Nippon Shinyaku Co., Ltd. (JP:4516)
:4516
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Nippon Shinyaku Co., Ltd.
(4516)
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Rating:67Neutral
Price Target:
¥4,597.00
▼(-18.64% Downside)
Action:Downgraded
Date:05/16/26
The score is anchored by strong financial quality (high margins and a fortress balance sheet) and a reasonable valuation (low P/E with a ~2.9% yield). These positives are meaningfully offset by weak technicals, with the stock in a clear downtrend and negative momentum despite oversold readings.
Positive Factors
High margin profile
Sustained high gross and operating margins indicate durable pricing power and a capital-light product mix typical of specialty pharmaceuticals. This margin cushion supports long-term R&D funding, lifecycle investments, and resilience to cost swings, preserving core profitability over time.
Negative Factors
Recent margin and profit pressure
A material step-down in margins and operating profit signals emerging cost, mix, or investment pressures that could persist. If structural (e.g., higher SG&A or escalating launch costs), sustained margin erosion would constrain reinvestment capacity and long-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
High margin profile
Sustained high gross and operating margins indicate durable pricing power and a capital-light product mix typical of specialty pharmaceuticals. This margin cushion supports long-term R&D funding, lifecycle investments, and resilience to cost swings, preserving core profitability over time.
Read all positive factors
Nippon Shinyaku Co., Ltd. (4516) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥283.49B
Dividend Yield2.12%
Average Volume (3M)252.03K
Price to Earnings (P/E)22.2
Beta (1Y)0.33
Revenue Growth6.58%
EPS Growth-8.74%
CountryJP
Employees2,213
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)441.04
Shares Outstanding70,251,490
10 Day Avg. Volume218,840
30 Day Avg. Volume252,026
Financial Highlights & Ratios
PEG Ratio-1.33
Price to Book (P/B)1.18
Price to Sales (P/S)2.02
P/FCF Ratio14.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,200.00Price Target Upside-7.96% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)380.15
Revenue Forecast (FY)¥186.08B
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, inflamm...
How the Company Makes Money
Nippon Shinyaku primarily makes money by selling products from its Pharmaceuticals segment, which generates revenue from the commercial sale of prescription drugs in Japan and in overseas markets where it has commercialization arrangements. Earnin...
Nippon Shinyaku Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 170.77B | 160.23B | 148.25B | 144.18B | 137.55B |
| Gross Profit | 113.31B | 108.10B | 97.02B | 87.25B | 85.98B |
| EBITDA | 39.66B | 42.78B | 36.41B | 34.29B | 32.89B |
| Net Income | 29.72B | 32.56B | 25.85B | 22.81B | 24.99B |
Balance Sheet | |||||
| Total Assets | 346.36B | 283.64B | 263.40B | 243.27B | 219.94B |
| Cash, Cash Equivalents and Short-Term Investments | 76.59B | 58.47B | 68.70B | 71.59B | 60.57B |
| Total Debt | 2.57B | 2.72B | 2.87B | 2.66B | 2.71B |
| Total Liabilities | 54.48B | 36.30B | 42.87B | 47.33B | 39.05B |
| Stockholders Equity | 291.55B | 247.03B | 220.22B | 195.63B | 180.59B |
Cash Flow | |||||
| Free Cash Flow | 24.24B | 32.77B | 11.23B | 20.51B | 18.18B |
| Operating Cash Flow | 27.22B | 36.13B | 16.29B | 26.17B | 21.32B |
| Investing Cash Flow | 1.98B | -28.88B | -9.92B | -17.63B | -10.04B |
| Financing Cash Flow | -9.93B | -9.90B | -9.72B | -9.61B | -8.41B |
Nippon Shinyaku Co., Ltd. Technical Analysis
Negative
5650.00
Price Trends
4903.82
Negative
5070.93
Negative
4306.07
Negative
Market Momentum
-220.14
Negative
31.40
Neutral
56.02
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 4461.00, above the 50-day MA of 4903.82, and above the 200-day MA of 4306.07, indicating a bearish trend. The MACD of -220.14 indicates Negative momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of 56.02 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.60T | 14.39 | 12.22% | 2.22% | 14.01% | 20.33% | |
67 Neutral | ¥283.49B | 22.21 | ― | 2.12% | 6.58% | -8.74% | |
65 Neutral | ¥1.17T | 35.61 | 5.75% | 3.51% | 4.56% | -16.55% | |
64 Neutral | ¥278.62B | 26.97 | ― | 1.81% | 2.30% | -13.85% | |
58 Neutral | ¥677.15B | 7.72 | 48.92% | ― | 13.66% | 352.17% | |
58 Neutral | ¥8.10T | 46.52 | 0.54% | 4.11% | -1.66% | 78.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4516
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Nippon Shinyaku Co., Ltd. Corporate Events
Nippon Shinyaku Posts Revenue Growth but Lower Profit, Keeps Dividend Steady
May 15, 2026
Nippon Shinyaku reported consolidated revenue of ¥170.8 billion for the year ended March 31, 2026, up 6.6%, while operating profit was flat and profit attributable to owners of the parent fell 8.7%, reflecting pressure on margins despite top-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.