Jean Hynes of the Vanguard Health Care Fund (Trades, Portfolio) added 1,094,126 shares to the stake in Eisai (TSE:4523)Â during the second quarter. The trade had a 0.13% impact on the portfolio. Vanguard now owns 14,033,001 shares in the company.
Headquartered in Tokyo and established in 1941, Eisai is an international pharmaceutical company that produces and manufactures prescription medicines and over-the-counter products. The company has manufacturing sites in Japan, North Carolina, Maryland, Bogor (Indonesia), Suzhou (China), Tainan (Taiwan) and Visakhapatnam (India) as well as Hatfield and Hertfordshire in the U.K.
Eisai has a broad portfolio of products that are used to treat various diseases and ailments. Some of the company’s key products are Halaven (anti-cancer agent), Renbima (anti-cancer agent), Fikonpa / Fycompa (anti-epileptic agent), BELVIQ (obesity treatment), Aciphex/Pariet (proton pump inhibitor), Aricept (Alzheimer’s type, Lewy body dementia treatment) and Humira (human anti-TNF, a monoclonal antibody). Eisai has 9,877 full-time employees and 3,504 part-time employees as of March 31.
Eisai has a 7 of 10 financial rating with a cash-to-debt ratio of 0.91, ranking it beneath 63% of the companies in the global drug manufacturers specialty & generic industry. The company also has a 5 of 10 profitability and growth rating with an operating margin of 12.85%, a return on equity (ROE) of 11.94%, a return on assets (ROA) of 7% and a return on capital (ROC)Â of 32.40% ranking it above 75% of the 761 companies in its industry.
Esai has a price-earnings (P/E) ratio of 25.13, a price-book (P/B) ratio of 3.19, a current ratio of 3.06 and a dividend yield of 2.47.
Since the fourth quarter of 2012, Hynes has a total estimated gain of 14% with her investment in Eisai. It is likely the company's 75 years of operating experience, strong financial numbers and broad portfolio of products influenced her decision buy more shares.
Below is a Peter Lynch chart that shows Eisai is trading above its intrinsic value.
Cheers to your investment success.
Disclosure: Author does not own any shares of this company.
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