Shionogi & Co (4507) AI Stock Analysis

• Market Cap: $2.15T
• Dividend Yield: 2.54%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.51
• Revenue Growth: 4.48%
• EPS Growth: 11.08%
• Country: JP
• Employees: 4,955
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 51.93
• Shares Outstanding: 889,632,200
• 10 Day Avg. Volume: 2,490,550
• 30 Day Avg. Volume: 2,210,070
• PEG Ratio: 1.47
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 4.36
• P/FCF Ratio: 10.71
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 9.09
• 1Y Price Target: $2,356.63
• Price Target Upside: -5.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥2,821.00 ▲(13.43% Upside)

Shionogi & Co's strong financial performance and optimistic earnings call outlook are the most significant factors driving the stock score. The company's robust profitability, efficient operations, and strategic growth initiatives in the HIV business and drug development contribute positively. However, mixed technical indicators and challenges in certain markets slightly temper the overall score.

Positive Factors

HIV Business Growth

The growth in the HIV business, driven by ViiV's franchise, indicates a strong market position and potential for sustained revenue through royalties.

Advancements in Drug Development

Progress in drug development, such as Ensitrelvir filings, showcases Shionogi's commitment to innovation and long-term growth potential.

Strong Financial Health

High profitability and a stable balance sheet reflect strong financial health, supporting sustainable growth and operational resilience.

Negative Factors

Decline in Domestic and Overseas Business

Declining sales in domestic and overseas markets could impact revenue growth, highlighting challenges in maintaining market share.

Challenges in China

Decreased sales in China suggest difficulties in a key market, potentially affecting long-term international expansion strategies.

R&D Cost Management Concerns

Reduced R&D spending raises concerns about future innovation and growth, potentially impacting the development of new revenue streams.

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 generates revenue primarily through the sale of prescription pharmaceuticals, which constitutes the bulk of its income. The company develops proprietary drugs, often investing heavily in research and development to bring new treatments to market. In addition to direct sales, Shionogi engages in partnerships and collaborations with other pharmaceutical companies and research institutions, which can include licensing agreements and joint ventures. These partnerships often provide upfront payments, milestone payments based on development progress, and royalties on sales of partnered products. Furthermore, Shionogi's OTC product lines contribute to its revenue, allowing the company to diversify its income streams. The company's focus on global expansion, particularly in emerging markets, and its commitment to addressing unmet medical needs also play significant roles in driving future earnings.

Shionogi & Co Financial Statement Overview

Summary

Shionogi & Co exhibits 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, positioning it well for future growth. However, there is potential for further optimization in operational efficiency and asset utilization.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	440.46B	438.27B	435.08B	426.68B	335.14B	297.18B
Gross Profit	376.77B	370.26B	377.48B	364.44B	279.72B	244.65B
EBITDA	217.10B	230.71B	217.81B	176.41B	143.42B	158.67B
Net Income	179.15B	170.43B	162.03B	184.97B	114.19B	111.86B
Balance Sheet
Total Assets	1.54T	1.54T	1.42T	1.31T	1.15T	998.99B
Cash, Cash Equivalents and Short-Term Investments	254.83B	374.80B	358.09B	309.22B	254.42B	276.17B
Total Debt	21.69B	21.88B	11.62B	9.41B	6.67B	7.99B
Total Liabilities	159.80B	172.85B	164.36B	189.92B	157.32B	134.44B
Stockholders Equity	1.38T	1.36T	1.24T	1.10T	975.66B	846.11B
Cash Flow
Free Cash Flow	184.32B	178.33B	126.02B	140.68B	70.50B	76.09B
Operating Cash Flow	203.00B	195.46B	154.28B	177.87B	102.07B	109.04B
Investing Cash Flow	-168.89B	-129.07B	5.92B	-48.29B	-96.20B	-5.26B
Financing Cash Flow	-56.47B	-51.92B	-126.85B	-84.12B	-36.62B	-43.89B

Shionogi & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2487.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 2487 is above the 20-day moving average (MA) of 2483.90, below the 50-day MA of 2545.59, and above the 200-day MA of 2380.56, indicating a neutral trend. The MACD of -25.19 indicates Negative momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 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	―	$2.15T	11.39	12.22%	2.54%	4.48%	11.08%
4530	―	¥286.82B	14.95	7.11%	2.60%	3.53%	38.23%
4523	―	$1.28T	25.44	5.96%	3.49%	9.43%	56.53%
4540	―	¥267.78B	10.60	9.09%	3.80%	14.60%	8.97%
4506	―	$688.11B	36.40	10.94%	―	26.28%	―
4502	―	¥6.71T	49.34	1.99%	4.56%	1.52%	-8.68%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shionogi & Co Corporate Events

Shionogi & Co. Reports Steady Q2 Earnings Amid Strategic Expansion

Shionogi & Co., Ltd. is a Japanese pharmaceutical company primarily engaged in the research, development, and distribution of prescription drugs, with a focus on infectious diseases and innovative healthcare solutions.

