Daily Stock Analysis: Eisai

Eisai Co Ltd bears the ticker symbol (ESALY), and this is my first mention of EISAI for this new Viking Portfolio, or any of my previous seven dog of the week folios.

Eisai.com

Eisai Co Ltd is a specialty and generic drug manufacturing company. The company's activities consist 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.

The company was formerly known as Nihon Eisai Co Ltd. and changed its name to Eisai Co Ltd. in 1955.

Eisai Co Ltd. was incorporated in 1941 and is headquartered in Tokyo, Japan.

Three key data points gauge EISAI, or any dividend paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

ESIAI Price

Eisai Co Ltd price per share was $13.47 at Friday’s market close. In the past year, EISAI share price fell $33.22 or about 76%.

If EISAI stock trades in the range of $10.00 to $50.00 this next year, its recent $13.47 share price might reach $14.80 by next year. That upside estimate of $1.33 averages EISAI annual price gains over a twelve year period.

EISAI Dividend

Eisai Co Ltd most recent semi-annual dividend of $0.5702 cast a forward annual yield of 8.9%.

EISAI Returns

Adding the $1.20 annual estimated

EISAI dividend to my one-year price upside estimate of $1.33 reveals a $2.53 potential gross gain estimate per share.

At Friday’s $13.47 closing price, a little under $1000 would buy 74 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $2.53 gross gain makes a net gain of $2.39 X 74 shares = $176.86 for a 17.7% net gain including the 8.9% annual dividend yield.

In the next year our $1K investment in shares of EISAI might generate $89.10 in cash dividends. Furthermore, a single share of EISAI at Friday’s $13.47 price is more than 6.5 times less than the estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is probably a proper time to buy Eisai Co Ltd shares, based on their dividends for 2023. The current dividend from $1K invested is 6.61 times greater than the Eisai Co Ltd single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Eisai Co Ltd. Only time and money invested in this stock will determine its future market value.


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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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