Shionogi & Co (4507) AI Stock Analysis

• Market Cap: ¥2.35T
• Dividend Yield: 2.32%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.54
• 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: 2,874,920
• 30 Day Avg. Volume: 2,504,420
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 216.22
• Revenue Forecast (FY): ¥497.28B

• Rating: 75 Outperform
• Price Target: ¥3,015.00 ▲(11.79% Upside)

Shionogi & Co's strong financial performance, characterized by high profitability margins and a solid balance sheet, is the most significant factor driving the score. The technical analysis supports a generally positive trend, while the valuation indicates a fair market price with a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Profitability Margins

High profitability margins indicate efficient cost management and strong pricing power, supporting long-term financial health and competitive positioning.

Solid Balance Sheet

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities.

Efficient Cash Flow Management

Efficient cash flow management ensures the company can fund operations and investments without relying heavily on external financing.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth may signal challenges in market expansion or product demand, potentially affecting future earnings and market position.

Recent Revenue Growth Concerns

Sustained revenue growth is crucial for long-term success; a decline could impact profitability and strategic initiatives if not addressed.

Potential Sales Growth Slowdown

A slowdown in sales growth may hinder the company's ability to capitalize on market opportunities and maintain its competitive edge.

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

Shionogi & Co exhibits strong financial health with high profitability, efficient operations, and a stable balance sheet. The company is experiencing significant revenue growth, supported by effective cost management and low financial leverage. While cash flow growth has moderated, the company's cash generation capabilities remain robust. Continued monitoring of cost pressures and debt levels is advisable to maintain financial stability.

Income Statement

Shionogi & Co demonstrates strong profitability with a high gross profit margin of 85.54% and a net profit margin of 40.67% for the TTM. The company has shown impressive revenue growth of 50.1% in the TTM, indicating robust expansion. EBIT and EBITDA margins are also healthy at 44.51% and 49.29%, respectively, reflecting efficient operations. However, the slight decline in EBIT margin compared to the previous annual report suggests potential cost pressures.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.0157, indicating minimal leverage and financial risk. Return on equity is strong at 13.32%, showcasing effective use of equity to generate profits. The equity ratio stands at 89.62%, reflecting a stable financial structure with a high proportion of equity financing. However, the slight increase in debt levels over the past year warrants monitoring.

Cash Flow

Cash flow metrics are robust, with a free cash flow to net income ratio of 90.80% and an operating cash flow to net income ratio of 1.73, indicating strong cash generation relative to earnings. Free cash flow growth of 3.36% in the TTM is positive, although it has slowed compared to previous periods. The company's ability to convert income into cash remains a key strength.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	437.26B	438.27B	435.08B	426.68B	335.14B	297.18B
Gross Profit	372.91B	370.26B	377.48B	364.44B	279.72B	244.65B
EBITDA	210.69B	230.71B	217.81B	176.41B	143.42B	158.67B
Net Income	170.84B	170.43B	162.03B	184.97B	114.19B	111.86B
Balance Sheet
Total Assets	1.62T	1.54T	1.42T	1.31T	1.15T	998.99B
Cash, Cash Equivalents and Short-Term Investments	233.86B	374.80B	358.09B	309.22B	254.42B	276.17B
Total Debt	22.70B	21.88B	11.62B	9.41B	6.67B	7.99B
Total Liabilities	176.34B	172.85B	164.36B	189.92B	157.32B	134.44B
Stockholders Equity	1.43T	1.36T	1.24T	1.10T	975.66B	846.11B
Cash Flow
Free Cash Flow	191.81B	178.33B	126.02B	140.68B	70.50B	76.09B
Operating Cash Flow	208.15B	195.46B	154.28B	177.87B	102.07B	109.04B
Investing Cash Flow	-223.58B	-129.07B	5.92B	-48.29B	-96.20B	-5.26B
Financing Cash Flow	-56.33B	-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: 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 2697 is above the 20-day moving average (MA) of 2691.93, above the 50-day MA of 2594.05, and above the 200-day MA of 2456.42, indicating a neutral trend. The MACD of 20.93 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.68 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
4540	76 Outperform	¥290.12B	10.42	9.05%	3.59%	10.51%	9.62%
4507	75 Outperform	¥2.35T	13.33	12.22%	2.32%	4.48%	11.08%
4523	74 Outperform	$1.28T	25.44	5.75%	3.51%	6.79%	22.14%
4530	73 Outperform	¥305.06B	15.45	7.11%	2.51%	3.53%	38.23%
4506	66 Neutral	$828.16B	5.35	79.99%	―	29.92%	―
4502	66 Neutral	¥7.09T	207.12	0.54%	4.45%	-2.84%	-88.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shionogi & Co Corporate Events

Shionogi Completes Acquisition of Japan Tobacco’s Pharmaceutical Business

Shionogi & Co., Ltd. has successfully completed the acquisition of Japan Tobacco Inc.’s pharmaceutical business and the shares of Akros Pharma Inc., enhancing its market presence and operational capabilities in the pharmaceutical industry. This strategic move is expected to strengthen Shionogi’s position in the healthcare market, potentially offering new opportunities for growth and development in its pharmaceutical operations.

Shionogi Announces Corrections to Q2 2025 Financial Results

Shionogi & Co., Ltd. announced corrections to its Consolidated Financial Results for the second quarter of fiscal year 2025. The corrections involve numerical data related to the number of shares issued and treasury stock, as well as the pro forma information on revenue and profit from a business combination. These adjustments may impact stakeholders’ understanding of the company’s financial performance and projections.

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.

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.

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.

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.

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.