Eisai Co., Ltd.
Eisai Co., Ltd. Fundamental Analysis
Eisai Co., Ltd. (ESAIY) shows weak financial fundamentals with a PE ratio of 33.46, profit margin of 5.35%, and ROE of 5.04%. The company generates $816.8B in annual revenue with weak year-over-year growth of -0.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ESAIY's fundamental strength across five key dimensions:
Efficiency Score
WeakESAIY struggles to generate sufficient returns from assets.
Valuation Score
ModerateESAIY shows balanced valuation metrics.
Growth Score
WeakESAIY faces weak or negative growth trends.
Financial Health Score
ExcellentESAIY maintains a strong and stable balance sheet.
Profitability Score
WeakESAIY struggles to sustain strong margins.
Key Financial Metrics
Is ESAIY Expensive or Cheap?
P/E Ratio
ESAIY trades at 33.46 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ESAIY's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Eisai Co., Ltd. at 1.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.94 times EBITDA. This signals the market has high growth expectations.
How Well Does ESAIY Make Money?
Net Profit Margin
For every $100 in sales, Eisai Co., Ltd. keeps $5.35 as profit after all expenses.
Operating Margin
Core operations generate 5.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.04 in profit for every $100 of shareholder equity.
ROA
Eisai Co., Ltd. generates $2.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eisai Co., Ltd. produces operating cash flow of $88.62B, showing steady but balanced cash generation.
Free Cash Flow
Eisai Co., Ltd. produces free cash flow of $75.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $65.78 in free cash annually.
FCF Yield
ESAIY converts 5.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ESAIY Stacks Against Its Sector Peers
| Metric | ESAIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.46 | 29.78 | Worse (Expensive) |
| ROE | 5.04% | 792.00% | Weak |
| Net Margin | 5.35% | -23280.00% (disorted) | Weak |
| Debt/Equity | 0.26 | 0.25 | Neutral |
| Current Ratio | 2.17 | 4.60 | Strong Liquidity |
| ROA | 2.91% | -18077.00% (disorted) | Weak |
ESAIY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eisai Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.38%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-33.10%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-46.01%
Industry Style: Defensive, Growth, Innovation
Declining