SAWAI GROUP HOLDINGS Co., Ltd. (4887) AI Stock Analysis

• Market Cap: ¥182.53B
• Dividend Yield: 2.93%
• Average Volume (3M): 299.27K
• Price to Earnings (P/E): 199.0
• Beta (1Y): 0.43
• Revenue Growth: 12.78%
• EPS Growth: -105.43%
• Country: JP
• Employees: 3,482
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 8.27
• Shares Outstanding: 115,487,140
• 10 Day Avg. Volume: 288,420
• 30 Day Avg. Volume: 299,266
• PEG Ratio: 0.14
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 33.73
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥1,980.00 ▲(1.12% Upside)

The overall stock score reflects stable revenue growth and operational efficiency, but is weighed down by high valuation concerns and weak technical indicators. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to maintain its market position and adapt to industry demands, supporting long-term stability.

Operational Efficiency

Strong operational efficiency indicates effective management and cost control, which can sustain profitability over time despite market fluctuations.

Product Portfolio

A diverse product portfolio allows the company to cater to various therapeutic areas, reducing dependency on single product lines and enhancing market resilience.

Negative Factors

Profitability Challenges

Declining net profit margins indicate pressure on profitability, which could affect the company's ability to reinvest in growth and innovation.

Cash Flow Management

Challenges in cash flow management can limit the company's financial flexibility, impacting its ability to fund operations and strategic initiatives.

Increased Leverage

Increased leverage may strain the company's balance sheet, raising concerns about its ability to manage debt obligations and invest in future growth.

SAWAI GROUP HOLDINGS Co., Ltd. Business Overview & Revenue Model

Company Description

Sawai Group Holdings Co., Ltd., together with subsidiaries, engages in the research, development, manufacturing, and marketing of generic pharmaceutical products primarily in Japan and the United States. It offers generic drugs in various dosage forms, including tablets, oral dispersing tablets, capsules, granules, injectables, tapes, ophthalmic or nasal solutions, syrups, and other forms in the therapeutic areas of cardiovascular, gastro-intestinal, blood/body fluid, other metabolic, antibiotics, central nervous system, antiallergics, urogenital organs and the anus, antineoplastic, vitamins, anti-cancer, chemotherapeutic agents, respiratory organ agents, hormone agents, etc. The company's products include atorvastatin, limaprost alfadex, lansoprazole, aprepitant, micafungin sodium, silodosin, blonanserin, oseltamivir, capecitabine, atomoxetine hydrochloride, nalfurafine, memantine hydrochloride, eldecalcitol, bazedoxifene, fexofenadine hydrochloride, dutasteride, pregabalin, duloxetine hydrochloride, morphine sulfate tablets, tosymra nasal spray, zembrace symtouch, and ramelteon tablets. It also manufactures and sells medicinal products. The company sells its generic drugs to distributors, retail stores, and other pharmaceutical manufacturers, as well as directly to medical institutions, such as hospitals, general practitioners, and dispensing pharmacies in Japan; and pharmaceutical products to wholesalers in the United States. Sawai Group Holdings Co., Ltd. was founded in 1929 and is headquartered in Osaka, Japan.

How the Company Makes Money

SAWAI GROUP HOLDINGS generates revenue primarily through the sales of its generic pharmaceuticals, which are marketed to hospitals, pharmacies, and healthcare institutions. The company benefits from a robust production capacity and a wide portfolio of products, allowing it to cater to various therapeutic areas. Key revenue streams include direct sales of generic medications and partnerships with other pharmaceutical firms for distribution and co-development of products. Additionally, SAWAI GROUP may engage in collaborations that enhance its research and development capabilities, contributing to long-term revenue growth.

SAWAI GROUP HOLDINGS Co., Ltd. Financial Statement Overview

Summary

The company shows stable revenue growth and operational efficiency, but faces challenges in profitability and cash flow management. Increased leverage and declining return on equity are potential risks, though the capital structure remains balanced.

