Shionogi & Co (4507) AI Stock Analysis

• Market Cap: $2.19T
• Dividend Yield: 2.67%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.50
• Revenue Growth: 0.73%
• EPS Growth: 7.75%
• Country: JP
• Employees: 4,955
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 43.06
• Shares Outstanding: 889,632,200
• 10 Day Avg. Volume: 2,330,580
• 30 Day Avg. Volume: 2,388,340
• PEG Ratio: 0.15
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.65
• 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: $2,370.39
• Price Target Upside: -5.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: ¥2,713.00 ▲(7.85%Upside)

Shionogi & Co receives a strong overall score of 80, driven by robust financial performance and attractive valuation. The company's effective cash flow management and strategic growth initiatives further contribute to its positive outlook. Technical analysis and earnings call insights provide additional support, despite some challenges in cost management.

Positive Factors

Acquisition

One of the key benefits of JT Pharma acquisition is to gain additional small molecule-based drug discovery research capability and capacity.

Antibiotic Sales

Our antibiotic, Fetroja, has been growing strongly in the US, +38% YoY.

HIV Royalty

HIV royalty grew strongly partly thanks to foreign exchange effects.

Negative Factors

Analyst Rating

Analyst rates Shionogi Underperform with significant downside potential.

Financial Performance

Shionogi's FY24 top and bottom lines were a slight miss versus consensus and its guidance.

Revenue Goals

There is no organic way to fill the gap for their FY25 revenue target.

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 treatment; Xofluza, an influenza virus drug; and Tivicay for HIV treatment. It also develops Symproic for opioid-induced constipation treatment; S-120083 for Inflammatory pain; S-010887 for Neuropathic pain; S-117957 for Insomnia; sivopixant for Neuropathic pain, Sleep Apnea Syndrome, and Refractory/unexplainedchronic cough; S-637880 for Neuropathic Low Back Pain; Zuranolone for Depression; SDT-001 for attention-deficit/hyperactivity disorder patients; BPN14770 for Fragile X syndrome and Alzheimer's disease; and S-237648 and S-309309 for Obesity. In addition, the company develops ADR-001 for Decompensated liver cirrhosis; S-723595 for NASH; S-588410 for Esophageal and Bladder cancer; S-488210 for Head and neck squamouscell carcinoma; S-588210 for Solid tumor; S-222611 for Malignant tumor; S-770108 for Idiopathic pulmonary fibrosis; SR-0379 for Cutaneous ulcer; S-005151 for Stroke and Epidermolysis bullosa; S-531011 for Solid tumor; S-0373 for Spinocerebellar ataxia; and S-600918 and S-217622 for COVID-19, as well as S-555739 for Control of the aggravation of COVID-19. Further, it offers antibody test kits for COVID-19. Shionogi & Co., Ltd. has collaboration agreements with Nagasaki University, the National Institute of Infectious Diseases, and The Kitasato University to develop antimalarial drugs. The company was formerly known as Shionogi Shoten Co., Ltd. and changed its name to Shionogi & Co., Ltd. in 1943. Shionogi & Co., Ltd. was founded in 1878 and is headquartered in Osaka, Japan.

How the Company Makes Money

Shionogi & Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include prescription medications, particularly those targeting infectious diseases such as HIV and influenza, which are a significant focus due to Shionogi's expertise in antiviral therapies. Additionally, Shionogi earns income from over-the-counter products and diagnostics. Partnerships and collaborations with other pharmaceutical companies and research institutions also contribute to its earnings, enabling Shionogi to expand its research capabilities and market reach. Licensing agreements for its proprietary technologies and joint ventures further enhance its revenue potential. The company's strategic focus on innovation and expanding its international presence supports its financial growth.

Shionogi & Co Financial Statement Overview

Summary

Shionogi & Co demonstrates a strong financial profile with consistent revenue growth, high profitability margins, and a stable balance sheet with low leverage. Effective cash flow management enhances its financial resilience and positions it well for future growth, though there is potential for operational efficiency and asset utilization optimization.

Income Statement

Shionogi & Co has demonstrated strong financial performance with a consistent increase in revenue, achieving a revenue growth rate from the previous year. The company maintains robust profitability with a high gross profit margin and a notable net profit margin. EBIT and EBITDA margins are also strong, indicating efficient cost management. However, slight fluctuations in EBIT indicate potential areas for operational improvements.

