement in profitability. Overall, the income statement shows a stable and growing financial performance.Balance Sheet
The company's balance sheet is solid with a low debt-to-equity ratio of 0.29, indicating prudent financial leverage. Return on equity is moderate at 5.99%, suggesting efficient use of equity but with potential for higher returns. The equity ratio of 58.77% highlights a strong equity base, contributing to financial stability. Overall, the balance sheet reflects a stable financial position with manageable leverage.Cash Flow
Eisai Co's cash flow statement shows a significant free cash flow growth of 48.04% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.10 suggests moderate cash conversion efficiency. The free cash flow to net income ratio of 0.68 indicates a healthy level of free cash flow relative to net income. While cash flow generation is improving, there is room for enhancing cash conversion efficiency.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 804.39B | 789.40B | 741.75B | 744.40B | 756.23B | 645.94B |
| Gross Profit | 629.73B | 620.59B | 586.42B | 566.57B | 581.39B | 484.63B |
| EBITDA | 108.66B | 104.49B | 103.11B | 87.26B | 94.55B | 90.05B |
| Net Income | 49.37B | 46.43B | 42.41B | 55.43B | 47.95B | 41.94B |
Balance Sheet | ||||||
| Total Assets | 1.44T | 1.39T | 1.39T | 1.26T | 1.24T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 302.12B | 265.56B | 305.12B | 267.89B | 310.06B | 249.01B |
| Total Debt | 236.66B | 187.52B | 159.41B | 126.11B | 94.89B | 89.89B |
| Total Liabilities | 558.23B | 520.58B | 494.82B | 440.78B | 467.78B | 362.07B |
| Stockholders Equity | 854.43B | 841.42B | 875.61B | 799.96B | 748.82B | 703.18B |
Cash Flow | ||||||
| Free Cash Flow | 38.39B | 18.18B | 31.17B | -36.33B | 77.12B | 35.71B |
| Operating Cash Flow | 51.51B | 30.12B | 55.99B | -1.77B | 117.59B | 73.85B |
| Investing Cash Flow | -23.72B | -10.10B | -25.32B | -22.72B | -28.85B | -36.87B |
| Financing Cash Flow | -4.76B | -57.81B | -22.72B | -24.52B | -48.97B | -55.91B |
Eisai Co Technical Analysis
Positive
5023.00
Price Trends
4727.36
Positive
4521.56
Positive
4266.29
Positive
Market Momentum
35.25
Negative
70.24
Negative
82.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4523, the sentiment is Positive. The current price of 5023 is above the 20-day moving average (MA) of 4557.00, above the 50-day MA of 4727.36, and above the 200-day MA of 4266.29, indicating a bullish trend. The MACD of 35.25 indicates Negative momentum. The RSI at 70.24 is Negative, neither overbought nor oversold. The STOCH value of 82.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4523.
Eisai Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥2.37T | 13.43 | 12.22% | 2.54% | 4.48% | 11.08% | |
74 Outperform | $1.28T | 25.44 | 5.75% | 3.53% | 6.79% | 22.14% | |
73 Outperform | ¥309.44B | 15.68 | 7.11% | 2.48% | 3.53% | 38.23% | |
73 Outperform | $828.16B | 5.35 | 79.99% | ― | 29.92% | ― | |
73 Outperform | ¥294.71B | 10.59 | 9.05% | 3.83% | 10.51% | 9.62% | |
59 Neutral | ¥7.07T | 206.52 | 0.54% | 4.63% | -2.84% | -88.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4523
Eisai Co
5,023.00
560.64
12.56%
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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.