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4568

Daiichi Sankyo Company TSE:4568 Stock Report

Last Price

JP¥3.42k

Market Cap

JP¥6.6t

7D

6.9%

1Y

42.9%

Updated

28 Jun, 2022

Data

Company Financials +
4568 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

4568 Stock Overview

Daiichi Sankyo Company, Limited researches and develops, manufactures, imports, markets, and sells pharmaceutical products worldwide.

Rewards

Trading at 58.2% below our estimate of its fair value

Earnings are forecast to grow 28.83% per year

Risk Analysis

No risks detected for 4568 from our risk checks.

Daiichi Sankyo Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Daiichi Sankyo Company
Historical stock prices
Current Share PriceJP¥3,421.00
52 Week HighJP¥3,558.00
52 Week LowJP¥1,981.00
Beta0.75
1 Month Change-1.24%
3 Month Change27.65%
1 Year Change42.87%
3 Year Change71.65%
5 Year Change303.34%
Change since IPO343.33%

Recent News & Updates

Shareholder Returns

4568JP PharmaceuticalsJP Market
7D6.9%5.4%1.8%
1Y42.9%-4.7%-4.7%

Return vs Industry: 4568 exceeded the JP Pharmaceuticals industry which returned -4.7% over the past year.

Return vs Market: 4568 exceeded the JP Market which returned -4.7% over the past year.

Price Volatility

Is 4568's price volatile compared to industry and market?
4568 volatility
4568 Average Weekly Movement5.4%
Pharmaceuticals Industry Average Movement4.4%
Market Average Movement4.2%
10% most volatile stocks in JP Market8.5%
10% least volatile stocks in JP Market2.3%

Stable Share Price: 4568 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 4568's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189916,033Sunao Manabehttps://www.daiichisankyo.com

Daiichi 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.

Daiichi Sankyo Company Fundamentals Summary

How do Daiichi Sankyo Company's earnings and revenue compare to its market cap?
4568 fundamental statistics
Market CapJP¥6.56t
Earnings (TTM)JP¥66.97b
Revenue (TTM)JP¥1.04t

97.9x

P/E Ratio

6.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
4568 income statement (TTM)
RevenueJP¥1.04t
Cost of RevenueJP¥353.33b
Gross ProfitJP¥691.56b
Other ExpensesJP¥624.59b
EarningsJP¥66.97b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)34.94
Gross Margin66.19%
Net Profit Margin6.41%
Debt/Equity Ratio12.1%

How did 4568 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

77%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 4568 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4568?

Other financial metrics that can be useful for relative valuation.

4568 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.6x
Enterprise Value/EBITDA44.8x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

How does 4568's PE Ratio compare to its peers?

4568 PE Ratio vs Peers
The above table shows the PE ratio for 4568 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.7x
4502 Takeda Pharmaceutical
25.5x8.8%JP¥5.9t
4519 Chugai Pharmaceutical
15.2x0.7%JP¥5.9t
4503 Astellas Pharma
32.3x19.1%JP¥4.0t
4578 Otsuka Holdings
25.7x1.1%JP¥2.7t
4568 Daiichi Sankyo Company
97.9x28.8%JP¥6.6t

Price-To-Earnings vs Peers: 4568 is expensive based on its Price-To-Earnings Ratio (97.9x) compared to the peer average (24.7x).


Price to Earnings Ratio vs Industry

How does 4568's PE Ratio compare vs other companies in the JP Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 4568 is expensive based on its Price-To-Earnings Ratio (97.9x) compared to the JP Pharmaceuticals industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is 4568's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4568 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio97.9x
Fair PE Ratio37.6x

Price-To-Earnings vs Fair Ratio: 4568 is expensive based on its Price-To-Earnings Ratio (97.9x) compared to the estimated Fair Price-To-Earnings Ratio (37.6x).


Share Price vs Fair Value

What is the Fair Price of 4568 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4568 (¥3421) is trading below our estimate of fair value (¥8181.14)

Significantly Below Fair Value: 4568 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 4568 is poor value based on its PEG Ratio (3.4x)


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Future Growth

How is Daiichi Sankyo Company forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4568's forecast earnings growth (28.8% per year) is above the savings rate (0.02%).

Earnings vs Market: 4568's earnings (28.8% per year) are forecast to grow faster than the JP market (8.9% per year).

High Growth Earnings: 4568's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4568's revenue (12.7% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 4568's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4568's Return on Equity is forecast to be low in 3 years time (12.6%).


Discover growth companies

Past Performance

How has Daiichi Sankyo Company performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 4568 has high quality earnings.

Growing Profit Margin: 4568's current net profit margins (6.4%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 4568's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: 4568's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4568 had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (4.4%).


Return on Equity

High ROE: 4568's Return on Equity (5%) is considered low.


Discover strong past performing companies

Financial Health

How is Daiichi Sankyo Company's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 4568's short term assets (¥1,345.3B) exceed its short term liabilities (¥395.3B).

Long Term Liabilities: 4568's short term assets (¥1,345.3B) exceed its long term liabilities (¥475.3B).


Debt to Equity History and Analysis

Debt Level: 4568 has more cash than its total debt.

Reducing Debt: 4568's debt to equity ratio has reduced from 23.9% to 12.1% over the past 5 years.

Debt Coverage: 4568's debt is well covered by operating cash flow (85.2%).

Interest Coverage: 4568 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Daiichi Sankyo Company current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 4568's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.67%).

High Dividend: 4568's dividend (0.79%) is low compared to the top 25% of dividend payers in the JP market (3.71%).


Stability and Growth of Payments

Stable Dividend: 4568 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 4568 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: 4568 is not paying a notable dividend for the JP market.


Cash Payout to Shareholders

Cash Flow Coverage: 4568 is not paying a notable dividend for the JP market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Sunao Manabe (68 yo)

5.17yrs

Tenure

JP¥170,000,000

Compensation

Mr. Sunao Manabe, D.V.M, Ph D., has been President of Daiichi Sankyo Company, Limited since April 1, 2017 and serves as its Chief Executive Officer since June 17, 2019. Mr. Manabe served as Chief Operating...


CEO Compensation Analysis

Compensation vs Market: Sunao's total compensation ($USD1.26M) is about average for companies of similar size in the JP market ($USD1.55M).

Compensation vs Earnings: Sunao's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 4568's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: 4568's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Daiichi Sankyo Company, Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Daiichi Sankyo Company, Limited
  • Ticker: 4568
  • Exchange: TSE
  • Founded: 1899
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: JP¥6.557t
  • Shares outstanding: 1.92b
  • Website: https://www.daiichisankyo.com

Number of Employees


Location

  • Daiichi Sankyo Company, Limited
  • 3-5-1, Nihonbashi-honcho
  • Chuo-ku
  • Tokyo
  • 103-8426
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.