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Eisai Co
(4523)
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Rating:65Neutral
Price Target:
¥4,502.00
▼(-7.95% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid financial stability (strong gross margins and low leverage) tempered by cash flow volatility and softer recent profitability, while technical indicators show weak momentum. Valuation is supportive due to a reasonable P/E and a healthy dividend yield.
Positive Factors
High gross margins
Sustained gross margins in the mid‑70s to ~80% reflect durable pricing power for branded specialty medicines and efficient manufacturing. High gross margins provide structural capacity to fund R&D, absorb commercial launch costs, and support long-term profitability even if operating mixes shift.
Negative Factors
Cash flow volatility
Material swings in operating and free cash flow, including a sharp decline in the latest year and a 2023 drawdown, weaken predictability of internal funding for R&D, dividends, or bolt‑on deals. Persistent volatility increases reliance on external financing or partner milestone timing.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins in the mid‑70s to ~80% reflect durable pricing power for branded specialty medicines and efficient manufacturing. High gross margins provide structural capacity to fund R&D, absorb commercial launch costs, and support long-term profitability even if operating mixes shift.
Read all positive factors
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.22T
Dividend Yield3.51%
Average Volume (3M)1.34M
Price to Earnings (P/E)31.3
Beta (1Y)0.97
Revenue Growth4.56%
EPS Growth-16.55%
CountryJP
Employees11,067
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)136.74
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-4.93% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)197.47
Revenue Forecast (FY)¥892.88B
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 primarily makes money by selling branded prescription pharmaceuticals. Revenue is generated from (1) product sales in Japan and overseas, where Eisai commercializes its own medicines through its sales network and local subsidiaries; and (2) ...
Eisai Co Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 03, 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.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%.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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%.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 825.38B | 789.40B | 741.75B | 744.40B | 756.23B |
| Gross Profit | 634.15B | 597.23B | 563.77B | 543.48B | 569.79B |
| EBITDA | 95.88B | 103.73B | 103.11B | 87.26B | 94.55B |
| Net Income | 38.56B | 46.43B | 42.41B | 55.43B | 47.95B |
Balance Sheet | |||||
| Total Assets | 1.45T | 1.39T | 1.39T | 1.26T | 1.24T |
| Cash, Cash Equivalents and Short-Term Investments | 245.42B | 265.56B | 304.68B | 267.35B | 309.63B |
| Total Debt | 186.08B | 231.18B | 206.75B | 170.92B | 143.03B |
| Total Liabilities | 523.99B | 520.58B | 494.82B | 440.78B | 467.78B |
| Stockholders Equity | 898.99B | 841.42B | 875.61B | 799.96B | 748.82B |
Cash Flow | |||||
| Free Cash Flow | 45.96B | 18.18B | 41.67B | -24.35B | 88.56B |
| Operating Cash Flow | 61.32B | 30.12B | 55.99B | -1.77B | 117.59B |
| Investing Cash Flow | -41.80B | -10.10B | -25.32B | -22.72B | -28.85B |
| Financing Cash Flow | -61.10B | -57.81B | -22.72B | -24.52B | -48.97B |
Eisai Co Technical Analysis
Neutral
4891.00
Price Trends
4154.04
Positive
4530.54
Negative
4559.97
Negative
Market Momentum
66.78
Negative
62.50
Neutral
85.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4523, the sentiment is Neutral. The current price of 4891 is above the 20-day moving average (MA) of 4037.05, above the 50-day MA of 4154.04, and above the 200-day MA of 4559.97, indicating a neutral trend. The MACD of 66.78 indicates Negative momentum. The RSI at 62.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.53T | 11.76 | 12.22% | 2.22% | 14.01% | 20.33% | |
67 Neutral | ¥275.07B | 9.30 | ― | 2.12% | 6.58% | -8.75% | |
65 Neutral | ¥1.22T | 31.34 | 5.75% | 3.51% | 4.56% | -16.55% | |
58 Neutral | ¥650.46B | 5.33 | 48.92% | ― | 13.66% | 352.17% | |
58 Neutral | ¥8.64T | 44.26 | 0.54% | 4.11% | -1.66% | -239.68% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | ¥137.41B | 67.70 | -2.58% | 4.16% | -18.25% | -84.71% |
* Healthcare Sector Average
JP:4523
Eisai Co
4,296.00
426.10
11.01%
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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.