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Eiken Chemical Co., Ltd.
(4549)
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Rating:57Neutral
Price Target:
¥2,226.00
▼(-13.72% Downside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weakened cash-flow quality (negative free cash flow) and a materially weaker margin profile versus prior years, despite a conservatively leveraged balance sheet. Technicals are also unfavorable with the stock trading well below major moving averages. Valuation is reasonable with a moderate P/E and ~2.7% dividend yield, but it does not fully offset the financial and trend concerns.
Positive Factors
Recurring consumables business
Eiken's revenue is driven by recurring reagent and test-kit sales tied to test volume and installed analyzers. This consumables-heavy model creates predictable, repeatable demand and pull-through from installed bases, supporting durable revenue visibility and steady cash inflows over time.
Negative Factors
Negative free cash flow in 2026
Free cash flow turning negative signals a material deterioration in cash conversion versus prior years. This reduces internal funding for instruments, R&D, or dividends and may force reliance on external financing or slower reinvestment, constraining sustainable organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables business
Eiken's revenue is driven by recurring reagent and test-kit sales tied to test volume and installed analyzers. This consumables-heavy model creates predictable, repeatable demand and pull-through from installed bases, supporting durable revenue visibility and steady cash inflows over time.
Read all positive factors
Eiken Chemical Co., Ltd. (4549) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥70.91B
Dividend Yield2.7%
Average Volume (3M)72.32K
Price to Earnings (P/E)19.9
Beta (1Y)0.66
Revenue Growth2.94%
EPS Growth57.05%
CountryJP
Employees696
SectorGeneral
Sector StrengthN/A
IndustryMedical - Devices
Share Statistics
EPS (TTM)112.51
Shares Outstanding34,541,440
10 Day Avg. Volume81,940
30 Day Avg. Volume72,320
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)2.29
Price to Sales (P/S)2.40
P/FCF Ratio-58.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)91.9
Revenue Forecast (FY)¥43.56B
Eiken Chemical Co., Ltd. Business Overview & Revenue Model
Company Description
Eiken Chemical Co., Ltd. is a Japanese manufacturer and distributor specializing in clinical diagnostic products and medical equipment. The company excels in developing diagnostic solutions for diverse medical fields, encompassing biochemical anal...
How the Company Makes Money
Eiken Chemical primarily makes money by selling in-vitro diagnostic products and associated consumables used in routine and specialized clinical testing. The core of its revenue model is recurring sales of diagnostic reagents/test kits (which are ...
Eiken Chemical Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 41.90B | 40.54B | 40.05B | 43.27B | 43.00B |
| Gross Profit | 16.18B | 16.51B | 16.72B | 20.51B | 20.57B |
| EBITDA | 5.46B | 5.56B | 5.84B | 9.73B | 10.55B |
| Net Income | 3.71B | 2.23B | 2.63B | 5.74B | 6.22B |
Balance Sheet | |||||
| Total Assets | 62.66B | 62.97B | 62.25B | 66.76B | 63.02B |
| Cash, Cash Equivalents and Short-Term Investments | 10.94B | 9.87B | 16.31B | 18.32B | 16.12B |
| Total Debt | 7.29B | 4.47B | 4.33B | 4.31B | 4.19B |
| Total Liabilities | 18.62B | 19.37B | 16.28B | 17.22B | 17.22B |
| Stockholders Equity | 44.03B | 43.60B | 45.97B | 49.53B | 45.80B |
Cash Flow | |||||
| Free Cash Flow | -1.72B | 812.00M | 1.72B | 4.30B | 2.88B |
| Operating Cash Flow | 4.04B | 6.03B | 3.81B | 7.58B | 7.77B |
| Investing Cash Flow | -3.42B | -4.50B | -2.22B | -316.00M | -5.04B |
| Financing Cash Flow | -322.00M | -4.86B | -6.69B | -2.10B | 1.20B |
Eiken Chemical Co., Ltd. Technical Analysis
Negative
2580.00
Price Trends
2635.08
Negative
2849.04
Negative
2656.30
Negative
Market Momentum
-31.34
Negative
47.69
Neutral
47.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4549, the sentiment is Negative. The current price of 2580 is above the 20-day moving average (MA) of 2529.90, below the 50-day MA of 2635.08, and below the 200-day MA of 2656.30, indicating a bearish trend. The MACD of -31.34 indicates Negative momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 47.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4549.
