Nippon Shinyaku Co., Ltd. (4516) AI Stock Analysis

• Market Cap: ¥216.88B
• Dividend Yield: 3.85%
• Average Volume (3M): 316.84K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.62
• Revenue Growth: 8.08%
• EPS Growth: 25.92%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 59.47
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 332,520
• 30 Day Avg. Volume: 316,843
• PEG Ratio: 0.88
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.19
• 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: ¥4,450.00
• Price Target Upside: 38.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥3,478.00 ▲(8.01%Upside)

Nippon Shinyaku Co., Ltd. is strongly positioned with excellent financial health and attractive valuation. However, current technical indicators suggest bearish momentum, potentially reflecting market sentiment and risk. The strong financials and valuation provide a solid foundation, making it appealing for long-term investors despite short-term technical challenges.

Nippon Shinyaku Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Shinyaku Co., Ltd. is a Japanese pharmaceutical company specializing in the development, manufacture, and distribution of pharmaceutical products and functional foods. Established in 1919, the company operates primarily in the pharmaceuticals and health food sectors. Its core products include drugs for urological, hematological, and cardiovascular conditions, as well as supplements and health food products aimed at improving overall well-being.

How the Company Makes Money

Nippon Shinyaku Co., Ltd. generates revenue primarily through the sale of its pharmaceutical products, which are developed in-house and marketed both domestically and internationally. The company focuses on producing drugs for niche markets with unmet medical needs, such as rare diseases and specific therapeutic areas, allowing it to command premium pricing. Additionally, Nippon Shinyaku collaborates with other pharmaceutical companies for research, development, and distribution partnerships, further expanding its reach and product offerings. The company also earns income from its functional food segment, which includes health supplements and foods that promote wellness, catering to a growing market of health-conscious consumers.

Nippon Shinyaku Co., Ltd. Financial Statement Overview

Summary

Nippon Shinyaku Co., Ltd. exhibits a strong financial position with consistent revenue and profit growth, a stable and low-risk balance sheet, and robust cash flow generation. The company is well-positioned for continued growth and stability in the Drug Manufacturers - Specialty & Generic industry, with efficient operations and solid financial health.

Income Statement

Nippon Shinyaku Co., Ltd. demonstrates strong financial performance with consistent revenue growth and robust profitability metrics. The Gross Profit Margin and Net Profit Margin have shown positive trends over the years, reflecting efficient cost management and profitability improvement. Revenue growth has been steady, indicating a healthy trajectory. EBIT and EBITDA margins are solid, underscoring the company's operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a high Equity Ratio, reflecting a low reliance on debt financing and substantial shareholder equity. The Debt-to-Equity Ratio is low, suggesting minimal financial risk. Return on Equity is impressive, indicating that the company effectively uses shareholders' investments to generate earnings. Overall, the balance sheet highlights stability and financial health.

Cash Flow

Nippon Shinyaku Co., Ltd. has shown significant growth in Free Cash Flow, indicating strong cash generation from its core operations. The Operating Cash Flow to Net Income Ratio is healthy, suggesting that earnings are being effectively converted into cash. The Free Cash Flow to Net Income Ratio is also robust, supporting sustained financial flexibility and potential for reinvestment or shareholder returns.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	160.23B	148.25B	144.18B	137.48B	121.89B
Gross Profit	109.12B	98.02B	88.19B	87.29B	71.93B
EBITDA	42.30B	36.29B	34.27B	36.59B	32.09B
Net Income	32.56B	25.85B	22.81B	24.99B	19.54B
Balance Sheet
Total Assets	283.64B	263.40B	237.45B	219.94B	197.03B
Cash, Cash Equivalents and Short-Term Investments	55.24B	68.70B	71.60B	65.74B	60.80B
Total Debt	2.72B	2.87B	2.66B	2.71B	2.84B
Total Liabilities	36.30B	42.87B	41.52B	39.06B	34.49B
Stockholders Equity	247.03B	220.22B	195.62B	180.58B	162.25B
Cash Flow
Free Cash Flow	32.77B	6.64B	14.44B	12.37B	19.22B
Operating Cash Flow	36.13B	16.29B	26.17B	21.32B	21.39B
Investing Cash Flow	-28.88B	-9.92B	-17.63B	-10.04B	-1.56B
Financing Cash Flow	-9.90B	-9.72B	-9.61B	-8.41B	-6.20B

Nippon Shinyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3220.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4516, the sentiment is Negative. The current price of 3220 is above the 20-day moving average (MA) of 3192.55, below the 50-day MA of 3369.22, and below the 200-day MA of 3743.99, indicating a bearish trend. The MACD of -90.92 indicates Negative momentum. The RSI at 31.72 is Neutral, neither overbought nor oversold. The STOCH value of 55.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4516.

Nippon Shinyaku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	¥150.10B	7.91	11.38%	2.62%	13.89%	17.38%
4516	75 Outperform	¥216.88B	6.66		3.85%	8.08%	25.92%
4540	69 Neutral	¥274.36B	8.40	11.16%	3.79%	20.05%	94.28%
4547	66 Neutral	¥168.08B	15.01	5.47%	2.19%	16.87%	11.24%
4551	65 Neutral	$177.54B	31.98	4.56%	1.90%	9.56%	5.09%
4887	65 Neutral	¥184.55B	19.23		2.91%	-3.69%	-18.73%
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%