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

• Market Cap: ¥336.50B
• Dividend Yield: 2.12%
• Average Volume (3M): 252.03K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.41
• Revenue Growth: 4.07%
• EPS Growth: 22.59%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 149.62
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 218,840
• 30 Day Avg. Volume: 252,026
• PEG Ratio: 0.30
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 7.81
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 413.82
• Revenue Forecast (FY): ¥168.89B

• Rating: 77 Outperform
• Price Target: ¥5,854.00 ▲(3.61% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 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.

Very low leverage

Extremely low debt provides strong financial flexibility and reduces refinancing and interest-rate risk. This conservatism enables steady R&D funding, acquisition optionality, and downside protection in cyclical downturns, preserving strategic choices over a multi-quarter horizon.

Strong cash generation

High conversion of earnings into free cash flow indicates healthy cash generation ability to fund R&D, sustain dividends, and invest in manufacturing. Consistent FCF relative to profits supports long-term capital allocation and reduces reliance on external financing.

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.

Earnings variability

While margins are healthy, documented year-to-year earnings swings signal exposure to product lifecycle effects, pricing, or demand variability. This makes forecasting mid-term earnings less certain and could challenge consistent EPS progression absent new product drivers.

Moderate ROE vs peers

ROE around 12.7% reflects decent profitability on equity but lags top-tier specialty pharma performers. Over the medium term this may limit relative shareholder return unless company improves R&D productivity or accelerates higher-margin product launches.

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, inflammation and allergies, hematologic malignancies, cardiovascular and metabolic diseases, gastrointestinal disorders, and other diseases. The company's products include Zalutia for urinary disorder caused by benign prostatic; Eviprostat for prostatic hypertrophy; Bladderon for pollakisuria; Estracyt for prostate cancer; Cialis for erectile dysfunction; Vidaza for myelodysplastic syndrome; Cylocide for solid tumor and acute leukemia; CylocideN for relapsed and refractory acute leukemia and malignant lymphoma; Gazyva for humanized anti-CD20 monoclonal antibody; Defiterio sinusoidal obstruction syndrome; and Trisenox and Amnolake for relapsed and refractory acute promyelocytic leukemia. Nippon Shinyaku Co., Ltd.'s products also comprise Uptravi, Adcirca, and Opsumit for pulmonary arterial hypertension; VILTEPSO for muscular dystrophy; Lunabel LD and Lunabel ULD for dysmenorrhea; Erizas, a dry powder inhaler solution for allergic rhinitis; Azunol Gargle liquid, a gargling solution containing azulene; Isobide for oral osmotic diuresis/meniere's disease; Cephadol for vertigo; Livostin for allergic rhinitis and conjunctivitis; Regtect for maintaining alcohol abstinence; and Onetram and Tramal for cancer and chronic pain. In addition, it researches, develops, and markets drugs in the areas of gynecology, otorhinolaryngology, and orthopedics. Further, the company provides functional foods, such as health food ingredients, preservatives, protein preparations, supplements, and spice and condiments. Nippon Shinyaku Co., Ltd. was founded in 1911 and is headquartered in Kyoto, Japan.

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 hospitals and healthcare providers, as well as partnerships with other pharmaceutical firms for co-development and marketing of drugs. Key revenue streams are derived from both the domestic Japanese market and international sales, with significant contributions from patented products that offer high margins. Additionally, the company engages in research collaborations and licensing agreements, which provide supplementary income while allowing for shared development costs. Factors contributing to its earnings include the successful launch of new drugs, expanding market presence in targeted therapeutic areas, and strategic alliances that enhance its product offerings.

Nippon Shinyaku Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: solid profitability (TTM gross margin ~67%, net margin ~18%), exceptionally conservative leverage (debt-to-equity ~0.015), and good earnings quality with free cash flow ~91% of net income. The main restraint is some margin and cash-conversion variability, including slightly negative TTM free cash flow growth.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 3.4% with very strong profitability: gross margin ~67% and net margin ~18% (EBIT margin ~22%). Over the last several annual periods, revenue has generally trended upward and margins remain healthy for the industry. The main watch-out is some year-to-year earnings variability (TTM net margin below the most recent annual level), suggesting profitability can fluctuate even with steady top-line growth.

Balance Sheet

Balance sheet is exceptionally conservative with minimal leverage (TTM debt-to-equity ~0.015). Equity and assets have steadily expanded across the annual periods, and returns on equity are solid (TTM ~12.7%). The primary limitation is that returns are good but not exceptional versus best-in-class pharma peers, though the very low debt meaningfully reduces financial risk.

