# Eisai (4523.JP)

Canonical: https://gigainvestors.com/s/4523.JP

Analysis as of: 2026-10-15T07:10:20.451Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 4,868.00 per share; close as of 2026-10-15.

Estimated value: low JPY 3,113.33 per share, central JPY 3,776.00 per share, high JPY 4,276.60 per share. Buy at or below the central value JPY 3,776.00 per share. Valuation as of 2026-10-15T07:10:20.451Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.44×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.13×

- FY2019: 0.13×

- FY2020: 0.18×

- FY2021: 0.08×

- FY2022: 0.07×

- FY2023: 0.05×

- FY2024: 0.07×

- FY2025: 0.07×

- FY2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.2%

- ROIC, second-lowest year: 7.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: 6.9%

- Typical minus recent gross margin: -3.1 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 16.5%

- FY2019: 21.1%

- FY2020: 34.8%

- FY2021: 11.2%

- FY2022: 13.2%

- FY2023: 8.9%

- FY2024: 7.7%

- FY2025: 8.1%

- FY2026: 6.0%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 217B

- Net income, five-year total: JPY 231B

- Working capital / revenue, annual change: 3.3 pp

- Working capital / revenue, final three-year average: 45.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.79×

- FY2023: 0.92×

- FY2024: 1.12×

- FY2025: 1.15×

- FY2026: 0.73×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- Per-share earnings: 181.18 to 147.86 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: JPY -275B

- Cumulative retained earnings: JPY 105B

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -2.5%

- Per-share value change: JPY -33.32

- Per-share value, starting three-year median: JPY 181.18

- Per-share value, ending three-year median: JPY 147.86

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 549B

- ROIC, last three-year median: 7.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 137.63

- FY2018: JPY 181.18

- FY2019: JPY 221.34

- FY2020: JPY 425.01

- FY2021: JPY 146.34

- FY2022: JPY 167.27

- FY2023: JPY 193.31

- FY2024: JPY 147.86

- FY2025: JPY 163.76

- FY2026: JPY 136.78

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.39×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.5%

- FY2018: -9.3%

- FY2019: -3.8%

- FY2020: 1.8%

- FY2021: -2.9%

- FY2022: -5.6%

- FY2023: 4.5%

- FY2024: -1.0%

- FY2025: 1.2%

- FY2026: -1.6%

## Holders

## Price story

Down 50% since Jun 2023 · sales +4.6%

Story as of 2026-10-16T10:00:14.205Z; price observation 2026-10-15.

Price needs cash profits to grow 7.9% a year for ten years

### Sales · FY2025–2026

sales +4.6%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf; observed 2026-06-12.

- FY2017: JPY 539B 

- FY2018: JPY 600B 

- FY2019: JPY 643B 

- FY2020: JPY 696B 

- FY2021: JPY 646B 

- FY2022: JPY 756B 

- FY2023: JPY 744B 

- FY2024: JPY 742B 

- FY2025: JPY 789B 

- FY2026: JPY 825B 

### Gross margin · FY2026

gross margin 76.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf; observed 2026-06-12.

- FY2018: 66.5% 

- FY2019: 71.3% 

- FY2020: 74.7% 

- FY2021: 75.0% 

- FY2022: 76.9% 

- FY2023: 76.1% 

- FY2024: 79.1% 

- FY2025: 78.6% 

- FY2026: 76.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 825.4 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf (filed 2026-06-12); FY2026: revenue 825378000000; grossProfit 634155000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 76.8% to 79.1% during 2024–26; it earns 11.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2024: grossProfit / revenue = 79.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2025: grossProfit / revenue = 78.6%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf (filed 2026-06-12); FY2026: grossProfit / revenue = 76.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); 10-year return on capital observations [[2018,0.1651828297171941],[2019,0.21136543558503226],[2020,0.3477368854340757],[2021,0.11232941921518641],[2022,0.13181305487336445],[2023,0.08899814846509312],[2024,0.07656967177521008],[2025,0.08075538642911226],[2026,0.06041799778828854]]; median 0.11232941921518641. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 77% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf (filed 2026-06-12); Gross margin observations: [[2021,0.7502716962204037],[2022,0.7688111754951562],[2023,0.7611022001552924]]; range within 2 percentage points.

