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

• Market Cap: ¥108.80B
• Dividend Yield: 2.31%
• Average Volume (3M): 72.32K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.63
• 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): 106.9
• Revenue Forecast (FY): ¥42.20B

• Rating: 68 Neutral
• Price Target: ¥3,597.00 ▲(49.44% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is supported primarily by a strong, low-leverage balance sheet and generally stable operating performance, but is held back by declining profitability and weakening free cash flow. Technically, the uptrend is intact, yet extremely overbought momentum raises near-term risk, and valuation (P/E 26.24 with ~1.70% yield) is not especially attractive.

Positive Factors

Low leverage / strong equity base

A very low debt-to-equity ratio and near 70% equity ratio give Eiken durable financial flexibility. This capital structure supports continued R&D, working capital for reagent production, and resilience to demand shocks without needing frequent external financing.

Recurring consumables revenue

Eiken's business hinges on consumable IVD reagents and test kits that require repeat purchases. This built-in pull-through from installed instruments creates predictable, recurring revenue and high customer switching costs, supporting steady cash generation over time.

Strong operating cash generation

Operating cash flow materially exceeds reported net income, indicating high cash conversion from operations. That provides durable internal funding for capex, product support, and working capital, reducing reliance on debt and enabling reinvestment in core diagnostics capabilities.

Negative Factors

Declining net profitability

Falling net margins and lower ROE signal weakening ability to convert revenue into shareholder returns. Over several quarters this compresses internal capital for innovation and dividends, and may indicate cost pressures or pricing limits in core diagnostic product lines.

Weak free cash flow after capex

A sharp decline in free cash flow relative to net income reduces funds available after investments. Persistently weak FCF constrains strategic initiatives, limits buffer for cyclical downturns, and could force trade-offs between R&D, capital spending, and shareholder returns.

Modest revenue growth

Very low top-line growth suggests limited market expansion or pricing power in near term. Over a multi-month horizon this restricts operating leverage, making it harder to restore margins and to scale new product launches without gaining share or entering new markets.

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

Financials are stable overall: modest revenue growth (+1.22%) and a very strong balance sheet (low leverage with 0.10 debt-to-equity and ~69.9% equity ratio). Offsetting this, profitability is weakening (net margin down to 5.50% and ROE down to 5.11%), and free cash flow metrics have deteriorated (FCF to net income down to 0.36 with sharply lower FCF growth).

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: 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 2407 is below the 20-day moving average (MA) of 2639.35, below the 50-day MA of 2521.24, and above the 200-day MA of 2327.12, indicating a bullish trend. The MACD of 167.31 indicates Negative momentum. The RSI at 82.63 is Negative, neither overbought nor oversold. The STOCH value of 94.58 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥21.68B	16.98	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥37.67B	12.64	―	2.93%	6.72%	20.01%
4549	68 Neutral	¥108.80B	28.39	―	2.31%	4.36%	79.43%
6849	65 Neutral	¥278.46B	21.99	―	1.92%	4.31%	96.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥133.95B	37.73	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.