Eiken Chemical Co., Ltd. (4549) AI Stock Analysis

• Market Cap: ¥83.81B
• Dividend Yield: 2.31%
• Average Volume (3M): 72.32K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.65
• Revenue Growth: 4.36%
• EPS Growth: 79.43%
• Country: JP
• Employees: 757
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 22.51
• Shares Outstanding: 34,541,440
• 10 Day Avg. Volume: 81,940
• 30 Day Avg. Volume: 72,320
• PEG Ratio: -3.65
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 95.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,294.00 ▲(36.85% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Eiken Chemical Co., Ltd. has a stable financial foundation with strong balance sheet metrics, but declining ROE and free cash flow are concerns. Technical indicators suggest a cautious outlook with bearish short-term trends. The stock's valuation appears high, which could limit upside potential. Overall, the stock score reflects a need for careful monitoring of financial and market trends.

Positive Factors

Strong balance sheet and low leverage

A very low debt-to-equity ratio and high equity ratio provide structural financial resilience. This capital structure reduces default risk, preserves borrowing capacity for strategic investments, and supports multi-year R&D, regulatory approvals, or small M&A without threatening solvency.

High quality operating cash generation

Operating cash flow significantly exceeding reported net income indicates strong cash conversion and earnings quality. Durable OCF supports working capital for reagent inventory, funds recurring operations and maintenance capex, and underpins sustainable dividends or investments over several quarters.

Recurring consumables-driven business model

A consumables-heavy IVD model generates repeatable, predictable revenue from tests and reagent usage tied to installed instruments. This pull-through structure produces steady demand, high customer retention and revenue visibility, supporting long-term cash flow and margin stability.

Negative Factors

Declining return on equity

A falling ROE signals reduced efficiency in converting shareholder capital into profits. Over months this can constrain shareholder returns and reflect either margin pressure or over-capitalization, making it harder to justify equity-funded growth and weakening long-term return prospects.

Weak free cash flow conversion

Material decline in FCF conversion limits internal funding for capex, product development, and dividends without using debt or equity. Persistently lower FCF constrains strategic flexibility, raises sensitivity to working-capital swings, and can impede multi-period investment plans.

Eroding margins and tepid revenue growth

Declining gross and net margins alongside minimal revenue growth reduce operating leverage and reinvestment capacity. Over a multi-quarter horizon this can reflect competitive pricing pressure or rising costs, leading to lower sustainable earnings and tighter budgets for innovation or market expansion.

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

Company Description

Eiken 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 Money

Eiken Chemical Co., Ltd. generates revenue through the sale of its diagnostic products and systems, which are essential for medical testing and disease detection. The company has multiple key revenue streams, including direct sales of its test kits and reagents to healthcare providers, as well as recurring revenue from the supply of consumables and maintenance services for its diagnostic equipment. Additionally, Eiken has established significant partnerships with healthcare institutions and distributors that expand its market reach and enhance its product offerings. The increasing demand for accurate and rapid diagnostic solutions, alongside ongoing investments in biotechnology and healthcare innovations, also contribute positively to its 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	41.22B	40.54B	40.05B	43.27B	43.00B	38.66B
Gross Profit	16.66B	16.51B	16.72B	20.51B	20.57B	18.53B
EBITDA	6.86B	5.56B	5.84B	9.73B	10.55B	8.58B
Net Income	2.34B	2.23B	2.63B	5.74B	6.22B	5.04B
Balance Sheet
Total Assets	59.50B	62.37B	61.65B	66.28B	62.51B	55.69B
Cash, Cash Equivalents and Short-Term Investments	4.67B	9.87B	16.31B	18.32B	16.12B	9.23B
Total Debt	3.00B	4.47B	4.33B	4.31B	4.19B	1.16B
Total Liabilities	17.74B	18.77B	15.68B	16.74B	16.71B	14.02B
Stockholders Equity	41.75B	43.60B	45.97B	49.53B	45.80B	41.67B
Cash Flow
Free Cash Flow	0.00	812.00M	1.72B	4.30B	2.88B	3.34B
Operating Cash Flow	0.00	6.03B	3.81B	7.58B	7.77B	5.45B
Investing Cash Flow	0.00	-4.50B	-2.22B	-316.00M	-5.04B	-2.19B
Financing Cash Flow	0.00	-4.86B	-6.69B	-2.10B	1.20B	-1.27B

Eiken Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2407.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 2407 is below the 20-day moving average (MA) of 2527.85, below the 50-day MA of 2477.98, and above the 200-day MA of 2311.94, indicating a bullish trend. The MACD of 65.48 indicates Negative momentum. The RSI at 82.17 is Negative, neither overbought nor oversold. The STOCH value of 78.31 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥21.39B	16.75	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥36.13B	12.12	―	2.93%	6.72%	20.01%
4549	66 Neutral	¥83.81B	21.87	―	2.31%	4.36%	79.43%
6849	65 Neutral	¥279.46B	22.07	―	1.92%	4.31%	96.31%
7779	56 Neutral	¥74.53B	-24,436.62	-0.46%	―	-4.30%	82.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥134.58B	37.91	4.32%	3.73%	0.04%	―

Eiken Chemical Co., Ltd. Corporate Events

Eiken Chemical Posts Strong Profit Surge, Lifts Dividend and Confirms Full-Year Outlook

Eiken Chemical reported consolidated net sales of ¥31.38 billion for the nine months ended December 31, 2025, up 2.4% year on year, with operating profit rising 5.5% to ¥2.78 billion and profit attributable to owners of parent jumping 75.8% to ¥3.72 billion, supported in part by a lower share count that also lifted basic earnings per share to ¥112.94. The company’s equity ratio improved to 72.5% and net assets per share increased, while it maintained its full-year forecast for FY2025 (ending March 31, 2026), targeting 4.1% sales growth and a 69.2% rise in full-year profit attributable to owners of parent, and plans to raise the annual dividend to ¥58 per share, signaling confidence in earnings resilience and a continued commitment to shareholder returns despite a projected decline in ordinary profit.

The most recent analyst rating on (JP:4549) stock is a Hold with a Yen2306.00 price target. To see the full list of analyst forecasts on Eiken Chemical Co., Ltd. stock, see the JP:4549 Stock Forecast page.