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.

Shionogi & Co., Ltd.

Kyowa Kirin Co., Ltd.

Otsuka Holdings 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 Eisai Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -17.04% of over the last 5 years

With a fall in Net Sales of -6.6%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 5 consecutive quarters
ROCE(HY) Lowest at 4.43%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.81 times
DEBT-EQUITY RATIO (HY) Highest at -1.81 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.43% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Eisai Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Eisai Co., Ltd.

-0.43%

163.12

29.46%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.69%

EBIT Growth (5y)

-17.04%

EBIT to Interest (avg)

21.93

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

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

1.62

EV to EBIT

30.03

EV to EBITDA

16.02

EV to Capital Employed

1.69

EV to Sales

1.68

PEG Ratio

Dividend Yield

ROCE (Latest)

5.63%

ROE (Latest)

4.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 61,323 MM

-30What is not working for the Company

ROCE(HY)

Lowest at 4.43%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.81 times

DEBT-EQUITY RATIO (HY)

Highest at -1.81 %

INTEREST(Q)

Highest at JPY 1,547 MM

OPERATING PROFIT(Q)

Lowest at JPY -84 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.04 %

PRE-TAX PROFIT(Q)

Lowest at JPY -7,939 MM

NET PROFIT(Q)

Lowest at JPY -3,249 MM

EPS(Q)

Lowest at JPY -11.52

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

Operating Cash Flow

Highest at JPY 61,323 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

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

Pre-Tax Profit

At JPY -7,939 MM has Fallen at -153.9%

over average net sales of the previous four periods of JPY 14,729.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -3,249 MM has Fallen at -130.4%

over average net sales of the previous four periods of JPY 10,689 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 0.81 times 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

Interest

Highest at JPY 1,547 MM

in the last five periods and Increased by 8.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -7,939 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 -3,249 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -11.52

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debt-Equity Ratio

Highest at -1.81 %

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