Shin Nippon Biomedical Laboratories, Ltd. (2395) AI Stock Analysis

• Market Cap: ¥64.86B
• Dividend Yield: 3.44%
• Average Volume (3M): 258.24K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.08
• Revenue Growth: 27.28%
• EPS Growth: 18.29%
• Country: JP
• Employees: 1,457
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 6.25
• Shares Outstanding: 41,632,400
• 10 Day Avg. Volume: 379,690
• 30 Day Avg. Volume: 258,240
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,695.50
• Price Target Upside: 5.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥1,611.00 ▲(0.44% Upside)

Shin Nippon Biomedical Laboratories scores well due to strong technical indicators and reasonable valuation. Financial performance is solid, but concerns about declining margins and rising debt levels need addressing. The absence of earnings call and corporate events data limits further insights.

Shin Nippon Biomedical Laboratories, Ltd. Business Overview & Revenue Model

Company Description

Shin Nippon Biomedical Laboratories, Ltd. (SNBL) is a leading contract research organization (CRO) based in Japan. The company specializes in providing comprehensive drug development services, including preclinical and clinical research, to pharmaceutical and biotechnology companies worldwide. SNBL operates in sectors such as pharmaceuticals, biotechnology, and healthcare, offering services that include toxicology studies, clinical trials, and biopharmaceutical testing.

How the Company Makes Money

SNBL makes money primarily through its range of contract research services offered to pharmaceutical and biotechnology companies. The company's revenue model is based on fee-for-service contracts where they provide preclinical and clinical research services. Key revenue streams include toxicology studies, clinical trial management, and biopharmaceutical testing. SNBL's earnings are bolstered by strategic partnerships with global pharmaceutical companies and institutions that seek their expertise in drug development processes.

Shin Nippon Biomedical Laboratories, Ltd. Financial Statement Overview

Summary

The company shows strong revenue growth and profit generation. However, declining net margins and increasing debt levels are concerns. Positive cash conversion from profits is a strength, but negative free cash flow trends could impact long-term sustainability.

Income Statement

Shin Nippon Biomedical Laboratories shows a strong gross profit margin, consistently above 50%, indicating efficient cost management. However, the net profit margin has experienced a decline from previous years. Revenue growth rate has been positive, showcasing an upward trajectory, but EBIT margin has slightly decreased, raising concerns about operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, reflecting higher leverage, which could pose risks if not managed carefully. Return on Equity remains healthy, indicating effective use of shareholders' investments. The equity ratio indicates moderate financial stability, but the increasing debt levels could affect future flexibility.

Cash Flow

Free cash flow has been negative in recent years, raising concerns about cash management and capital expenditure efficiency. However, the operating cash flow to net income ratio is robust, indicating strong cash conversion from profits. Continued negative free cash flow could strain resources if not addressed.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.41B	26.45B	25.09B	17.75B	15.11B
Gross Profit	16.57B	14.28B	13.05B	9.69B	7.55B
EBITDA	8.83B	8.98B	9.49B	9.49B	5.55B
Net Income	4.92B	5.53B	6.06B	7.13B	3.66B
Balance Sheet
Total Assets	92.42B	76.30B	57.24B	39.31B	36.97B
Cash, Cash Equivalents and Short-Term Investments	12.03B	10.61B	10.53B	7.00B	7.29B
Total Debt	34.47B	26.19B	18.76B	9.14B	12.69B
Total Liabilities	52.33B	42.14B	30.88B	19.59B	21.13B
Stockholders Equity	40.02B	34.11B	26.21B	19.56B	15.73B
Cash Flow
Free Cash Flow	-3.82B	-6.50B	-951.70M	4.34B	3.63B
Operating Cash Flow	7.04B	2.11B	4.00B	5.95B	4.75B
Investing Cash Flow	-11.61B	-6.91B	-5.93B	-4.27B	-268.66M
Financing Cash Flow	5.84B	5.32B	6.27B	-4.91B	-2.47B

Shin Nippon Biomedical Laboratories, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1604.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2395, the sentiment is Positive. The current price of 1604 is above the 20-day moving average (MA) of 1436.15, above the 50-day MA of 1399.00, and above the 200-day MA of 1447.99, indicating a bullish trend. The MACD of 44.72 indicates Negative momentum. The RSI at 76.63 is Negative, neither overbought nor oversold. The STOCH value of 99.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2395.

Shin Nippon Biomedical Laboratories, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2395	75 Outperform	¥64.86B	12.81		3.44%	27.28%	18.29%
Sector *	60 Neutral	HK$19.37B	4.62	-4.00%	3.28%	11.14%	-17.52%
4582	51 Neutral	¥7.51B	―		―	-50.88%	-22.14%
4552	47 Neutral	¥77.34B	―		3.20%	-16.69%	-237.07%
4588	44 Neutral	¥18.10B	―		―	-9.04%	2.12%
4575	32 Underperform	¥20.80B	―		―	―	9.48%

Shin Nippon Biomedical Laboratories, Ltd. Corporate Events

Shin Nippon Biomedical Laboratories Reports Mixed Financial Results for Q1 2025

Shin Nippon Biomedical Laboratories reported a significant increase in revenue for the three months ending June 30, 2025, with a 16.7% rise compared to the previous year. Despite the revenue growth, the company faced a consolidated operating loss, although ordinary profit and profit attributable to owners showed substantial improvements. The financial results indicate a complex financial situation, with implications for stakeholders regarding the company’s operational efficiency and market strategy.

The most recent analyst rating on (JP:2395) stock is a Hold with a Yen1460.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.

Shin Nippon Biomedical Laboratories Announces Year-End Dividend

Shin Nippon Biomedical Laboratories, Ltd. announced a year-end dividend payment of ¥30.00 per share for the fiscal year ended March 31, 2025, resulting in an annual dividend of ¥50.00 per share. This decision reflects the company’s solid performance in its CRO business, despite increased expenses from the FDA approval of Satsuma’s STS101, and aligns with its policy of stable profit distribution.

The most recent analyst rating on (JP:2395) stock is a Hold with a Yen1460.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.

Shin Nippon Biomedical Laboratories Corrects Financial Results for FY 2025

The company announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025, due to discovered errors. These corrections impact the reported segment information, including net sales, segment assets, and other financial metrics, which may influence stakeholders’ understanding of the company’s financial health and operational performance.

The most recent analyst rating on (JP:2395) stock is a Hold with a Yen1460.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.

Shin Nippon Biomedical Reports Revenue Growth Amid Profit Decline

Shin Nippon Biomedical Laboratories, Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a significant increase in net sales by 22.5% to ¥32,413 million. However, the company experienced a decline in operating profit by 28.3% and ordinary profit by 8.1%, indicating challenges in maintaining profitability despite revenue growth. The financial results highlight a strategic focus on increasing sales while managing operational efficiencies, impacting stakeholders’ expectations and the company’s market positioning.