Sumitomo Dainippon Pharma Co (4506) AI Stock Analysis

• Market Cap: ¥455.30B
• Dividend Yield: N/A
• Average Volume (3M): 6.87M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.03
• Revenue Growth: 26.79%
• EPS Growth: N/A
• Country: JP
• Employees: 4,980
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 6.08
• Shares Outstanding: 397,900,150
• 10 Day Avg. Volume: 6,084,980
• 30 Day Avg. Volume: 6,866,016
• PEG Ratio: 0.15
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.44
• 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: ¥1,049.99
• Price Target Upside: -8.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥1,161.00 ▲(1.31%Upside)

Sumitomo Dainippon Pharma Co's stock is supported by robust technical indicators, suggesting strong market momentum. However, financial performance shows mixed results with significant leverage concerns, necessitating careful monitoring. While the valuation is reasonable, the absence of a dividend yield may be a drawback for some investors.

Sumitomo Dainippon Pharma Co Business Overview & Revenue Model

Company Description

Sumitomo Dainippon Pharma Co., Ltd. is a leading global pharmaceutical company headquartered in Osaka, Japan. The company engages in the research, development, manufacturing, and marketing of pharmaceutical products with a focus on psychiatry & neurology, oncology, and regenerative medicine. It operates in various sectors including pharmaceuticals, healthcare, and life sciences, providing innovative therapies and solutions to improve patient health and well-being.

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 in a transitional phase with improving revenue growth and positive cash flow, but faces challenges with profitability volatility and high leverage. Continued focus on operational efficiency and debt management is essential.

Income Statement

Sumitomo Dainippon Pharma Co has experienced significant fluctuations in its income statement metrics. The company's gross profit margin based on the latest annual report is healthy, but net income has seen a volatile trajectory with significant losses in recent years. Revenue growth showed a positive turnaround in 2025, suggesting potential recovery. However, the EBIT and EBITDA margins have been erratic, indicating instability in operational efficiency.

Balance Sheet

The balance sheet reflects a mixed financial position. While the equity ratio is reasonable, the debt-to-equity ratio indicates a high level of leverage, which could pose risks if not managed carefully. Return on equity has been negative in recent periods due to net losses, but stockholders' equity remains substantial, providing some stability.

Cash Flow

Cash flow metrics show signs of improvement. The company has returned to generating positive free cash flow in the latest period after significant negative cash flows previously. The operating cash flow to net income ratio is positive, reflecting improved cash generation capability, but the overall cash flow situation remains fragile due to past inconsistencies.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	398.83B	314.56B	555.54B	560.03B	515.95B
Gross Profit	245.40B	187.98B	376.63B	402.91B	378.18B
EBITDA	57.58B	-281.07B	-3.50B	124.36B	103.11B
Net Income	23.63B	-314.97B	-74.51B	56.41B	56.22B
Balance Sheet
Total Assets	742.60B	907.51B	1.13T	1.31T	1.31T
Cash, Cash Equivalents and Short-Term Investments	23.12B	29.05B	163.65B	238.58B	223.18B
Total Debt	305.42B	418.88B	334.72B	269.05B	273.82B
Total Liabilities	573.13B	751.37B	727.96B	634.44B	659.95B
Stockholders Equity	169.48B	156.06B	406.75B	607.89B	580.57B
Cash Flow
Free Cash Flow	8.00B	-257.62B	-805.00M	17.75B	124.80B
Operating Cash Flow	16.50B	-241.89B	11.94B	31.24B	135.60B
Investing Cash Flow	99.75B	33.04B	52.42B	-18.28B	8.88B
Financing Cash Flow	-108.84B	77.85B	-146.82B	-21.43B	-57.22B

Sumitomo Dainippon Pharma Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1146.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4506, the sentiment is Positive. The current price of 1146 is above the 20-day moving average (MA) of 1008.90, above the 50-day MA of 934.32, and above the 200-day MA of 722.89, indicating a bullish trend. The MACD of 56.51 indicates Negative momentum. The RSI at 67.80 is Neutral, neither overbought nor oversold. The STOCH value of 94.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	$2.25T	12.75	13.71%	2.24%	4.04%	21.20%
4516	77 Outperform	¥215.46B	6.62		3.89%	8.08%	25.92%
4530	73 Outperform	$291.34B	14.93	7.24%	2.25%	6.49%	38.42%
4506	67 Neutral	¥455.30B	19.26	13.50%	―	26.79%	―
4523	67 Neutral	¥1.18T	25.52	5.34%	3.83%	6.42%	10.82%
4502	67 Neutral	¥6.82T	62.98	1.50%	4.55%	7.45%	-25.77%
Sector *	52 Neutral	$7.59B	0.18	-63.14%	2.16%	16.34%	0.64%

Sumitomo Dainippon Pharma Co Corporate Events

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.