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

• Market Cap: ¥72.61B
• Dividend Yield: 3.34%
• Average Volume (3M): 231.41K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.00
• 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: 69 Neutral
• Price Target: ¥1,774.00 ▲(0.57% Upside)

The stock's overall score is driven primarily by its solid financial performance and reasonable valuation. While technical indicators show some short-term bullish momentum, potential overbought conditions and negative MACD suggest caution. The company's increasing debt and negative free cash flow are areas of concern that could impact future flexibility.

Positive Factors

Revenue Growth

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

Cash Conversion

Efficient cash conversion from profits enhances liquidity, allowing for reinvestment and financial stability, crucial for sustainable growth.

Gross Profit Margin

High gross margins reflect effective cost control and pricing power, supporting profitability and competitive advantage in the industry.

Negative Factors

Declining Net Margins

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

Increasing Debt Levels

Rising debt levels could limit financial flexibility and increase risk, necessitating careful management to avoid future financial strain.

Negative Free Cash Flow

Persistent negative free cash flow can strain resources and limit investment capacity, potentially hindering growth and operational efficiency.

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: 1764.00
• 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 1764 is above the 20-day moving average (MA) of 1566.20, above the 50-day MA of 1612.50, and above the 200-day MA of 1476.08, indicating a bullish trend. The MACD of 45.87 indicates Negative momentum. The RSI at 72.42 is Negative, neither overbought nor oversold. The STOCH value of 92.43 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	69 Neutral	¥72.61B	15.60	―	3.34%	28.06%	19.48%
4574	63 Neutral	¥14.87B	17.49	―	―	-5.41%	―
4588	58 Neutral	¥27.27B	―	―	―	-9.04%	13.09%
4552	58 Neutral	¥88.98B	-37.86	―	3.47%	7.15%	-454.41%
4582	51 Neutral	¥5.73B	―	―	―	-50.27%	-3.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4575	32 Underperform	¥16.18B	―	―	―	―	14.03%

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.