Eisai Co (STU:EII) Operating Margin %: -5.02% (As of Mar. 2026)


STU:EII Eisai Co Ltd STU:EII
74 GF Score
Price €21.11
GF Value €30.90
Valuation Significantly Undervalued
! 7 Warning Signs
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What is Eisai Co Operating Margin %?

Eisai Co STU:EII +0.24% 74 Operating Margin % is -5.02% as of Mar. 2026. GuruFocus rates STU:EII with a GF Score™ of 74/100 and a GF Value™ of €30.90 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 955 Drug Manufacturers companies, Eisai Co ranks worse than 56.44% on this metric.

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 €-56 Mil. Eisai Co's Revenue for the three months ended in Mar. 2026 was €1,120 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%.

The historical rank and industry rank for Eisai Co's Operating Margin % or its related term are showing as below:

STU:EII' s Operating Margin % Range Over the Past 10 Years
Min: 5.35   Med: 7.59   Max: 18.04
Current: 5.35


STU:EII's Operating Margin % is ranked worse than
56.44% of 955 companies
in the Drug Manufacturers industry
Industry Median: 7.45 vs STU:EII: 5.35

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

Eisai Co's Operating Income for the three months ended in Mar. 2026 was €-56 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €257 Mil.

Warning Sign:

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


Eisai Co  (STU:EII) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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 Margin % Related Terms


Eisai Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Eisai Co's Operating Margin % 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 Margin % Chart

Eisai Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.11 5.38 7.20 6.89 5.35

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 Margin % 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 -0.54 10.24 6.93 9.11 -5.02

STU:EII vs ZTS: Operating Margin % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Eisai Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Eisai Co Operating Margin % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Eisai Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Eisai Co's Operating Margin % falls into.


STU:EII
74GF Score
Eisai Co Ltd STU:EII
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Eisai Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=240.607 / 4499.243
=5.35 %

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 )
=-56.218 / 1119.815
=-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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -5.02% mean?
Eisai Co (STU:EII) has a Operating Margin % of -5.02% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eisai Co and its competitors. Over the past decade, Eisai Co's Operating Margin % has ranged from 5.35 to 18.04. According to the industry distribution chart, Eisai Co ranks #539 out of 955 companies in the Drug Manufacturers industry, placing it in the top 56.4%.
Is Eisai Co's Operating Margin % too high?
Eisai Co's current Operating Margin % is -5.02%. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 18.04. Based on the distribution chart, Eisai Co ranks #539 out of 955 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Eisai Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eisai Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Eisai Co ranks #539 out of 955 companies for Operating Margin %. This places Eisai Co in the lower half of its industry. The industry median Operating Margin % is 7.45. Historically, Eisai Co's own Operating Margin % has ranged from 5.35 to 18.04 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % 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 Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Eisai Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eisai Co's current Operating Margin % is -5.02%. 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 (STU:EII) is currently considered Significantly Undervalued. The stock's GF Value™ is €30.90, compared to a current price of €21.11 — trading 31.7% below its estimated fair value. The current Operating Margin % is -5.02%. Eisai Co's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Eisai Co (STU:EII), the current Operating Margin % is -5.02% 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 (STU:EII) Overvalued in 2026?

Based on GuruFocus' analysis, Eisai Co stock appears to be undervalued. The current stock price of €21.11 is trading 31.7% below its estimated GF Value™ of €30.90. GuruFocus considers Eisai Co to be Significantly Undervalued.

Key valuation signals for STU:EII:

  • Operating Margin %: -5.02%
  • GF Value™: €30.90 vs. price of €21.11 (31.7% below fair value)
  • GF Score™: 74/100 with 7 warning signs

No single metric tells the full story. See the STU:EII 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.
74GF Score

Get the complete analysis for STU:EII

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

€21.11
Price
€30.90
GF Value