Balance Sheet

The balance sheet reveals a solid financial position with a low debt-to-equity ratio, reflecting prudent financial management and low leverage risk. The return on equity is impressive, showcasing effective utilization of shareholder funds. The equity ratio is high, indicating substantial equity financing, which enhances financial stability. Despite these strengths, the high stockholders' equity relative to total assets suggests room for optimizing asset utilization.

Cash Flow

Shionogi & Co's cash flow statement highlights strong cash generation capabilities, with significant free cash flow growth. The operating cash flow to net income ratio is robust, reflecting effective conversion of accounting profits to cash. The free cash flow to net income ratio further underscores the company's capability to generate cash exceeding net income. These metrics indicate solid liquidity and financial flexibility.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
438.27B	435.08B	426.68B	335.14B	297.18B
	Gross Profit
370.26B	369.09B	364.44B	279.72B	244.65B
	EBIT
159.78B	171.46B	160.55B	110.31B	117.44B
	EBITDA
230.71B	186.70B	176.41B	143.42B	158.67B
	Net Income Common Stockholders
170.43B	162.03B	184.97B	114.19B	111.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
374.80B	358.09B	563.36B	465.18B	418.32B
	Total Assets
1.54T	1.42T	1.31T	1.15T	998.99B
	Total Debt
21.88B	11.62B	9.41B	6.67B	7.99B
	Net Debt
-352.91B	-346.47B	-299.81B	-247.75B	-268.19B
	Total Liabilities
172.85B	164.36B	189.92B	157.32B	134.44B
	Stockholders Equity
1.36T	1.24T	1.10T	975.66B	846.11B
Cash Flow		Free Cash Flow
178.33B	126.02B	140.68B	70.50B	76.09B
	Operating Cash Flow
195.46B	154.28B	177.87B	102.07B	109.04B
	Investing Cash Flow
-129.07B	5.92B	-48.29B	-96.20B	-5.26B
	Financing Cash Flow
-51.92B	-126.85B	-84.12B	-36.62B	-43.89B

Shionogi & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2515.50
• 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:4507, the sentiment is Positive. The current price of 2515.5 is above the 20-day moving average (MA) of 2373.27, above the 50-day MA of 2342.68, and above the 200-day MA of 2201.24, indicating a bullish trend. The MACD of 44.60 indicates Negative momentum. The RSI at 69.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4507.

Shionogi & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	80 Outperform	$2.19T	12.44	12.99%	2.67%	0.73%	7.75%
Sector *	54 Neutral	$5.37B	3.35	-45.10%	2.79%	16.77%	-0.01%
DNPUF		$2.48B	16.99	13.50%	―	―	―
ESALF		$7.81B	25.73	5.34%	3.86%	―	―
HTSUF		$2.30B	14.93	7.90%	0.01%	―	―
TKPHF		$47.69B	65.73	1.50%	4.42%	―	―
TSMRF		$1.80B	10.69	11.16%	3.01%	―	―

Shionogi & Co Corporate Events

Shionogi Amends Tender Offer for Torii Amid Patent Lawsuit

Shionogi & Co., Ltd. announced an amendment to its tender offer for shares of Torii Pharmaceutical Co., Ltd. due to a patent infringement lawsuit involving Torii’s oral antipruritus medication, REMITCH®. Despite the legal proceedings, Torii’s stance on the tender offer remains unchanged, as the financial implications of the lawsuit are still uncertain.

The most recent analyst rating on (JP:4507) stock is a Hold with a Yen2750.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi’s Naldemedine Gains Approval in China for Opioid-Induced Constipation

Shionogi & Co., Ltd. announced the acceptance of its New Drug Application for naldemedine, a treatment for opioid-induced constipation, in China. This approval is expected to enhance pain management options in China, where current treatments are limited, and improve the quality of life for patients. The drug, already available in several regions, demonstrated significant efficacy in a Phase III trial in China. Following approval, Shionogi China Co., Ltd. will handle sales through an exclusive agreement with Chia Tai Tianqing Pharmaceutical Group Co., Ltd., potentially boosting Shionogi’s market presence and revenue in China.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Amends Tender Offer for Torii Pharmaceutical Shares

Shionogi & Co., Ltd. has announced amendments to its tender offer for shares of Torii Pharmaceutical Co., Ltd., following a notice from the Japan Fair Trade Commission. These amendments, which do not alter the terms of purchase, are necessary to update the Tender Offer Statement and ensure compliance with regulatory requirements, reflecting the company’s commitment to adhere to legal standards in its acquisition efforts.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Proposes Governance Structure Overhaul to Enhance Strategic Oversight

