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

• Market Cap: ¥251.56B
• Dividend Yield: 3.32%
• Average Volume (3M): 180.47K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.70
• Revenue Growth: 6.71%
• EPS Growth: 25.91%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 54
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 59.47
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 121,120
• 30 Day Avg. Volume: 180,466
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,800.00
• Price Target Upside: 9.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Nippon Shinyaku Co., Ltd. demonstrates robust financial performance with strong profitability and a solid balance sheet, which are the primary drivers of its overall score. The technical analysis shows mixed signals, with some bearish momentum offset by long-term support. The valuation is attractive with a low P/E ratio and a decent dividend yield, further supporting the stock's appeal.

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

Company Description

Nippon Shinyaku Co., Ltd. is a Japanese pharmaceutical company specializing in the development, manufacturing, and distribution of pharmaceutical products and functional food ingredients. The company operates in two primary sectors: pharmaceuticals and foodstuffs, with a focus on innovative treatments for unmet medical needs. Their core pharmaceutical products include drugs for urological, hematological, and rare disease indications, while their foodstuffs division develops health-related ingredients and supplements.

How the Company Makes Money

Nippon Shinyaku Co., Ltd. generates revenue primarily through the sale of pharmaceutical products and functional foods. In the pharmaceuticals sector, the company earns income by developing and marketing prescription drugs, particularly in niche therapeutic areas such as rare diseases and hematology. Collaborations and partnerships with other pharmaceutical companies for research and development, as well as licensing agreements, also contribute to their revenue streams. In the functional foods sector, the company produces and sells health supplements and food ingredients, catering to the growing demand for health-conscious products. The company strategically invests in research and development to maintain a competitive edge and expand its product portfolio, which is a significant driver of its revenue growth.

Nippon Shinyaku Co., Ltd. Financial Statement Overview

Summary

Nippon Shinyaku Co., Ltd. displays robust financial health, marked by strong profitability, minimal leverage, and effective cash flow management. The company is well-positioned in its industry, with consistent growth in revenue and net income. Its solid balance sheet and efficient operations support its financial stability and growth prospects.

Income Statement

Nippon Shinyaku has demonstrated strong financial performance with consistent revenue and net income growth. The TTM (Trailing-Twelve-Months) shows a healthy gross profit margin of 67.85% and a net profit margin of 19.39%. Revenue has grown at a steady rate over the years, showcasing the company's robust market position. The EBIT and EBITDA margins are strong, indicating efficient operations and profitability.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.01, reflecting minimal leverage and a strong equity base. Return on Equity (ROE) is impressive at 12.28%, indicating effective utilization of shareholder funds. The equity ratio of 86.99% suggests financial stability and low reliance on debt financing.

Cash Flow

Nippon Shinyaku exhibits a strong cash flow position with a significant increase in free cash flow in the TTM. The operating cash flow to net income ratio is 0.83, demonstrating effective cash generation relative to net income. The company has a positive trajectory in free cash flow growth, although the free cash flow to net income ratio of 0.57 suggests room for further improvement in cash efficiency.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
148.25B	144.18B	137.48B	121.89B	116.64B
	Gross Profit
97.02B	88.19B	87.29B	71.93B	63.48B
	EBIT
31.39B	30.05B	32.95B	26.13B	21.67B
	EBITDA
38.70B	34.27B	36.59B	32.09B	25.14B
	Net Income Common Stockholders
25.85B	22.81B	24.99B	19.54B	16.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.70B	71.60B	65.74B	60.80B	47.11B
	Total Assets
263.40B	237.45B	219.94B	197.03B	175.02B
	Total Debt
2.87B	2.66B	2.71B	2.84B	7.00M
	Net Debt
-55.22B	-57.38B	-57.85B	-44.93B	-36.00B
	Total Liabilities
42.87B	41.52B	39.06B	34.49B	29.26B
	Stockholders Equity
220.22B	195.62B	180.58B	162.25B	145.49B
Cash Flow		Free Cash Flow
6.64B	14.44B	12.37B	19.22B	10.92B
	Operating Cash Flow
16.29B	26.17B	21.32B	21.39B	12.74B
	Investing Cash Flow
-9.92B	-17.63B	-10.04B	-1.56B	-2.34B
	Financing Cash Flow
-9.72B	-9.61B	-8.41B	-6.20B	-5.66B

Nippon Shinyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3484.00
• 50DMA: Negative
• 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 Negative. The current price of 3484 is below the 20-day moving average (MA) of 3559.15, below the 50-day MA of 3743.66, and below the 200-day MA of 3732.47, indicating a bearish trend. The MACD of -38.42 indicates Negative momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	87 Outperform	$2.16T	12.41	13.11%	2.67%	1.58%	12.48%
4516	80 Outperform	¥251.56B	8.28		3.32%	6.71%	25.91%
4519	79 Outperform	$14.17T	34.58	22.80%	1.12%	17.96%	25.65%
4502	68 Neutral	$7.00T	33.49	2.87%	4.32%	9.83%	15.49%
4523	65 Neutral	$1.20T	20.65	6.83%	3.47%	5.63%	30.61%
4506	54 Neutral	$373.85B	―	-68.59%	―	12.84%	-1.34%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%