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Eisai Co
(4523)
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Rating:71Outperform
Price Target:
¥5,145.00
▲(10.50% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by solid underlying financial stability (strong gross profitability and low leverage) and supportive technical momentum (above major moving averages with positive MACD). These positives are moderated by compressed net profitability and uneven free cash flow, while a high P/E multiple is the main valuation risk despite a ~3.3% dividend yield.
Positive Factors
High gross margins
Sustained gross margins near 76–79% indicate structural product-level profitability and pricing power in core therapeutic areas. This margin buffer supports reinvestment in R&D and commercialization, and helps absorb downstream cost or pricing pressure over the medium term.
Negative Factors
Compressed net margins & modest ROE
Net margin compression to ~4.7% and a modest ROE (~4.4% TTM) signal limited profitability after operating and SG&A costs. Over months this constrains the pace of organic growth and shareholder returns and increases reliance on operational improvements or higher-margin launches to lift returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 76–79% indicate structural product-level profitability and pricing power in core therapeutic areas. This margin buffer supports reinvestment in R&D and commercialization, and helps absorb downstream cost or pricing pressure over the medium term.
Read all positive factors
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.36T
Dividend Yield3.31%
Average Volume (3M)1.34M
Price to Earnings (P/E)35.3
Beta (1Y)0.99
Revenue Growth4.56%
EPS Growth-16.55%
CountryJP
Employees10,543
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)150.10
Shares Outstanding291,649,140
10 Day Avg. Volume1,231,250
30 Day Avg. Volume1,336,443
Financial Highlights & Ratios
PEG Ratio-2.16
Price to Book (P/B)1.53
Price to Sales (P/S)1.66
P/FCF Ratio29.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,650.00Price Target Upside-0.13% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)199.2
Revenue Forecast (FY)¥893.68B
Eisai Co Business Overview & Revenue Model
Company Description
Eisai Co., Ltd. is a Japanese pharmaceutical firm that develops, manufactures, and markets a broad spectrum of medical and healthcare products. Its significant therapeutic contributions include Aricept, prescribed for individuals with Alzheimer's ...
How the Company Makes Money
Eisai makes money primarily by selling prescription pharmaceuticals and recognizing revenue from collaborations related to drug development and commercialization.
1) Product sales (core revenue stream)
- Eisai’s main source of revenue is sales of...
Eisai Co Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveys clear commercial momentum and strong financial improvement driven by the flagship products (notably LEQEMBI and LENVIMA), meaningful cost-efficiency gains, and reinforcing clinical and real-world evidence. Key near-term catalysts include SC‑AI approval, BBM reimbursement and ongoing DTC/pathway initiatives. Material risks discussed include pricing and HTA uncertainty in Japan, potential tariff/MFN policy impacts, reimbursement execution (Medicare Part B to D transition) and competitive entrants. On balance the positives — robust revenue and profit growth, expanding diagnostics and pathway adoption, favorable clinical data and operating leverage — outweigh the uncertainties, though continued monitoring of pricing/reimbursement and geopolitical policy is warranted.Positive Updates
Revenue and Profit Growth
Consolidated revenue increased 7% YoY to JPY 202.7 billion (Q1 FY2025). Operating profit rose 55% YoY to JPY 20.7 billion; net profit increased 33% YoY to JPY 15.3 billion; profit attributable to owners up 37% YoY to JPY 14.5 billion.
Negative Updates
Foreign Exchange and One‑Time China Inventory Effects
Revenue absorbed a JPY 10.1 billion negative impact from foreign exchange. China LEQEMBI results included one‑time distributor stockpiling ahead of tariff risk, creating potential volatility in future China sales recognition.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profit Growth
Consolidated revenue increased 7% YoY to JPY 202.7 billion (Q1 FY2025). Operating profit rose 55% YoY to JPY 20.7 billion; net profit increased 33% YoY to JPY 15.3 billion; profit attributable to owners up 37% YoY to JPY 14.5 billion.
