Daiichi Sankyo Co., Ltd. (4568) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Astellas Pharma, Inc.

Chugai Pharmaceutical Co., Ltd.

Shionogi & Co., Ltd.

Otsuka Holdings Co., Ltd.

Ono Pharmaceutical Co., Ltd.

Daiichi Sankyo Co., Ltd.

Eisai Co., Ltd.

Kyowa Kirin Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Daiichi Sankyo Co., Ltd. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Net Sales has grown by an annual rate of 13.95% and Operating profit at 16.92%
Company has a low Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 15.11% signifying high profitability per unit of total capital (equity and debt)

Negative results in Jun 25

INTEREST(HY) At JPY 8,497 MM has Grown at 330.45%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.82%
DEBT-EQUITY RATIO (HY) Highest at -23.63 %

With ROE of 18.22%, it has a attractive valuation with a 4.17 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 -25.60%, its profits have risen by 47.1% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.60% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Daiichi Sankyo Co., Ltd. should be less than 10%
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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Daiichi Sankyo Co., Ltd.

-25.37%

134.83

40.11%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.95%

EBIT Growth (5y)

16.92%

EBIT to Interest (avg)

14.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.94

Tax Ratio

16.91%

Dividend Payout Ratio

38.47%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

15.44%

ROE (avg)

9.72%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.17

EV to EBIT

20.55

EV to EBITDA

16.76

EV to Capital Employed

5.74

EV to Sales

3.30

PEG Ratio

0.46

Dividend Yield

ROCE (Latest)

27.96%

ROE (Latest)

18.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

4What is working for the Company

ROCE(HY)

Highest at 17.93%

RAW MATERIAL COST(Y)

Fallen by -3.02% (YoY

OPERATING PROFIT(Q)

Highest at JPY 113,754 MM

-7What is not working for the Company

INTEREST(HY)

At JPY 8,497 MM has Grown at 330.45%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.82%

DEBT-EQUITY RATIO (HY)

Highest at -23.63 %

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

Operating Profit

Highest at JPY 113,754 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Raw Material Cost

Fallen by -3.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Interest

At JPY 8,497 MM has Grown at 330.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 0.82% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at -23.63 %

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