Sumitomo Dainippon Pharma Co (4506) AI Stock Analysis

• Market Cap: $632.89B
• Dividend Yield: N/A
• Average Volume (3M): 6.50M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.90
• Revenue Growth: 26.28%
• EPS Growth: N/A
• Country: JP
• Employees: 4,980
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 28.21
• Shares Outstanding: 397,900,150
• 10 Day Avg. Volume: 3,900,890
• 30 Day Avg. Volume: 6,504,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 16.93
• 1Y Price Target: $1,647.04
• Price Target Upside: 3.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: ¥1,929.00 ▲(21.09% Upside)

Sumitomo Dainippon Pharma Co's stock score is primarily driven by its financial performance and technical analysis. The company shows positive revenue and cash flow growth, but high leverage and low net profit margins are concerns. The stock's strong upward momentum is tempered by overbought technical indicators. The high P/E ratio suggests potential overvaluation, and the lack of a dividend yield further impacts the valuation score.

Sumitomo Dainippon Pharma Co Business Overview & Revenue Model

Company Description

Sumitomo Pharma Co., Ltd. manufactures and sells pharmaceuticals, food ingredients and additives, veterinary medicines, and others in Japan, North America, China, and internationally. The company offers pharmaceutical products, such as therapeutic agents for Parkinson's disease, depression, type 2 diabetes, systemic fungal infection, hypertension, pruritus, chronic obstructive pulmonary disease, angina pectoris, and arrhythmia. It also provides products for atypical antipsychotic, antiepileptic, carbapenem antibiotic, and gastrointestinal; and Anderson-Fabry disease drugs. In addition, the company offers food ingredients and additives, such as polysaccharides, as well as seasonings, such as soups or bouillons; and chemical product materials, which include pharmaceutical excipients, personal care products, coatings and industrial materials, and electronic materials. Further, it provides veterinary medicines for companion animals, such as dogs and cats; and livestock comprising cattle, swine, poultry, horses, and aquacultured fish. Sumitomo Pharma Co., Ltd. has partnerships with Healios K.K.; Keio University; RIKEN; the Center for iPS Cell Research and Application; Kyoto University; and Aikomi Co., Ltd., as well as a joint development agreement with SanBio Company Limited; and collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. It also has a strategic alliance with Roivant Sciences Ltd. The company was formerly known as Sumitomo Dainippon Pharma Co., Ltd. and changed its name to Sumitomo Pharma Co., Ltd. in April 2022. The company was founded in 1897 and is headquartered in Osaka, Japan. Sumitomo Pharma Co., Ltd. is a subsidiary of Sumitomo Chemical Company, Limited.

How the Company Makes Money

Sumitomo Dainippon Pharma Co. makes money primarily through the sale of its pharmaceutical products across various therapeutic areas such as psychiatry & neurology, oncology, and others. The company generates revenue by developing and marketing prescription drugs and proprietary medicines, which are distributed globally. A significant portion of its earnings comes from key products in its portfolio, including those in the central nervous system and diabetes treatment categories. The company also engages in strategic partnerships, licensing agreements, and collaborations with other pharmaceutical firms to enhance its product offerings and expand market reach, thereby contributing to its revenue streams. Additionally, investments in research and development lead to the creation of new products, further driving sales and profitability.

Sumitomo Dainippon Pharma Co Financial Statement Overview

Summary

Sumitomo Dainippon Pharma Co is showing signs of recovery with positive revenue and free cash flow growth. While profitability margins are improving, high leverage remains a concern. The company needs to focus on enhancing net profit margins and managing debt levels to ensure long-term financial stability.

Income Statement

Sumitomo Dainippon Pharma Co has shown a positive revenue growth rate of 4.34% in the TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 61.53%, showcasing efficient cost management. However, the net profit margin is relatively low at 5.93%, suggesting room for improvement in profitability. The EBIT and EBITDA margins indicate moderate operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 1.80, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 15.48% in the TTM, reflecting better utilization of equity. The equity ratio is not provided, but the overall balance sheet shows a need for cautious financial management.

Cash Flow

The free cash flow growth rate has surged by 321.05% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio of 0.48 indicates a reasonable level of cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	416.16B	398.83B	314.56B	555.54B	560.03B	515.95B
Gross Profit	253.56B	245.40B	187.98B	376.63B	402.91B	378.18B
EBITDA	39.84B	56.67B	-281.07B	-3.50B	124.36B	103.11B
Net Income	18.90B	23.63B	-314.97B	-74.51B	56.41B	56.22B
Balance Sheet
Total Assets	733.33B	742.60B	907.51B	1.13T	1.31T	1.31T
Cash, Cash Equivalents and Short-Term Investments	20.45B	39.96B	36.13B	143.48B	202.98B	193.70B
Total Debt	309.25B	305.42B	418.88B	346.37B	284.54B	290.68B
Total Liabilities	557.10B	573.13B	751.37B	727.96B	634.44B	659.95B
Stockholders Equity	176.23B	169.48B	156.06B	406.75B	607.89B	580.57B
Cash Flow
Free Cash Flow	33.69B	3.47B	-257.62B	-805.00M	17.75B	124.80B
Operating Cash Flow	41.36B	16.50B	-241.89B	11.94B	31.24B	135.60B
Investing Cash Flow	-6.68B	99.75B	33.04B	52.42B	-18.28B	8.88B
Financing Cash Flow	-76.37B	-108.84B	77.85B	-146.82B	-21.43B	-57.22B

Sumitomo Dainippon Pharma Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1593.00
• 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:4506, the sentiment is Neutral. The current price of 1593 is below the 20-day moving average (MA) of 1650.35, above the 50-day MA of 1426.92, and above the 200-day MA of 905.24, indicating a neutral trend. The MACD of 60.13 indicates Positive momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 42.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4506.

