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Eisai Co Ltd (JP:4523)
:4523
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Eisai Co
(OTC:4523)
65Neutral
Eisai Co (4523) vs. S&P 500 (SPY)
Market Cap
$1.20T
Dividend Yield3.47%
Average Volume (3M)1.57M
Price to Earnings (P/E)20.6
Beta (1Y)0.79
Revenue Growth5.63%
EPS Growth30.61%
CountryJP
Employees11,067
SectorHealthcare
Sector Strength53
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)84.01
Shares Outstanding291,649,140
10 Day Avg. Volume984,970
30 Day Avg. Volume1,565,080
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5,109.43Price Target Upside25.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Eisai Co Business Overview & Revenue Model
Company DescriptionEisai Co., Ltd. offers pharmaceutical products in Japan. It offers Aricept for the treatment of alzheimer's disease/dementia with Lewy bodies; Methycobal for the treatment of peripheral neuropathy; and Fycompa, an antiepileptic drug for the adjunctive treatment of partial-onset and primary generalized tonic-clonic seizures. The company also provides Lyrica for pain treatment; Dayvigo, an anti-insomnia drug for the treatment of adults with insomnia; Lenvima, an anticancer agent/molecular targeted medicine for the treatment of thyroid cancer, renal cell carcinoma in combination with everolimus, and hepatocellular carcinoma; and Halaven, an anticancer agent/microtubule dynamics inhibitor for the treatment of breast cancer and liposarcoma. In addition, it offers Pariet, a proton-pump inhibitor for the treatment of gastric and duodenal ulcers, reflux esophagitis, and eradication of Helicobacter pylori infections, etc.; Humira, a fully human anti-TNF-a monoclonal antibody for the treatment of autoimmune diseases, such as rheumatoid arthritis; and Chocola BB plus, a vitamin B2 preparation for rough skin and stomatitis, as well as various products, which include third-class OTC drugs, designated quasi-drugs, and food with nutrient function. The company was formerly known as Nihon Eisai Co., Ltd. and changed its name to Eisai Co., Ltd. in 1955. Eisai Co., Ltd. was incorporated in 1941 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyEisai Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company earns money by developing and marketing a portfolio of prescription drugs, particularly in the fields of neurology and oncology. Key revenue streams include global sales of flagship products like Aricept, which is used to treat Alzheimer's disease, and Lenvima, an anti-cancer drug. Eisai also enters into strategic partnerships and collaborations with other pharmaceutical companies, which contribute to its earnings through licensing agreements, co-promotion deals, and research collaborations. Additionally, the company invests in research and development to innovate new treatments, which can lead to future revenue growth as these products reach the market.
Eisai Co Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 741.75B | 744.40B | 756.23B | 645.94B | 695.62B | Gross Profit |
| 586.42B | 566.57B | 581.39B | 484.63B | 519.93B | EBIT |
| 53.41B | 40.04B | 53.75B | 51.77B | 125.50B | EBITDA |
| 103.11B | 87.26B | 94.55B | 90.05B | 162.94B | Net Income Common Stockholders |
| 42.41B | 55.43B | 47.95B | 41.94B | 121.77B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 305.12B | 267.89B | 310.06B | 249.01B | 255.80B | Total Assets |
| 1.39T | 1.26T | 1.24T | 1.09T | 1.06T | Total Debt |
| 159.41B | 126.11B | 94.89B | 89.89B | 89.94B | Net Debt |
| -145.27B | -141.25B | -214.74B | -158.85B | -164.31B | Total Liabilities |
| 494.82B | 440.78B | 467.78B | 362.07B | 359.51B | Stockholders Equity |
| 875.61B | 799.96B | 748.82B | 703.18B | 678.13B |
| Cash Flow | Free Cash Flow | |||
| 31.17B | -36.33B | 77.12B | 35.71B | 52.56B | Operating Cash Flow |
| 55.99B | -1.77B | 117.59B | 73.85B | 102.78B | Investing Cash Flow |
| -25.32B | -22.72B | -28.85B | -36.87B | -27.63B | Financing Cash Flow |
| -22.72B | -24.52B | -48.97B | -55.91B | -103.53B |
Eisai Co Technical Analysis
Negative
4066.00
Price Trends
4080.68
Negative
4197.84
Negative
4818.56
Negative
Market Momentum
31.70
Negative
51.75
Neutral
74.51
Neutral
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 4066 is above the 20-day moving average (MA) of 3911.75, below the 50-day MA of 4080.68, and below the 200-day MA of 4818.56, indicating a neutral trend. The MACD of 31.70 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 74.51 is Neutral, 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 (52)
Financial Indicators
Performance Comparison
JP:4523
Eisai Co
4,066.00
-2,406.00
-37.18%
CHGCF
Chugai Pharmaceutical Co
56.64
24.98
78.90%
DSKYF
Daiichi Sankyo Company
25.00
-8.30
-24.92%
SGIOF
Shionogi & Co
15.20
-0.43
-2.75%
TKPHF
Takeda Pharmaceutical Co
30.10
4.43
17.26%
JP:4516
Nippon Shinyaku Co., Ltd.
