Nippon Shinyaku Co., Ltd. (JP:4516)
:4516
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Nippon Shinyaku Co., Ltd.
(4516)
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Rating:77Outperform
Price Target:
¥5,854.00
▲(3.61% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong financial performance (high profitability, very low leverage, solid free cash flow quality) and supportive valuation (low P/E and reasonable dividend yield). These positives are tempered by weaker near-term technical signals, with the stock trading below key short-term moving averages and negative MACD.
Positive Factors
High profitability
Sustained high gross and net margins indicate durable pricing power and efficient product mix in specialty pharmaceuticals. These margins support reinvestment in R&D and commercialization, enabling continued product lifecycle funding and resilience versus commoditized peers over the next several quarters.
Negative Factors
Volatile cash conversion
Intermittent swings in operating cash and slightly negative recent FCF growth point to working-capital or timing risks that can compress available cash for R&D or capital projects. This variability can complicate multi-quarter planning and makes short-term cash outlook less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained high gross and net margins indicate durable pricing power and efficient product mix in specialty pharmaceuticals. These margins support reinvestment in R&D and commercialization, enabling continued product lifecycle funding and resilience versus commoditized peers over the next several quarters.
Read all positive factors
Nippon Shinyaku Co., Ltd. (4516) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥347.00B
Dividend Yield2.12%
Average Volume (3M)252.03K
Price to Earnings (P/E)9.4
Beta (1Y)0.39
Revenue Growth4.07%
EPS Growth22.59%
CountryJP
Employees2,213
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)149.62
Shares Outstanding70,251,490
10 Day Avg. Volume218,840
30 Day Avg. Volume252,026
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)1.04
Price to Sales (P/S)1.60
P/FCF Ratio7.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)404.75
Revenue Forecast (FY)¥188.33B
Nippon Shinyaku Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Shinyaku Co., Ltd. manufactures and sells pharmaceuticals and foodstuffs in Japan, Switzerland, and internationally. The company operates through Pharmaceuticals and Functional Food segments. It offers drugs for urological diseases, inflamm...
How the Company Makes Money
Nippon Shinyaku generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications for various medical conditions. The company benefits from a diverse revenue model that includes direct sales to hos...
Nippon Shinyaku Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 166.05B | 160.23B | 148.25B | 144.18B | 137.55B | 121.89B |
| Gross Profit | 111.73B | 108.10B | 97.02B | 87.25B | 85.98B | 71.13B |
| EBITDA | 42.13B | 42.78B | 36.41B | 34.29B | 32.89B | 30.54B |
| Net Income | 29.85B | 32.56B | 25.85B | 22.81B | 24.99B | 19.54B |
Balance Sheet | ||||||
| Total Assets | 328.11B | 283.64B | 263.40B | 243.27B | 219.94B | 205.45B |
| Cash, Cash Equivalents and Short-Term Investments | 60.77B | 58.47B | 68.70B | 71.59B | 60.57B | 57.88B |
| Total Debt | 2.55B | 2.72B | 2.87B | 2.66B | 2.71B | 2.68B |
| Total Liabilities | 43.91B | 36.30B | 42.87B | 47.33B | 39.05B | 41.99B |
| Stockholders Equity | 283.88B | 247.03B | 220.22B | 195.63B | 180.59B | 163.16B |
Cash Flow | ||||||
| Free Cash Flow | 28.16B | 32.77B | 11.23B | 20.51B | 18.18B | 21.50B |
| Operating Cash Flow | 31.00B | 36.13B | 16.29B | 26.17B | 21.32B | 23.67B |
| Investing Cash Flow | -15.95B | -28.88B | -9.92B | -17.63B | -10.04B | -1.66B |
| Financing Cash Flow | -9.89B | -9.90B | -9.72B | -9.61B | -8.41B | -7.67B |
Nippon Shinyaku Co., Ltd. Technical Analysis
Positive
5650.00
Price Trends
5101.90
Positive
5024.88
Positive
4096.76
Positive
Market Momentum
39.42
Positive
48.17
Neutral
42.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4516, the sentiment is Positive. The current price of 5650 is above the 20-day moving average (MA) of 5206.02, above the 50-day MA of 5101.90, and above the 200-day MA of 4096.76, indicating a neutral trend. The MACD of 39.42 indicates Positive momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4516.
Nippon Shinyaku Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥2.96T | 8.09 | 12.22% | 2.22% | 4.48% | 11.08% | |
77 Outperform | ¥347.00B | 9.44 | ― | 2.12% | 4.07% | 22.59% | |
70 Neutral | ¥9.09T | 18.42 | 0.54% | 4.11% | -2.84% | -88.29% | |
68 Neutral | ¥1.42T | 19.13 | 5.75% | 3.51% | 6.79% | 22.14% | |
58 Neutral | ¥309.04B | 9.20 | ― | 1.81% | 2.31% | 19.86% | |
56 Neutral | ¥810.48B | 26.11 | 48.92% | ― | 29.92% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4516
Nippon Shinyaku Co., Ltd.
5,152.00
1,744.49
51.20%
JP:4506
Sumitomo Dainippon Pharma Co
2,040.00
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293.82%
JP:4523
Eisai Co
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1,445.63
40.39%
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3,371.00
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1,826.63
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Toho Holdings Co., Ltd.
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-25.95
-0.55%
Nippon Shinyaku Co., Ltd. Corporate Events
Nippon Shinyaku Revamps Board Lineup Ahead of June Shareholders’ Meeting
Feb 9, 2026
Nippon Shinyaku has announced a slate of executive personnel changes, resolved by its board and to be finalized at the June 2026 shareholders’ meeting, including the appointment of sales and marketing planning chief Mitsuharu Koizumi as a ne...
Nippon Shinyaku Posts Higher Revenue but Lower Profit, Keeps Dividend Plan Intact
Feb 9, 2026
Nippon Shinyaku reported consolidated results for the nine months ended December 31, 2025, with revenue rising 4.8% year on year to ¥127.1 billion, but operating profit dipped 1.3% and profit attributable to owners of the parent fell 9.5%, pu...
Nippon Shinyaku Reports Mixed Financial Results for H1 2025
Nov 14, 2025
Nippon Shinyaku Co., Ltd. reported its financial results for the six months ended September 30, 2025, showing a slight increase in revenue to ¥79,647 million, with operating profit and profit before tax also rising. However, the profit attrib...
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.