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Eiken Chemical Co., Ltd. (4549) AI Stock Analysis

JP:4549

Eiken Chemical Co., Ltd.

(TSE/TYO:4549)

Select Model
Rating:51Neutral
Price Target:JPY 2,319.00â–²(3.62% Upside)
Action:reiterated
Date:11/01/26

Financial performance is the primary driver, offering balance sheet resilience but undermined by cash flow volatility and margin pressure. Technical weakness from price action below moving averages further weighs on the score, while high valuation limits upside potential.

Positive Factors
Recurring diagnostic consumablesRecurring reagent sales can create durable revenue because hospitals and laboratories repeatedly consume products for routine testing. This usage-based model supports customer retention, embeds the company in established workflows, and provides a foundation for steadier demand than one-time equipment sales.
Negative Factors
Negative free cash flowThe shift to negative free cash flow weakens the quality of earnings and reduces internally generated funds available for investment, dividends, or debt reduction. If sustained, weaker cash conversion could constrain strategic flexibility even though the balance sheet currently remains strong.

Eiken Chemical Co., Ltd. (4549) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:4549+0.34%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
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

Mixed results: strong balance sheet (score 75) with low debt and solid equity provides stability, but offset by weak cash flow (45) showing negative free cash flow in 2026 and moderate income statement (55) with declining margins and volatile revenue.

Income Statement

55Neutral

Balance Sheet

75Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue42.43B41.90B40.54B40.05B43.27B43.00B
Gross Profit16.15B16.18B16.51B16.72B20.51B20.57B
EBITDA7.33B5.46B5.56B5.84B9.73B10.55B
Net Income3.55B3.71B2.23B2.63B5.74B6.22B
Balance Sheet
Total Assets61.90B62.66B62.97B62.25B66.76B63.02B
Cash, Cash Equivalents and Short-Term Investments9.89B10.94B9.87B16.31B18.32B16.12B
Total Debt5.88B7.29B4.47B4.33B4.31B4.19B
Total Liabilities18.40B18.62B19.37B16.28B17.22B17.22B
Stockholders Equity43.50B44.03B43.60B45.97B49.53B45.80B
Cash Flow
Free Cash Flow0-1.72B812.00M1.72B4.30B2.88B
Operating Cash Flow04.04B6.03B3.81B7.58B7.77B
Investing Cash Flow0-3.42B-4.50B-2.22B-316.00M-5.04B
Financing Cash Flow0-322.00M-4.86B-6.69B-2.10B1.20B

Eiken Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2238.00

Price Trends

50DMA2331.31Negative
100DMA2403.21Negative
200DMA2614.59Negative

Market Momentum

MACD7.68Positive
RSI41.13Neutral
STOCH12.08Positive

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

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4549 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6678JP:667882OutperformJPY 18.42B12.22―5.97%20.88%44.61%
JP:6823JP:682378OutperformJPY 37.69B10.85―3.11%2.48%11.43%
JP:6849JP:684961NeutralJPY 265.01B19.32―1.98%1.43%1.86%
JP:6523JP:652358NeutralJPY 180.17B19.535.76%2.97%3.04%-19.26%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4549JP:454951NeutralJPY 76.06B41.05―2.51%3.92%-52.01%

* General Sector Average

Performance Comparison

-20%0%20%40%60%JP:4549JP:6523JP:6678JP:6823JP:6849Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4549 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4549Eiken Chemical Co., Ltd.2307.00-26.34-1.13%
JP:6523PHC Holdings Corp.1415.00422.4342.56%
JP:6678Techno Medica Co., Ltd.2161.00334.3718.31%
JP:6823Rion Co., Ltd.3055.00604.2824.66%
JP:6849Nihon Kohden Corporation1616.50-130.88-7.49%

Eiken Chemical Co., Ltd. Corporate Events

Eiken Chemical Lifts Sales but Sees Profit Drop as One-Off Gains Disappear

Oct 29, 2026

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

Oct 29, 2026

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...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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