Daiichi Sankyo Company (4568) AI Stock Analysis

• Market Cap: $6.28T
• Dividend Yield: 1.64%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.74
• Revenue Growth: 12.56%
• EPS Growth: 14.61%
• Country: JP
• Employees: 18,726
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 24.52
• Shares Outstanding: 1,894,350,600
• 10 Day Avg. Volume: 6,968,810
• 30 Day Avg. Volume: 6,527,236
• PEG Ratio: 0.46
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 3.53
• P/FCF Ratio: -106.67
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 3.89
• Enterprise Value/Ebitda: 15.25
• 1Y Price Target: $5,838.85
• Price Target Upside: 71.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥3,555.00 ▲(4.22% Upside)

Daiichi Sankyo Company's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio reflects financial stability and prudent management, ensuring resilience against economic fluctuations.

Profitability

Strong profit margins demonstrate efficient cost management and pricing power, contributing to sustained financial performance.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow growth may limit the company's ability to invest in future growth opportunities and innovation.

Cash Conversion Challenges

Difficulty in converting profits to free cash flow could impact liquidity and the ability to fund strategic initiatives.

Decline in Financial Flexibility

Reduced financial flexibility may hinder the company's capacity to respond to market changes and invest in long-term growth.

Daiichi Sankyo Company Business Overview & Revenue Model

Company Description

Daiichi Sankyo Company, Limited (TSE: 4568) is a global pharmaceutical company headquartered in Tokyo, Japan. Established in 2005 through the merger of Daiichi Pharmaceutical and Sankyo Company, the firm focuses on the research, development, manufacture, and marketing of innovative pharmaceuticals, primarily in the areas of oncology, cardiovascular diseases, and vaccines. Daiichi Sankyo is also involved in the development of generic drugs and biosimilars, offering a wide range of healthcare solutions to meet the needs of patients worldwide.

How the Company Makes Money

Daiichi Sankyo generates revenue primarily through the sale of patented pharmaceuticals, which include innovative treatments for various diseases, especially in oncology and cardiovascular segments. The company earns income from product sales in both domestic and international markets, driven by its robust pipeline of drugs and successful product launches. Key revenue streams include prescription medications, royalties from licensing agreements, and collaborations with other pharmaceutical companies for joint development and commercialization of drugs. Significant partnerships with organizations such as AstraZeneca for the development of new therapies also contribute to revenue through shared profits and co-promotion agreements. Additionally, Daiichi Sankyo benefits from its portfolio of generic and biosimilar products, which provide a steady income flow in markets with high demand for cost-effective treatment options.

Daiichi Sankyo Company Financial Statement Overview

Summary

Daiichi Sankyo Company shows strong financial health with robust revenue growth and profitability, supported by a stable balance sheet with low leverage. However, the decline in free cash flow growth poses a potential risk to future financial flexibility.

Income Statement

Daiichi Sankyo Company demonstrates strong revenue growth with a TTM increase of 2.04% and a consistent upward trend over the past years. The company maintains robust profitability with a gross profit margin of 77.96% and a net profit margin of 15.68% in the TTM period. EBIT and EBITDA margins are also healthy at 17.75% and 21.39%, respectively, indicating efficient operational management. The consistent growth and strong margins reflect a well-managed income statement.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.06, indicating conservative leverage. The return on equity (ROE) is strong at 17.95%, showcasing effective use of equity to generate profits. The equity ratio stands at 45.64%, suggesting a stable financial structure with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability and prudent management.

Cash Flow

The cash flow statement shows a concerning decline in free cash flow growth, with a TTM decrease of 105.64%. However, the operating cash flow to net income ratio is positive at 0.43, indicating that operating cash flows are supporting net income. The negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow, which could impact future investments. Despite these concerns, the company maintains a positive operating cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.92T	1.89T	1.60T	1.28T	1.04T	962.52B
Gross Profit	1.51T	1.47T	1.19T	914.95B	691.56B	624.23B
EBITDA	385.49B	380.57B	271.13B	169.72B	131.27B	121.18B
Net Income	295.87B	295.76B	200.73B	109.19B	66.97B	75.96B
Balance Sheet
Total Assets	3.46T	3.46T	3.46T	2.51T	2.22T	2.09T
Cash, Cash Equivalents and Short-Term Investments	574.30B	713.97B	876.56B	607.56B	778.62B	629.74B
Total Debt	201.24B	155.89B	156.00B	192.86B	213.62B	226.17B
Total Liabilities	1.88T	1.83T	1.77T	1.06T	864.87B	807.03B
Stockholders Equity	1.58T	1.62T	1.69T	1.45T	1.35T	1.27T
Cash Flow
Free Cash Flow	3.52B	-62.42B	510.94B	53.77B	76.49B	160.96B
Operating Cash Flow	127.32B	53.84B	599.26B	114.51B	139.23B	192.21B
Investing Cash Flow	-23.94B	334.17B	-282.64B	-257.78B	212.34B	-39.25B
Financing Cash Flow	-289.36B	-377.77B	-123.56B	-89.59B	-86.23B	-202.43B

Daiichi Sankyo Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3411.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3411 is below the 20-day moving average (MA) of 3910.75, below the 50-day MA of 3686.00, and below the 200-day MA of 3589.82, indicating a bearish trend. The MACD of -58.93 indicates Positive momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 5.38 is Positive, 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
4578	79 Outperform	¥4.45T	10.01	16.30%	1.53%	6.56%	201.49%
4519	78 Outperform	$11.42T	28.79	20.99%	1.39%	6.25%	2.62%
4507	76 Outperform	$2.27T	12.85	12.22%	2.54%	4.48%	11.08%
4503	72 Outperform	$3.07T	24.43	7.97%	4.61%	13.24%	127.88%
4568	61 Neutral	$6.28T	22.46	16.66%	1.64%	12.56%	14.61%
4502	59 Neutral	¥6.60T	192.81	0.54%	4.63%	-2.84%	-88.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%