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Chugai Pharmaceutical Co Ltd 4519

Morningstar Rating
JPY 4,852.00 −8.00 (0.16%)
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Company Report

Chugai Earnings: Slightly Missed Expectations but Still On Track for Full-Year Target

Narrow-moat Chugai's first-quarter earnings were slightly below our expectations mostly due to lower-than-expected royalty income. However, this is still well within the usual quarterly variability, and overall we think the company remains on track to meet its full year guidance. We maintain our fair value estimate of JPY 5,200 per share. Although the market price is close to our fair value estimate, given our positive view of Chugai's pipeline, we think this stock is worth watching closely and potentially buying on dips.

Price vs Fair Value

4519 is trading at a 1% discount.
Price
JPY 5,150.00
Fair Value
JPY 4,621.00
Uncertainty
High
1-Star Price
JPY 3,364.00
5-Star Price
JPY 7,629.00
Economic Moat
Kcgpm
Capital Allocation
Zxzqdxln

Bulls Say, Bears Say

Bulls

Chugai is developing cutting-edge antibody technologies and midsize molecules which have the potential to change treatment paradigms that older modalities cannot address.

Bears

Despite Hemlibra’s early success, it could potentially see challenges from longer-acting competitors within a few years.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
JPY 4,860.00
Day Range
JPY 4,726.004,908.00
52-Week Range
JPY 3,380.006,697.00
Bid/Ask
JPY 4,850.00 / JPY 4,857.00
Market Cap
JPY 7.98 Tril
Volume/Avg
4.6 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
27.16
Price/Sales
8.18
Dividend Yield (Trailing)
1.55%
Dividend Yield (Forward)
1.59%
Total Yield
1.65%

Company Profile

Chugai Pharmaceutical is a Japanese drug developer and subsidiary of Roche Holding Ltd, which owns roughly 60% of the company. Founded in 1925, Chugai deals primarily in the Japanese market, where it generates roughly half of its revenue. It has been the leader in Japan’s oncology market for the past decade, largely due to drugs licensed from its parent’s portfolio. The company also develops its own innovative medicines. It is an industry leader in antibody technology with several flagship therapies, including Hemlibra for hemophilia A patients and tocilizumab for treating rheumatoid arthritis and COVID-19 patients.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
7,604

Competitors

Valuation

Metric
4519
4568
4502
Price/Earnings (Normalized)
27.1641.9215.67
Price/Book Value
5.215.720.96
Price/Sales
8.186.031.57
Price/Cash Flow
25.5032.728.14
Price/Earnings
4519
4568
4502

Financial Strength

Metric
4519
4568
4502
Quick Ratio
4.212.740.46
Current Ratio
5.533.491.06
Interest Coverage
11.761.93
Quick Ratio
4519
4568
4502

Profitability

Metric
4519
4568
4502
Return on Assets (Normalized)
17.64%7.33%2.86%
Return on Equity (Normalized)
21.05%13.01%6.13%
Return on Invested Capital (Normalized)
20.98%11.32%4.78%
Return on Assets
4519
4568
4502
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