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Daiichi Sankyo Company Limited (JP:4568)
:4568
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Daiichi Sankyo Company
(4568)
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Rating:61Neutral
Price Target:
¥3,555.00
▲(5.52% Upside)
Daiichi Sankyo Company's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The lack of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.
Balance Sheet Health
A low debt-to-equity ratio reflects financial stability and prudent management, ensuring resilience against economic fluctuations.
Profitability
Strong profit margins demonstrate efficient cost management and pricing power, contributing to sustained financial performance.
Negative Factors
Free Cash Flow Decline
A significant decline in free cash flow growth may limit the company's ability to invest in future growth opportunities and innovation.
Cash Conversion Challenges
Difficulty in converting profits to free cash flow could impact liquidity and the ability to fund strategic initiatives.
Decline in Financial Flexibility
Reduced financial flexibility may hinder the company's capacity to respond to market changes and invest in long-term growth.
Daiichi Sankyo Company (4568) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$6.28T
Dividend Yield1.64%
Average Volume (3M)6.53M
Price to Earnings (P/E)22.5
Beta (1Y)0.74
Revenue Growth12.56%
EPS Growth14.61%
CountryJP
Employees18,726
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)24.52
Shares Outstanding1,894,350,600
10 Day Avg. Volume6,968,810
30 Day Avg. Volume6,527,236
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)4.10
Price to Sales (P/S)3.53
P/FCF Ratio-106.67
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda15.25
Forecast
1Y Price Target
$5,809.58Price Target Upside72.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Daiichi Sankyo Company Business Overview & Revenue Model
Company DescriptionDaiichi Sankyo Company, Limited researches and develops, manufactures, imports, markets, and sells pharmaceutical products worldwide. The company offers trastuzumab deruxtecan, an anti-cancer agent and anti-HER2 antibody drug conjugate; mirogabalin for pain treatment; teneligliptin/canagliflozin for type 2 diabetes mellitus treatment; lacosamide anti-epileptic agent; prasugrel, an antiplatelet agent; denosumab for osteoporosis and bone disorders; teneligliptin for type 2 diabetes mellitus treatment; edoxaban, an anticoagulant; esomeprazole for ulcer treatment; memantine for treating Alzheimer's disease; and laninamivir for anti-influenza treatment. It also provides olmesartan, an antihypertensive agent; levofloxacin, an antibacterial agent; pravastatin for hypercholesterolemia treatment; and loxoprofen, an anti-inflammatory analgesic. In addition, the company offers colesevelam for treating hypercholesterolemia and type 2 diabetes mellitus treatment; and ferric carboxymaltose and iron sucrose injections for treating anemia. Further, it provides Lulu, a combination cold remedy; Loxonin S, an antipyretic analgesic /anti-inflammatory analgesic; Transino for melasma improvement and treating against spots and freckles; Minon, a skincare product; and Breath Labo and Clean Dental oral care products, as well as Silodosin for dysuria; Gefitinib for malignant tumours; Bicalutamide for prostate cancer; and Tamoxifen, an anti-breast cancer agent. Additionally, the company offers adsorbed cell culture-derived influenza, influenza HA, measles rubella combined, and mumps vaccines. It also provides pharmaceuticals and drugs for animals, cosmetics, medical equipment, food products, drinking water, active pharmaceutical ingredients, and intermediates. It has collaboration with Guardant Health to develop Guardant360 CDx as a companion diagnostic for Enhertu in advanced metastatic non-small cell lung cancer. The company was founded in 1899 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyDaiichi Sankyo generates revenue primarily through the sale of patented pharmaceuticals, which include innovative treatments for various diseases, especially in oncology and cardiovascular segments. The company earns income from product sales in both domestic and international markets, driven by its robust pipeline of drugs and successful product launches. Key revenue streams include prescription medications, royalties from licensing agreements, and collaborations with other pharmaceutical companies for joint development and commercialization of drugs. Significant partnerships with organizations such as AstraZeneca for the development of new therapies also contribute to revenue through shared profits and co-promotion agreements. Additionally, Daiichi Sankyo benefits from its portfolio of generic and biosimilar products, which provide a steady income flow in markets with high demand for cost-effective treatment options.
Daiichi Sankyo Company Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jan 30, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial performance with significant revenue and profit growth, driven by strong product sales and successful patent settlements. However, slight downward adjustments in sales forecasts and potential financial uncertainties were noted.Q3-2024 Updates
Positive Updates
Revenue Surge
Revenue increased by JPY 225 billion or 23.7% year-on-year to reach JPY 1,173.3 billion.
Profit Growth
Core operating profit increased by JPY 53.9 billion or 45.5% year-on-year to reach JPY 172.2 billion.
ENHERTU Sales Growth
ENHERTU sales in the first 9 months of fiscal year '23 grew by JPY 136.3 billion year-on-year to JPY 276.0 billion.
Dividend Increase
Annual dividend forecast per share increased to JPY 50, up by JPY 20 from FY 2022.
Patent Dispute Settlement
Plexxikon received a lump sum payment of USD 182 million or JPY 26.1 billion from Novartis following a patent dispute settlement.
Negative Updates
ENHERTU Sales Forecast Revision
U.S. ENHERTU sales forecast was slightly revised downward by JPY 3.2 billion from the October forecast.
Potential Financial Impact of Esperion Payments
The accounting treatment of payments related to Esperion is undecided, which may impact future financial results.
Delayed Data Availability
Top-line results for the DESTINY-Breast06 trial delayed to the first half of fiscal 2024.
