ESALF (Eisai Co) Operating Income: $300 Mil (TTM As of Mar. 2026)


ESALF Eisai Co Ltd ESALF
69 GF Score
Price $25.00
GF Value $33.57
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Eisai Co Operating Income?

Eisai Co ESALF 69 Operating Income is $300 Mil as of Mar. 2026. GuruFocus rates ESALF with a GF Score™ of 69/100 and a GF Value™ of $33.57 (Modestly Undervalued). The stock has 6 warning signs investors should review.

Eisai Co's Operating Income for the three months ended in Mar. 2026 was $-65 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $300 Mil.

Warning Sign:

Eisai Co Ltd has recorded a loss in operating income at least once over the past 3 years.

Operating Margin % is calculated as Operating Income divided by its Revenue. Eisai Co's Operating Income for the three months ended in Mar. 2026 was $-65 Mil. Eisai Co's Revenue for the three months ended in Mar. 2026 was $1,295 Mil. Therefore, Eisai Co's Operating Margin % for the quarter that ended in Mar. 2026 was -5.02%.

Warning Sign:

Eisai Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5%.

Eisai Co's 5-Year average Growth Rate for Operating Margin % was -5.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Eisai Co's annualized ROC % for the quarter that ended in Mar. 2026 was -1.50%. Eisai Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -6.55%.


Eisai Co  (OTCPK:ESALF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Eisai Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-259.964 * ( 1 - 59.78% )/( (6874.637 + 7059.584)/ 2 )
=-104.5575208/6967.1105
=-1.50 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9532.252 - 601.924 - ( 2055.691 - max(0, 2486.412 - 5393.163+2055.691))
=6874.637

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=9132.142 - 520.309 - ( 1552.249 - max(0, 2144.241 - 4799.748+1552.249))
=7059.584

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Eisai Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-161.128/( ( (1012.071 + max(1468.576, 0)) + (1014.868 + max(1426.57, 0)) )/ 2 )
=-161.128/( ( 2480.647 + 2441.438 )/ 2 )
=-161.128/2461.0425
=-6.55 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1597.383 + 1562.749 + 177.34) - (601.924 + 0 + 1266.972)
=1468.576

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1430.54 + 1623.031 + 193.928) - (520.309 + 0 + 1300.62)
=1426.57

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Eisai Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-64.991/1294.583
=-5.02 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Eisai Co Operating Income Related Terms


Eisai Co Operating Income Historical Data

* Premium members only.

The historical data trend for Eisai Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Eisai Co Operating Income Chart

Eisai Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 453.29 299.56 356.48 364.81 278.16

Eisai Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.88 143.56 92.49 128.49 -64.99
ESALF
69GF Score
Eisai Co Ltd ESALF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Eisai Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $300 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $300 Mil mean?
Eisai Co (ESALF) has a Operating Income of $300 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Eisai Co and its competitors.
Is Eisai Co's Operating Income too high?
Eisai Co's current Operating Income is $300 Mil. Overall, Eisai Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eisai Co's Operating Income compare to ZTS and UTHR?
Eisai Co's Operating Income of $300 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Drug Manufacturers company?
A good Operating Income depends on the Drug Manufacturers industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Eisai Co and its competitors. Eisai Co's current Operating Income is $300 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eisai Co stock overvalued right now?
Based on GuruFocus' analysis, Eisai Co (ESALF) is currently considered Modestly Undervalued. The stock's GF Value™ is $33.57, compared to a current price of $25.00 — trading 25.5% below its estimated fair value. The current Operating Income is $300 Mil. Eisai Co's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Eisai Co (ESALF), the current Operating Income is $300 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Eisai Co (ESALF) Overvalued in 2026?

Based on GuruFocus' analysis, Eisai Co stock appears to be undervalued. The current stock price of $25.00 is trading 25.5% below its estimated GF Value™ of $33.57. GuruFocus considers Eisai Co to be Modestly Undervalued.

Key valuation signals for ESALF:

  • Operating Income: $300 Mil
  • GF Value™: $33.57 vs. price of $25.00 (25.5% below fair value)
  • GF Score™: 69/100 with 6 warning signs

No single metric tells the full story. See the ESALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Eisai Co Business Description

Address 4-6-10 Koishikawa, Bunkyo-ku, Tokyo, JPN, 112-8088
Eisai Co Ltd is a specialty and generic drug manufacturing company. The company's business consists of research and development, manufacturing, sales, import, and export of pharmaceuticals. The pharmaceutical business is categorized by region, including East Asia & Global South; Europe, Middle East, Africa, Russia, Oceania (EMEA); Americas; China; and Japan. The company also reports a consumer healthcare business for Japan. The vast majority of the company's revenue is derived from its American pharmaceutical business, followed by its Japanese pharmaceuticals segment. The company utilizes licensing strategies in order to expand its research, development, manufacturing, and marketing capabilities.
69GF Score

Get the complete analysis for ESALF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$25.00
Price
$33.57
GF Value