Current Analysis: Eisai Co Ltd (ESAIY)
Eisai Co Ltd (ESAIY) is a specialty and generic drug manufacturing company. It was formerly known as Nihon Eisai Co., Ltd. and changed its name to Eisai Co., Ltd. in 1955. The company's operation consists of a pharmaceutical business and other businesses.
The pharmaceutical business is categorized by region, including Japan, Americas, China, Asia, and Europe, Middle East, and Africa. Eisai also reports a consumer healthcare business for Japan.
The vast majority of the company's revenue is derived by its Japanese pharmaceutical business, followed by its Americas pharmaceuticals segment.
The company utilizes licensing strategies in order to expand its research, development, manufacturing, and marketing capabilities.
Eisai Co., Ltd. was incorporated in 1941 and is headquartered in Tokyo, Japan.
Three key data points gauge Eisai Co Ltd, or any dividend-paying firm.
The key three are: (1) Price (2) Dividends (3) Returns.
Those three basic keys best tell whether any company has made, is making, and will make money.
ESAIY Price
Over the past year, ESAIY’s share price dropped 64.77% from $45.78 to $16.13 as of Friday’s market close.
If ESAIY stock trades in the range of $10.00 to $25.00 this next year, its recent $16.13 share price might rise to $17.00 by next year. Of course, ESAIY’s price could drop about the same $0.87 amount, or more.
My upside estimate of $0.87, however is not supported by analysts tracking the stock for brokers, nor price history. It’s wild price fluctuation was based on the potential for an an Alzheimers drug in the ESAIY pipeline.
ESAIY Dividend
Eisai Co Ltd’s most recent $0.14 semi-annual dividend, paid June 12th to shareholders of record March 30th, equates to $0.28 annually and throws a yield of 1.74% as of Friday’s closing price.
ESAIY Returns
Adding the $0.28 anticipated annual dividend to ESAIY’s estimated $0.87 price upside reveals a $1.15 potential gross gain per share for the coming year.
At Thursday’s $16.13 closing price, a little over $1000 would buy 62 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.
Subtracting that maybe $0.16 brokerage cost from my estimated $1.15 gross gain per share makes a net gain amounting to $0.99 X 62 shares = $61.38 for about a 6.1% net gain.
This may be the time to pounce on Eisai Co Ltd. But beware, while its dividend is down, its price continues rising, and is lately priced $60.37 below the stock’s all-time high of $129.79 posted back on or about June 7, 2021.
The foregoing article is based on past history of Eisai Co Ltd. The only accurate measure of future performance is from active investment in the company.
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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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