Eisai Co (4523) AI Stock Analysis

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Eisai Co

(OTC:4523)

Rating:67Neutral

Price Target:

¥4,388.00

▲(11.14%Upside)

Eisai Co's overall stock score is driven by strong financial health and a reasonable valuation, despite operational efficiency and cash flow management challenges. Technical indicators present a cautious outlook, with mixed signals in momentum and potential overbought conditions. The lack of recent earnings call data and corporate events limits additional insights.

Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

$1.11T

Dividend Yield4.05%

Average Volume (3M)1.15M

Price to Earnings (P/E)24.1

Beta (1Y)0.81

Revenue Growth6.42%

EPS Growth10.82%

CountryJP

Employees11,067

SectorHealthcare

Sector Strength40

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)3.62

Shares Outstanding291,649,140

10 Day Avg. Volume1,267,740

30 Day Avg. Volume1,153,096

Financial Highlights & Ratios

PEG Ratio-1.15

Price to Book (P/B)1.32

Price to Sales (P/S)0.00

P/FCF Ratio61.16

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4,639.91

Price Target Upside17.53% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Eisai Co Business Overview & Revenue Model

Company DescriptionEisai Co., Ltd. is a global pharmaceutical company headquartered in Tokyo, Japan, recognized for its strong focus on the research, development, and marketing of pharmaceutical products. The company operates in the healthcare sector, primarily focusing on the development of prescription medications across therapeutic areas such as oncology, neurology, and gastrointestinal disorders. Eisai is committed to improving the quality of life of patients and their families by delivering innovative solutions and products.

How the Company Makes MoneyEisai Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company invests heavily in research and development to discover new drugs and enhance its existing portfolio, which includes key medications for the treatment of Alzheimer's disease, epilepsy, and various cancers. Eisai's revenue streams are bolstered by its strategic partnerships and collaborations with other pharmaceutical companies, which help to expand its market reach and leverage expertise in drug development. Additionally, Eisai benefits from global sales across major markets including Japan, the United States, Europe, and Asia. The company's earnings are further supported by licensing agreements and royalties from patented products.

Eisai Co Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2025)

% Change Since: 1.73%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Neutral

Eisai Co. reported strong fiscal year 2024 results with increased revenue and profit, driven by the performance of their global brands, particularly LEQEMBI. However, challenges remain in the U.S. market with slow penetration of LEQEMBI and increased costs. Structural reforms and global expansion efforts are positive signs, but competitive pressures and cost management pose ongoing challenges.

Q4-2025 Updates

Positive Updates

Record Revenue and Profit for FY 2024

Eisai Co. reported an increase in both revenue and profits for fiscal year 2024, exceeding their forecast. Total revenue reached ¥789.4 billion, a year-over-year increase of ¥47.6 billion.

Strong Performance of Global Brands

The three global brands, LENVIMA, Lemborexant (Dayvigo), and LEQEMBI, collectively achieved ¥426.5 billion in revenue, marking a 24% year-over-year increase.

LEQEMBI Approval and Global Expansion

LEQEMBI has been approved in 44 countries and exceeded its full-year revenue forecast with ¥44.3 billion in global revenue for FY 2024.

R&D Expense Reduction

R&D expenses were reduced by 1.6 percentage points due to the closure of inactive research laboratories and reduced impairment losses.

Structural Reforms in Americas

Eisai has completed structural reforms in the Americas, streamlining the sales force and administrative functions to improve financial performance.

Negative Updates

Increased Cost of Sales

Cost of sales increased by 0.5 percentage points due to a one-time decrease in revenue and the impact of the Inflation Reduction Act related to Lenvima.

Challenges in U.S. Market for LEQEMBI

The U.S. market for LEQEMBI is approaching the end of the demand stimulation phase, but has not yet entered the demand expansion phase as anticipated.

Slow LEQEMBI Market Penetration

Despite approval, the penetration of LEQEMBI in the U.S. has been slower than expected, largely due to challenges in establishing treatment pathways across diverse healthcare systems.

SG&A Expenses Increase

SG&A expenses increased by 1.2 percentage points, due to continued investment in LEQEMBI and temporary increases related to U.S. structural reforms.

LEQEMBI's Competitive Pressure

Concerns have been raised regarding competition from other Alzheimer's treatments, potentially impacting LEQEMBI's market share.

