Sumitomo Dainippon Pharma Co (4506) AI Stock Analysis

• Market Cap: ¥355.58B
• Dividend Yield: N/A
• Average Volume (3M): 10.16M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.02
• Revenue Growth: 26.79%
• EPS Growth: N/A
• Country: JP
• Employees: 4,980
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 6.08
• Shares Outstanding: 397,900,150
• 10 Day Avg. Volume: 5,721,540
• 30 Day Avg. Volume: 10,164,670
• PEG Ratio: 0.02
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -399.76
• 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: ¥867.18
• Price Target Upside: -3.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: ¥1,008.00 ▲(12.63%Upside)

Sumitomo Dainippon Pharma Co's overall stock score is primarily driven by its solid technical analysis and reasonable valuation. The positive price momentum and upward trends in moving averages are favorable, although financial performance reflects transitional challenges with profitability and leverage concerns.

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 generates revenue through the sale of its pharmaceutical products across various therapeutic areas. The company invests heavily in research and development to bring new drugs to market, thereby expanding its product portfolio and increasing sales opportunities. Key revenue streams include direct sales of proprietary pharmaceuticals, licensing agreements, and collaborations with other pharmaceutical companies, which provide both upfront payments and royalties. Additionally, Sumitomo Dainippon Pharma leverages strategic partnerships and alliances to enhance its global reach and access to new markets, further contributing to its earnings.

Sumitomo Dainippon Pharma Co Financial Statement Overview

Summary

Sumitomo Dainippon Pharma Co is experiencing a transition phase with encouraging revenue growth and cash flow returns. However, volatility in profitability and high leverage pose significant risks.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	520.48B	398.83B	314.56B	555.54B	560.03B	515.95B
Gross Profit	379.35B	245.40B	187.98B	376.63B	402.91B	378.18B
EBITDA	109.76B	57.58B	-281.07B	-3.50B	124.36B	103.11B
Net Income	67.03B	23.63B	-314.97B	-74.51B	56.41B	56.22B
Balance Sheet
Total Assets	742.60B	742.60B	907.51B	1.13T	1.31T	1.31T
Cash, Cash Equivalents and Short-Term Investments	23.12B	23.12B	29.05B	163.65B	238.58B	223.18B
Total Debt	305.42B	305.42B	418.88B	334.72B	269.05B	273.82B
Total Liabilities	573.13B	573.13B	751.37B	727.96B	634.44B	659.95B
Stockholders Equity	169.48B	169.48B	156.06B	406.75B	607.89B	580.57B
Cash Flow
Free Cash Flow	105.33B	8.00B	-257.62B	-805.00M	17.75B	124.80B
Operating Cash Flow	117.23B	16.50B	-241.89B	11.94B	31.24B	135.60B
Investing Cash Flow	7.59B	99.75B	33.04B	52.42B	-18.28B	8.88B
Financing Cash Flow	-27.81B	-108.84B	77.85B	-146.82B	-21.43B	-57.22B

Sumitomo Dainippon Pharma Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 895.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 895 is below the 20-day moving average (MA) of 953.25, above the 50-day MA of 870.14, and above the 200-day MA of 689.38, indicating a neutral trend. The MACD of 15.88 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 9.79 is Positive, 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	80 Outperform	$2.20T	12.51	12.99%	2.31%	0.73%	7.75%
4516	75 Outperform	¥211.02B	6.48		3.96%	8.08%	25.92%
4530	73 Outperform	¥292.00B	13.54	7.90%	2.15%	10.09%	63.28%
4523	72 Outperform	$1.16T	25.22	5.34%	3.87%	6.42%	10.82%
4502	65 Neutral	¥7.04T	64.95	1.50%	4.41%	7.45%	-25.77%
4506	62 Neutral	¥355.58B	15.05	13.50%	―	26.79%	―
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%

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.

Sumitomo Pharma Announces Reversal of Doubtful Accounts Allowance

Sumitomo Pharma Co., Ltd. announced a reversal of allowance for doubtful accounts amounting to 46,556 million yen in its non-consolidated financial statements for the fiscal year ended March 31, 2025. This adjustment, recorded as extraordinary income, will not affect the company’s consolidated profit or loss as it will be eliminated in the consolidated financial statements.

Sumitomo Pharma Boosts Financial Forecasts and Records Gains from Equity Transfers

Sumitomo Pharma has revised its financial forecasts for the fiscal year ending March 31, 2025, showing an increase in expected revenue and profits due to higher-than-anticipated sales in North America. Additionally, the company recorded significant gains from the transfer of equity interests in its regenerative medicine and cell therapy business, which positively impacts its financial results.