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Daiichi Sankyo Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Pharmaceuticals & Biotechnology
  • ISIN: JP3475350009
JPY
2,535.50
-31 (-1.21%)

Jun 26

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Shionogi & Co., Ltd.
Ono Pharmaceutical Co., Ltd.
Otsuka Holdings Co., Ltd.
Kyowa Kirin Co., Ltd.
Chugai Pharmaceutical Co., Ltd.
Astellas Pharma, Inc.
Daiichi Sankyo Co., Ltd.
Kobayashi Pharmaceutical Co., Ltd.
Eisai Co., Ltd.
Takeda Pharmaceutical Co., Ltd.
Taisho Pharmaceutical Holdings Co., Ltd.

Why is Daiichi Sankyo Co., Ltd. ?

1
The company is Net-Debt Free
2
Healthy long term growth as Net Sales has grown by an annual rate of 16.32% and Operating profit at 33.85%
3
Negative results in Mar 26
  • DEBT-EQUITY RATIO (HY) Highest at -5.99 %
  • INTEREST(Q) At JPY 3,568 MM has Grown at 64.8%
  • INTEREST COVERAGE RATIO(Q) Lowest at 421.1
4
With ROE of 17.81%, it has a attractive valuation with a 3.30 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of -23.14%, its profits have risen by 24.1% ; the PEG ratio of the company is 0.7
5
Majority shareholders : Non Institution
6
Below par performance in long term as well as near term
  • Along with generating -23.14% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Daiichi Sankyo Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Daiichi Sankyo Co., Ltd. for you?

Low Risk, High Return

Absolute
Risk Adjusted
Volatility
Daiichi Sankyo Co., Ltd.
-23.14%
106.36
37.51%
Japan Nikkei 225
85.83%
3.09
27.80%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
16.32%
EBIT Growth (5y)
33.85%
EBIT to Interest (avg)
14.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
0.98
Tax Ratio
16.91%
Dividend Payout Ratio
38.47%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
15.44%
ROE (avg)
9.72%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
3.30
EV to EBIT
17.29
EV to EBITDA
13.97
EV to Capital Employed
3.67
EV to Sales
2.63
PEG Ratio
0.67
Dividend Yield
NA
ROCE (Latest)
21.25%
ROE (Latest)
17.81%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company
DIVIDEND PAYOUT RATIO(Y)

Highest at 168.82%

DIVIDEND PER SHARE(HY)

Highest at JPY 3.79

NET SALES(Q)

Highest at JPY 589,586 MM

-19What is not working for the Company
DEBT-EQUITY RATIO (HY)

Highest at -5.99 %

INTEREST(Q)

At JPY 3,568 MM has Grown at 64.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 421.1

RAW MATERIAL COST(Y)

Grown by 40.97% (YoY

CASH AND EQV(HY)

Lowest at JPY 991,257 MM

OPERATING PROFIT(Q)

Lowest at JPY 15,025 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.55 %

PRE-TAX PROFIT(Q)

Lowest at JPY -6,971 MM

NET PROFIT(Q)

Lowest at JPY 42,428 MM

EPS(Q)

Lowest at JPY 23.09

Here's what is working for Daiichi Sankyo Co., Ltd.

Net Sales
Highest at JPY 589,586 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (JPY MM)

Dividend per share
Highest at JPY 3.79
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio
Highest at 168.82%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation
Highest at JPY 37,124 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation
At JPY 37,124 MM has Grown at 88.96%
period on period (QoQ)
MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Daiichi Sankyo Co., Ltd.

Pre-Tax Profit
At JPY -6,971 MM has Fallen at -108.78%
Year on Year (YoY)
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest
At JPY 3,568 MM has Grown at 64.8%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 421.1
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit
At JPY 42,428 MM has Fallen at -51.32%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (JPY MM)

Debt-Equity Ratio
Highest at -5.99 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit
Lowest at JPY 15,025 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin
Lowest at 2.55 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at JPY -6,971 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit
Lowest at JPY 42,428 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS
Lowest at JPY 23.09
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv
Lowest at JPY 991,257 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 40.97% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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