Chugai Pharmaceutical Co. (CHGCY) Stock Analysis & Winston Score

Chugai Pharmaceutical is a Japanese drug company that discovers and sells prescription medicines, focusing mainly on cancer treatments and other serious diseases. Its best-known products include Actemra, used for arthritis and immune conditions, and Hemlibra, a treatment for hemophilia. Chugai sells primarily to hospitals and clinics in Japan, with a significant portion of sales coming from international markets through its parent company, Roche, which owns about 60% of Chugai.

Chugai makes money by selling patented medicines to healthcare providers, earning some of the highest profit margins in the pharmaceutical industry — its operating margin sits near 48%. The company operates mainly in Japan but benefits from Roche's global distribution network, which gives it access to markets across Europe and the United States. Its deep research partnership with Roche is a key competitive advantage, though heavy reliance on a small number of blockbuster drugs means patent expirations or clinical trial failures could meaningfully hurt revenue.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+19.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$196.7B/ year

↑ Rising (+8% vs prior year)

14.9% of revenue

In line with sector average (18%)

Investing heavily in future products and technology

Insider Activity

80.6%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$853.8B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Chugai Pharmaceutical Co. is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.29B (2021) → 3.29B (2025)

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

71.2%

Premium pricing power — 71.2% gross margin

Operating Margin

50.6%

Excellent — 50.6% operating margin

ROCE

8.6%

Below par — 8.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+11.1%

Steady sales growth (11.1% YoY)

EPS YoY

+15.5%

Earnings growing fast (15.5% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

96%

Turns 96% of profit into real cash

FCF Margin

28.5%

Converts sales into free cash efficiently (28.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

N/A

Data not available

Interest Cover

619.28x

Comfortably covers interest (619.3x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

0.2x

Attractive valuation — P/E 0.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+0.0

GROWING

Earnings roughly flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend Yield

2.79%

Moderate income — 2.79% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+177.0%

Dividend growing fast (177.0% YoY)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial