Eisai Co., Ltd. (4523) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ono Pharmaceutical Co., Ltd.

Astellas Pharma, Inc.

Kyowa Kirin Co., Ltd.

Shionogi & Co., Ltd.

Chugai Pharmaceutical Co., Ltd.

Daiichi Sankyo Co., Ltd.

Otsuka Holdings Co., Ltd.

Takeda Pharmaceutical Co., Ltd.

Eisai Co., Ltd.

Kobayashi Pharmaceutical Co., Ltd.

Taisho Pharmaceutical Holdings Co., Ltd.

Why is Eisai Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 21.93

Poor long term growth as Operating profit has grown by an annual rate -19.80% of over the last 5 years

INTEREST(HY) At JPY 2,872 MM has Grown at 67.56%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.8 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.33 times

With ROE of 5.71%, it has a very attractive valuation with a 1.39 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 13.52%, its profits have risen by 9.8% ; the PEG ratio of the company is 2.1
At the current price, the company has a high dividend yield of 0

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 13.52% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 40.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Eisai 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 Eisai Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Eisai Co., Ltd.

13.52%

190.77

31.78%

Japan Nikkei 225

40.96%

1.44

28.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.56%

EBIT Growth (5y)

-19.80%

EBIT to Interest (avg)

21.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

0.74

Tax Ratio

21.30%

Dividend Payout Ratio

97.70%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

6.79%

ROE (avg)

5.99%

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

1.39

EV to EBIT

26.57

EV to EBITDA

13.46

EV to Capital Employed

1.43

EV to Sales

1.38

PEG Ratio

2.09

Dividend Yield

0.01%

ROCE (Latest)

5.37%

ROE (Latest)

5.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at JPY 86,550 MM

CASH AND EQV(HY)

Highest at JPY 621,043 MM

NET SALES(Q)

Highest at JPY 219,937 MM

-10What is not working for the Company

INTEREST(HY)

At JPY 2,872 MM has Grown at 67.56%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.8 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.33 times

Here's what is working for Eisai Co., Ltd.

Operating Cash Flow

Highest at JPY 86,550 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 219,937 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 621,043 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 10,065 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 2,872 MM has Grown at 67.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 0.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio