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

• Market Cap: ¥407.15B
• Dividend Yield: 2.07%
• Average Volume (3M): 252.03K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.48
• 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: ¥2,600.00
• Price Target Upside: -56.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥6,676.00 ▲(10.44% 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

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and reduces insolvency risk, supporting long-term growth.

High Profit Margins

High profit margins indicate efficient operations and pricing power, contributing to sustainable profitability over time.

Cash Generation Ability

Strong cash generation relative to net income ensures liquidity and supports reinvestment in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue can impact future profitability and growth, necessitating strategic adjustments to reverse the trend.

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund new projects and return capital to shareholders.

Revenue Growth Concerns

Sustained revenue growth is crucial for long-term success; recent declines highlight the need for strategic focus on growth areas.

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

Company Description

Nippon Shinyaku Co., Ltd. (4516) is a Japanese pharmaceutical company that focuses on the development, manufacturing, and marketing of prescription drugs, particularly in the fields of urology, oncology, and infectious diseases. Established in 1919, the company is committed to advancing healthcare through innovative drug solutions and is involved in both domestic and international markets. Its core products include treatments for various medical conditions, and it invests significantly in research and development to expand its product portfolio and enhance therapeutic options.

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 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 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: Positive
• Last Price: 6045.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 6045 is above the 20-day moving average (MA) of 4623.50, above the 50-day MA of 3839.78, and above the 200-day MA of 3493.64, indicating a bullish trend. The MACD of 683.10 indicates Negative momentum. The RSI at 82.33 is Negative, neither overbought nor oversold. The STOCH value of 72.96 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
4553	81 Outperform	$178.65B	8.66	11.81%	2.24%	9.32%	30.85%
4540	76 Outperform	¥307.02B	11.03	9.05%	3.34%	10.51%	9.62%
4516	74 Outperform	¥407.15B	12.75	―	2.07%	4.07%	22.59%
4547	66 Neutral	$189.53B	13.56	6.57%	2.49%	13.11%	41.57%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4887	63 Neutral	¥232.96B	-235.51	―	2.32%	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.