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Daiichi Sankyo Company
(4568)
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Rating:64Neutral
Price Target:
¥2,906.00
▲(2.70% Upside)
Action:Reiterated
Date:10/06/26
The score is held back mainly by weakening cash conversion and negative TTM free cash flow despite otherwise solid revenue growth and a healthy balance sheet. Earnings-call commentary is a key support due to raised revenue guidance and strong product/pipeline momentum, while technicals are neutral-to-weak with the stock trading below key moving averages. Valuation is reasonable, helped by a ~3.28% dividend yield.
Positive Factors
Revenue growth and guidance
Strong reported growth and a higher full-year revenue outlook indicate continued commercial momentum across the portfolio. Maintaining core operating profit guidance while raising sales expectations suggests management sees durable demand and execution strength over the coming quarters.
Negative Factors
Weak cash conversion
Negative recent free cash flow and low operating cash flow relative to earnings weaken the company’s ability to self-fund research, acquisitions, debt reduction, or shareholder returns. If cash conversion remains weak, financial flexibility could decline despite reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and guidance
Strong reported growth and a higher full-year revenue outlook indicate continued commercial momentum across the portfolio. Maintaining core operating profit guidance while raising sales expectations suggests management sees durable demand and execution strength over the coming quarters.
Read all positive factors
Daiichi Sankyo Company (4568) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.77T
Dividend Yield3.38%
Average Volume (3M)5.53M
Price to Earnings (P/E)20.0
Beta (1Y)0.66
Revenue Growth15.51%
EPS Growth-9.47%
CountryJP
Employees20,171
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)132.10
Shares Outstanding1,862,893,300
10 Day Avg. Volume6,424,630
30 Day Avg. Volume5,530,690
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)3.08
Price to Sales (P/S)2.41
P/FCF Ratio-100.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,886.25Price Target Upside37.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)146.59
Revenue Forecast (FY)¥2.37T
Daiichi Sankyo Company Business Overview & Revenue Model
Company Description
Daiichi Sankyo Company, Limited is a global pharmaceutical enterprise actively involved in the research, development, manufacturing, importation, marketing, and distribution of a diverse array of medicinal products worldwide. Its extensive product...
How the Company Makes Money
Daiichi Sankyo primarily makes money by selling prescription pharmaceuticals. Its revenue model consists of (1) product sales of its marketed drugs in Japan and overseas (sold either directly through its own commercial organizations or via consoli...
Daiichi Sankyo Company Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call was broadly positive, supported by 21.1% first-quarter revenue growth, higher core operating profit, upward full-year revenue and operating profit guidance, strong Enhertu and Datroway performance, multiple new approvals, and continued pipeline progress. Offsetting factors included lower reported operating and net profit, higher costs, inventory valuation losses, a financial-results correction, weaker performance in Japan, the Americas, and ASCA, and a delay to TROPION-Lung07 data. Highlights significantly outweighed the lowlights.Positive Updates
Strong First-Quarter Revenue Growth
FY 2026 first-quarter revenue increased by JPY 100.1 billion, or 21.1% year-on-year, to JPY 574.7 billion, led by growth in Enhertu and Datroway sales.
Negative Updates
Operating Profit and Net Profit Declined
Operating profit, including noncore income and expenses, decreased by JPY 11.6 billion, or 12% year-on-year, to JPY 85.1 billion, primarily reflecting restructuring expenses related to the EU Specialty Business Unit and other noncore expenses. Profit attributable to owners of the company decreased by JPY 16.9 billion year-on-year to JPY 68.6 billion.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong First-Quarter Revenue Growth
FY 2026 first-quarter revenue increased by JPY 100.1 billion, or 21.1% year-on-year, to JPY 574.7 billion, led by growth in Enhertu and Datroway sales.
