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Eiken Chemical Co., Ltd. (JP:4549)
:4549
Japanese Market
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Eiken Chemical Co., Ltd. (4549) AI Stock Analysis

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JP:4549

Eiken Chemical Co., Ltd.

(4549)

Rating:63Neutral
Price Target:
¥2,519.00
▲(1.86% Upside)
Eiken Chemical Co., Ltd. maintains a stable financial position with strong balance sheet metrics and operational cash flows. However, declining profitability margins and free cash flow pose concerns. The stock shows strong bullish momentum, but overbought technical indicators suggest caution. High P/E ratio points to potential overvaluation, partially mitigated by a modest dividend yield.

Eiken Chemical Co., Ltd. (4549) vs. iShares MSCI Japan ETF (EWJ)

Eiken Chemical Co., Ltd. Business Overview & Revenue Model

Company DescriptionEiken Chemical Co., Ltd. manufactures and sells clinical diagnostics and equipment in Japan. The company is involved in developing clinical diagnostic aids to various aspects of contemporary medicine, including biochemical, immunological, serological, dry chemical diagnosis, and automatic analyzers. It also develops and supplies OC-SENSOR, an automated immunochemical fecal test for detecting gastrointestinal bleeding associated with disorders, such as colorectal cancer, polyps, and diverticulitis. In addition, the company offers real-time turbidi meters, and homeothermal equipment; amplification kits and fluorescence detection reagents for research use; and detection kits. Further, it manufactures a range of products that are used in the field of microbiology; and provides other products comprising immunological and serological reagents. The company was formerly known as Nihon Eiyokagaku Co., Ltd. and changed its name to Eiken Chemical Co., Ltd. in 1969. Eiken Chemical Co., Ltd. was founded in 1939 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyEiken Chemical Co., Ltd. generates revenue through the sale of its diagnostic products and services, which include in vitro diagnostics reagents, testing kits, and medical devices. The company has established a robust revenue model by targeting hospitals, laboratories, and research institutions that require reliable and accurate diagnostic solutions. Key revenue streams include sales of its LAMP-based testing kits, which are widely used for infectious disease detection, as well as other diagnostic reagents and equipment. Additionally, Eiken Chemical may engage in strategic partnerships and collaborations with healthcare institutions and research organizations to expand its market reach and drive sales growth. Factors like innovation in diagnostic technologies, global healthcare trends, and regulatory approvals significantly influence the company's earnings.

Eiken Chemical Co., Ltd. Financial Statement Overview

Summary
Eiken Chemical Co., Ltd. exhibits a solid financial foundation with stable revenue and profitability margins. The balance sheet is strong with low leverage and high equity, but declining ROE indicates inefficiencies in utilizing equity for profit generation. Cash flow analysis reveals strong operational cash flow, but declining free cash flow suggests potential challenges in maintaining liquidity. The company's financial health is generally stable but warrants close monitoring of cash flow trends and profitability margins.
Income Statement
72
Positive
Eiken Chemical Co., Ltd. has shown a stable revenue base with a marginal growth of 1.22% from 2024 to 2025. Gross Profit Margin slightly decreased to 40.73% in 2025, indicating consistent production efficiency. However, the Net Profit Margin has decreased from 6.58% in 2024 to 5.50% in 2025, reflecting a decline in net profitability. The EBIT and EBITDA margins suggest operational efficiency, but the declining trend in EBIT margin needs attention.
Balance Sheet
80
Positive
The company's balance sheet is solid with a Debt-to-Equity ratio of 0.10, indicating low financial leverage. The Equity Ratio is high at 69.88%, showing a strong capital structure. However, the Return on Equity has decreased to 5.11% in 2025, suggesting reduced efficiency in generating profits from shareholders' equity. Overall, the balance sheet reflects financial stability with a significant equity base.
Cash Flow
68
Positive
Operating Cash Flow to Net Income ratio is robust at 2.71, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income ratio has declined to 0.36, suggesting a decrease in cash available after capital expenditures. The Free Cash Flow Growth Rate has also significantly dropped, indicating potential cash flow strain in recent periods.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue40.54B40.54B40.05B43.27B43.00B38.66B
Gross Profit16.51B16.51B16.72B20.51B20.57B18.53B
EBITDA5.56B5.56B5.84B9.73B10.55B8.58B
Net Income2.23B2.23B2.63B5.74B6.22B5.04B
Balance Sheet
Total Assets62.37B62.37B61.65B66.28B62.51B55.69B
Cash, Cash Equivalents and Short-Term Investments9.87B9.87B16.31B18.32B16.12B9.23B
Total Debt4.47B4.47B4.33B4.31B4.19B1.16B
Total Liabilities18.77B18.77B15.68B16.74B16.71B14.02B
Stockholders Equity43.60B43.60B45.97B49.53B45.80B41.67B
Cash Flow
Free Cash Flow0.00812.00M1.72B4.30B2.88B3.34B
Operating Cash Flow0.006.03B3.81B7.58B7.77B5.45B
Investing Cash Flow0.00-4.50B-2.22B-316.00M-5.04B-2.19B
Financing Cash Flow0.00-4.86B-6.69B-2.10B1.20B-1.27B

