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

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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 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 2,006 MM has Grown at 28.59%
NET PROFIT(HY) At JPY 15,424 MM has Grown at -35.44%
DEBT-EQUITY RATIO (HY) Highest at -5.61 %

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 4.23%, 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

Underperformed the market in the last 1 year

The stock has generated a return of 4.23% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%

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.

4.23%

182.37

30.82%

Japan Nikkei 225

28.54%

1.11

25.75%

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)

0.75

Tax Ratio

21.30%

Dividend Payout Ratio

97.70%

Pledged Shares

Institutional Holding

0.09%

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

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 39,792 MM

RAW MATERIAL COST(Y)

Fallen by -0.01% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 15.19 %

-13What is not working for the Company

INTEREST(HY)

At JPY 2,006 MM has Grown at 28.59%

NET PROFIT(HY)

At JPY 15,424 MM has Grown at -35.44%

DEBT-EQUITY RATIO (HY)

Highest at -5.61 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.82%

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

Operating Cash Flow

Highest at JPY 39,792 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit Margin

Highest at 15.19 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -0.01% (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 Eisai Co., Ltd.

Interest

At JPY 2,006 MM has Grown at 28.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 15,424 MM has Grown at -35.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -5.61 % 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

Inventory Turnover Ratio

Lowest at 0.82%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio