Shionogi & Co Ltd (JP:4507)
:4507
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Shionogi & Co
(4507)
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Rating:69Neutral
Price Target:
¥3,261.00
▲(20.91% Upside)
Action:Downgraded
Date:05/14/26
Strong profitability and improved revenue growth support the score, but increased leverage and weakened operating cash flow coverage raise financial risk. Technicals are a meaningful drag with price below key moving averages and negative MACD, while valuation and dividend yield are supportive.
Positive Factors
High profitability
Sustained very high gross and net margins indicate durable pricing power and operating efficiency in Shionogi’s specialty pharma franchises. That profitability supports long-term R&D funding, partner deals and reinvestment, providing structural resilience versus cyclical peers.
Negative Factors
Marked increase in leverage
The material shift from historically conservative leverage to a significantly higher debt ratio increases financial rigidity and refinancing risk. Higher interest obligations reduce strategic optionality for R&D, M&A or dividends and worsen resilience to macro shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained very high gross and net margins indicate durable pricing power and operating efficiency in Shionogi’s specialty pharma franchises. That profitability supports long-term R&D funding, partner deals and reinvestment, providing structural resilience versus cyclical peers.
Read all positive factors
Shionogi & Co (4507) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.64T
Dividend Yield2.22%
Average Volume (3M)2.56M
Price to Earnings (P/E)12.4
Beta (1Y)0.50
Revenue Growth14.01%
EPS Growth20.33%
CountryJP
Employees4,955
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)241.10
Shares Outstanding889,632,200
10 Day Avg. Volume2,991,150
30 Day Avg. Volume2,559,626
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.75
Price to Sales (P/S)5.91
P/FCF Ratio14.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,300.00Price Target Upside22.36% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)255.66
Revenue Forecast (FY)¥689.64B
Shionogi & Co Business Overview & Revenue Model
Company Description
Shionogi & Co., Ltd. engages in the research, development, manufacture, and distribution of pharmaceuticals, diagnostic reagents, and medical devices in Japan. It offers Fetroja, a multidrug-resistant for gram-negative bacterial infection treatmen...
How the Company Makes Money
Shionogi primarily makes money by selling prescription pharmaceuticals. Its revenue model is driven by (1) product sales of branded medicines in Japan and overseas through its own commercialization activities and distribution channels, where reven...
Shionogi & Co Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and growth in the HIV business, along with successful M&A activities and advancements in drug development. These positives were tempered by declines in domestic and overseas sales, particularly in China, and concerns regarding R&D cost management. Despite these challenges, the overall outlook remains optimistic due to strategic growth initiatives.Positive Updates
Strong Financial Performance
Revenue for Q1 FY2025 increased to JPY99.8 billion, a rise of JPY2.2 billion compared to the same period last year. Operating profit increased by JPY7 billion to JPY35.1 billion, and profit before tax rose by JPY9.8 billion to JPY46.3 billion. Profit attributable to owners of the parent was JPY39.4 billion, an increase of JPY8.7 billion.
Negative Updates
Decline in Domestic and Overseas Business
Domestic prescription drug sales decreased by JPY1.3 billion to JPY14.1 billion, mainly due to reduced sales of drugs for acute respiratory virus infections. Overseas subsidiaries/exports segment also declined by JPY0.7 billion.
Read all updates
Q1-2025 Updates
Positive
Negative
Strong Financial Performance
Revenue for Q1 FY2025 increased to JPY99.8 billion, a rise of JPY2.2 billion compared to the same period last year. Operating profit increased by JPY7 billion to JPY35.1 billion, and profit before tax rose by JPY9.8 billion to JPY46.3 billion. Profit attributable to owners of the parent was JPY39.4 billion, an increase of JPY8.7 billion.
