Elan Corp. (6099) 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

Towa Pharmaceutical Co., Ltd.

Mochida Pharmaceutical Co., Ltd.

Elan Corp.

Earth Corp.

ASKA Pharmaceutical Holdings Co., Ltd.

Zeria Pharmaceutical Co., Ltd.

Katakura Industries Co., Ltd.

KYORIN Pharmaceutical Co., Ltd.

Torii Pharmaceutical Co., Ltd.

Kaken Pharmaceutical Co., Ltd.

Nxera Pharma Co., Ltd.

Why is Elan Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.54%

Healthy long term growth as Net Sales has grown by an annual rate of 17.15% and Operating profit at 18.95%
Company has very low debt and has enough cash to service the debt requirements

Negative results in Jun 25

ROCE(HY) Lowest at 19.75%
INTEREST COVERAGE RATIO(Q) Lowest at 11,999.38
RAW MATERIAL COST(Y) Grown by 8.34% (YoY)

With ROE of 19.68%, it has a expensive valuation with a 4.05 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 -5.62%, its profits have fallen by -4.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.62% 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 Elan Corp. 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 Elan Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Elan Corp.

-5.62%

-0.62

30.67%

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)

17.15%

EBIT Growth (5y)

18.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.37

Sales to Capital Employed (avg)

3.89

Tax Ratio

33.49%

Dividend Payout Ratio

33.38%

Pledged Shares

Institutional Holding

ROCE (avg)

83.83%

ROE (avg)

24.54%

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

4.05

EV to EBIT

12.26

EV to EBITDA

9.35

EV to Capital Employed

5.83

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

47.58%

ROE (Latest)

19.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

4What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.26%

NET SALES(Q)

At JPY 13,406.87 MM has Grown at 18.04%

-13What is not working for the Company

ROCE(HY)

Lowest at 19.75%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,999.38

RAW MATERIAL COST(Y)

Grown by 8.34% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -37.53 %

INTEREST(Q)

Highest at JPY 10.47 MM

Here's what is working for Elan Corp.

Net Sales

At JPY 13,406.87 MM has Grown at 18.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Debtors Turnover Ratio

Highest at 6.26%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Elan Corp.

Interest

At JPY 10.47 MM has Grown at 30.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 11,999.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 10.47 MM

in the last five periods and Increased by 30.98% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -37.53 %

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

Raw Material Cost

Grown by 8.34% (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