Eiken Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2473.00
Price Trends
50DMA
2223.20
Positive
100DMA
2167.38
Positive
200DMA
2167.93
Positive
Market Momentum
MACD
67.11
Negative
RSI
69.28
Neutral
STOCH
87.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4549, the sentiment is Positive. The current price of 2473 is above the 20-day moving average (MA) of 2362.45, above the 50-day MA of 2223.20, and above the 200-day MA of 2167.93, indicating a bullish trend. The MACD of 67.11 indicates Negative momentum. The RSI at 69.28 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4549.

Eiken Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
¥77.32B35.23
2.14%3.80%6.68%
51
Neutral
$7.81B-0.22-40.01%2.29%21.48%-2.11%
$303.09M-0.82%
€757.13M10.608.31%
79
Outperform
¥32.75B10.71
2.43%7.99%28.81%
74
Outperform
¥16.87B16.18
3.43%-8.07%-38.21%
73
Outperform
¥273.87B20.01
1.87%4.43%-1.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4549
Eiken Chemical Co., Ltd.
2,473.00
227.82
10.15%
CYBQF
CYBERDYNE
1.30
-0.14
-9.72%
DE:2GY
PHC Holdings Corp.
5.75
-0.98
-14.56%
JP:6678
Techno Medica Co., Ltd.
1,985.00
178.75
9.90%
JP:6823
Rion Co., Ltd.
2,669.00
556.60
26.35%
JP:6849
Nihon Kohden Corporation
1,640.50
-291.88
-15.10%

Eiken Chemical Co., Ltd. Corporate Events

Eiken Chemical Reports Strong Q1 2025 Financial Performance
Jul 31, 2025

Eiken Chemical Co., Ltd. reported a positive financial performance for the three months ended June 30, 2025, with a 7.1% increase in net sales and significant growth in operating and ordinary profits compared to the previous year. The company’s improved financial results indicate a strong market position and potential for future growth, benefiting stakeholders and enhancing its industry standing.

Eiken Chemical to Transfer Subsidiary to Boost Efficiency
Jul 31, 2025

Eiken Chemical Co., Ltd. has decided to transfer its equity interest in its subsidiary EIKEN CHINA CO., LTD. to improve production and management efficiency. The transfer will involve moving raw materials processing to its Nogi Factory and switching to direct sales, which is expected to enhance corporate value. The name of the transferee, a Chinese corporation, remains confidential, and the transfer is set to be completed by September 2025.

Eiken Chemical Completes Treasury Shares Disposal for Stock Compensation
Jul 23, 2025

Eiken Chemical Co., Ltd. has completed the pay-in procedures for the disposal of treasury shares as restricted stock compensation, as resolved in a recent board meeting. This disposal involves a total of 118,009 common shares, distributed among company officers and employees, with a total value of approximately 251 million yen, potentially impacting the company’s financial structure and stakeholder interests.

Eiken Chemical Completes Treasury Share Acquisition
Jul 10, 2025

Eiken Chemical Co., Ltd. has completed the acquisition of 60,400 of its own common shares for a total of 127,021,500 yen, as part of a broader initiative authorized by its Board of Directors to purchase up to 2,000,000 shares. This strategic move, executed through market purchases on the Tokyo Stock Exchange, is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value.

Eiken Chemical Announces Treasury Share Disposal for Compensation Plan
Jun 24, 2025

Eiken Chemical Co., Ltd. has announced the disposal of treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of its officers and employees with those of shareholders. This move is designed to motivate the company’s leadership and staff to focus on sustainable growth and enhance shareholder value over the medium to long term.

Eiken Chemical Co., Ltd. Amends Articles of Incorporation to Streamline Decision-Making
Jun 24, 2025

Eiken Chemical Co., Ltd. announced an amendment to its Articles of Incorporation, approved at the Ordinary General Meeting of Shareholders on June 24, 2025. The amendment involves changes to the method of deciding the disposal of surplus, specifically removing the requirement for a general meeting of shareholders to determine certain matters, allowing the Board of Directors to make these decisions, which could streamline the company’s decision-making process and potentially impact shareholder engagement.

