Eisai Co Ltd (JP:4523)
:4523
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Eisai Co
(4523)
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Rating:65Neutral
Price Target:
¥4,194.00
▼(-14.25% 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% imply durable product-level pricing power and cost structure advantages. High gross profitability supports ongoing R&D and commercialization spending, helping fund long-term pipeline development and absorb input cost swings without destroying core margins.
Negative Factors
Volatile free cash flow
Material year-to-year swings in operating and free cash flow, including a sharp decline most recently and a prior drawdown in 2023, raise execution and funding risk. Volatility complicates budgeting for R&D, milestone payments, and shareholder returns over multi-year development cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins in the mid‑70s to ~80% imply durable product-level pricing power and cost structure advantages. High gross profitability supports ongoing R&D and commercialization spending, helping fund long-term pipeline development and absorb input cost swings without destroying core margins.
Read all positive factors
Eisai Co (4523) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.10T
Dividend Yield3.51%
Average Volume (3M)1.34M
Price to Earnings (P/E)29.1
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
¥4,000.00Price Target Upside-18.22% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)207.98
Revenue Forecast (FY)¥887.49B
Eisai Co Business Overview & Revenue Model
Company Description
Eisai 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 adjunc...
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:Jul 31, 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 | 79.76B | 103.73B | 86.15B | 79.20B | 98.02B |
| 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
Negative
4891.00
Price Trends
4703.57
Negative
4685.44
Negative
4640.45
Negative
Market Momentum
-220.36
Positive
27.86
Positive
8.38
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 4891 is above the 20-day moving average (MA) of 4420.20, above the 50-day MA of 4703.57, and above the 200-day MA of 4640.45, indicating a bearish trend. The MACD of -220.36 indicates Positive momentum. The RSI at 27.86 is Positive, neither overbought nor oversold. The STOCH value of 8.38 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.64T | 12.44 | 12.22% | 2.22% | 14.01% | 20.33% | |
67 Neutral | ¥275.47B | 9.52 | ― | 2.12% | 6.58% | -8.74% | |
65 Neutral | ¥1.10T | 29.13 | 5.75% | 3.51% | 4.56% | -16.55% | |
58 Neutral | ¥674.46B | 6.03 | 48.92% | ― | 13.66% | 352.17% | |
58 Neutral | ¥8.12T | 41.70 | 0.54% | 4.11% | -1.66% | 78.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | ¥143.71B | 70.33 | -2.58% | 4.16% | -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.