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

• Market Cap: ¥68.69B
• Dividend Yield: 2.79%
• Average Volume (3M): 231.41K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.96
• Revenue Growth: 28.06%
• EPS Growth: 19.48%
• Country: JP
• Employees: 1,457
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): N/A
• Shares Outstanding: 41,632,400
• 10 Day Avg. Volume: 314,150
• 30 Day Avg. Volume: 231,410
• PEG Ratio: -1.10
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.84
• P/FCF Ratio: -15.60
• 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: ¥3,400.00
• Price Target Upside: 109.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,826.00 ▲(12.58% Upside)
• Action: Upgraded Date: 11/30/25
• Date: Action: Upgraded 11/30/25

Shin Nippon Biomedical Laboratories has a strong technical outlook with bullish momentum, which is the most significant factor driving the score. Financial performance is solid but tempered by concerns over declining margins and rising debt. Valuation is reasonable, but not compelling enough to significantly boost the score.

Positive Factors

Outsourced R&D / CRO business model

A diversified CRO model serving preclinical, clinical and laboratory-animal needs creates durable demand from pharma/biotech outsourcing. Long project timelines and regulatory-driven work produce sticky contracted revenue and high customer switching costs that support steady mid-term growth.

High gross profit margins

Consistently >50% gross margins indicate structural pricing power and efficient cost control in lab services. High gross margins provide room to absorb SG&A and R&D, fund investments in specialized capabilities, and sustain profitability even if top-line growth moderates over the next several quarters.

Robust operating cash conversion

Healthy conversion of accounting profits into operating cash gives financial flexibility to fund operations and working capital without immediate reliance on external capital. This supports execution of multi-period study pipelines and helps stabilize operations while managing capex cycles.

Negative Factors

Rising leverage

Increasing debt levels reduce financial flexibility and raise interest and covenant risk, limiting the company's ability to invest in new facilities or absorb demand shocks. In a capital-intensive service business, higher leverage makes funding future expansion or R&D more costly and riskier.

Negative free cash flow trend

Persistent negative free cash flow requires either higher borrowing or equity funding to sustain growth and capex. Over the medium term this can pressure balance sheet strength, constrain discretionary investments, and amplify the impact of rising leverage on credit metrics and strategic flexibility.

Declining net and operating margins

Worsening net and slight EBIT margin declines signal pressure on operational efficiency or higher SG&A/costs. Combined with EPS contraction noted in fundamentals (EPS growth negative), this reduces retained earnings and the firm’s ability to self-fund growth, weakening resilience over the next several quarters.

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

Company Description

Shin Nippon Biomedical Laboratories, Ltd., a contract research organization, provides drug discovery and development services in Japan and internationally. It offers pre-clinical laboratory services, such as good laboratory practice inspections; general and specific toxicity studies; pathological examinations; PK/PD of biopharmaceuticals, immunotoxicity tests, and antibody production; reproductive and developmental toxicity studies; pharmacology and pharmacological efficacy studies; and imaging services. The company also engages in the establishment and validation of analytical methods, analysis of biological samples, and calculation of pharmacokinetic parameters; and provides absorption, distribution, metabolism, and excretion studies using radioisotope-labeled compounds. In addition, it provides site management organization services for clinical trials; clinical contract research organization services; and translational research services, including research and development of nasal delivery systems, nucleic acid adjuvants, and regenerative medicines. The company was founded in 1957 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shin Nippon Biomedical Laboratories generates revenue primarily through its contract research services, which involve charging clients for conducting studies and trials necessary for drug development and approval. Key revenue streams include fees for preclinical testing, clinical trial management, and regulatory compliance services. The company may also earn income from partnerships with pharmaceutical firms, collaborating on research projects or providing specialized testing services. Additionally, the company's strong reputation and extensive expertise in the field help attract clients, contributing to a steady flow of contracts and repeat business.

Shin Nippon Biomedical Laboratories, Ltd. Financial Statement Overview

Summary

Shin Nippon Biomedical Laboratories shows strong revenue growth and profit generation. However, declining net margins and increasing debt levels are potential concerns. The company's cash conversion from profits is robust, but negative free cash flow trends need attention.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.34B	32.41B	26.45B	25.09B	17.75B	15.11B
Gross Profit	16.62B	16.57B	14.28B	13.05B	9.69B	7.55B
EBITDA	8.86B	8.83B	8.98B	9.49B	9.49B	5.55B
Net Income	5.06B	4.92B	5.53B	6.06B	7.13B	3.66B
Balance Sheet
Total Assets	89.07B	92.42B	76.30B	57.24B	39.31B	36.97B
Cash, Cash Equivalents and Short-Term Investments	11.57B	12.03B	10.61B	10.53B	7.00B	7.29B
Total Debt	36.58B	34.47B	26.19B	18.76B	9.14B	12.69B
Total Liabilities	53.17B	52.33B	42.14B	30.88B	19.59B	21.13B
Stockholders Equity	35.51B	40.02B	34.11B	26.21B	19.56B	15.73B
Cash Flow
Free Cash Flow	0.00	-3.82B	-6.50B	-951.70M	4.34B	3.63B
Operating Cash Flow	0.00	7.04B	2.11B	4.00B	5.95B	4.75B
Investing Cash Flow	0.00	-11.69B	-6.91B	-5.93B	-4.27B	-268.66M
Financing Cash Flow	0.00	5.91B	5.32B	6.27B	-4.91B	-2.47B