Company Guidance
During the third-quarter earnings call for Daiichi Sankyo, several financial metrics and forecasts were discussed. The company reported a significant revenue increase of JPY 225 billion, or 23.7% year-on-year, reaching JPY 1,173.3 billion. This growth was driven by increased sales across various business units, including Japan, oncology, and EU specialty businesses. The core operating profit rose by JPY 53.9 billion, a 45.5% increase from the previous year, totaling JPY 172.2 billion. Meanwhile, operating profit, factoring in temporary gains and losses, surged by JPY 67.4 billion, marking a 53% year-on-year growth to JPY 194.6 billion. Notably, profit attributable to owners of the company saw an 88.7% rise, amounting to JPY 163.6 billion. The company revised its FY 2023 revenue forecast upward by JPY 30 billion to JPY 1,580 billion, attributing growth to favorable foreign exchange effects and increased sales of specific products. Additionally, the annual dividend forecast per share was increased to JPY 50, reflecting strong business performance and strategic collaborations.Daiichi Sankyo Company Financial Statement Overview
Summary
Daiichi Sankyo Company shows strong financial health with robust revenue growth and profitability, supported by a stable balance sheet with low leverage. However, the decline in free cash flow growth poses a potential risk to future financial flexibility.Income Statement
Daiichi Sankyo Company demonstrates strong revenue growth with a TTM increase of 2.04% and a consistent upward trend over the past years. The company maintains robust profitability with a gross profit margin of 77.96% and a net profit margin of 15.68% in the TTM period. EBIT and EBITDA margins are also healthy at 17.75% and 21.39%, respectively, indicating efficient operational management. The consistent growth and strong margins reflect a well-managed income statement.85
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.06, indicating conservative leverage. The return on equity (ROE) is strong at 17.95%, showcasing effective use of equity to generate profits. The equity ratio stands at 45.64%, suggesting a stable financial structure with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability and prudent management.80
Positive
Cash Flow
The cash flow statement shows a concerning decline in free cash flow growth, with a TTM decrease of 105.64%. However, the operating cash flow to net income ratio is positive at 0.43, indicating that operating cash flows are supporting net income. The negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow, which could impact future investments. Despite these concerns, the company maintains a positive operating cash flow.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92T | 1.89T | 1.60T | 1.28T | 1.04T | 962.52B |
| Gross Profit | 1.51T | 1.47T | 1.19T | 914.95B | 691.56B | 624.23B |
| EBITDA | 385.49B | 380.57B | 271.13B | 169.72B | 131.27B | 121.18B |
| Net Income | 295.87B | 295.76B | 200.73B | 109.19B | 66.97B | 75.96B |
Balance Sheet | ||||||
| Total Assets | 3.46T | 3.46T | 3.46T | 2.51T | 2.22T | 2.09T |
| Cash, Cash Equivalents and Short-Term Investments | 574.30B | 713.97B | 876.56B | 607.56B | 778.62B | 629.74B |
| Total Debt | 201.24B | 155.89B | 156.00B | 192.86B | 213.62B | 226.17B |
| Total Liabilities | 1.88T | 1.83T | 1.77T | 1.06T | 864.87B | 807.03B |
| Stockholders Equity | 1.58T | 1.62T | 1.69T | 1.45T | 1.35T | 1.27T |
Cash Flow | ||||||
| Free Cash Flow | 3.52B | -62.42B | 510.94B | 53.77B | 76.49B | 160.96B |
| Operating Cash Flow | 127.32B | 53.84B | 599.26B | 114.51B | 139.23B | 192.21B |
| Investing Cash Flow | -23.94B | 334.17B | -282.64B | -257.78B | 212.34B | -39.25B |
| Financing Cash Flow | -289.36B | -377.77B | -123.56B | -89.59B | -86.23B | -202.43B |
Daiichi Sankyo Company Technical Analysis
Negative
3369.00
Price Trends
3690.92
Negative
3574.42
Negative
3593.14
Negative
Market Momentum
-33.84
Positive
30.85
Neutral
8.18
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 3369 is below the 20-day moving average (MA) of 3940.25, below the 50-day MA of 3690.92, and below the 200-day MA of 3593.14, indicating a bearish trend. The MACD of -33.84 indicates Positive momentum. The RSI at 30.85 is Neutral, neither overbought nor oversold. The STOCH value of 8.18 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥4.54T | 10.21 | 16.30% | 1.51% | 6.56% | 201.49% | |
78 Outperform | $11.42T | 28.79 | 20.99% | 1.38% | 6.25% | 2.62% | |
76 Outperform | $2.27T | 12.85 | 12.22% | 2.54% | 4.48% | 11.08% | |
72 Outperform | $3.07T | 24.43 | 7.97% | 4.61% | 13.24% | 127.88% | |
61 Neutral | $6.28T | 22.46 | 16.66% | 1.64% | 12.56% | 14.61% | |
59 Neutral | ¥6.65T | 194.38 | 0.54% | 4.63% | -2.84% | -88.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4568
Daiichi Sankyo Company
3,369.00
-1,401.69
-29.38%
JP:4503
Astellas Pharma
1,697.50
45.85
2.78%
JP:4519
Chugai Pharmaceutical Co
7,005.00
132.02
1.92%
JP:4578
Otsuka Holdings Co
8,438.00
-916.26
-9.80%
JP:4507
Shionogi & Co
2,594.50
494.95
23.57%
JP:4502
Takeda Pharmaceutical Co
4,162.00
112.23
2.77%
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.