Eiken Chemical Advances Treasury Share Acquisition Plan
Jun 2, 2025

Eiken Chemical Co., Ltd. has announced the progress of its treasury share acquisition, purchasing 237,400 common shares for approximately 499.97 million yen between May 1 and May 31, 2025. This move is part of a broader plan to acquire up to 2 million shares by July 31, 2025, which could impact the company’s market positioning and shareholder value.

Eiken Chemical Opposes Shareholder Proposal to Amend Articles and Share Buyback
May 30, 2025

Eiken Chemical Co., Ltd. has announced its opposition to a shareholder proposal from AVI Japan Opportunity Trust PLC, which includes amendments to the articles of incorporation and a buyback of shares. The company emphasizes its commitment to strengthening its governance structure with a board composed mainly of independent directors, aiming to enhance corporate value and shareholder value in the medium to long term. The board believes that maintaining decision-making authority on share buybacks and earnings appropriation within the board, rather than expanding shareholder rights, aligns with its strategic governance framework.

Eiken Chemical Resolves Shareholder Proposal with Strategic Board Nominations
May 13, 2025

Eiken Chemical Co., Ltd. announced the retraction of a shareholder proposal by Dalton Kizuna Fund, a major shareholder. After evaluating six proposed director candidates, the company decided to nominate two candidates, Mr. Kinose and Mr. Toda, for its board. This decision aims to maintain board independence while enhancing corporate value, as both candidates have committed to acting independently of Dalton’s interests.

Eiken Chemical Announces Director Elections Ahead of Shareholders’ Meeting
May 13, 2025

Eiken Chemical Co., Ltd. announced a resolution regarding the election of director candidates for its upcoming annual general shareholders’ meeting. The company plans to reappoint several directors and introduce new members to its board, which could influence its strategic direction and operational focus. This reshuffle may impact the company’s governance and potentially enhance its market position by bringing in fresh perspectives and expertise.

Eiken Chemical Co., Ltd. Enhances Shareholder Return Policy
May 13, 2025

Eiken Chemical Co., Ltd. has announced a change in its shareholder return policy, aiming to increase the total return ratio to 50% or more, which includes dividends and repurchases of treasury stock. This shift reflects the company’s commitment to enhancing shareholder value and strengthening its financial position, with the new policy set to take effect from the fiscal year ending March 2026.

Eiken Chemical Announces Executive Leadership Changes
May 13, 2025

Eiken Chemical Co., Ltd. has announced upcoming changes in its executive leadership, effective after the 87th Ordinary General Meeting of Shareholders on June 24, 2025. These changes include the promotion of Yasuyoshi Mori to Director, Senior Vice President, and Executive Officer, and Michitoshi Doi to Vice President and Executive Officer, while several current executives will retire. The restructuring is expected to streamline operations and enhance the company’s strategic focus on research and development, production, and quality assurance.

Eiken Chemical Unveils Transformative Medium-Term Plan
May 13, 2025

Eiken Chemical Co., Ltd. has announced a new medium-term management plan for fiscal years 2025 to 2027, titled ‘Challenges to Innovation.’ This plan is intended to be a transformative period aimed at strengthening the company’s earnings base and advancing its long-term vision, EIKEN Vision 2030, by implementing fundamental changes.

Eiken Chemical Reports Fiscal Year 2025 Financial Results
May 13, 2025

Eiken Chemical Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 1.2% to ¥40,539 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 11.2%, 10.4%, and 15.4% respectively. Despite these declines, the company has forecasted a positive outlook for the fiscal year ending March 31, 2026, with expected increases in net sales and profits.

Eiken Chemical to Transfer Equity in Eiken China Amid Rising Costs
May 13, 2025

Eiken Chemical Co., Ltd. has decided to transfer its equity interests in its subsidiary, Eiken China, due to rising labor and transportation costs in Shanghai, which have impacted profitability. The transfer aims to enhance corporate value by improving production efficiency and management through concentrating raw material processing and converting sales to direct channels.

Eiken Chemical Opposes Shareholder Proposal, Emphasizes Long-term Value
May 13, 2025

Eiken Chemical Co., Ltd. has announced its opposition to a shareholder proposal submitted by AVI Japan Opportunity Trust PLC, which will be presented at the upcoming Annual General Shareholders Meeting. The proposal includes amendments to the articles of incorporation and a buyback of shares. The company’s board believes that decisions regarding dividends should align with management strategies and be determined by the board to enhance corporate and shareholder value in the long term. Eiken Chemical has committed to a shareholder return policy with a target total return ratio of at least 50% from March 2026, emphasizing their focus on capital efficiency and shareholder profit.

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.Date of analysis: Jul 31, 2025