# Daiichi Sankyo Company (4568.JP)

Canonical: https://gigainvestors.com/s/4568.JP

Analysis as of: 2026-10-15T07:10:21.651Z. 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 2,651.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,609.80 per share, central JPY 1,801.40 per share, high JPY 2,056.47 per share. Buy at or below the central value JPY 1,801.40 per share. Valuation as of 2026-10-15T07:10:21.651Z; scenarios are not confidence intervals.

Expected annual return: 7.5% at the stated quote. About 7.5% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.14×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.09×

- FY2024: 0.13×

- FY2025: 0.18×

- FY2026: 0.11×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 9.9%

- ROIC, second-lowest year: 6.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.0%

- ROIC including acquisitions, ten-year median: 8.1%

- Typical minus recent gross margin: -8.7 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 5.7%

- FY2019: 7.0%

- FY2020: 12.3%

- FY2021: 6.4%

- FY2022: 8.7%

- FY2023: 9.9%

- FY2024: 17.3%

- FY2025: 28.3%

- FY2026: 15.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 806B

- Net income, five-year total: JPY 933B

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, final three-year average: 29.9%

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

- FY2022: 0.79×

- FY2023: 0.87×

- FY2024: 0.92×

- FY2025: 0.80×

- FY2026: 0.91×

### management: pass

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

- buybacks unrelated to price (informational)

- Per-share earnings: 30.44 to 140.44 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 10.4%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: JPY 3.43T

- Cumulative retained earnings: JPY 533B

- Diluted shares, 10-year annual growth: 10.4%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 21.1%

- Per-share value change: JPY 110.00

- Per-share value, starting three-year median: JPY 30.44

- Per-share value, ending three-year median: JPY 140.44

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 1.34T

- ROIC, last three-year median: 17.3%

- Average buyback yield: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 26.54

- FY2018: JPY 30.44

- FY2019: JPY 48.07

- FY2020: JPY 66.40

- FY2021: JPY 39.17

- FY2022: JPY 34.94

- FY2023: JPY 56.96

- FY2024: JPY 104.69

- FY2025: JPY 155.96

- FY2026: JPY 140.44

### accounting: pass

- Sloan accruals: 4.5%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.30×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.3%

- FY2018: -2.5%

- FY2019: 0.1%

- FY2020: -3.2%

- FY2021: -5.6%

- FY2022: -3.3%

- FY2023: -0.2%

- FY2024: -11.5%

- FY2025: 7.0%

- FY2026: 4.5%

## Holders

## Price story

Down 57% since Jul 2024 · sales +12.6%

Story as of 2026-10-16T10:00:14.220Z; price observation 2026-10-15.

Price needs cash profits to grow 6.3% a year for ten years

### Sales · FY2025–2026

sales +12.6%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf; observed 2026-06-19.

- FY2017: JPY 955B 

- FY2018: JPY 960B 

- FY2019: JPY 930B 

- FY2020: JPY 982B 

- FY2021: JPY 963B 

- FY2022: JPY 1.04T 

- FY2023: JPY 1.28T 

- FY2024: JPY 1.60T 

- FY2025: JPY 1.89T 

- FY2026: JPY 2.12T 

### Gross margin · FY2026

gross margin 68.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf; observed 2026-06-19.

