Shionogi & Co (4507) AI Stock Analysis

• Market Cap: ¥3.22T
• Dividend Yield: 2.22%
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 16.0
• 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): 87.76
• Shares Outstanding: 889,632,200
• 10 Day Avg. Volume: 2,991,150
• 30 Day Avg. Volume: 2,559,626
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,700.00
• Price Target Upside: 0.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 226.15
• Revenue Forecast (FY): ¥499.52B

• Rating: 84 Outperform
• Price Target: ¥4,287.00 ▲(58.95% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by strong financial performance (excellent profitability, very conservative balance sheet, and solid cash generation). Technicals also support the rating with a clear uptrend, though momentum is somewhat extended. Valuation is reasonable with a mid-teens P/E and ~2% yield but is not especially compelling on its own.

Positive Factors

High profitability

A persistently high net margin (~42%) and strong gross/operating margins indicate durable pricing power and attractive product economics typical of specialty pharma. This margin strength supports reinvestment in R&D, funds licensing/partner deals, and cushions returns through product cycles over the next several months.

Conservative balance sheet

Very low leverage and a large equity base provide strong financial flexibility for sustained R&D, potential M&A, and to absorb patent cliffs or competitive shocks. Conservative capital structure lowers refinancing risk and supports stable investment capacity over a multi-month horizon.

Solid cash generation

Free cash flow close to net income (~0.92x) shows high earnings quality and reliable cash conversion. Strong operating cash supports ongoing clinical programs, manufacturing commitments, and partner milestone absorption, enhancing sustainability of operations and strategic optionality over coming quarters.

Negative Factors

Inconsistent revenue growth

Mid-single-digit TTM revenue growth coupled with historical inconsistency reduces visibility into long-term top-line momentum. For a specialty pharmaceutical firm, inconsistent launches or variable partner payouts can make future revenue and investment planning less predictable across the next 2–6 months.

Declining free cash flow momentum

A year-over-year decline in TTM free cash flow and weaker cash conversion signal potential near-term pressure on internal funding for R&D or capital projects. If sustained, this could force greater reliance on licensing, milestone timing, or external financing, affecting strategic flexibility.

Softening operating profit & ROE

Operating profit weakening despite higher revenue and a declining ROE imply either rising costs or lower capital efficiency. This erosion reduces the company's margin resilience and return on shareholder capital, potentially constraining sustained improvement in profitability over the medium term.

Shionogi & Co Business Overview & Revenue Model

Company Description

Shionogi & Co., Ltd. is a Japanese pharmaceutical company founded in 1878, primarily engaged in the research, development, manufacturing, and marketing of pharmaceuticals. The company operates in various sectors, including prescription pharmaceuticals, over-the-counter (OTC) products, and diagnostic services. Shionogi's core products focus on infectious diseases, pain management, and central nervous system disorders, with a strong emphasis on innovation and the development of new therapies.

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

High-quality fundamentals: very strong profitability (net margin ~42%), extremely low leverage (debt-to-equity ~0.03), and strong cash generation with solid earnings quality (FCF ~0.92x net income). Offsets are uneven growth, some softening in operating profit versus the prior annual period, and a year-over-year decline in TTM free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) results show very strong profitability, with high gross and operating margins and a robust net margin (~42%). Revenue growth is positive in TTM (mid-single digits), indicating continued top-line momentum. The main drawback is that growth has been inconsistent across years (from very strong growth earlier to low growth more recently), and operating profit softened versus the prior annual period despite higher revenue.

Balance Sheet

The balance sheet is conservatively positioned with extremely low leverage (debt-to-equity roughly ~0.03 in TTM (Trailing-Twelve-Months)) and a large equity base. Returns on equity are solid (~12–13% in recent periods), indicating the company is generating healthy earnings relative to shareholder capital. A potential watch item is that ROE has eased from earlier highs, suggesting profitability or capital efficiency is not improving at the same pace as the balance sheet is expanding.