3,484.00
-791.99
-18.52%
Eisai Co Earnings Call Summary
Earnings Call Date:Feb 07, 2025
(Q3-2024)
| % Change Since: -7.98%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a cautiously optimistic outlook with positive growth in revenue and pharmaceutical business, alongside challenges in profit margins and LEQEMBI market penetration goals. While the company's financial health and strategic developments are promising, immediate challenges exist in achieving short-term targets and managing expenses.Q3-2024 Updates
Positive Updates
Revenue and Profit Increase
Eisai achieved an increase in revenue and operating profit for the third quarter of fiscal year 2023, with revenue at JPY 551.3 billion, marking a 1% increase from the previous year.
Growth in Pharmaceutical Business
Sales of Lenvima increased by JPY 31.9 billion (up 17%) and Dayvigo increased by JPY 9.2 billion (up 42%) year-on-year.
LEQEMBI Market Penetration
LEQEMBI is penetrating the U.S. market steadily with approximately 2,000 patients currently receiving treatment and a 2.9-fold increase in patients after insurance reimbursement.
Financial Soundness
The company's financial position remains solid, with a stable equity ratio and ongoing dividend payments.
Subcutaneous Formulation Progress
Positive progress in the development of a subcutaneous formulation for LEQEMBI, with plans to submit to the FDA by March 2024.
Negative Updates
Profit Decline
Profit for the period was JPY 30.8 billion, only 75% of the previous year's level, due to a decrease in income taxes in the prior year.
LEQEMBI Demand Challenges
Achieving the target of 10,000 patients on LEQEMBI by the end of the fiscal year appears challenging, indicating potential short-term growth limitations.
Increased Expenses
Increased R&D and SG&A expenses, particularly related to LEQEMBI, are putting pressure on profitability.
Company Guidance
During the earnings call for Eisai Company Limited regarding the third quarter of fiscal year 2023, several key financial metrics were highlighted. The company reported a revenue of JPY 551.3 billion, representing a 1% increase from the previous year. This growth was primarily driven by the pharmaceutical business, with Lenvima and Dayvigo sales contributing significantly, resulting in a segment revenue of JPY 528.1 billion, which was 99% of the previous year. Additionally, other business revenue saw a substantial increase of 62% year-on-year to JPY 23.2 billion. The cost of sales was JPY 119.2 billion, down 3.9 percentage points from the previous year, leading to a gross profit of JPY 432 billion, a 6% year-on-year increase. R&D expenses were JPY 124.5 billion, maintaining a steady ratio to sales at 22.6%, while SG&A expenses remained almost flat year-on-year at JPY 271 billion. The operating profit surged to JPY 37.5 billion, 272% of the previous year's level, driven by strategic cost control and revenue growth. The company maintained a solid equity ratio, supporting a stable dividend policy, and projected an unchanged revenue forecast of JPY 741 billion for FY 2023, with operating profit expected to rise by 27% to JPY 51 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.