Daiichi Sankyo Company Limited (JP:4568)
:4568
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Daiichi Sankyo Company
(4568)
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Rating:67Neutral
Price Target:
¥3,227.00
▲(8.51% Upside)
Action:ReiteratedDate:03/26/26
Score is driven mainly by strong profitability and a conservative balance sheet, supported by a generally positive earnings-call backdrop (product momentum and upgraded DATROWAY outlook). The biggest constraint is weak recent cash conversion/negative free cash flow, while technicals are mixed-to-soft with negative MACD and the stock below longer-term moving averages; valuation is reasonable with a moderate P/E and a ~2.3% dividend yield.
Positive Factors
High margins & improving profitability
Sustained high gross margins (near the high-70% range) and improving net margin reflect durable product-level economics and pricing power. Over 2–6 months this supports continued operating profitability, funds R&D and partnership deals, and underpins long-term return on invested capital.
Negative Factors
Weak cash conversion / negative FCF
Negative recent free cash flow and weak earnings-to-cash conversion impair internal funding for sustained R&D and commercialization. Over the next several months this increases dependence on milestone and partnership payments, constrains capital allocation flexibility, and elevates execution risk if cash remains weak.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & improving profitability
Sustained high gross margins (near the high-70% range) and improving net margin reflect durable product-level economics and pricing power. Over 2–6 months this supports continued operating profitability, funds R&D and partnership deals, and underpins long-term return on invested capital.
Read all positive factors
Daiichi Sankyo Company (4568) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.54T
Dividend Yield2.07%
Average Volume (3M)6.53M
Price to Earnings (P/E)17.9
Beta (1Y)0.72
Revenue Growth12.56%
EPS Growth14.58%
CountryJP
Employees18,726
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)46.79
Shares Outstanding1,894,350,600
10 Day Avg. Volume6,968,810
30 Day Avg. Volume6,527,236
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)4.10
Price to Sales (P/S)3.53
P/FCF Ratio-106.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,593.30Price Target Upside54.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)166.55
Revenue Forecast (FY)¥2.13T
Daiichi Sankyo Company Business Overview & Revenue Model
Company Description
Daiichi Sankyo Company, Limited researches and develops, manufactures, imports, markets, and sells pharmaceutical products worldwide. The company offers trastuzumab deruxtecan, an anti-cancer agent and anti-HER2 antibody drug conjugate; mirogabali...
How the Company Makes Money
Daiichi Sankyo primarily makes money by selling prescription pharmaceuticals. Its revenue model is driven by (1) product sales of branded drugs, where it earns revenue from supplying medicines to wholesalers, hospitals, and pharmacies in Japan and...
Daiichi Sankyo Company Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a mixture of clear commercial and clinical momentum—notably strong ENHERTU and accelerating DATROWAY sales, major guideline and regulatory wins, significant milestone income, and favorable legal outcomes—counterbalanced by meaningful expense increases (SG&A and R&D), inventory-related charges and one‑off negative items that pressured reported operating profit. Pipeline execution remains active with several upcoming readouts and continued partnership activity, but there are near‑term cost and timing uncertainties (CMO negotiations, trial adjustments, regional generic pressure). Overall, the positives (robust top‑line growth, flagship product expansion, regulatory and legal wins, and upgraded DATROWAY guidance) outweigh the negatives, while management signals a cautious near‑term margin outlook to be addressed in the forthcoming five‑year plan.Positive Updates
Revenue Growth
Consolidated revenue for Q3 FY2025 was JPY 1,533.5 billion, up JPY 165.9 billion year‑on‑year (+12.1%). Management maintained the FY2025 consolidated earnings forecast (no change from October).
Negative Updates
Operating Profit Decline Including Temporary Items
Operating profit (including temporary income/expenses) was JPY 233.8 billion, down JPY 14.5 billion year‑on‑year (‑5.9%), reflecting absence of one‑time gains from the prior period and additional temporary charges in the quarter.
Read all updates
Q3-2025 Updates
Positive
Negative
Revenue Growth
Consolidated revenue for Q3 FY2025 was JPY 1,533.5 billion, up JPY 165.9 billion year‑on‑year (+12.1%). Management maintained the FY2025 consolidated earnings forecast (no change from October).