Cash Flow

Cash generation is strong: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both high, and free cash flow is close to net income (roughly ~0.92x), supporting earnings quality. However, TTM free cash flow declined year over year (negative growth), and cash conversion from operations is lower than the most recent annual period, indicating some near-term volatility in cash flow momentum.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	465.35B	438.27B	435.08B	426.68B	335.14B	297.18B
Gross Profit	391.25B	370.26B	377.48B	364.44B	279.72B	244.65B
EBITDA	252.43B	230.71B	217.81B	176.41B	143.42B	158.67B
Net Income	194.86B	170.43B	162.03B	184.97B	114.19B	111.86B
Balance Sheet
Total Assets	1.73T	1.54T	1.42T	1.31T	1.15T	998.99B
Cash, Cash Equivalents and Short-Term Investments	215.59B	374.80B	358.09B	309.22B	254.42B	276.17B
Total Debt	40.69B	21.88B	11.62B	9.41B	6.67B	7.99B
Total Liabilities	213.60B	172.85B	164.36B	189.92B	157.32B	134.44B
Stockholders Equity	1.51T	1.36T	1.24T	1.10T	975.66B	846.11B
Cash Flow
Free Cash Flow	183.32B	178.33B	126.02B	140.68B	70.50B	76.09B
Operating Cash Flow	199.39B	195.46B	154.28B	177.87B	102.07B	109.04B
Investing Cash Flow	-232.92B	-129.07B	5.92B	-48.29B	-96.20B	-5.26B
Financing Cash Flow	-60.60B	-51.92B	-126.85B	-84.12B	-36.62B	-43.89B

Shionogi & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2697.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 2697 is below the 20-day moving average (MA) of 3518.85, below the 50-day MA of 3156.48, and above the 200-day MA of 2688.54, indicating a bullish trend. The MACD of 150.03 indicates Positive momentum. The RSI at 74.04 is Negative, neither overbought nor oversold. The STOCH value of 81.79 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	84 Outperform	¥3.22T	16.00	12.22%	2.22%	4.48%	11.08%
4516	77 Outperform	¥346.47B	11.61	―	2.12%	4.07%	22.59%
4530	73 Outperform	¥439.97B	21.79	7.11%	2.43%	3.53%	38.23%
4523	68 Neutral	¥1.48T	34.57	5.75%	3.51%	6.79%	22.14%
4502	65 Neutral	¥9.22T	80.61	0.54%	4.11%	-2.84%	-88.29%
4506	62 Neutral	$1.00T	9.11	79.99%	―	29.92%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shionogi & Co Corporate Events

Shionogi Seeks Japan Approval for New CORECTIM Lotion for Atopic Dermatitis

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 ointment form is already approved for adults, children, and infants, and the lotion aims to offer easier application, particularly on the scalp and other hairy areas where ointments are less practical.

The approval bid is supported by positive Phase 1 skin safety data and a Phase 3 bioequivalence study showing comparable safety and bioequivalence to the current 0.5% ointment. If approved, the lotion is expected to improve treatment adherence and quality of life for patients with this chronic inflammatory skin disease, reinforcing Shionogi and Torii’s positioning in the atopic dermatitis market while complementing global commercialization of delgocitinib through LEO Pharma under the Anzupgo brand.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen4247.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi to Absorb Torii Pharmaceutical in 2027 to Boost Domestic Pharma Synergies

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 tender offer that led to Torii’s full ownership and aims to deepen integration, accelerate unified decision-making, and maximize synergies, particularly in allergy and dermatology, to expand patient reach and reinforce the stability of its domestic pharmaceutical operations.

Under the planned structure, Torii Pharmaceutical, which specializes in the manufacture and sale of pharmaceutical products, will be absorbed without issuing new shares or providing other consideration, as it is already fully owned by Shionogi. By consolidating Torii’s expertise in areas with significant unmet medical needs and relatively stable demand, Shionogi expects to enhance its ability to deliver core products, strengthen medical information and promotional activities, and bolster its long-term competitive position in the Japanese pharmaceutical market.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen4031.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Delivers Double-Digit Profit Growth and Confirms FY2026 Outlook