Sumitomo Dainippon Pharma Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	83 Outperform	¥2.32T	12.53	12.51%	2.17%	4.04%	21.20%
4516	78 Outperform	¥226.78B	7.43	12.15%	3.68%	6.83%	11.59%
4530	76 Outperform	¥303.89B	15.57	7.86%	2.52%	6.49%	38.42%
4523	67 Neutral	¥1.44T	28.62	5.52%	3.14%	9.43%	56.53%
4502	65 Neutral	¥7.03T	50.90	1.99%	4.42%	1.52%	-8.68%
4506	63 Neutral	$632.89B	33.48	10.94%	―	26.28%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sumitomo Dainippon Pharma Co Corporate Events

Sumitomo Pharma Reports Significant Foreign Exchange Loss in Q1

Sumitomo Pharma Co., Ltd. reported a significant foreign exchange loss of 6,747 million yen for the first quarter of the fiscal year ending March 31, 2026, primarily due to the valuation of foreign currency-denominated liabilities held by its overseas subsidiaries. Despite these finance costs, the company has not revised its financial forecasts, as future fluctuations in foreign exchange rates are uncertain.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Completes Asian Business Transfer to Marubeni

Sumitomo Pharma Co., Ltd. has completed a company split and share transfer of its Asian business to Marubeni Global Pharma Corporation, resulting in Sumitomo Pharma (China) and Sumitomo Pharma Asia Pacific no longer being its consolidated subsidiaries. This strategic move is expected to generate approximately 45 billion yen in gains, which will be utilized to strengthen the company’s financial foundation and focus on growth initiatives.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Strengthens U.S. Market Position with Asset Assignment

Sumitomo Pharma Co., Ltd. has announced the assignment of key product assets in the U.S. from its subsidiaries to itself, aiming to enhance its direct involvement in the U.S. market. This strategic move, valued at approximately USD 1.8 billion, is part of a broader capital reorganization to strengthen the company’s revenue stream and operational control in the U.S., reflecting the growing importance of this market for Sumitomo Pharma’s overall business strategy.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Highlights Independence Amid Parent Company Ties

Sumitomo Pharma Co., Ltd. announced details about its relationship with its parent company, Sumitomo Chemical Co., Ltd., which holds a 51.78% voting interest. The announcement highlights the company’s operational independence, despite its integration into the parent company’s corporate group. The collaboration includes joint ventures in regenerative medicine and shared resources, but the company maintains managerial independence, with no limitations imposed on its business activities by the parent company.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Restructures Asian Business with Marubeni Partnership

Sumitomo Pharma Co., Ltd. has announced a strategic restructuring of its Asian business through a simplified absorption-type company split. This involves transferring 60% of shares of a newly established subsidiary to Marubeni Global Pharma Corporation, with the option to transfer the remaining 40% in the future. This move is expected to enhance Sumitomo Pharma’s operational focus and market positioning in Asia, potentially impacting stakeholders by aligning with Marubeni’s resources and market reach.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Unveils ‘Reboot 2027’ for Strategic Growth

Sumitomo Pharma has announced ‘Reboot 2027,’ a strategic plan for FY2025-FY2027, aiming to stabilize its revenue base and enhance its position as an R&D-driven pharmaceutical company. The plan includes financial targets such as expanding sales of key products and reducing debt, alongside initiatives to innovate in oncology and regenerative medicine. The company seeks to improve its value creation cycle and establish a distinctive global presence, with a focus on strategic growth and innovation.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Announces Significant Share Transfer in Asian Business

Sumitomo Pharma Co., Ltd. announced the transfer of its Asian business to a new subsidiary, with 60% of shares being acquired by Marubeni Global Pharma Corporation. This transaction is expected to generate a gain of approximately 45 billion yen, impacting the company’s financial forecast for the fiscal year ending March 2026.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Proposes Amendments to Enhance Governance

Sumitomo Pharma Co., Ltd. announced a proposal to amend its Articles of Incorporation to transition to a company with an Audit & Supervisory Committee, aiming to enhance corporate governance and decision-making processes. The amendments will include changes to the roles of directors and the establishment of new provisions to support strategic discussions and improve oversight.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.

Sumitomo Pharma Announces Key Personnel Appointments Amid Governance Transition

Sumitomo Pharma Co., Ltd. announced its plan to transition to a company with an Audit and Supervisory Committee, pending approval at the upcoming Annual Shareholders’ Meeting. The Board of Directors has appointed candidates for executive and key personnel roles, with several directors and committee members being confirmed, subject to shareholder approval. This transition is expected to enhance the company’s governance structure, potentially impacting its operational oversight and strategic direction.

The most recent analyst rating on (JP:4506) stock is a Hold with a Yen460.00 price target. To see the full list of analyst forecasts on Sumitomo Dainippon Pharma Co stock, see the JP:4506 Stock Forecast page.