Shin Nippon Biomedical Laboratories, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1622.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2395, the sentiment is Negative. The current price of 1622 is below the 20-day moving average (MA) of 1683.50, below the 50-day MA of 1667.98, and above the 200-day MA of 1568.34, indicating a neutral trend. The MACD of 2.00 indicates Positive momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4694	74 Outperform	¥158.56B	22.05	5.59%	3.34%	5.90%	16.30%
2395	74 Outperform	¥68.69B	17.77	―	2.79%	28.06%	19.48%
4549	68 Neutral	¥103.36B	27.01	―	2.31%	4.36%	79.43%
2183	52 Neutral	¥7.14B	-4.02	―	5.44%	-15.42%	-879.08%
4974	52 Neutral	¥138.12B	-19.18	―	2.18%	-0.16%	-802.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shin Nippon Biomedical Laboratories, Ltd. Corporate Events

SNBL Releases Q3 FY2026 Results Briefing and Business Update

Shin Nippon Biomedical Laboratories has released presentation materials for its consolidated financial results briefing for the third quarter of the fiscal year ending March 31, 2026. The briefing outlines the company’s Q3 performance and future outlook, presents details of its consolidated financial results, and highlights business topics across its nonclinical CRO, clinical CRO, and translational research/SGG segments, signaling continued emphasis on integrated drug development support services and providing stakeholders with structured insight into operational trends and strategic direction.

The most recent analyst rating on (JP:2395) stock is a Buy with a Yen1802.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.

SNBL Cuts Full-Year Revenue and Operating Profit Outlook but Nudges Net Income Forecast Higher

Shin Nippon Biomedical Laboratories has revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, lowering projected revenue and operating profit but slightly increasing profit attributable to owners of the parent. Revenue is now expected to fall 7.7% below the previous forecast, mainly because nonclinical business revenues are being pushed into the following fiscal year due to delays in client compound supply and the expansion of several large-scale projects, even as orders in that segment hit a record quarterly high and are expected to support future performance. Operating profit is projected to drop 26.8% from the initial plan, reflecting the timing shift in nonclinical revenue and ¥1,241 million in second-half costs at U.S. subsidiary Satsuma Pharmaceuticals, partly offset by cost controls in the broader TR business, while ordinary profit is revised down less thanks to stronger-than-expected equity-method income from PPD-SNBL K.K. and net income is nudged up on lower taxes stemming from flexible management of NHP shipment volumes from Cambodia to Japan.

The most recent analyst rating on (JP:2395) stock is a Buy with a Yen1802.00 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 Cuts Earnings Outlook Amid Profit Decline but Maintains Dividend Plan

Shin Nippon Biomedical Laboratories reported consolidated results for the nine months ended December 31, 2025, showing revenue down 4.7% year-on-year to ¥21.2 billion and steep declines in operating profit (down 45.7%), ordinary profit (down 24.6%) and profit attributable to owners of parent (down 29.2%), with basic earnings per share falling to ¥54.54. Despite weaker earnings, the company’s equity ratio improved to 46.7% and net assets rose materially to ¥53.2 billion, supported by higher total assets, while it maintained its annual dividend forecast of ¥50 per share for the fiscal year ending March 31, 2026 and revised full-year guidance to lower revenue and profit, signaling a more challenging operating environment but continued commitment to shareholder returns.

The most recent analyst rating on (JP:2395) stock is a Buy with a Yen1802.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.

SNBL Warns of Added Costs as U.S. Migraine Drug Unit Talks Continue

SNBL has announced an update on its U.S. subsidiary Satsuma Pharmaceuticals, which is continuing negotiations for a partnering arrangement for Atzumi™, an intranasal migraine treatment, with discussions still in progress. The company’s current full-year forecast for the fiscal year ending March 31, 2026 does not include any revenue contribution from Satsuma and only assumed Satsuma’s costs for the first half of 2025, but SNBL now expects to recognize additional second-half costs from Satsuma in its consolidated results and is reviewing its earnings forecast, promising to disclose the financial impact once there is greater visibility.

The most recent analyst rating on (JP:2395) stock is a Buy with a Yen2042.00 price target. To see the full list of analyst forecasts on Shin Nippon Biomedical Laboratories, Ltd. stock, see the JP:2395 Stock Forecast page.