Income Statement

The income statement shows a stable revenue growth rate of 2.74% in the TTM period, with a consistent gross profit margin around 30%. However, the net profit margin has decreased from 12.13% to 6.36% in the TTM, indicating pressure on profitability. EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a manageable debt-to-equity ratio of 0.60 in the TTM, up from 0.49 annually, indicating increased leverage. Return on equity has decreased to 6.54% from 12.41%, showing reduced profitability on equity. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 21.37% in the TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.17, showing adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.29 suggests room for improvement in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	194.21B	189.02B	176.86B	163.70B	193.82B	187.22B
Gross Profit	57.78B	56.35B	54.32B	62.63B	66.65B	72.43B
EBITDA	33.41B	36.20B	36.87B	33.93B	-18.71B	37.25B
Net Income	12.34B	22.94B	13.70B	12.67B	-28.27B	12.34B
Balance Sheet
Total Assets	349.35B	348.83B	382.02B	364.17B	349.50B	393.34B
Cash, Cash Equivalents and Short-Term Investments	29.94B	38.78B	26.54B	33.26B	47.86B	54.27B
Total Debt	105.46B	91.34B	87.13B	77.07B	71.11B	71.85B
Total Liabilities	173.67B	164.01B	163.99B	151.43B	149.42B	152.59B
Stockholders Equity	175.67B	184.82B	212.66B	201.64B	190.07B	218.28B
Cash Flow
Free Cash Flow	4.66B	7.28B	-1.50B	-14.12B	10.97B	10.73B
Operating Cash Flow	16.33B	27.85B	23.15B	13.03B	34.31B	31.86B
Investing Cash Flow	-19.91B	6.48B	-23.11B	-27.13B	-30.39B	-21.79B
Financing Cash Flow	-24.50B	-32.70B	2.36B	-1.27B	-11.26B	-11.99B

SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1958.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4887, the sentiment is Positive. The current price of 1958 is above the 20-day moving average (MA) of 1895.18, above the 50-day MA of 1924.34, and above the 200-day MA of 1907.77, indicating a bullish trend. The MACD of 16.46 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 88.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4887.

SAWAI GROUP HOLDINGS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4553	81 Outperform	$155.76B	7.55	11.81%	2.87%	9.32%	30.85%
4569	69 Neutral	¥78.17B	9.15	―	3.70%	11.65%	93.46%
4886	67 Neutral	¥56.26B	12.58	―	2.46%	5.44%	-20.33%
4547	66 Neutral	$187.89B	13.44	6.57%	2.86%	13.11%	41.57%
4551	65 Neutral	―	―	―	―	10.91%	2.93%
4887	57 Neutral	¥182.53B	199.01	―	2.93%	12.78%	-105.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

SAWAI GROUP HOLDINGS Co., Ltd. Corporate Events

Sawai Group Settles Patent Lawsuit with Asahi Kasei Pharma

Sawai Group Holdings Co., Ltd. announced a settlement with Asahi Kasei Pharma Corporation regarding a patent infringement lawsuit over the generic drug TERIPARATIDE. Sawai Pharmaceutical agreed to pay 4 billion yen to Asahi Kasei Pharma, which waived further claims. The company is reviewing the financial impact and will update stakeholders if necessary.

The most recent analyst rating on (JP:4887) stock is a Hold with a Yen2023.00 price target. To see the full list of analyst forecasts on SAWAI GROUP HOLDINGS Co., Ltd. stock, see the JP:4887 Stock Forecast page.

Sawai Group Holdings Reports Decline in Profit Amid Revenue Growth

Sawai Group Holdings reported a significant decline in profit for the three months ended June 30, 2025, despite an increase in revenue and operating profit. The company’s financial performance was impacted by the classification of its U.S. business as a discontinued operation, which contributed to a sharp drop in profit attributable to the owners of the parent. The company also conducted a 3-for-1 stock split, affecting earnings per share calculations.

The most recent analyst rating on (JP:4887) stock is a Sell with a Yen1650.00 price target. To see the full list of analyst forecasts on SAWAI GROUP HOLDINGS Co., Ltd. stock, see the JP:4887 Stock Forecast page.