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Shionogi & Co
(4507)
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Rating:73Outperform
Price Target:
¥3,232.00
▲(11.35% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by very strong profitability and solid TTM revenue growth, supported by reasonable valuation (P/E ~12.1 and ~2.44% yield). The main constraint is higher recent leverage and weaker cash-flow coverage of debt, while technicals are mixed with the stock below longer-term moving averages.
Positive Factors
High profitability
Sustained very high gross and net margins (circa 82% and 41%) indicate durable pricing power and a favorable product mix in specialty pharmaceuticals. High margins support ongoing R&D funding, partnership leverage and internal investment, improving long‑term resilience to cost cycles.
Negative Factors
Rising leverage
A material increase in leverage versus prior years alters the capital structure and reduces financial flexibility. Higher debt raises interest exposure and constrains strategic optionality (M&A, licensing), elevating execution risk if operating cash flows soften or reimbursement pressure intensifies.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained very high gross and net margins (circa 82% and 41%) indicate durable pricing power and a favorable product mix in specialty pharmaceuticals. High margins support ongoing R&D funding, partnership leverage and internal investment, improving long‑term resilience to cost cycles.
Read all positive factors
Shionogi & Co (4507) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.56T
Dividend Yield2.44%
Average Volume (3M)2.56M
Price to Earnings (P/E)12.1
Beta (1Y)0.49
Revenue Growth14.01%
EPS Growth20.33%
CountryJP
Employees6,223
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)309.64
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
¥3,400.00Price Target Upside17.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)249.66
Revenue Forecast (FY)¥699.35B
Shionogi & Co Business Overview & Revenue Model
Company Description
Shionogi & Co., Ltd. (4507) is a Japan-based research-driven pharmaceutical company that discovers, develops, manufactures, and commercializes prescription medicines. The company’s business is centered on ethical pharmaceuticals, with a portfolio ...
How the Company Makes Money
Shionogi primarily makes money by developing and selling prescription pharmaceuticals and by monetizing its drug intellectual property through partnerships.
1) Product sales (branded prescription medicines)
- Core revenue comes from selling its p...
Shionogi & Co Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 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
92
Very Positive
Balance Sheet
60
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 563.21B | 499.68B | 438.27B | 435.08B | 426.68B | 335.14B |
| Gross Profit | 440.84B | 411.13B | 374.44B | 377.48B | 364.44B | 279.72B |
| EBITDA | 281.45B | 274.49B | 180.26B | 186.70B | 176.41B | 127.02B |
| Net Income | 263.50B | 205.16B | 170.44B | 162.03B | 184.97B | 114.19B |
Balance Sheet | ||||||
| Total Assets | 2.66T | 2.58T | 1.54T | 1.42T | 1.31T | 1.15T |
| Cash, Cash Equivalents and Short-Term Investments | 298.94B | 711.40B | 374.80B | 358.09B | 309.22B | 254.42B |
| Total Debt | 684.13B | 684.39B | 21.88B | 11.62B | 9.41B | 6.67B |
| Total Liabilities | 882.29B | 890.66B | 172.85B | 164.35B | 188.66B | 157.05B |
| Stockholders Equity | 1.77T | 1.69T | 1.36T | 1.24T | 1.10T | 975.66B |
Cash Flow | ||||||
| Free Cash Flow | 201.08B | 199.11B | 178.33B | 141.59B | 166.01B | 75.88B |
| Operating Cash Flow | 215.64B | 213.57B | 195.46B | 154.28B | 177.87B | 102.07B |
| Investing Cash Flow | -799.20B | -506.14B | -129.07B | 1.21B | -43.58B | -96.20B |
| Financing Cash Flow | 594.56B | 599.32B | -51.92B | -122.14B | -88.84B | -36.62B |
Shionogi & Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥229.00B | 7.71 | ― | 2.12% | 6.58% | -8.75% | |
73 Outperform | ¥2.56T | 12.06 | 13.65% | 2.45% | 14.01% | 20.33% | |
71 Outperform | ¥1.36T | 35.31 | 4.44% | 3.44% | 4.56% | -16.55% | |
68 Neutral | ¥559.84B | 4.46 | 41.78% | ― | 14.09% | 488.06% | |
64 Neutral | ¥8.80T | 129.50 | 2.61% | 3.54% | 3.10% | -218.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4507
Shionogi & Co
2,810.00
232.17
9.01%
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Shionogi & Co Corporate Events
Shionogi’s Q1 Earnings Surge on Acquisitions, HIV Royalties and Overseas Growth
Aug 3, 2026
Shionogi reported a sharp rise in first-quarter fiscal 2026 revenue to ¥163.3 billion, driven by strong growth in prescription drugs, overseas subsidiaries, and higher royalty income, particularly from its HIV franchise. Consolidation of Tori...