Read all positive updates
Company Guidance
Management reiterated no change to the FY2025 consolidated earnings forecast from the October announcement and provided Q3 metrics: consolidated revenue JPY 1,533.5bn (+JPY165.9bn, +12.1% YoY), cost of sales +JPY13.8bn, SG&A +JPY93.7bn, R&D +JPY38.1bn, core operating profit JPY249.2bn (+JPY20.2bn, +8.8% YoY; excluding FX +JPY13.8bn), operating profit JPY233.8bn (–JPY14.5bn, –5.9% YoY) and profit attributable to owners JPY217.4bn (+JPY8.8bn, +4.2% YoY). Key product metrics: ENHERTU Q3 global sales JPY506.8bn (+JPY102.4bn YoY); DATROWAY Q3 sales JPY31.6bn (83.8% of October forecast) with full‑year DATROWAY guidance raised to JPY47.0bn (+JPY9.2bn). FX: USD=JPY148.75 (¥ appreciation ¥3.81 YoY), EUR=JPY171.84 (¥ depreciation ¥7.02 YoY) with a net FX revenue headwind of ¥3.3bn and FX expense relief of ¥9.7bn. Management also disclosed deal-related income +¥20.9bn, one‑time negative impacts (CMO compensation and inventory write‑downs) of ¥34.7bn, financial income contribution +¥9.5bn and lower income taxes –¥13.9bn, and flagged upcoming regulatory decisions and trial readouts (DESTINY‑Breast11, DESTINY‑Lung04, TROPION‑Lung07/08/15, AVANZAR) as near‑term catalysts.Daiichi Sankyo Company Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.05T | 1.89T | 1.60T | 1.28T | 1.04T | 962.52B |
| Gross Profit | 1.59T | 1.47T | 1.19T | 914.95B | 691.56B | 624.23B |
| EBITDA | 401.46B | 380.57B | 271.13B | 169.72B | 131.27B | 121.18B |
| Net Income | 304.60B | 295.76B | 200.73B | 109.19B | 66.97B | 75.96B |
Balance Sheet | ||||||
| Total Assets | 3.82T | 3.46T | 3.46T | 2.51T | 2.22T | 2.09T |
| Cash, Cash Equivalents and Short-Term Investments | 541.45B | 713.97B | 876.56B | 607.56B | 778.62B | 629.74B |
| Total Debt | 300.55B | 155.89B | 156.00B | 192.86B | 213.62B | 226.17B |
| Total Liabilities | 2.11T | 1.83T | 1.77T | 1.06T | 864.87B | 807.03B |
| Stockholders Equity | 1.71T | 1.62T | 1.69T | 1.45T | 1.35T | 1.27T |
Cash Flow | ||||||
| Free Cash Flow | -10.50B | -62.42B | 510.94B | 53.77B | 76.49B | 160.96B |
| Operating Cash Flow | 123.86B | 53.84B | 599.26B | 114.51B | 139.23B | 192.21B |
| Investing Cash Flow | -192.64B | 334.17B | -282.64B | -257.78B | 212.34B | -39.25B |
| Financing Cash Flow | -58.10B | -377.77B | -123.56B | -89.59B | -86.23B | -202.43B |
Daiichi Sankyo Company Technical Analysis
Neutral
2974.00
Price Trends
2971.00
Positive
3226.64
Negative
3402.44
Negative
Market Momentum
-6.67
Negative
53.02
Neutral
85.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4568, the sentiment is Neutral. The current price of 2974 is above the 20-day moving average (MA) of 2905.90, above the 50-day MA of 2971.00, and below the 200-day MA of 3402.44, indicating a neutral trend. The MACD of -6.67 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4568.
Daiichi Sankyo Company Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥3.03T | 8.09 | 12.22% | 2.22% | 4.48% | 11.08% | |
76 Outperform | ¥13.91T | 31.26 | 22.23% | 1.17% | 6.25% | 2.62% | |
75 Outperform | ¥4.57T | 9.34 | 7.97% | 3.61% | 13.24% | 127.88% | |
70 Neutral | ¥9.23T | 18.42 | 0.54% | 4.11% | -2.84% | -88.29% | |
68 Neutral | ¥1.37T | 19.13 | 5.75% | 3.51% | 6.79% | 22.14% | |
67 Neutral | ¥5.54T | 17.88 | 18.56% | 2.07% | 12.56% | 14.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4568
Daiichi Sankyo Company
2,974.00
-689.80
-18.83%
JP:4503
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JP:4519
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1,641.93
24.07%
JP:4523
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4,872.00
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JP:4507
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JP:4502
Takeda Pharmaceutical Co
5,820.00
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33.26%
Daiichi Sankyo Company Corporate Events
Daiichi Sankyo Reports January Progress on Ongoing Share Buyback Program
Feb 2, 2026
Daiichi Sankyo has disclosed the progress of its ongoing share buyback program, reporting the acquisition of 3,403,600 of its own ordinary shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, at a total cost of approximately ...
Daiichi Sankyo Publishes Q3 FY2025 Consolidated Financial Reference Data
Jan 30, 2026
Daiichi Sankyo has released its consolidated financial reference data for the third quarter of fiscal year 2025, providing detailed information on profit or loss, core operating profit adjustments, revenues by global products and business units, a...
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.