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

• Market Cap: ¥76.23B
• Dividend Yield: 2.7%
• Average Volume (3M): 231.41K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.03
• Revenue Growth: 28.06%
• EPS Growth: 19.48%
• Country: JP
• Employees: 1,457
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 19.23
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,042.00 ▲(11.22% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market penetration, supporting long-term business expansion.

Cash Conversion

Strong cash conversion enhances liquidity and financial stability, allowing the company to reinvest in growth opportunities and manage obligations.

Gross Profit Margin

High gross margins reflect effective cost control and pricing power, contributing to sustainable profitability and competitive advantage.

Negative Factors

Declining Net Margins

Declining net margins may signal rising costs or pricing pressures, potentially impacting long-term profitability and financial health.

Rising Debt Levels

Increased leverage can limit financial flexibility and increase risk, especially if cash flow issues arise, affecting future growth and stability.

Negative Free Cash Flow

Persistent negative free cash flow can strain resources, hindering investment in growth initiatives and potentially leading to liquidity challenges.

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 demonstrates strong revenue growth and profit generation. However, declining net margins and increasing debt levels are 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 1836.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1836 is above the 20-day moving average (MA) of 1824.65, above the 50-day MA of 1661.94, and above the 200-day MA of 1494.62, indicating a bullish trend. The MACD of 65.04 indicates Positive momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.67 is Neutral, 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	74 Outperform	¥76.23B	16.38	―	2.70%	28.06%	19.48%
4574	63 Neutral	¥14.87B	17.49	―	―	-5.41%	―
4552	58 Neutral	¥88.98B	-37.76	―	2.74%	7.15%	-454.41%
4588	52 Neutral	¥22.82B	-9.92	―	―	-9.04%	13.09%
4582	51 Neutral	¥5.25B	-0.98	―	―	-50.27%	-3.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4575	32 Underperform	¥15.97B	-12.96	―	―	―	14.03%

Shin Nippon Biomedical Laboratories, Ltd. Corporate Events

Shin Nippon Biomedical Announces Interim Dividends

Shin Nippon Biomedical Laboratories, Ltd. announced the distribution of interim dividends from retained earnings, resolved at its Board of Directors’ meeting. The interim dividend of ¥20.00 per share aligns with the company’s policy of maintaining a payout ratio of 30-40%, reflecting steady business progress in the fiscal year ending March 31, 2026.

Shin Nippon Biomedical Laboratories Exceeds Financial Forecasts for H1 2025

Shin Nippon Biomedical Laboratories reported better-than-expected financial results for the first half of 2025, with revenue and interim profit surpassing forecasts due to strong CRO business performance and reduced losses from its US subsidiary. The company’s ordinary profit also exceeded expectations due to unexpected foreign exchange gains, while changes in the shipment plan of a Cambodian subsidiary led to lower income taxes, further boosting interim profit.

Shin Nippon Biomedical Laboratories Reports Increased Revenue but Declining Profits

Shin Nippon Biomedical Laboratories, Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing an 18.1% increase in revenue compared to the previous year. Despite the revenue growth, the company experienced a decline in operating profit and profit attributable to owners of the parent, indicating challenges in maintaining profitability amidst rising revenues.