### Where the cash goes

Spends 5.7% of cash earnings on expansion; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2018: growth capex 0; upkeep 24733000000; owner earnings 53295000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2019: growth capex 781000000; upkeep 26841000000; owner earnings 62352000000. Growth capex / owner earnings = 0.012525660764690787.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2020: growth capex 9559451744.170853; upkeep 40666548255.82915; owner earnings 105869451744.17085. Growth capex / owner earnings = 0.09029471284380382.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2021: growth capex 0; upkeep 37358000000; owner earnings 30391000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2022: growth capex 2069000000; upkeep 38398000000; owner earnings 37674000000. Growth capex / owner earnings = 0.05491851144025057.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2023: growth capex 0; upkeep 34559000000; owner earnings 50970000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2024: growth capex 0; upkeep 24823000000; owner earnings 47397000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); FY2025: growth capex 0; upkeep 22969000000; owner earnings 53197000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf (filed 2026-06-12); FY2026: growth capex 1617000000; upkeep 39550000000; owner earnings 28126000000. Growth capex / owner earnings = 0.05749128919860627.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); Dividend observations: [[2018,42929000000],[2019,42957000000],[2020,45849000000],[2021,45868000000],[2022,45878000000],[2023,45893000000],[2024,45915000000],[2025,45545000000],[2026,45138000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 7.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-12); Ten-year compound average after fade. Initial solved rate 0.10002013702738377. Price 4868; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 6,609.00 per share