Read all positive updates
Company Guidance
During the first quarter financial results briefing for fiscal year 2025, SHIONOGI reported significant growth in both financial and non-financial metrics. The company achieved a year-over-year increase in revenue to JPY99.8 billion, up by JPY2.2 billion, with operating profit reaching JPY35.1 billion, an increase of JPY7 billion. Profit before tax rose to JPY46.3 billion, up by JPY9.8 billion, and profit attributable to owners of the parent increased by JPY8.7 billion to JPY39.4 billion. EBITDA also saw a rise to JPY40.6 billion, marking a JPY7 billion increase. Significant contributors to this growth included the strong performance of the HIV business, with revenue from this segment driven by ViiV's HIV franchise and royalty income from Roche's Xofluza, which benefited from a flu epidemic in China and the U.S. Non-financial milestones included the completion of a tender offer for Torii Pharmaceutical and progress towards an M&A with the JT Group's pharmaceutical business. The company's strategic focus on pipeline developments, including the filing of Ensitrelvir in Europe and the U.S., is expected to support medium- to long-term growth.Shionogi & Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 499.68B | 438.27B | 435.08B | 426.68B | 335.14B |
| Gross Profit | 411.13B | 374.44B | 377.48B | 364.44B | 279.72B |
| EBITDA | 188.35B | 180.26B | 186.70B | 176.41B | 127.02B |
| Net Income | 205.16B | 170.44B | 162.03B | 184.97B | 114.19B |
Balance Sheet | |||||
| Total Assets | 2.58T | 1.54T | 1.42T | 1.31T | 1.15T |
| Cash, Cash Equivalents and Short-Term Investments | 711.40B | 374.80B | 358.09B | 309.22B | 254.42B |
| Total Debt | 684.39B | 21.88B | 11.62B | 9.41B | 6.67B |
| Total Liabilities | 890.66B | 172.85B | 164.35B | 188.66B | 157.05B |
| Stockholders Equity | 1.69T | 1.36T | 1.24T | 1.10T | 975.66B |
Cash Flow | |||||
| Free Cash Flow | 199.11B | 178.33B | 141.59B | 166.01B | 75.88B |
| Operating Cash Flow | 213.57B | 195.46B | 154.28B | 177.87B | 102.07B |
| Investing Cash Flow | -506.14B | -129.07B | 1.21B | -43.58B | -96.20B |
| Financing Cash Flow | 599.32B | -51.92B | -122.14B | -88.84B | -36.62B |
Shionogi & Co Technical Analysis
Negative
2697.00
Price Trends
3247.70
Negative
3233.47
Negative
2905.25
Positive
Market Momentum
-69.39
Negative
40.29
Neutral
36.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4507, the sentiment is Negative. The current price of 2697 is below the 20-day moving average (MA) of 3070.98, below the 50-day MA of 3247.70, and below the 200-day MA of 2905.25, indicating a neutral trend. The MACD of -69.39 indicates Negative momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 36.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4507.
Shionogi & Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.64T | 12.44 | 12.22% | 2.22% | 14.01% | 20.33% | |
67 Neutral | ¥282.95B | 9.52 | ― | 2.12% | 6.58% | -8.74% | |
65 Neutral | ¥1.12T | 29.13 | 5.75% | 3.51% | 4.56% | -16.55% | |
58 Neutral | ¥728.07B | 6.03 | 48.92% | ― | 13.66% | 352.17% | |
58 Neutral | ¥8.11T | 41.70 | 0.54% | 4.11% | -1.66% | 78.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4507
Shionogi & Co
3,000.00
645.86
27.44%
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Shionogi & Co Corporate Events
Shionogi Outlines FY2025 Results, FY2026 Outlook and 2030 Strategy
May 12, 2026
Shionogi Co., Ltd. released its fiscal 2025 financial results and provided forecasts for fiscal 2026, outlining its recent performance and expectations for the coming year. The company also detailed progress in its core businesses and development...
Shionogi Lifts FY2025 Earnings and Projects Sharp Revenue Surge for FY2026
May 12, 2026
Shionogi reported fiscal 2025 revenue of ¥499.7 billion, up 14% year on year, driven by higher prescription drug sales, stronger overseas subsidiary and export performance, and a ¥33.9 billion increase in royalty income, mainly from its ...