Read all positive updates
Company Guidance
For FY 2026, Daiichi Sankyo revised revenue upward by JPY 60 billion from the May forecast to JPY 2.34 trillion, with core operating profit maintained at JPY 360 billion, operating profit set at JPY 320 billion, profit before income tax at JPY 334 billion and profit attributable to owners of the parent at JPY 251 billion; R&D expenses are maintained at JPY 500 billion, the foreign exchange rate assumptions from the second quarter onward are JPY 155 to the U.S. dollar and JPY 180 to the euro, and the CMO compensation fee guidance is JPY 80 billion, with booking expected in the third quarter or beyond according to the current outlook and no element to change this forecast.Daiichi Sankyo Company Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.22T | 2.12T | 1.89T | 1.60T | 1.28T | 1.04T |
| Gross Profit | 1.52T | 1.45T | 1.47T | 1.19T | 914.95B | 691.56B |
| EBITDA | 330.04B | 348.88B | 380.57B | 271.13B | 169.72B | 140.82B |
| Net Income | 243.01B | 259.87B | 295.76B | 200.73B | 109.19B | 66.97B |
Balance Sheet | ||||||
| Total Assets | 4.11T | 4.01T | 3.46T | 3.46T | 2.51T | 2.22T |
| Cash, Cash Equivalents and Short-Term Investments | 637.85B | 449.81B | 713.97B | 876.56B | 607.56B | 778.62B |
| Total Debt | 500.48B | 300.48B | 155.89B | 156.00B | 192.86B | 213.62B |
| Total Liabilities | 2.41T | 2.34T | 1.83T | 1.77T | 1.06T | 864.87B |
| Stockholders Equity | 1.70T | 1.66T | 1.62T | 1.69T | 1.45T | 1.35T |
Cash Flow | ||||||
| Free Cash Flow | -2.33B | -50.71B | -62.42B | 510.94B | 53.77B | 76.49B |
| Operating Cash Flow | 134.55B | 77.66B | 53.84B | 599.26B | 114.51B | 139.23B |
| Investing Cash Flow | -119.00B | -148.24B | 334.17B | -282.64B | -257.78B | 212.34B |
| Financing Cash Flow | 43.74B | -97.88B | -377.77B | -123.56B | -89.59B | -86.23B |
Daiichi Sankyo Company Technical Analysis
Negative
2829.50
Price Trends
2740.30
Negative
2663.67
Negative
2788.09
Negative
Market Momentum
-20.77
Positive
38.51
Neutral
6.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4568, the sentiment is Negative. The current price of 2829.5 is above the 20-day moving average (MA) of 2758.35, above the 50-day MA of 2740.30, and above the 200-day MA of 2788.09, indicating a bearish trend. The MACD of -20.77 indicates Positive momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 6.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4568.
Daiichi Sankyo Company Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥4.05T | 11.29 | 20.41% | 3.43% | 16.93% | 347.13% | |
78 Outperform | ¥9.91T | 21.54 | 24.02% | 3.45% | 12.25% | 19.19% | |
73 Outperform | ¥2.41T | 9.09 | 16.46% | 2.70% | 27.87% | 47.03% | |
72 Outperform | ¥1.30T | 31.01 | 4.77% | 3.44% | 6.73% | -15.79% | |
64 Neutral | ¥4.77T | 19.95 | 14.44% | 3.38% | 15.51% | -9.47% | |
64 Neutral | ¥9.33T | 52.21 | 2.40% | 3.39% | 3.10% | -218.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4568
Daiichi Sankyo Company
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Daiichi Sankyo Company Corporate Events
Daiichi Sankyo Delays Effective Date of Merger with Wholly Owned Subsidiary
Aug 28, 2026
Daiichi Sankyo has postponed the effective date of its planned absorption-type merger with wholly owned subsidiary Daiichi Sankyo Business Associe, citing the need for additional time to complete system modifications and business process migration...
Daiichi Sankyo Revises FY2025 Results and 5-Year Plan Materials
Aug 7, 2026
Daiichi Sankyo has issued corrections to the presentation materials for its FY2025 financial results and five-year business plan covering FY2026 to FY2030. The revisions stem from previously announced adjustments to the consolidated financial resu...
Daiichi Sankyo Issues Further Corrections to FY2025 Financial Reference Data
Aug 7, 2026
Daiichi Sankyo has issued a further partial correction to its previously released reference data for FY2025 financial results, following earlier announcements in May 2026 and a correction to its consolidated financial results for the year ended Ma...
Daiichi Sankyo Flags Risks Around FY2026 Q1 Outlook and Pipeline Data
Jul 31, 2026
Daiichi Sankyo disclosed its FY2026 Q1 financial results presentation, stressing that the materials are based on management’s current assumptions and forecasts and therefore subject to substantial risks and uncertainties. The company emphasi...
Daiichi Sankyo Publishes Q1 FY2026 Consolidated Financial Reference Data
Jul 31, 2026
Daiichi Sankyo released reference data for its consolidated financial results for the first quarter of fiscal year 2026, covering profit and loss, core operating profit adjustments, and revenue breakdowns. The disclosure also details financial pos...
Daiichi Sankyo Posts Strong Q1 Revenue Growth but Lower Net Profit, Lifts Dividend Outlook
Jul 31, 2026
For the first quarter of fiscal 2026, Daiichi Sankyo reported revenue of ¥574.7 billion, up 21.1% year on year, with core operating profit rising 6.2% to ¥107.3 billion, indicating underlying business strength. However, operating profit ...
Daiichi Sankyo Revises FY2026 Results After SG&A Accounting Error
Jul 31, 2026
Daiichi Sankyo has corrected its consolidated financial results for the fiscal year ended March 31, 2026 after discovering an aggregation error in selling, general and administrative expenses during analysis for the subsequent fiscal year. The err...
Daiichi Sankyo Extends ESOP-Based Share Grant Plan for U.S. Staff
Jul 31, 2026
Daiichi Sankyo has decided to continue its trust-type share grant system for officers and employees of its U.S. subsidiaries, using an ESOP-style trust to deliver company shares and cash equivalents based on job grade and individual performance. T...
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.