Daiichi Sankyo Company Limited (JP:4568)
:4568
Want to see JP:4568 full AI Analyst Report?
Top Page
Daiichi Sankyo Company
(4568)
Select Model
Select Model
Rating:61Neutral
Price Target:
¥2,889.00
▼(-1.70% Downside)
Action:Reiterated
Date:05/13/26
The score is anchored by solid business performance and a strong, low-leverage balance sheet, plus a constructive earnings call with strong flagship product momentum and upgraded DATROWAY outlook. These positives are tempered by a major weakness in cash flow (negative free cash flow), a technically weak share-price trend, and near-term margin pressure from higher expenses and one-time charges.
Positive Factors
Flagship product momentum (ENHERTU)
Sustained, large ENHERTU revenue growth and guideline upgrades create a durable commercial moat. Category‑leading adoption across major markets supports multi-year revenue visibility, recurring demand across indications, and a platform for label expansion that underpins long-term top-line strength.
Negative Factors
Weak cash generation / negative free cash flow
Recent sharp decline in cash conversion and consecutive negative free cash flow materially weakens earnings quality and financial flexibility. Unless operating cash flow normalizes, the company will rely more on balance sheet capacity or partnerships to fund R&D, capex and shareholder returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Flagship product momentum (ENHERTU)
Sustained, large ENHERTU revenue growth and guideline upgrades create a durable commercial moat. Category‑leading adoption across major markets supports multi-year revenue visibility, recurring demand across indications, and a platform for label expansion that underpins long-term top-line strength.
Read all positive factors
Daiichi Sankyo Company (4568) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.96T
Dividend Yield2.07%
Average Volume (3M)6.53M
Price to Earnings (P/E)19.1
Beta (1Y)0.73
Revenue Growth12.55%
EPS Growth-10.18%
CountryJP
Employees18,726
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)140.41
Shares Outstanding1,894,350,600
10 Day Avg. Volume6,968,810
30 Day Avg. Volume6,527,236
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)3.08
Price to Sales (P/S)2.41
P/FCF Ratio-100.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,200.00Price Target Upside42.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)170.7
Revenue Forecast (FY)¥2.34T
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. Revenue is generated from (1) product sales in Japan through its domestic commercial operations and (2) overseas product sales through its international subsidiaries and...
Daiichi Sankyo Company Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 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
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.12T | 1.89T | 1.60T | 1.28T | 1.04T |
| Gross Profit | 1.45T | 1.47T | 1.19T | 914.95B | 691.56B |
| EBITDA | 284.77B | 380.57B | 271.13B | 169.72B | 131.27B |
| Net Income | 259.87B | 295.76B | 200.73B | 109.19B | 66.97B |
Balance Sheet | |||||
| Total Assets | 4.01T | 3.46T | 3.46T | 2.51T | 2.22T |
| Cash, Cash Equivalents and Short-Term Investments | 449.81B | 713.97B | 876.56B | 607.56B | 778.62B |
| Total Debt | 300.48B | 155.89B | 156.00B | 192.86B | 213.62B |
| Total Liabilities | 2.34T | 1.83T | 1.77T | 1.06T | 864.87B |
| Stockholders Equity | 1.66T | 1.62T | 1.69T | 1.45T | 1.35T |
Cash Flow | |||||
| Free Cash Flow | -50.71B | -62.42B | 510.94B | 53.77B | 76.49B |
| Operating Cash Flow | 77.66B | 53.84B | 599.26B | 114.51B | 139.23B |
| Investing Cash Flow | -148.24B | 334.17B | -282.64B | -257.78B | 212.34B |
| Financing Cash Flow | -97.88B | -377.77B | -123.56B | -89.59B | -86.23B |
Daiichi Sankyo Company Technical Analysis
Negative
2939.00
Price Trends
2763.16
Negative
2905.15
Negative
3237.84
Negative
Market Momentum
-25.07
Negative
47.35
Neutral
58.51
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 2939 is above the 20-day moving average (MA) of 2642.48, above the 50-day MA of 2763.16, and below the 200-day MA of 3237.84, indicating a neutral trend. The MACD of -25.07 indicates Negative momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.51 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥12.74T | 28.72 | 22.23% | 1.17% | 5.65% | 10.24% | |
69 Neutral | ¥2.64T | 12.44 | 12.22% | 2.22% | 14.01% | 20.33% | |
65 Neutral | ¥3.82T | 14.06 | 7.97% | 3.61% | 11.87% | 474.27% | |
65 Neutral | ¥1.10T | 29.13 | 5.75% | 3.51% | 4.56% | -16.55% | |
61 Neutral | ¥4.96T | 19.08 | 18.56% | 2.07% | 12.55% | -10.18% | |
58 Neutral | ¥8.12T | 41.70 | 0.54% | 4.11% | -1.66% | 78.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4568
Daiichi Sankyo Company
2,700.50
-1,046.19
-27.92%
JP:4503
Astellas Pharma
2,283.00
908.75
66.13%
JP:4519
Chugai Pharmaceutical Co
7,892.00
564.36
7.70%
JP:4523
Eisai Co
3,984.00
-26.33
-0.66%
JP:4507
Shionogi & Co
3,000.00
647.81
27.54%
JP:4502
Takeda Pharmaceutical Co
5,118.00
973.41
23.49%
Daiichi Sankyo Company Corporate Events
Daiichi Sankyo Corrects FY2025 Presentation Materials Without Changing Financial Results
May 13, 2026
Daiichi Sankyo has corrected errors found in its previously disclosed presentation materials for FY2025 financial results and its 5-year business plan covering FY2026 to FY2030, as well as related FY2025 reference data. The company emphasized that...
Daiichi Sankyo Publishes Detailed FY2025 Consolidated Financial Data
May 11, 2026
Daiichi Sankyo released consolidated financial reference data for fiscal year 2025, detailing its profit or loss statement, core operating profit adjustments, and revenue performance across global products and business units. The materials also co...
Daiichi Sankyo lifts dividend as profit dips on non-recurring factors
May 11, 2026
Daiichi Sankyo reported fiscal 2025 revenue of ¥2.12 trillion, up 12.6% year on year, with core operating profit rising 15.1% to ¥359.96 billion, while operating profit and profit before tax fell due to non-recurring factors. Profit attr...
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.