Company Guidance

During the financial results briefing session for fiscal year 2024, Eisai reported a significant increase in both revenue and profit, exceeding their initial forecasts. Revenue from their three global brands, LENVIMA, Lemborexant, and LEQEMBI, totaled ¥426.5 billion, marking a 24% year-over-year increase. LEQEMBI alone contributed ¥40 billion to this growth. The cost of sales increased by 0.5 percentage points, while R&D expenses decreased by 1.2 percentage points, largely due to the closure of some research facilities. SG&A expenses saw a controlled increase of 1.2 percentage points due to investments in LEQEMBI marketing and U.S. structural reforms. LEQEMBI's revenue for FY 2024 reached ¥44.3 billion globally, with significant contributions from the Americas and Japan. Looking ahead, Eisai forecasts LEQEMBI's revenue to reach ¥76.5 billion in fiscal 2025, driven by expected demand expansion phases in key markets like the U.S. and Japan. The company plans to continue investing in LEQEMBI while implementing organizational transformations to enhance efficiency and achieve profitability by fiscal 2026.

Eisai Co Financial Statement Overview

Summary

Eisai Co reflects a commendable financial position with solid growth and profitability. The income statement shows steady revenue growth but highlights some operational efficiency challenges. The balance sheet is robust, with low leverage and strong equity ratios, underscoring financial health. However, cash flow management needs attention to ensure sustainable growth.

Income Statement

Positive

Eisai Co has demonstrated solid revenue growth with a notable increase from 2024 to 2025. The gross profit margin remains strong, indicating efficient cost management. However, the EBIT margin has decreased slightly, signaling potential pressure on operational efficiency. Net profit margin shows robust performance, though the decrease in EBIT suggests a need for operational improvements.

Balance Sheet

Positive

The balance sheet is strong with a healthy equity ratio, indicating financial stability. The company maintains a low debt-to-equity ratio, suggesting prudent leverage management. Return on equity remains impressive, reflecting effective utilization of shareholder funds. Overall, the balance sheet supports the company's growth trajectory with minimal financial risk.

Cash Flow

Positive

Eisai Co shows a mixed picture in cash flow metrics. While the operating cash flow to net income ratio is positive, free cash flow has decreased significantly, indicating challenges in cash generation. The drop in free cash flow growth is noteworthy, suggesting potential issues in funding operations or investments. Improvements in cash flow management could enhance financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	789.40B	741.75B	744.40B	756.23B	645.94B
Gross Profit	620.59B	586.42B	566.57B	581.39B	484.63B
EBITDA	104.49B	103.11B	87.26B	94.55B	90.05B
Net Income	46.43B	42.41B	55.43B	47.95B	41.94B
Balance Sheet
Total Assets	1.39T	1.39T	1.26T	1.24T	1.09T
Cash, Cash Equivalents and Short-Term Investments	265.56B	305.12B	267.89B	310.06B	249.01B
Total Debt	187.52B	159.41B	126.11B	94.89B	89.89B
Total Liabilities	520.58B	494.82B	440.78B	467.78B	362.07B
Stockholders Equity	841.42B	875.61B	799.96B	748.82B	703.18B
Cash Flow
Free Cash Flow	18.18B	31.17B	-36.33B	77.12B	35.71B
Operating Cash Flow	30.12B	55.99B	-1.77B	117.59B	73.85B
Investing Cash Flow	-10.10B	-25.32B	-22.72B	-28.85B	-36.87B
Financing Cash Flow	-57.81B	-22.72B	-24.52B	-48.97B	-55.91B

Eisai Co Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3948.00

Price Trends

50DMA

3985.22

Negative

100DMA

4029.98

Negative

200DMA

4341.61

Negative

Market Momentum

MACD

-19.33

Positive

RSI

44.82

Neutral

STOCH

18.55

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4523, the sentiment is Negative. The current price of 3948 is below the 20-day moving average (MA) of 4015.40, below the 50-day MA of 3985.22, and below the 200-day MA of 4341.61, indicating a bearish trend. The MACD of -19.33 indicates Positive momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4523.

Eisai Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (46)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	80 Outperform	$2.19T	12.44	12.99%	2.30%	0.73%	7.75%
4530	73 Outperform	$294.48B	15.09	7.24%	2.23%	6.49%	38.42%
4540	69 Neutral	¥277.95B	8.51	11.16%	3.74%	20.05%	94.28%
4523	67 Neutral	$1.11T	24.11	5.34%	4.05%	6.42%	10.82%
4506	67 Neutral	$433.45B	18.34	13.50%	―	26.79%	―
4502	65 Neutral	$6.88T	63.50	1.50%	4.52%	7.45%	-25.77%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%

* Healthcare Sector Average

Performance Comparison

JP:4523

Eisai Co

3,948.00

-2,375.96

-37.57%

JP:4506

Sumitomo Dainippon Pharma Co

1,091.00

672.00

160.38%

JP:4540

Tsumura & Co

3,607.00

-268.18

-6.92%

JP:4530

Hisamitsu Pharmaceutical Co

4,036.00

-9.54

-0.24%

JP:4507

Shionogi & Co

2,492.50

305.04

13.94%

JP:4502

Takeda Pharmaceutical Co

4,341.00

283.01

6.97%

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.Date of analysis: Jul 08, 2025