Shionogi & Co. Adopts New Management Policies to Enhance Capital and Stock Awareness

Shionogi & Co., Ltd. has announced new management policies aimed at enhancing their awareness of capital costs and stock prices, following a Board of Directors meeting. This strategic move is expected to influence the company’s operational focus and potentially impact its market positioning and stakeholder interests.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2770.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Reports Mixed Q2 FY 2025 Results Amid Revenue Challenges

Shionogi & Co., Ltd. reported its financial results for the second quarter of FY 2025, showing a slight decrease in revenue by 0.5% to 213 billion yen. The company experienced a decline in prescription drug sales, particularly in the acute respiratory virus infection treatment segment, which saw a 65.1% drop. However, this was partially offset by an increase in royalty income, which rose by 6.4%. The company also noted an increase in sales-related expenses in the U.S. and costs associated with making Torii Pharmaceutical Co., Ltd. a wholly-owned subsidiary. Despite these challenges, Shionogi revised its FY 2025 forecast, indicating a cautious yet optimistic outlook for the remainder of the fiscal year.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2770.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi & Co. Reports Q2 2025 Financial Results and Strategic Expansion

Shionogi & Co., Ltd. reported its consolidated financial results for the second quarter of fiscal year 2025, showing a slight decrease in revenue and operating profit compared to the same period last year. Despite these declines, the company experienced growth in profit before tax and comprehensive income, indicating a positive financial trajectory. The company also announced a revision in its financial forecast for the year ending March 31, 2026, with expectations of increased revenue and profit. The inclusion of Torii Pharmaceutical Co., Ltd. as a subsidiary marks a strategic expansion in Shionogi’s operations, potentially enhancing its market position and offering new opportunities for growth.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2770.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi & Co. Announces Merger with Shionogi Pharma to Strengthen Supply Chain

Shionogi & Co., Ltd. has announced a merger with its wholly owned subsidiary, Shionogi Pharma Co., Ltd., effective April 1, 2027. This strategic move aims to enhance the company’s production and supply chain resilience in response to changing geopolitical and regulatory environments, particularly in the infectious disease sector.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2770.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi to Acquire Japan Tobacco’s Pharmaceutical Business

Shionogi & Co., Ltd. has entered into an absorption-type company split agreement with Japan Tobacco Inc. to acquire its pharmaceutical business. This strategic move, effective December 25, 2025, aims to enhance Shionogi’s market position by integrating Japan Tobacco’s pharmaceutical operations, potentially impacting stakeholders by expanding Shionogi’s product offerings and market reach.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2900.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

FDA Reviews Shionogi’s Ensitrelvir as First Oral COVID-19 Preventive Therapy

Shionogi & Co., Ltd. announced that the FDA has accepted the New Drug Application for ensitrelvir, an investigational oral antiviral for preventing COVID-19 following exposure. If approved, it would be the first oral therapy of its kind in the U.S., potentially enhancing Shionogi’s position in the infectious disease market. The application is supported by successful Phase 3 trial results, and the drug is already approved in Japan and Singapore for COVID-19 treatment.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2919.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Completes Acquisition of TORII PHARMACEUTICAL as Wholly-Owned Subsidiary

Shionogi & Co., Ltd. announced the successful acquisition of TORII PHARMACEUTICAL CO., LTD., making it a wholly-owned subsidiary. This strategic move, completed through a series of transactions including a tender offer and stock consolidation, positions Shionogi to strengthen its market presence and operational capabilities in the pharmaceutical sector.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen2919.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi & Co. Reports Strong Q1 Earnings Amid Strategic Growth

The recent earnings call for Shionogi & Co. painted a generally positive picture of the company’s financial health and strategic direction. The first quarter of fiscal year 2025 showed significant increases in revenue and profit metrics, driven by strong growth in the HIV business and successful strategic M&A activities. Despite facing challenges in domestic and overseas markets, particularly in China, and a decrease in R&D spending, the overall sentiment was optimistic, with the positives outweighing the negatives.

Shionogi & Co. Reports Strong Q1 2025 Earnings Growth

Shionogi & Co., Ltd. is a Japanese pharmaceutical company primarily engaged in the research, development, and distribution of prescription drugs. The company is known for its focus on infectious diseases and innovative drug formulations.