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

• Market Cap: ¥222.20B
• Dividend Yield: 3.76%
• Average Volume (3M): 294.82K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.58
• Revenue Growth: 6.83%
• EPS Growth: 11.59%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 122.52
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 215,840
• 30 Day Avg. Volume: 294,820
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,466.67
• Price Target Upside: 4.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: ¥3,693.00 ▲(11.57% Upside)

Nippon Shinyaku Co., Ltd. receives a strong overall stock score due to its robust financial performance and attractive valuation. The company's low P/E ratio and high dividend yield suggest it is undervalued and offers good income potential. However, technical indicators show mixed signals with short-term bearish momentum, which slightly tempers the overall positive outlook.

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 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. demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage and high equity, providing financial stability. While cash flow generation shows some volatility, the company maintains strong cash conversion ratios. Overall, the financial position is solid with a positive growth trajectory.

Income Statement

Nippon Shinyaku Co., Ltd. demonstrates strong revenue growth with a TTM revenue growth rate of 25.9%. The company maintains healthy profitability with a gross profit margin of 68.17% and a net profit margin of 19.02% in the TTM. EBIT and EBITDA margins are robust at 21.77% and 25.60% respectively, indicating efficient operations. The consistent improvement in margins over the years highlights strong operational performance.

Balance Sheet

The company exhibits a very low debt-to-equity ratio of 0.0096, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is solid at 12.46%, reflecting effective use of equity capital. The equity ratio stands at 86.85%, showcasing a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Operating cash flow to net income ratio is healthy at 1.12, indicating good cash generation relative to earnings. However, the free cash flow growth rate is negative at -38.1%, suggesting potential challenges in cash flow generation. The free cash flow to net income ratio of 0.91 is strong, showing effective conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.65B	160.23B	148.25B	144.18B	137.48B	121.89B
Gross Profit	109.51B	109.12B	98.02B	88.19B	87.29B	71.93B
EBITDA	41.12B	42.30B	36.29B	34.27B	36.59B	32.09B
Net Income	30.55B	32.56B	25.85B	22.81B	24.99B	19.54B
Balance Sheet
Total Assets	289.63B	283.64B	263.40B	237.45B	219.94B	197.03B
Cash, Cash Equivalents and Short-Term Investments	58.28B	55.24B	68.70B	71.60B	65.74B	60.80B
Total Debt	2.42B	2.72B	2.87B	2.66B	2.71B	2.84B
Total Liabilities	37.79B	36.30B	42.87B	41.52B	39.06B	34.49B
Stockholders Equity	251.52B	247.03B	220.22B	195.62B	180.58B	162.25B
Cash Flow
Free Cash Flow	32.65B	32.77B	6.64B	14.44B	12.37B	19.22B
Operating Cash Flow	35.92B	36.13B	16.29B	26.17B	21.32B	21.39B
Investing Cash Flow	-21.18B	-28.88B	-9.92B	-17.63B	-10.04B	-1.56B
Financing Cash Flow	-9.86B	-9.90B	-9.72B	-9.61B	-8.41B	-6.20B

Nippon Shinyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3310.00
• 50DMA: Positive
• 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 Positive. The current price of 3310 is above the 20-day moving average (MA) of 3248.25, above the 50-day MA of 3224.52, and below the 200-day MA of 3594.50, indicating a neutral trend. The MACD of 22.87 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4516	78 Outperform	¥222.20B	7.28		3.76%	6.83%	11.59%
4540	75 Outperform	284.00B	10.98	10.79%	3.59%	14.60%	8.97%
4553	72 Outperform	143.71B	8.98	11.06%	2.34%	11.11%	-5.42%
4547	71 Outperform	179.52B	15.19	5.72%	2.04%	15.40%	7.73%
4887	60 Neutral	201.23B	219.40	12.41%	1.33%	3.52%	-95.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nippon Shinyaku Co., Ltd. Corporate Events

Nippon Shinyaku Completes Treasury Stock Disposal for Executive Compensation

Nippon Shinyaku Co., Ltd. has completed the disposal of 22,409 shares of its treasury stock, which were allocated as restricted stock compensation to six of its directors, excluding outside directors. This strategic move, valued at over 70 million yen, reflects the company’s approach to aligning executive incentives with shareholder interests, potentially impacting its governance and financial strategies.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 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 Q1 2025 Financial Results with Mixed Performance

Nippon Shinyaku Co., Ltd. reported its consolidated financial results for the first quarter ended June 30, 2025, showing a slight increase in revenue but a decline in operating profit and net income compared to the previous year. The company maintains its dividend forecast for the year ending March 31, 2026, indicating a stable outlook despite the current financial challenges.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 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 Implements Restricted Stock Compensation Plan

Nippon Shinyaku Co., Ltd. has announced a resolution to dispose of its treasury stock as restricted stock compensation, aimed at incentivizing its directors to enhance corporate value. This move aligns with a previously approved compensation plan, allowing directors to receive shares under specific conditions, thereby promoting long-term commitment and alignment with shareholder interests.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.