Shionogi & Co., Ltd. announced its decision to propose amendments to its Articles of Incorporation at the upcoming Annual General Meeting of Shareholders. The amendments aim to transition the company to a structure with an Audit and Supervisory Committee, enhancing corporate governance and facilitating strategic decision-making. This move is expected to strengthen oversight, promote globalization, and support business model transformation, potentially impacting the company’s operational efficiency and stakeholder engagement.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3100.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi & Co. Reports Fiscal Year 2024 Financial Results with Positive Outlook

Shionogi & Co., Ltd. reported its consolidated financial results for the fiscal year 2024, showing a slight increase in revenue and operating profit compared to the previous year. The company conducted a 3-for-1 stock split effective October 2024, which impacted earnings per share calculations. Despite a decline in comprehensive income, the company forecasts significant growth in revenue and profit for the fiscal year ending March 2026, indicating a positive outlook for stakeholders.

Shionogi Announces Tender Offer to Acquire TORII Pharmaceutical

Shionogi & Co., Ltd. has announced the commencement of a tender offer to acquire all shares of TORII PHARMACEUTICAL CO., LTD., aiming to make it a wholly-owned subsidiary. This strategic move is part of a broader transaction involving stock consolidation and capital restructuring, which is expected to enhance Shionogi’s market position and operational capabilities by integrating TORII’s resources and expertise.

Shionogi Expands Pharmaceutical Capabilities with Strategic Acquisitions

Shionogi & Co., Ltd. announced a strategic move to acquire the pharmaceutical business of Japan Tobacco Inc. and make Akros Pharma Inc. a sub-subsidiary, enhancing its capabilities in small molecule drug discovery. This transaction aligns with Shionogi’s vision of creating a new healthcare platform and aims to accelerate the development of innovative drugs, strengthen its global market position, and contribute to global health by delivering advanced pharmaceuticals.

Shionogi & Co. Increases Dividend Forecasts Amid Strong Market Performance

Shionogi & Co. announced an increase in its dividend forecasts for the fiscal year ending March 31, 2025, reflecting its commitment to shareholder returns and corporate value growth. The company has achieved revenue stability in its domestic market through its respiratory infection treatments and is expanding its global presence with Cefiderocol. Additionally, Shionogi is advancing its COVID-19 treatment, Ensitrelvir, through clinical trials and regulatory discussions, while benefiting from increased royalties from its HIV franchise. The dividend increase is part of Shionogi’s strategy to enhance shareholder value, supported by its strong financial performance and strategic investments.

Shionogi Submits NDA for COVID-19 Antiviral Ensitrelvir to FDA

Shionogi & Co., Ltd. has initiated a rolling submission of a new drug application with the U.S. FDA for its oral antiviral ensitrelvir, intended for post-exposure prophylaxis of COVID-19. This submission follows positive results from the SCORPIO-PEP Phase 3 study, which demonstrated the drug’s efficacy in preventing symptomatic COVID-19. If approved, ensitrelvir would be the first orally-administered option for post-exposure prophylaxis of COVID-19, potentially enhancing Shionogi’s market position and offering a new preventive measure amid decreasing vaccination rates and emerging variants.

Shionogi Seeks Approval for COVID-19 Prophylaxis Drug in Japan

Shionogi & Co., Ltd. has submitted a supplemental New Drug Application in Japan for its oral antiviral drug, ensitrelvir, intended for post-exposure prophylaxis of COVID-19. If approved, it will be the first oral option for this purpose, enhancing Shionogi’s position in the antiviral market. The application is supported by positive results from a Phase 3 study, which demonstrated the drug’s efficacy in preventing COVID-19 in exposed individuals. This development could significantly impact COVID-19 management, offering a new preventive measure amid challenges with vaccination rates and emerging variants.

Shionogi & Co. to Enhance Governance with New Audit and Supervisory Committee

Shionogi & Co., Ltd. announced its decision to transition to a Company with an Audit and Supervisory Committee, aiming to enhance oversight and streamline decision-making processes. This transition, pending shareholder approval, is expected to strengthen the company’s governance structure and support its strategic goals, including globalization and business model transformation, while maintaining a diverse and skilled Board of Directors.

Shionogi’s Ensitrelvir Shows Promise in COVID-19 Prevention

Shionogi & Co., Ltd. announced promising results from its Phase 3 trial of ensitrelvir, an oral antiviral drug, which showed a significant reduction in the risk of developing COVID-19 when used as post-exposure prophylaxis. This development positions ensitrelvir as a potential breakthrough in preventing COVID-19, especially for high-risk individuals, and highlights Shionogi’s commitment to addressing unmet medical needs in infectious disease prevention.