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Eiken Chemical Co., Ltd. (4549) AI Stock Analysis
Eiken Chemical Co., Ltd.
(TSE/TYO:4549)
Eiken Chemical scores poorly overall, driven primarily by deteriorating financial performance: margins have roughly halved since the COVID testing boom, earnings have fallen sharply, and free cash flow is forecast to turn negative in FY2026 amid a heavy capital investment cycle. A conservatively leveraged balance sheet with a ~69% equity ratio provides a cushion, but equity is shrinking and returns on equity have dropped to mediocre levels. Technicals reinforce the caution, with the price below all major moving averages and momentum indicators signalling a persistent downtrend. Valuation adds further risk, as a 41x P/E leaves little room for disappointment, though a 2.5% dividend yield and low beta offer modest support. The stock requires evidence that current investments will restore growth and profitability before the outlook improves.
Eiken Chemical Co., Ltd. (4549) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 76.05B
- Dividend Yield
- 2.51%
- Average Volume (3M)
- 175.91K
- Price to Earnings (P/E)
- 41.0
- Beta (1Y)
- 0.57
- Revenue Growth
- 3.92%
- EPS Growth
- -52.01%
- Country
- Japan
- Employees
- 696
- Sector
- General
- Sector Strength
- 55
- Industry
- Medical - Devices
Eiken Chemical Co., Ltd. Business Overview & Revenue Model
Company Description
Eiken Chemical Co., Ltd. is a Japanese manufacturer and distributor specializing in clinical diagnostic products and medical equipment. The company excels in developing diagnostic solutions for diverse medical fields, encompassing biochemical analysi...
How the Company Makes Money
Eiken Chemical makes money primarily by selling in vitro diagnostic (IVD) products used for clinical and screening tests. Its core revenue streams are (1) sales of diagnostic reagents (consumables) used repeatedly for routine testing, which typically...
Eiken Chemical Co., Ltd. Financial Statement Overview
Summary
Eiken Chemical's financials reflect a difficult post-COVID normalization. Revenue is stagnant at ¥40.5 billion and still below the FY2023 peak, while gross margins have compressed from ~48% to ~39% and net income has fallen to roughly one-third of FY2022 levels. The balance sheet remains the relative bright spot, with a ~69% equity ratio and conservative 0.10x debt-to-equity, though equity is shrinking, debt is rising and ROE has slipped to 5.1%. Cash flow is the most pressing concern: free cash flow fell to ¥812 million in FY2025 and is forecast to turn negative in FY2026 as capital spending outpaces weakening operating cash flow.
Income Statement
38NegativeBalance Sheet
62PositiveCash Flow
42Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.43B | 41.90B | 40.54B | 40.05B | 43.27B | 43.00B |
| Gross Profit | 16.15B | 16.18B | 16.51B | 16.72B | 20.51B | 20.57B |
| EBITDA | 7.33B | 5.46B | 5.56B | 5.84B | 9.73B | 10.55B |
| Net Income | 3.55B | 3.71B | 2.23B | 2.63B | 5.74B | 6.22B |
Balance Sheet | ||||||
| Total Assets | 61.90B | 62.66B | 62.97B | 62.25B | 66.76B | 63.02B |
| Cash, Cash Equivalents and Short-Term Investments | 9.89B | 10.94B | 9.87B | 16.31B | 18.32B | 16.12B |
| Total Debt | 5.88B | 7.29B | 4.47B | 4.33B | 4.31B | 4.19B |
| Total Liabilities | 18.40B | 18.62B | 19.37B | 16.28B | 17.22B | 17.22B |
| Stockholders Equity | 43.50B | 44.03B | 43.60B | 45.97B | 49.53B | 45.80B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.72B | 812.00M | 1.72B | 4.30B | 2.88B |
| Operating Cash Flow | 0 | 4.04B | 6.03B | 3.81B | 7.58B | 7.77B |
| Investing Cash Flow | 0 | -3.42B | -4.50B | -2.22B | -316.00M | -5.04B |
| Financing Cash Flow | 0 | -322.00M | -4.86B | -6.69B | -2.10B | 1.20B |
Eiken Chemical Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4549, the sentiment is Negative. The current price of 2238.00 is below the 20-day moving average (MA) of 2395.50, below the 50-day MA of 2331.31, and below the 200-day MA of 2614.59, indicating a bearish trend. The MACD of 7.68 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4549.
Eiken Chemical Co., Ltd. Peers Comparison
Overall Rating
JP:667882Outperform
JP:682378Outperform
JP:684960.5Neutral
JP:652358Neutral- JP:454945Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6678 | 82Outperform | JPY 18.42B | 12.22 | ― | 5.97% | 20.88% | 44.61% |
| JP:6823 | 78Outperform | JPY 37.69B | 10.85 | ― | 3.11% | 2.48% | 11.43% |
| JP:6849 | 61Neutral | JPY 265.01B | 19.32 | ― | 1.98% | 1.43% | 1.86% |
| JP:6523 | 58Neutral | JPY 180.17B | 19.53 | 5.76% | 2.97% | 3.04% | -19.26% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:4549 | 45Neutral | JPY 76.06B | 41.05 | ― | 2.51% | 3.92% | -52.01% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:4549 | Eiken Chemical Co., Ltd. | 2307.00 | -26.34 | -1.13% | |
| JP:6523 | PHC Holdings Corp. | 1415.00 | 422.43 | 42.56% | |
| JP:6678 | Techno Medica Co., Ltd. | 2161.00 | 334.37 | 18.31% | |
| JP:6823 | Rion Co., Ltd. | 3055.00 | 604.28 | 24.66% | |
| JP:6849 | Nihon Kohden Corporation | 1616.50 | -130.88 | -7.49% |
Eiken Chemical Co., Ltd. Corporate Events
Eiken Chemical Lifts Sales but Sees Profit Drop as One-Off Gains Disappear
Eiken Chemical reported higher net sales but lower profits for the first half of FY2026, as earnings were weighed down by the absence of one-off gains from patent royalties and a subsidiary stake sale recorded in the prior year. While sales exceeded...
Eiken Chemical Posts Higher Sales but Steep Profit Decline in First Half
Eiken Chemical reported consolidated net sales of ¥21.39 billion for the six months ended September 30, 2026, up 4.7% year on year, while operating profit fell 8.2% to ¥1.59 billion and ordinary profit declined 6.6% to ¥1.62 billion. P...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 01, 2026