Shionogi’s Q1 FY2026 Profit Surges on Strong Revenue Growth, Full-Year Guidance Intact
Aug 3, 2026
Shionogi reported a sharp improvement in first-quarter fiscal 2026 results, with revenue climbing 63.7% year on year to ¥163.3 billion and operating profit nearly doubling to ¥66.9 billion, driving profit attributable to owners of the pa...
Shionogi Completes Treasury Share Disposal for Restricted Stock Compensation Plan
Jul 23, 2026
Shionogi Co., Ltd. has completed the disposal of 201,300 treasury shares as part of its restricted stock compensation plan, following a decision by its board in late June 2026. The shares, priced at ¥2,819.5 each for a total value of approxi...
Shionogi to Dispose Treasury Shares for Expanded Restricted Stock Compensation Plan
Jun 24, 2026
Shionogi’s board has approved the disposal of 201,300 treasury shares as part of its restricted stock compensation plan for directors, corporate officers and vice presidents, with a disposal price set at ¥2,819.5 per share and a total v...
Shionogi Adopts New Policies to Align Management With Capital Costs and Stock Prices
Jun 24, 2026
Shionogi Co., Ltd. has announced that its Board of Directors has reviewed the company’s current situation and adopted new policies aimed at running the business with greater awareness of capital costs and stock price performance. The move s...
Shionogi Wins Japan Nod for Pediatric Use of COVID-19 Drug XOCOVA
Jun 19, 2026
Shionogi has secured supplemental approval in Japan for pediatric dosing of its COVID-19 drug XOCOVA, extending use to children aged 6 to under 12 years who weigh at least 20 kg and introducing new 25 mg tablets tailored for smaller patients. The ...
Shionogi and F2G Post Positive Phase 3 Results for Novel Antifungal Olorofim
Jun 18, 2026
Shionogi and UK biotech partner F2G reported positive topline results from the global Phase 3 OASIS trial of oral antifungal olorofim in patients with invasive aspergillosis who are refractory to or unsuitable for azole therapy. The study met its ...
Shionogi Wins Early FDA Nod for First Oral Post-Exposure COVID-19 Prophylactic
Jun 1, 2026
Shionogi has secured U.S. FDA approval for XOCOVA (ensitrelvir), the first and only oral antiviral authorized for post-exposure prophylaxis of COVID-19 in adults and adolescents, offering a five-day regimen to help prevent illness after contact wi...
Shionogi Wins FDA Nod for First Oral COVID-19 Post-Exposure Preventive Drug
Jun 1, 2026
Shionogi has secured U.S. FDA approval for XOCOVA (ensitrelvir) as the first and only oral post-exposure prophylaxis treatment to help prevent COVID-19 in adults and adolescents after contact with an infected person. The five-day regimen addresses...
Shionogi Wins China Approval for Naldemedine to Treat Opioid-Induced Constipation
May 29, 2026
Shionogi’s Chinese subsidiary has secured approval from China’s National Medical Products Administration for naldemedine to treat opioid-induced constipation, a frequent and debilitating side effect in cancer and other pain patients th...
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%...
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.