Shionogi reported solid growth for the nine months ended 31 December 2025, with revenue up 8.1% year-on-year to ¥360.7 billion and operating profit rising 15.1% to ¥148.7 billion. Profit attributable to owners of the parent climbed 18.3% to ¥158.2 billion, lifting basic earnings per share to ¥185.95, calculated to reflect a 3-for-1 stock split implemented in October 2024. The company’s financial position remained strong, with total assets of ¥1.73 trillion and an equity ratio of 87.6%, while it maintained its dividend stance, confirming an annual payout forecast of ¥66 per share for the year ending March 31, 2026. Shionogi left its full-year guidance unchanged, targeting revenue of ¥500 billion and profit attributable to owners of the parent of ¥188 billion, and it expanded its consolidation scope by newly including Torii Pharmaceutical as a subsidiary, a move that may strengthen its product base and domestic market presence.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3466.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Lifts Revenue and Profit on Royalty Growth and Overseas Expansion

Shionogi reported consolidated revenue of ¥360.7 billion for April–December FY2025, up 8.1% year on year, driven primarily by higher royalty income, growth in prescription drug sales, and contributions from overseas subsidiaries and exports, despite a decline in acute respiratory viral infection treatments. Operating profit rose 15.1% to ¥148.7 billion and profit attributable to owners of the parent increased 18.3% to ¥158.2 billion, supported by the consolidation of Torii Pharmaceutical, increased sales-related investment in the U.S., and higher dividends from its HIV partner ViiV, with core operating profit and EBITDA remaining broadly stable.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3466.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Boosts Stake in ViiV Healthcare as Pfizer Exits Joint HIV Venture

GSK, Pfizer and Shionogi have agreed to restructure their holdings in HIV-focused ViiV Healthcare, with Shionogi replacing Pfizer’s 11.7% economic interest and increasing its own stake to 21.7%, while GSK retains a 78.3% majority position. Under the deal, ViiV will issue new shares to Shionogi for $2.125 billion, cancel Pfizer’s stake, and pay $1.875 billion to Pfizer and a $250 million special dividend to GSK, simplifying ViiV’s shareholder structure and reinforcing Shionogi’s strategic role in advancing ViiV’s long-acting injectable HIV treatments and prevention portfolio, subject to regulatory approvals expected to be completed in the first quarter of 2026.

The most recent analyst rating on (JP:4507) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Buys Global RADICAVA Rights in $2.5 Billion ALS Drug Deal to Build Rare Disease Platform

Shionogi has agreed to acquire from Tanabe Pharma the global rights and assets for RADICAVA ORS (edaravone) and IV RADICAVA, key treatments for amyotrophic lateral sclerosis, by purchasing 100% of a new Tanabe entity that will hold the business, including a U.S. subsidiary that will become wholly owned by Shionogi Inc. The USD 2.5 billion deal, expected to close on or after April 1, 2026 and to be accretive from FY26 with around USD 700 million in annual global sales, will establish a dedicated rare disease commercial platform in the U.S., integrate specialized talent, and provide infrastructure to accelerate commercialisation of Shionogi’s broader rare disease pipeline while having minimal impact on results for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3015.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.

Shionogi Wins Japan Approval for Rapid-Acting Depression Drug ZURZUVAE

Shionogi has received Japanese regulatory approval to manufacture and market ZURZUVAE Capsules 30 mg (zuranolone) for the treatment of depression and depressive states, following positive Phase 3 trial results in adults with major depressive disorder. The novel oral GABA-A receptor modulator demonstrated rapid symptom improvement, sustained efficacy and safety over a 14-day dosing regimen, and effectiveness upon re-treatment after a drug-free interval, positioning it to address a significant unmet need in Japan, where an estimated 5 million people live with depression and many existing antidepressants have slow onset of action. By adding ZURZUVAE to its central nervous system portfolio, Shionogi aims to help shift the treatment paradigm in depression and reinforce its strategic goal of contributing to longer, healthier, and more fulfilling lives, potentially strengthening its presence in mental health therapeutics and its competitiveness in the CNS drug market.

The most recent analyst rating on (JP:4507) stock is a Buy with a Yen3015.00 price target. To see the full list of analyst forecasts on Shionogi & Co stock, see the JP:4507 Stock Forecast page.