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

• Market Cap: ¥212.36B
• Dividend Yield: 3.96%
• Average Volume (3M): 330.65K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.60
• Revenue Growth: 6.83%
• EPS Growth: 11.59%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 122.52
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 295,720
• 30 Day Avg. Volume: 330,653
• 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: ¥3,523.25
• Price Target Upside: 12.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ¥3,693.00 ▲(17.99% Upside)

Nippon Shinyaku Co., Ltd. benefits from strong financial performance and an attractive valuation, making it a potentially undervalued investment opportunity. The technical analysis suggests a neutral trend, which slightly tempers the overall score. The absence of earnings call data and corporate events does not impact the score significantly.

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 strong financial performance with consistent revenue growth, robust profitability metrics, a strong balance sheet with low financial risk, and significant cash flow generation. This positions the company well for continued growth and stability.

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	TTM	Dec 2024	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: Negative
• Last Price: 3130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3130 is below the 20-day moving average (MA) of 3259.55, below the 50-day MA of 3208.44, and below the 200-day MA of 3650.12, indicating a bearish trend. The MACD of -12.60 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.32 is Positive, 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
4516	78 Outperform	¥212.36B	7.11		3.96%	6.83%	11.59%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
KSPHF	―	$1.19B	15.05	5.93%	2.34%	―	―
TRXPF	―	$1.20B	28.51	4.52%	4.87%	―	―
TSMRF	―	$1.89B	10.31	9.09%	4.12%	―	―
TWAPF	―	$1.04B	11.76	9.60%	1.44%	―	―
4887	61 Neutral	¥190.64B	207.85		1.42%	3.52%	-95.28%

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.