Eiken Chemical Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥41.06B | 11.94 | ― | 2.93% | 2.15% | 12.47% | |
78 Outperform | ¥17.10B | 12.92 | ― | 3.02% | 13.43% | 7.14% | |
61 Neutral | ¥260.75B | 17.82 | ― | 1.92% | 4.29% | 3.92% | |
57 Neutral | ¥70.91B | 19.95 | ― | 2.28% | 2.94% | 57.05% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | ¥140.05B | 285.71 | 0.33% | 3.73% | 0.78% | -95.37% |
* General Sector Average
JP:4549
Eiken Chemical Co., Ltd.
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Eiken Chemical Co., Ltd. Corporate Events
Eiken Chemical Posts Higher Sales but Profit Slump, Keeps Dividend Outlook Steady
Jul 30, 2026
Eiken Chemical reported consolidated net sales of ¥10.7 billion for the quarter ended June 30, 2026, up 5.2% year on year, but profits declined as higher costs compressed margins. Operating profit fell 16.7% to ¥667 million, ordinary pro...
Eiken Chemical Q1 Sales Rise Despite Margin Pressure, Launches Shareholder Perks and ESG Initiatives
Jul 30, 2026
Eiken Chemical reported higher first-quarter sales for FY2026, driven by strong overseas demand for fecal immunochemical test reagents, increased tuberculosis testing reagent shipments to developing countries and robust domestic medical device sal...
Eiken Chemical Launches Shareholder Perks and Pushes Digital Voting
Jul 30, 2026
Eiken Chemical’s board has approved the introduction of a shareholder benefits program designed to boost the appeal of its stock and encourage long-term holdings among individual investors. From the March 31, 2027 record date, shareholders w...
Eiken Chemical Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Jul 22, 2026
Eiken Chemical Co., Ltd., a diagnostics-focused company listed on the TSE Prime, develops and supplies clinical testing products and medical technologies to healthcare providers. Its leadership framework includes outside directors and executive of...
Eiken Chemical to Dispose of Treasury Shares for Restricted Stock Compensation Plan
Jun 23, 2026
Eiken Chemical Co., Ltd. has approved the disposal of 27,217 treasury shares as part of its restricted stock compensation plan, valued at approximately ¥72.6 million and priced at ¥2,666 per share, to be executed on July 22, 2026. The sh...
Eiken Chemical Board Rejects Activist’s Bid to Add Two Directors
May 12, 2026
Eiken Chemical has received a shareholder proposal from activist investor Nippon Active Value Fund to appoint two new directors at its June 23 annual general meeting. After reviewing the proposal, the board has formally resolved to oppose the elec...
Eiken Chemical Resets Strategy With New Management Plan 2030
May 12, 2026
Eiken Chemical has overhauled its long-term management framework, replacing its previous road map and second medium-term plan with a newly formulated “Management Plan 2030” covering fiscal 2026 to fiscal 2030. The move follows the esta...
Eiken Chemical Announces Retirement of Representative Executive Officer Chairman
May 12, 2026
Eiken Chemical Co., Ltd. has announced a leadership change, with Director and Representative Executive Officer Chairman Tsugunori Notomi set to retire at the end of his term. The decision was approved by the board and will be formally confirmed at...
Eiken Chemical refreshes board slate with CFO appointment as director and chairman’s retirement
May 12, 2026
Eiken Chemical has nominated a slate of directors for approval at its 88th annual general shareholders’ meeting on June 23, 2026, including the reappointment of President and CEO Yuji Segawa and several outside directors who meet the Tokyo S...
Eiken Chemical Recasts Long-Term Strategy with New Management Plan 2030
May 12, 2026
Eiken Chemical has reviewed its existing EIKEN ROAD MAP 2030 and medium-term plan under the executive structure established in 2025, and has reformulated them into a unified “Management Plan 2030” aimed at achieving its EIKEN Vision 20...
Eiken Chemical lifts EPS and dividend despite profit squeeze
May 12, 2026
Eiken Chemical reported fiscal 2026 net sales of ¥41.9 billion, up 3.4% year on year, with operating profit down 2.7% to ¥2.9 billion and ordinary profit falling 11.1%. Profit attributable to owners of the parent, however, jumped 66.5% t...
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.