Cash Flow

Cash generation is strong overall: TTM operating cash flow is ~¥31.0B and free cash flow is ~¥28.2B, with free cash flow running at ~91% of net income (good earnings quality). However, free cash flow growth is slightly negative in TTM and cash conversion has shown volatility historically (including a notably weaker operating cash flow year in FY2024), indicating working-capital or timing swings can impact near-term cash results.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	166.05B	160.23B	148.25B	144.18B	137.48B	121.89B
Gross Profit	111.73B	109.12B	98.02B	88.19B	87.29B	71.93B
EBITDA	42.48B	42.30B	36.29B	35.67B	38.01B	32.09B
Net Income	29.85B	32.56B	25.85B	22.81B	24.99B	19.54B
Balance Sheet
Total Assets	328.11B	283.64B	263.40B	237.45B	219.94B	197.03B
Cash, Cash Equivalents and Short-Term Investments	60.77B	55.24B	68.70B	71.60B	65.74B	60.80B
Total Debt	4.18B	2.72B	2.87B	2.66B	2.71B	2.84B
Total Liabilities	43.91B	36.30B	42.87B	41.52B	39.06B	34.49B
Stockholders Equity	283.88B	247.03B	220.22B	195.62B	180.58B	162.25B
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

• Technical Analysis Sentiment: Negative
• Last Price: 5650.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 5650 is above the 20-day moving average (MA) of 5072.40, above the 50-day MA of 5418.94, and above the 200-day MA of 3907.61, indicating a neutral trend. The MACD of -89.13 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 43.30 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
4507	84 Outperform	¥3.19T	15.85	12.22%	2.22%	4.48%	11.08%
4516	77 Outperform	¥336.50B	11.28	―	2.12%	4.07%	22.59%
4523	68 Neutral	¥1.43T	33.49	5.75%	3.51%	6.79%	22.14%
4502	66 Neutral	¥9.22T	80.59	0.54%	4.11%	-2.84%	-88.29%
4506	62 Neutral	¥890.33B	8.46	79.99%	―	29.92%	―
8129	60 Neutral	¥310.74B	12.61	―	1.81%	2.31%	19.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nippon Shinyaku Co., Ltd. Corporate Events

Nippon Shinyaku Revamps Board Lineup Ahead of June Shareholders’ Meeting

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 new director and the promotion of Takanori Edamitsu to managing director overseeing business management and sustainability. The board reshuffle, which also sees the retirement of director Takashi Takaya and the reassignment of personnel, risk management and compliance oversight to Koizumi, signals a tightening of governance and continuity in leadership as the company balances its pharmaceutical and functional food operations with growing emphasis on sustainability and corporate oversight.

The most recent analyst rating on (JP:4516) stock is a Buy with a Yen5634.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.

Nippon Shinyaku Posts Higher Revenue but Lower Profit, Keeps Dividend Plan Intact

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%, pushing basic earnings per share down to ¥383.50. Despite weaker profitability, total assets expanded to ¥328.1 billion, equity climbed to ¥284.2 billion with an equity ratio of 86.5%, and the company kept its full-year forecast for modest revenue growth but a double-digit profit decline while maintaining a planned annual dividend of ¥124 per share, signaling an emphasis on balance sheet strength and shareholder returns.

For the year ending March 31, 2026, Nippon Shinyaku projects revenue of ¥170 billion, up 6.1%, but expects operating profit to fall 6.9% and profit attributable to owners of the parent to drop 19.2%, implying full-year EPS of ¥390.20. The unchanged dividend plan, combined with stable share count and no changes in consolidation scope or accounting policies, indicates management’s confidence in cash generation and operational resilience, even as earnings momentum softens and investors weigh the trade-off between growth investments and near-term profitability.

The most recent analyst rating on (JP:4516) stock is a Buy with a Yen5634.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.

Nippon Shinyaku Reports Mixed Financial Results for H1 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 attributable to owners of the parent decreased by 3.8%, reflecting challenges in maintaining profit margins. The company’s total assets and equity have grown, indicating a stable financial position, but the forecast for the full year ending March 31, 2026, suggests a potential decline in profits, which may impact investor confidence.

The most recent analyst rating on (JP:4516) stock is a Buy with a Yen3635.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.