- FY2018: 64.0% 

- FY2019: 60.8% 

- FY2020: 65.0% 

- FY2021: 64.9% 

- FY2022: 66.2% 

- FY2023: 71.6% 

- FY2024: 74.1% 

- FY2025: 78.0% 

- FY2026: 68.5% 

## Owner memo

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

### How it makes money

Annual sales are JPY 2.1 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf (filed 2026-06-19); FY2026: revenue 2123045000000; grossProfit 1454000000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 68.5% to 78% during 2024–26; it earns 9.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2024: grossProfit / revenue = 74.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2025: grossProfit / revenue = 78%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf (filed 2026-06-19); FY2026: grossProfit / revenue = 68.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); 10-year return on capital observations [[2018,0.0574404372762891],[2019,0.07038641261800792],[2020,0.12322665726771916],[2021,0.06394642513471901],[2022,0.08658806835809166],[2023,0.09896884083972554],[2024,0.17335604739652707],[2025,0.28269074341054284],[2026,0.1594319915013559]]; median 0.09896884083972554. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 27.6% of cash earnings on expansion; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2018: growth capex 0; upkeep 38008000000; owner earnings 68954000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2019: growth capex 0; upkeep 66613000000; owner earnings 72965000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2020: growth capex 0; upkeep 52565000000; owner earnings 129120000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2021: growth capex 0; upkeep 64093000000; owner earnings 56340000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2022: growth capex 18437000000; upkeep 58245000000; owner earnings 52877000000. Growth capex / owner earnings = 0.34867711859598693.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2023: growth capex 0; upkeep 67366000000; owner earnings 95051000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2024: growth capex 63145000000; upkeep 59646000000; owner earnings 185186000000. Growth capex / owner earnings = 0.3409814996814014.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); FY2025: growth capex 77806531087.81577; upkeep 110065468912.18423; owner earnings 237355531087.81577. Growth capex / owner earnings = 0.32780584775599453.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf (filed 2026-06-19); FY2026: growth capex 64997685331.81525; upkeep 84004314668.18475; owner earnings 235261685331.81525. Growth capex / owner earnings = 0.2762782441184246.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Dividend observations: [[2018,46420000000],[2019,45339000000],[2020,45356000000],[2021,48946000000],[2022,51730000000],[2023,54616000000],[2024,67080000000],[2025,114317000000],[2026,128430000000]]. Zero only counted when supported by a complete cash-flow statement.

### What could break it

"①-２ 外部環境変化（競争環境変化含む）及び計画の変動に関するリスク" (4568 filing, Jun 2026)

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf (filed 2026-06-19); ①-２ 外部環境変化（競争環境変化含む）及び計画の変動に関するリスク

### What the price says

The price assumes cash profits grow 6.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Ten-year compound average after fade. Initial solved rate 0.07716624044471188. Price 2651; 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 794.00 per share

