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Eisai Co Ltd (JP:4523)
:4523
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Eisai Co
(OTC:4523)
Rating:67Neutral
Price Target:
¥4,388.00
▼(-3.39% Downside)
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.26T
Dividend Yield3.52%
Average Volume (3M)1.39M
Price to Earnings (P/E)25.2
Beta (1Y)0.84
Revenue Growth9.43%
EPS Growth56.53%
CountryJP
Employees11,067
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)51.35
Shares Outstanding291,649,140
10 Day Avg. Volume1,469,080
30 Day Avg. Volume1,386,790
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda11.10
Forecast
1Y Price Target
$4,713.46Price Target Upside3.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
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 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:Aug 05, 2025
(Q4-2025)
| % Change Since: 5.53%|
Next Earnings Date:Nov 05, 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 indicates steady revenue growth with some challenges in operational efficiency. The balance sheet is robust with low leverage and strong equity ratios, underscoring financial health. However, cash flow management requires attention to ensure sustainable growth.Income Statement
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.75
Positive
Balance Sheet
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.80
Positive
Cash Flow
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.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
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
Positive
4542.00
Price Trends
4096.14
Positive
4035.70
Positive
4254.01
Positive
Market Momentum
111.50
Negative
72.21
Negative
91.53
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 4542 is above the 20-day moving average (MA) of 4195.25, above the 50-day MA of 4096.14, and above the 200-day MA of 4254.01, indicating a bullish trend. The MACD of 111.50 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 91.53 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.26T | 25.18 | 5.96% | 3.52% | 9.43% | 56.53% | |
51 Neutral | $7.43B | -0.36 | -45.45% | 2.27% | 22.98% | -2.34% | |
| ― | $3.75B | 30.37 | 10.94% | ― | ― | ― | |
| ― | $2.14B | 16.61 | 7.24% | 2.00% | ― | ― | |
| ― | $16.06B | 11.93 | 13.71% | 4.84% | ― | ― | |
| ― | $46.51B | 48.09 | 1.99% | 4.61% | ― | ― | |
| ― | $1.86B | 10.75 | 9.09% | 3.98% | ― | ― |
* Healthcare Sector Average
Performance Comparison
JP:4523
Eisai Co
4,542.00
-1,030.17
-18.49%
DNPUF
Sumitomo Dainippon Pharma Co
8.97
5.52
160.00%
HTSUF
Hisamitsu Pharmaceutical Co
29.33
3.05
11.61%
SGIOF
Shionogi & Co
16.79
2.87
20.62%
TKPHF
Takeda Pharmaceutical Co
29.45
3.71
14.41%
TSMRF
Tsumura & Co
24.35
-0.90
-3.56%
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.