Shionogi & Co (4507) AI Stock Analysis

• Market Cap: $2.13T
• Dividend Yield: 2.37%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.51
• Revenue Growth: 0.73%
• EPS Growth: 7.75%
• Country: JP
• Employees: 4,955
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 43.06
• Shares Outstanding: 889,632,200
• 10 Day Avg. Volume: 1,955,100
• 30 Day Avg. Volume: 2,305,093
• PEG Ratio: 10.56
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.88
• 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: $2,461.16
• Price Target Upside: -1.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ¥2,713.00 ▲(8.76%Upside)

Shionogi & Co receives a strong stock score, primarily driven by its excellent financial performance and stable valuation. The technical analysis indicates a positive trend but suggests caution due to overbought signals. The absence of earnings call data and corporate events did not impact the evaluation.

Positive Factors

Acquisition Benefits

The acquisition of JT Pharma enhances drug discovery research capabilities and capacity for Shionogi.

Cost Management

Shionogi signals potential for lower costs and improved operating profit with tighter expense management.

Market Competition

Cabenuva is expected to enjoy competition-free status in the HIV long-acting treatment market for several years.

Negative Factors

Financial Performance

Shionogi's FY24 top and bottom lines missed consensus and guidance expectations.

Regulatory and Sales Challenges

Xocova's potential remains uncertain with domestic sales not growing and regulatory path outside Japan stalled.

Revenue Growth Challenges

There is no organic way to fill the gap for Shionogi's FY25 revenue target.

Shionogi & Co Business Overview & Revenue Model

Company Description

Shionogi & Co., Ltd. is a leading pharmaceutical company based in Japan, primarily engaged in the research, development, manufacture, and sale of pharmaceutical products. The company operates in various sectors, including prescription drugs, over-the-counter medications, and diagnostic agents. Shionogi is known for its expertise in infectious diseases, pain management, and cardiovascular treatments, with a strong emphasis on innovation and addressing unmet medical needs.

How the Company Makes Money

Shionogi & Co. generates revenue primarily through the sale of its pharmaceutical products, which include both prescription and over-the-counter medications. The company's key revenue streams are derived from its proprietary drugs, particularly in areas such as infectious diseases and pain management. Shionogi also engages in strategic partnerships and collaborations with other pharmaceutical companies and research institutions, which can provide additional revenue through licensing agreements and joint development projects. The company invests heavily in research and development to sustain its pipeline of new drugs, ensuring a continuous flow of innovative products to the market. Additionally, Shionogi may earn income from royalties, milestone payments, and other financial arrangements related to its patented drugs and technology.

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
EBITDA	230.71B	186.70B	176.41B	143.42B	158.67B
Net Income	170.43B	162.03B	184.97B	114.19B	111.86B
Balance Sheet
Total Assets	1.54T	1.42T	1.31T	1.15T	998.99B
Cash, Cash Equivalents and Short-Term Investments	374.80B	358.09B	563.36B	465.18B	418.32B
Total Debt	21.88B	11.62B	9.41B	6.67B	7.99B
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: 2494.50
• 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:4507, the sentiment is Positive. The current price of 2494.5 is below the 20-day moving average (MA) of 2501.75, above the 50-day MA of 2444.26, and above the 200-day MA of 2255.94, indicating a neutral trend. The MACD of 2.46 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 36.14 is Neutral, 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	$2.13T	12.10	12.99%	2.37%	0.73%	7.75%
4530	73 Outperform	¥288.64B	14.79	7.24%	2.28%	6.49%	38.42%
4540	69 Neutral	¥275.96B	8.44	11.16%	3.77%	20.05%	94.28%
4506	67 Neutral	¥411.99B	17.43	13.50%	―	26.79%	―
4523	67 Neutral	¥1.08T	23.40	5.34%	4.18%	6.42%	10.82%
4502	66 Neutral	$6.74T	62.25	1.50%	4.61%	7.45%	-25.77%
Sector *	47 Neutral	C$200.31M	-3.37	-23.14%	1.85%	20.75%	-0.36%

Shionogi & Co Corporate Events

Shionogi Completes Disposal of Treasury Shares for Compensation Plan

Shionogi & Co., Ltd. has completed the disposal of 200,400 treasury shares as part of a restricted stock compensation plan, with a total value of approximately ¥500 million. This move is aimed at aligning the interests of directors and officers with the company’s performance, potentially impacting the company’s governance and stakeholder relations.

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 Expands COVID-19 Drug Use to Younger Patients

Shionogi & Co., Ltd. has submitted a supplemental New Drug Application in Japan to expand the use of its oral antiviral drug, ensitrelvir, for treating COVID-19 in pediatric patients aged 6 years and older. This move follows positive Phase 3 study results showing the drug’s safety and efficacy in children, and if approved, it will address the unmet need for oral antiviral treatments in this age group. Ensitrelvir, also known as Xocova® in some markets, has already received emergency and full regulatory approval in Japan and is under review in other regions. The drug has shown promising results in preventing symptomatic COVID-19 in post-exposure scenarios, marking a significant step in Shionogi’s efforts to strengthen its position in the antiviral market.

The most recent analyst rating on (JP:4507) stock is a Hold with a Yen7400.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Completes Tender Offer for Torii Pharmaceutical Shares

Shionogi & Co., Ltd. announced the successful completion of its tender offer for shares of Torii Pharmaceutical Co., Ltd., which will become an equity-method affiliate of Shionogi as of June 25, 2025. This acquisition is expected to enhance Shionogi’s market position and expand its influence in the pharmaceutical industry, potentially impacting stakeholders by increasing the company’s operational scope and strategic capabilities.

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 Announces Treasury Shares Disposal for Compensation Plan

Shionogi & Co., Ltd. announced the disposal of 200,400 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and corporate officers to enhance corporate value. This move, approved by the Board of Directors, aligns with the company’s strategy to promote shared values with shareholders and adapt its governance structure, potentially impacting its market positioning and stakeholder relations.

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 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.