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

• Market Cap: ¥81.83B
• Dividend Yield: 2.38%
• Average Volume (3M): 72.32K
• Price to Earnings (P/E): 21.2
• 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): 72.22
• 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): 17,981.91
• Revenue Forecast (FY): ¥6.58T

• Rating: 66 Neutral
• Price Target: ¥2,515.00 ▲(8.78% Upside)

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

The company's low leverage and high equity ratio demonstrate financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Cash Generation Ability

Strong operational cash flow relative to net income indicates efficient cash generation, supporting ongoing operations and potential investments in growth opportunities.

Revenue Growth

Stable revenue growth, albeit modest, reflects the company's ability to maintain market presence and adapt to industry demands, ensuring sustained business operations.

Negative Factors

Declining ROE

Decreasing ROE suggests inefficiencies in utilizing equity to generate profits, potentially impacting investor confidence and long-term profitability.

Declining Free Cash Flow

A decline in free cash flow indicates reduced cash availability after capital expenditures, which may constrain future investments and liquidity.

Decreasing Net Profit Margin

A declining net profit margin reflects reduced profitability, which could affect the company's ability to reinvest in growth and maintain competitive positioning.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2312.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2312 is below the 20-day moving average (MA) of 2346.95, below the 50-day MA of 2367.92, and above the 200-day MA of 2221.30, indicating a bullish trend. The MACD of 5.69 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 87.66 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	74 Outperform	¥16.44B	13.56	―	3.65%	-4.36%	-14.92%
6823	69 Neutral	¥31.34B	10.06	―	2.78%	6.72%	20.01%
4549	66 Neutral	¥81.83B	21.20	―	2.38%	4.36%	79.43%
6849	61 Neutral	¥297.83B	21.71	―	1.89%	4.31%	96.31%
6523	54 Neutral	€130.02B	11.43	4.32%	4.34%	0.04%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7779	45 Neutral	$39.15B	-114.02	-0.46%	―	-4.30%	82.87%

Eiken Chemical Co., Ltd. Corporate Events

Eiken Chemical Co., Ltd. Reports Strong Financial Performance for H1 2025

Eiken Chemical Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with net sales increasing by 3.6% and profit attributable to owners of the parent surging by 127.5% compared to the previous year. The company also announced a forecasted increase in annual dividends and maintained a stable financial position, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:4549) stock is a Hold with a Yen2518.00 price target. To see the full list of analyst forecasts on Eiken Chemical Co., Ltd. stock, see the JP:4549 Stock Forecast page.

Eiken Chemical to Cancel 4 Million Treasury Shares

Eiken Chemical Co., Ltd. has announced the cancellation of 4,000,000 treasury shares, representing 10.38% of its total issued shares, as resolved by its Board of Directors. This move, scheduled for November 14, 2025, is a strategic decision that may impact the company’s share value and investor relations by reducing the number of shares in circulation.

The most recent analyst rating on (JP:4549) stock is a Hold with a Yen2518.00 price target. To see the full list of analyst forecasts on Eiken Chemical Co., Ltd. stock, see the JP:4549 Stock Forecast page.

Eiken Chemical Reports Strong Q1 2025 Financial Performance

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

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.