- 2016-12: JPY 797.17 per share

- 2017-01: JPY 841.50 per share

- 2017-02: JPY 853.50 per share

- 2017-03: JPY 835.67 per share

- 2017-04: JPY 824.33 per share

- 2017-05: JPY 809.50 per share

- 2017-06: JPY 882.33 per share

- 2017-07: JPY 802.67 per share

- 2017-08: JPY 866.33 per share

- 2017-09: JPY 846.00 per share

- 2017-10: JPY 866.67 per share

- 2017-11: JPY 902.67 per share

- 2017-12: JPY 979.00 per share

- 2018-01: JPY 1,223.33 per share

- 2018-02: JPY 1,269.33 per share

- 2018-03: JPY 1,175.33 per share

- 2018-04: JPY 1,250.00 per share

- 2018-05: JPY 1,165.00 per share

- 2018-06: JPY 1,412.33 per share

- 2018-07: JPY 1,540.67 per share

- 2018-08: JPY 1,446.00 per share

- 2018-09: JPY 1,641.67 per share

- 2018-10: JPY 1,438.00 per share

- 2018-11: JPY 1,389.00 per share

- 2018-12: JPY 1,170.33 per share

- 2019-01: JPY 1,255.67 per share

- 2019-02: JPY 1,389.00 per share

- 2019-03: JPY 1,700.00 per share

- 2019-04: JPY 1,827.00 per share

- 2019-05: JPY 1,751.67 per share

- 2019-06: JPY 1,878.33 per share

- 2019-07: JPY 2,215.67 per share

- 2019-08: JPY 2,339.33 per share

- 2019-09: JPY 2,268.00 per share

- 2019-10: JPY 2,380.00 per share

- 2019-11: JPY 2,287.33 per share

- 2019-12: JPY 2,409.33 per share

- 2020-01: JPY 2,480.33 per share

- 2020-02: JPY 2,196.67 per share

- 2020-03: JPY 2,478.00 per share

- 2020-04: JPY 2,460.67 per share

- 2020-05: JPY 3,361.67 per share

- 2020-06: JPY 2,935.33 per share

- 2020-07: JPY 3,086.00 per share

- 2020-08: JPY 3,149.00 per share

- 2020-09: JPY 3,229.00 per share

- 2020-10: JPY 2,748.00 per share

- 2020-11: JPY 3,694.00 per share

- 2020-12: JPY 3,535.00 per share

- 2021-01: JPY 3,365.00 per share

- 2021-02: JPY 3,010.00 per share

- 2021-03: JPY 3,225.00 per share

- 2021-04: JPY 2,787.00 per share

- 2021-05: JPY 2,530.00 per share

- 2021-06: JPY 2,394.50 per share

- 2021-07: JPY 2,159.50 per share

- 2021-08: JPY 2,614.50 per share

- 2021-09: JPY 2,979.50 per share

- 2021-10: JPY 2,867.00 per share

- 2021-11: JPY 2,824.50 per share

- 2021-12: JPY 2,925.00 per share

- 2022-01: JPY 2,565.00 per share

- 2022-02: JPY 2,793.50 per share

- 2022-03: JPY 2,680.00 per share

- 2022-04: JPY 3,262.00 per share

- 2022-05: JPY 3,419.00 per share

- 2022-06: JPY 3,437.00 per share

- 2022-07: JPY 3,523.00 per share

- 2022-08: JPY 4,197.00 per share

- 2022-09: JPY 4,042.00 per share

- 2022-10: JPY 4,767.00 per share

- 2022-11: JPY 4,518.00 per share

- 2022-12: JPY 4,250.00 per share

- 2023-01: JPY 4,064.00 per share

- 2023-02: JPY 4,283.00 per share

- 2023-03: JPY 4,822.00 per share

- 2023-04: JPY 4,647.00 per share

- 2023-05: JPY 4,540.00 per share

- 2023-06: JPY 4,550.00 per share

- 2023-07: JPY 4,347.00 per share

- 2023-08: JPY 4,299.00 per share

- 2023-09: JPY 4,106.00 per share

- 2023-10: JPY 3,858.00 per share

- 2023-11: JPY 4,000.00 per share

- 2023-12: JPY 3,872.00 per share

- 2024-01: JPY 4,423.00 per share

- 2024-02: JPY 4,974.00 per share

- 2024-03: JPY 4,759.00 per share

- 2024-04: JPY 5,364.00 per share

- 2024-05: JPY 5,578.00 per share

- 2024-06: JPY 5,524.00 per share

- 2024-07: JPY 6,148.00 per share

- 2024-08: JPY 6,108.00 per share

- 2024-09: JPY 4,709.00 per share

- 2024-10: JPY 4,981.00 per share

- 2024-11: JPY 4,749.00 per share

- 2024-12: JPY 4,352.00 per share

- 2025-01: JPY 4,277.00 per share

- 2025-02: JPY 3,447.00 per share

- 2025-03: JPY 3,511.00 per share

- 2025-04: JPY 3,644.00 per share

- 2025-05: JPY 3,842.00 per share

- 2025-06: JPY 3,365.00 per share

- 2025-07: JPY 3,720.00 per share

- 2025-08: JPY 3,529.00 per share

- 2025-09: JPY 3,315.00 per share

- 2025-10: JPY 3,669.00 per share

- 2025-11: JPY 3,864.00 per share

- 2025-12: JPY 3,348.00 per share

- 2026-01: JPY 2,836.00 per share

- 2026-02: JPY 3,064.00 per share

- 2026-03: JPY 2,766.00 per share

- 2026-04: JPY 2,588.50 per share

- 2026-05: JPY 2,700.50 per share

- 2026-06: JPY 2,608.50 per share

- 2026-07: JPY 2,567.50 per share

- 2026-08: JPY 2,848.00 per share

- 2026-09: JPY 2,800.00 per share

- 2026-10: JPY 2,568.00 per share

## Annual estimated value (JPY per share)

- FY2022: low JPY 762.61 per share, central JPY 821.60 per share, high JPY 900.14 per share

- FY2023: low JPY 759.18 per share, central JPY 833.90 per share, high JPY 933.38 per share

- FY2024: low JPY 999.66 per share, central JPY 1,093.25 per share, high JPY 1,217.85 per share

- FY2025: low JPY 1,125.81 per share, central JPY 1,237.26 per share, high JPY 1,385.62 per share

- FY2026: low JPY 1,609.80 per share, central JPY 1,801.40 per share, high JPY 2,056.47 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 2026-10-15T07:10:21.651Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEY0.pdf); period 2026-03-31, filed 2026-06-19.

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.