- 2016-12: JPY 6,708.00 per share

- 2017-01: JPY 6,215.00 per share

- 2017-02: JPY 6,301.00 per share

- 2017-03: JPY 5,764.00 per share

- 2017-04: JPY 5,852.00 per share

- 2017-05: JPY 5,836.00 per share

- 2017-06: JPY 6,205.00 per share

- 2017-07: JPY 5,919.00 per share

- 2017-08: JPY 5,694.00 per share

- 2017-09: JPY 5,776.00 per share

- 2017-10: JPY 6,297.00 per share

- 2017-11: JPY 6,371.00 per share

- 2017-12: JPY 6,416.00 per share

- 2018-01: JPY 6,231.00 per share

- 2018-02: JPY 5,696.00 per share

- 2018-03: JPY 6,781.00 per share

- 2018-04: JPY 7,345.00 per share

- 2018-05: JPY 7,877.00 per share

- 2018-06: JPY 7,804.00 per share

- 2018-07: JPY 9,582.00 per share

- 2018-08: JPY 10,060.00 per share

- 2018-09: JPY 11,060.00 per share

- 2018-10: JPY 9,411.00 per share

- 2018-11: JPY 10,415.00 per share

- 2018-12: JPY 8,502.00 per share

- 2019-01: JPY 8,419.00 per share

- 2019-02: JPY 9,195.00 per share

- 2019-03: JPY 6,213.00 per share

- 2019-04: JPY 6,454.00 per share

- 2019-05: JPY 6,383.00 per share

- 2019-06: JPY 6,091.00 per share

- 2019-07: JPY 5,906.00 per share

- 2019-08: JPY 5,430.00 per share

- 2019-09: JPY 5,491.00 per share

- 2019-10: JPY 7,887.00 per share

- 2019-11: JPY 8,110.00 per share

- 2019-12: JPY 8,204.00 per share

- 2020-01: JPY 8,329.00 per share

- 2020-02: JPY 7,981.00 per share

- 2020-03: JPY 7,931.00 per share

- 2020-04: JPY 7,530.00 per share

- 2020-05: JPY 8,438.00 per share

- 2020-06: JPY 8,546.00 per share

- 2020-07: JPY 8,487.00 per share

- 2020-08: JPY 9,265.00 per share

- 2020-09: JPY 9,584.00 per share

- 2020-10: JPY 8,089.00 per share

- 2020-11: JPY 7,887.00 per share

- 2020-12: JPY 7,372.00 per share

- 2021-01: JPY 7,643.00 per share

- 2021-02: JPY 7,319.00 per share

- 2021-03: JPY 7,419.00 per share

- 2021-04: JPY 7,129.00 per share

- 2021-05: JPY 7,358.00 per share

- 2021-06: JPY 10,925.00 per share

- 2021-07: JPY 8,983.00 per share

- 2021-08: JPY 9,086.00 per share

- 2021-09: JPY 8,396.00 per share

- 2021-10: JPY 8,027.00 per share

- 2021-11: JPY 6,873.00 per share

- 2021-12: JPY 6,531.00 per share

- 2022-01: JPY 5,779.00 per share

- 2022-02: JPY 5,718.00 per share

- 2022-03: JPY 5,670.00 per share

- 2022-04: JPY 5,664.00 per share

- 2022-05: JPY 5,298.00 per share

- 2022-06: JPY 5,725.00 per share

- 2022-07: JPY 6,077.00 per share

- 2022-08: JPY 5,697.00 per share

- 2022-09: JPY 7,749.00 per share

- 2022-10: JPY 8,974.00 per share

- 2022-11: JPY 9,332.00 per share

- 2022-12: JPY 8,704.00 per share

- 2023-01: JPY 8,012.00 per share

- 2023-02: JPY 7,352.00 per share

- 2023-03: JPY 7,504.00 per share

- 2023-04: JPY 7,833.00 per share

- 2023-05: JPY 8,868.00 per share

- 2023-06: JPY 9,724.00 per share

- 2023-07: JPY 8,976.00 per share

- 2023-08: JPY 9,258.00 per share

- 2023-09: JPY 8,304.00 per share

- 2023-10: JPY 7,961.00 per share

- 2023-11: JPY 7,672.00 per share

- 2023-12: JPY 7,052.00 per share

- 2024-01: JPY 6,998.00 per share

- 2024-02: JPY 6,254.00 per share

- 2024-03: JPY 6,210.00 per share

- 2024-04: JPY 6,502.00 per share

- 2024-05: JPY 6,753.00 per share

- 2024-06: JPY 6,592.00 per share

- 2024-07: JPY 5,760.00 per share

- 2024-08: JPY 6,119.00 per share

- 2024-09: JPY 5,345.00 per share

- 2024-10: JPY 5,178.00 per share

- 2024-11: JPY 4,670.00 per share

- 2024-12: JPY 4,329.00 per share

- 2025-01: JPY 4,621.00 per share

- 2025-02: JPY 4,309.00 per share

- 2025-03: JPY 4,145.00 per share

- 2025-04: JPY 4,118.00 per share

- 2025-05: JPY 4,141.00 per share

- 2025-06: JPY 4,148.00 per share

- 2025-07: JPY 4,273.00 per share

- 2025-08: JPY 4,538.00 per share

- 2025-09: JPY 4,975.00 per share

- 2025-10: JPY 4,570.00 per share

- 2025-11: JPY 4,897.00 per share

- 2025-12: JPY 4,660.00 per share

- 2026-01: JPY 4,311.00 per share

- 2026-02: JPY 5,241.00 per share

- 2026-03: JPY 4,871.00 per share

- 2026-04: JPY 4,687.00 per share

- 2026-05: JPY 3,984.00 per share

- 2026-06: JPY 4,119.00 per share

- 2026-07: JPY 4,828.00 per share

- 2026-08: JPY 4,740.00 per share

- 2026-09: JPY 4,855.00 per share

- 2026-10: JPY 4,638.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 3,588.06 per share, central JPY 3,941.13 per share, high JPY 4,411.15 per share

- FY2023: low JPY 2,966.06 per share, central JPY 3,437.43 per share, high JPY 3,861.82 per share

- FY2024: low JPY 2,923.38 per share, central JPY 3,322.25 per share, high JPY 3,703.89 per share

- FY2025: low JPY 3,036.66 per share, central JPY 3,614.41 per share, high JPY 4,073.60 per share

- FY2026: low JPY 3,113.33 per share, central JPY 3,776.00 per share, high JPY 4,276.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:10:20.451Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YB05.pdf); period 2026-03-31, filed 2026-06-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations