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

• Market Cap: ¥347.41B
• Dividend Yield: 2.12%
• Average Volume (3M): 252.03K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.43
• 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): 111.36
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥5,764.00 ▲(2.02% Upside)

Nippon Shinyaku Co., Ltd. has a strong financial foundation with efficient operations and low leverage, contributing significantly to its score. The stock's technical indicators suggest strong bullish momentum, although caution is advised due to overbought conditions. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield, enhancing its investment appeal.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage provides durable financial flexibility, lowering insolvency risk and interest burden. This supports sustained R&D investment, manufacturing capacity and potential M&A without stressing capital structure, enhancing long-term resilience across economic cycles.

High and sustainable profitability margins

Robust gross and net margins indicate structural pricing power and operational efficiency typical of specialty pharmaceutical producers. High margins enable ongoing reinvestment in R&D and commercialization, supporting product lifecycle economics and long-term cash generation even with moderate revenue variability.

Diversified business model across pharma and agrochemicals

Having both pharmaceuticals and agrochemicals reduces single-market dependency and smooths revenue cycles. An integrated model from discovery through commercialization supports sustained product lifecycles, multiple revenue streams and cross-segment resource allocation, strengthening long-term business stability.

Negative Factors

Recent revenue decline

A material TTM revenue decline signals possible product lifecycle pressures, weaker demand or competitive loss. If the trend persists it can erode operating leverage, reduce available funds for R&D and commercialization, and challenge the company's ability to sustain medium-term growth trajectories.

Declining free cash flow

An 11.9% drop in free cash flow constrains capacity to fund R&D, capex, dividends and strategic initiatives. Even with healthy operating cash conversion ratios, a negative FCF trend reduces financial flexibility and could force tougher allocation choices that impact long-term innovation and growth investments.

Concentration on key products and R&D outcomes

Profitability tied to a limited set of products and successful R&D creates binary risk: approvals, patent cliffs or competitive displacement can sharply affect revenues. This product concentration increases long-term earnings volatility and makes sustained growth dependent on consistent development success.

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

Nippon Shinyaku Co., Ltd. demonstrates strong profitability and financial stability with efficient operations and low leverage. However, recent revenue and free cash flow declines pose potential risks. The company should focus on reversing the revenue decline to maintain its strong financial position.

Income Statement

Nippon Shinyaku Co., Ltd. shows strong profitability with a consistent gross profit margin around 68% and a net profit margin of approximately 19% in the TTM. However, the company experienced a revenue decline of 6.2% in the TTM, which is a concern. Despite this, EBIT and EBITDA margins remain healthy, indicating efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a very low debt-to-equity ratio of 0.0096, indicating minimal leverage. Return on equity is solid at 12.46%, reflecting effective use of equity. The equity ratio is strong, suggesting financial stability and a low risk of insolvency.

Cash Flow

Cash flow analysis reveals a decline in free cash flow by 11.9% in the TTM, which is a concern. However, the operating cash flow to net income ratio is healthy at 1.12, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.91, showing efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	160.55B	160.23B	148.25B	144.18B	137.48B	121.89B
Gross Profit	109.03B	109.12B	98.02B	88.19B	87.29B	71.93B
EBITDA	44.04B	42.30B	36.29B	35.67B	38.01B	32.09B
Net Income	31.95B	32.56B	25.85B	22.81B	24.99B	19.54B
Balance Sheet
Total Assets	297.04B	283.64B	263.40B	237.45B	219.94B	197.03B
Cash, Cash Equivalents and Short-Term Investments	68.46B	55.24B	68.70B	71.60B	65.74B	60.80B
Total Debt	2.53B	2.72B	2.87B	2.66B	2.71B	2.84B
Total Liabilities	36.83B	36.30B	42.87B	41.52B	39.06B	34.49B
Stockholders Equity	259.90B	247.03B	220.22B	195.62B	180.58B	162.25B
Cash Flow
Free Cash Flow	28.76B	32.77B	11.23B	20.51B	18.18B	21.50B
Operating Cash Flow	32.34B	36.13B	16.29B	26.17B	21.32B	23.67B
Investing Cash Flow	-14.79B	-28.88B	-9.92B	-17.63B	-10.04B	-1.66B
Financing Cash Flow	-9.80B	-9.90B	-9.72B	-9.61B	-8.41B	-7.67B

Nippon Shinyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5650.00
• 50DMA: Negative
• 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:4516, the sentiment is Neutral. The current price of 5650 is above the 20-day moving average (MA) of 5466.55, above the 50-day MA of 5234.92, and above the 200-day MA of 3776.35, indicating a neutral trend. The MACD of -44.04 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 25.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥176.93B	8.57	11.81%	2.14%	9.32%	30.85%
4540	76 Outperform	¥312.38B	11.22	9.05%	3.30%	10.51%	9.62%
4516	74 Outperform	¥347.41B	10.88	―	2.12%	4.07%	22.59%
4547	66 Neutral	¥187.89B	13.63	6.57%	2.48%	13.11%	41.57%
4887	63 Neutral	¥235.75B	-235.61	―	2.28%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nippon Shinyaku Co., Ltd. Corporate Events

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.