Daiichi Sankyo Company (4568) AI Stock Analysis

• Market Cap: ¥6.15T
• Dividend Yield: 1.82%
• Average Volume (3M): 5.63M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.85
• Revenue Growth: 17.77%
• EPS Growth: 49.34%
• Country: JP
• Employees: 18,726
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 46.31
• Shares Outstanding: 1,894,350,600
• 10 Day Avg. Volume: 5,650,730
• 30 Day Avg. Volume: 5,631,103
• PEG Ratio: 1.34
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 196.06
• 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: ¥5,873.75
• Price Target Upside: 82.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 67 Neutral
• Price Target: ¥3,857.00 ▲(19.56%Upside)

Daiichi Sankyo's financial stability and revenue growth are strong positives, but are offset by technical indicators suggesting bearish sentiment and moderate valuation metrics. The lack of earnings call and corporate events information limits further insights into potential future developments.

Positive Factors

Corporate Confidence

A recent JPY200Bn-buyback was conducted in defiance of the weak stock price, indicating confidence in the company's corporate value.

Drug Development

Advancing to Enhertu’s filing for 1L HER2+ BC with strong DB09 interim data shows promising progress in drug development.

FDA Approval

FDA has approved anticancer candidate Dato-DXd for breast cancer, which is considered a positive surprise by the market.

Negative Factors

Disappointing Trial Data

Daiichi's shares have declined by about 1/3 since the company reported disappointing Ph2 data from the TROPION-Lung01 study.

Share Decline

Daiichi's shares have declined by about 1/3 since the company reported disappointing data from a lung cancer study.

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; mirogabalin for pain treatment; teneligliptin/canagliflozin for type 2 diabetes mellitus treatment; lacosamide anti-epileptic agent; prasugrel, an antiplatelet agent; denosumab for osteoporosis and bone disorders; teneligliptin for type 2 diabetes mellitus treatment; edoxaban, an anticoagulant; esomeprazole for ulcer treatment; memantine for treating Alzheimer's disease; and laninamivir for anti-influenza treatment. It also provides olmesartan, an antihypertensive agent; levofloxacin, an antibacterial agent; pravastatin for hypercholesterolemia treatment; and loxoprofen, an anti-inflammatory analgesic. In addition, the company offers colesevelam for treating hypercholesterolemia and type 2 diabetes mellitus treatment; and ferric carboxymaltose and iron sucrose injections for treating anemia. Further, it provides Lulu, a combination cold remedy; Loxonin S, an antipyretic analgesic /anti-inflammatory analgesic; Transino for melasma improvement and treating against spots and freckles; Minon, a skincare product; and Breath Labo and Clean Dental oral care products, as well as Silodosin for dysuria; Gefitinib for malignant tumours; Bicalutamide for prostate cancer; and Tamoxifen, an anti-breast cancer agent. Additionally, the company offers adsorbed cell culture-derived influenza, influenza HA, measles rubella combined, and mumps vaccines. It also provides pharmaceuticals and drugs for animals, cosmetics, medical equipment, food products, drinking water, active pharmaceutical ingredients, and intermediates. It has collaboration with Guardant Health to develop Guardant360 CDx as a companion diagnostic for Enhertu in advanced metastatic non-small cell lung cancer. The company was founded in 1899 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Daiichi Sankyo makes money through the development, manufacturing, and distribution of pharmaceutical products. The company's primary revenue streams come from the sales of proprietary prescription drugs, particularly in the areas of oncology and cardiovascular medicine. Daiichi Sankyo also generates income from licensing agreements and partnerships with other pharmaceutical companies, which can include joint ventures and collaborative research projects. Additionally, the company benefits from patent protections on its proprietary drugs, allowing it to maintain market exclusivity for certain products. Revenue is further supported by its generic drug division, which provides more affordable medication options. The company's earnings are influenced by factors such as regulatory approvals, healthcare policies, and market competition.

Daiichi Sankyo Company Financial Statement Overview

Summary

Daiichi Sankyo exhibits strong financial performance with robust revenue growth and efficient cost management. The balance sheet reflects financial stability and conservative leverage, reducing financial risk. However, negative Free Cash Flow raises concerns about cash management, necessitating focus on managing capital expenditures to maintain liquidity.

Income Statement

Daiichi Sankyo demonstrated robust revenue growth, with a significant increase from 1.28 trillion to 1.89 trillion JPY over the past year, showing a positive growth trajectory. The Gross Profit Margin remains strong, reflecting efficient cost management. EBIT and EBITDA margins have improved, indicating better operational efficiency. However, the Net Profit Margin slightly decreased due to higher costs, which should be monitored.

Balance Sheet

The company maintains a solid equity position with a high Equity Ratio, suggesting financial stability. The Debt-to-Equity Ratio is low, indicating conservative use of leverage, which reduces financial risk. Return on Equity is strong, reflecting effective use of shareholders' funds to generate profits. Overall, the balance sheet presents a stable financial foundation.

Cash Flow

Operating Cash Flow to Net Income Ratio indicates a healthy conversion of income into cash. However, Free Cash Flow has turned negative, mainly due to significant capital expenditures. This could impact future financial flexibility if not managed properly. The Free Cash Flow to Net Income Ratio has worsened, indicating potential liquidity challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.89T	1.60T	1.28T	1.04T	962.52B
Gross Profit	1.47T	1.19T	914.95B	691.56B	624.23B
EBITDA	434.68B	305.46B	169.72B	143.05B	121.18B
Net Income	295.76B	200.73B	109.19B	66.97B	75.96B
Balance Sheet
Total Assets	3.46T	3.46T	2.51T	2.22T	2.09T
Cash, Cash Equivalents and Short-Term Investments	639.84B	876.56B	825.13B	843.85B	824.91B
Total Debt	101.33B	156.00B	143.09B	163.46B	183.83B
Total Liabilities	1.83T	1.77T	1.06T	870.53B	813.13B
Stockholders Equity	1.62T	1.69T	1.45T	1.35T	1.27T
Cash Flow
Free Cash Flow	-62.42B	476.47B	47.15B	62.54B	128.11B
Operating Cash Flow	53.84B	599.26B	114.51B	139.23B	192.21B
Investing Cash Flow	334.17B	-282.64B	-257.78B	212.34B	-39.25B
Financing Cash Flow	-377.77B	-123.56B	-89.59B	-86.23B	-202.43B

Daiichi Sankyo Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3226.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4568, the sentiment is Negative. The current price of 3226 is below the 20-day moving average (MA) of 3434.55, below the 50-day MA of 3531.64, and below the 200-day MA of 4071.12, indicating a bearish trend. The MACD of -79.47 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 41.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4568.

Daiichi Sankyo Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4568	67 Neutral	¥6.15T	21.15	17.60%	1.82%	17.77%	49.34%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
ALPMF		$17.45B	51.86	3.22%	5.12%	―	―
CHGCF		$82.88B	30.69	22.80%	3.23%	―	―
OTSKF		$25.17B	11.19	13.46%	1.65%	―	―
SGIOF		$15.61B	13.73	12.99%	2.44%	―	―
TKPHF		$48.51B	66.29	1.50%	4.40%	―	―