Read all positive updates
Company Guidance
Management reiterated there is no change to the consolidated FY2025 forecast and said Q1 was a strong start: consolidated revenue JPY202.7bn (+7% YoY; FX headwind JPY10.1bn), pharmaceutical revenue JPY198.4bn (+6%), gross profit JPY160.1bn (+7%) with cost of sales JPY42.6bn (cost ratio 21%), R&D JPY38.8bn (93% of prior year; 19.1% of revenue, down ~3ppt from 22.1%), SG&A JPY100.2bn (+1%, including JPY36.0bn shared profit), operating profit JPY20.7bn (+55%), net profit JPY15.3bn (+33%) and profit attributable to owners JPY14.5bn (+37%); 3Ls (LENVIMA, LEQEMBI, DAYVIGO) totaled JPY120.7bn (+19% YoY) with LEQEMBI driving a JPY16.9bn uplift. Product guidance reiterated: LEQEMBI Q1 sales JPY23.1bn and FY2025 sales target JPY76.5bn, LENVIMA Q1 JPY83.9bn and FY2025 target JPY312bn; company targets FY2026 ROE 8% and revenue JPY790bn/operating profit JPY54.5bn. Key operational catalysts and timing noted include the SC‑AI PDUFA action date Aug 31 (360 mg weekly SC‑AI shown equivalent to 10 mg/kg monthly IV), BBM diagnostic guidance (triage tests ≥90% sensitivity/≥75% specificity; substitute tests ≥90%/≥90%) and expected BBM reimbursement/pricing from January, plus demand indicators such as US LEQEMBI +20% QoQ (CER), BBM tests +130% average growth, PET/CSF tests +120% average growth, Japan wholesaler shipments 130% QoQ and 1,500 follow‑up facilities established.Eisai Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
79
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 857.06B | 825.38B | 789.40B | 741.75B | 744.40B | 756.23B |
| Gross Profit | 657.35B | 634.15B | 597.23B | 563.77B | 543.48B | 569.79B |
| EBITDA | 96.99B | 95.88B | 103.73B | 103.11B | 87.26B | 94.55B |
| Net Income | 42.33B | 38.56B | 46.43B | 42.41B | 55.43B | 47.95B |
Balance Sheet | ||||||
| Total Assets | 1.56T | 1.45T | 1.39T | 1.39T | 1.26T | 1.24T |
| Cash, Cash Equivalents and Short-Term Investments | 311.74B | 245.42B | 265.56B | 304.68B | 267.35B | 309.63B |
| Total Debt | 271.34B | 186.08B | 231.18B | 206.75B | 170.92B | 143.03B |
| Total Liabilities | 624.92B | 523.99B | 520.58B | 494.82B | 440.78B | 467.78B |
| Stockholders Equity | 906.56B | 898.99B | 841.42B | 875.61B | 799.96B | 748.82B |
Cash Flow | ||||||
| Free Cash Flow | 42.56B | 45.96B | 18.18B | 41.67B | -24.35B | 88.56B |
| Operating Cash Flow | 57.64B | 61.32B | 30.12B | 55.99B | -1.77B | 117.59B |
| Investing Cash Flow | -25.97B | -41.80B | -10.10B | -25.32B | -22.72B | -28.85B |
| Financing Cash Flow | -29.27B | -61.10B | -57.81B | -22.72B | -24.52B | -48.97B |
Eisai Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥229.00B | 7.71 | ― | 2.12% | 6.58% | -8.75% | |
73 Outperform | ¥2.56T | 12.06 | 13.65% | 2.45% | 14.01% | 20.33% | |
71 Outperform | ¥1.36T | 35.31 | 4.44% | 3.44% | 4.56% | -16.55% | |
68 Neutral | ¥559.84B | 4.46 | 41.78% | ― | 14.09% | 488.06% | |
64 Neutral | ¥8.80T | 129.50 | 2.61% | 3.54% | 3.10% | -218.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | ¥136.69B | 67.09 | 1.46% | 4.85% | -18.25% | -84.71% |
* Healthcare Sector Average
JP:4523
Eisai Co
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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.