Shionogi Posts Robust FY2026 Earnings and Projects Strong Growth on Expanded Balance Sheet
May 12, 2026
Shionogi reported strong consolidated results for the fiscal year ended March 31, 2026, with revenue rising 14.0% to ¥499.7 billion and operating profit up 6.5% to ¥166.7 billion. Profit attributable to owners of the parent climbed 21.5%...
Shionogi to Absorb Torii Pharmaceutical in 2027 to Bolster Specialty Drug Business
Apr 27, 2026
Shionogi will absorb its wholly owned subsidiary Torii Pharmaceutical through an absorption-type merger, with Shionogi as the surviving entity and Torii dissolved as of April 1, 2027. No new shares or cash consideration will be issued in the trans...
Shionogi Lifts Dividend Forecast on Robust HIV and Infectious Disease Growth
Apr 27, 2026
Shionogi has raised its year-end dividend forecast for the fiscal year ending March 31, 2026 to 38 yen per share, lifting the annual payout to 71 yen and marking a 10-yen increase from the previous year. The move reflects solid earnings under its ...
Shionogi Seals $2.5 Billion RADICAVA Deal to Build Rare Disease Franchise
Apr 2, 2026
Shionogi has completed the acquisition of all global rights to the amyotrophic lateral sclerosis drug RADICAVA (edaravone), including intellectual property and sales rights in major markets, from Tanabe Pharma. More than 100 team members from Tana...
Shionogi boosts ViiV Healthcare stake as Pfizer exits joint HIV venture
Apr 1, 2026
GSK, Pfizer and Shionogi have completed a reshaping of their stakes in HIV specialist ViiV Healthcare, with Pfizer exiting its 11.7% economic interest and Shionogi increasing its holding to 21.7%, while GSK retains a 78.3% majority stake. ViiV Hea...
Shionogi Secures ¥300 Billion Bridge Loan for Expanded ViiV Healthcare Stake
Mar 27, 2026
Shionogi Co., Ltd. has arranged a ¥300 billion bridge loan from Sumitomo Mitsui Banking Corporation to fund its additional investment in HIV-focused joint venture ViiV Healthcare. Together with an earlier bridge loan linked to acquiring glob...
Shionogi Takes Full Control of Sleep Disorder JV in USD 100 Million Deal
Mar 23, 2026
Shionogi has moved to consolidate Shionogi-Apnimed Sleep Science, LLC, its U.S.-based sleep disorder joint venture with Apnimed, as a wholly owned subsidiary, acquiring Apnimed’s 50% equity stake for an upfront payment of USD 100 million. Th...
Shionogi Secures ¥360 Billion Bridge Loan to Fund Global RADICAVA Rights Deal
Mar 23, 2026
Shionogi has arranged a ¥360 billion bridge loan from Sumitomo Mitsui Banking Corporation to finance its planned acquisition of the global rights to Tanabe Pharma’s amyotrophic lateral sclerosis treatments RADICAVA ORS and IV RADICAVA. ...
Shionogi Wins Japan Nod for XOCOVA as First Oral Post‑Exposure COVID‑19 Prophylactic
Mar 23, 2026
Shionogi has secured Japanese approval for a supplemental indication of its oral antiviral XOCOVA (ensitrelvir fumaric acid) for post‑exposure prophylaxis of COVID‑19, making it the first oral antiviral cleared in Japan to prevent infe...
Shionogi Seeks Japan Approval for New CORECTIM Lotion for Atopic Dermatitis
Feb 27, 2026
Shionogi and its subsidiary Torii Pharmaceutical have applied in Japan for manufacturing and marketing approval of a new 0.5% lotion formulation of CORECTIM, a non-steroidal topical JAK inhibitor used to treat atopic dermatitis. The existing ointm...
Shionogi to Absorb Torii Pharmaceutical in 2027 to Boost Domestic Pharma Synergies
Feb 20, 2026
Shionogi Co., Ltd. has set a basic policy to carry out an absorption-type merger of its wholly owned subsidiary Torii Pharmaceutical Co., Ltd., with Shionogi as the surviving entity, effective April 1, 2027. The move follows Shionogi’s 2025...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.