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

• Market Cap: ¥192.80B
• Dividend Yield: 2.51%
• Average Volume (3M): 430.40K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.44
• Revenue Growth: -3.69%
• EPS Growth: -18.73%
• Country: JP
• Employees: 3,482
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -16.28
• Shares Outstanding: 115,472,740
• 10 Day Avg. Volume: 410,860
• 30 Day Avg. Volume: 430,403
• PEG Ratio: -2.19
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.82
• 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: ¥2,325.00
• Price Target Upside: 19.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ¥1,986.00 ▲(2.40%Upside)

The stock of SAWAI GROUP HOLDINGS Co., Ltd. presents a balanced investment opportunity. The most significant strength lies in its financial performance, showcasing strong recovery and profitability. The technical indicators suggest a neutral to mildly bearish sentiment in the short term. Valuation metrics indicate a fair price point with an attractive dividend yield, enhancing its appeal to income-focused investors.

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 Co., Ltd. generates revenue through the production and sale of generic pharmaceuticals. The company's primary revenue stream comes from distributing these medications to healthcare providers, pharmacies, and wholesalers. SAWAI leverages its extensive manufacturing capabilities and research and development expertise to produce cost-effective alternatives to branded drugs. By focusing on generic drugs, the company benefits from lower R&D costs compared to innovative drug development, enabling it to offer competitive pricing. Additionally, strategic partnerships and collaborations with other pharmaceutical companies and healthcare organizations can enhance its market reach and product offerings, further contributing to its earnings. The company's ability to maintain a robust pipeline of new generic products and navigate the regulatory landscape efficiently also plays a crucial role in sustaining its financial performance.

SAWAI GROUP HOLDINGS Co., Ltd. Financial Statement Overview

Summary

SAWAI GROUP HOLDINGS Co., Ltd. demonstrates strong financial recovery with improved profitability and efficient operations. The income statement reveals robust growth with a notable net profit margin increase to 12.1%. The balance sheet reflects manageable leverage and a solid equity position, although asset optimization is needed. Cash flow improvements are significant, yet capital efficiency could be enhanced.

Income Statement

The income statement shows strong recovery and growth. Gross profit margin was 29.8% in 2025, reflecting effective cost management. Net profit margin increased notably to 12.1%, driven by a significant rise in net income. Revenue growth rate was 6.9%, indicating healthy expansion in the latest year. EBIT and EBITDA margins improved, reaching 10.7% and 19.1% respectively, showcasing operational efficiency gains.

Balance Sheet

The balance sheet remains solid with a debt-to-equity ratio of 0.49, indicating manageable leverage. The return on equity (ROE) increased to 12.4%, signaling effective use of equity. Equity ratio stands at 53.0%, reflecting a robust equity position. However, total assets have slightly decreased over the years, suggesting a need for asset optimization.

Cash Flow

The cash flow statement shows significant improvement in free cash flow, which turned positive to ¥7.28B from negative in previous years. Operating cash flow to net income ratio is strong at 1.21, demonstrating efficient cash generation relative to net income. Despite these positives, free cash flow to net income ratio remains low, indicating potential areas for enhancement in capital efficiency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	189.02B	176.86B	200.34B	193.82B	187.22B
Gross Profit	56.35B	54.32B	62.63B	66.65B	72.43B
EBITDA	36.20B	36.87B	33.93B	-18.71B	37.25B
Net Income	22.94B	13.70B	12.67B	-28.27B	12.34B
Balance Sheet
Total Assets	348.83B	382.02B	364.17B	349.50B	393.34B
Cash, Cash Equivalents and Short-Term Investments	38.78B	26.54B	33.26B	47.86B	54.27B
Total Debt	91.34B	82.89B	73.13B	66.75B	71.85B
Total Liabilities	164.01B	163.99B	151.43B	149.42B	152.59B
Stockholders Equity	184.82B	212.66B	201.64B	190.07B	218.28B
Cash Flow
Free Cash Flow	7.28B	-1.50B	-14.12B	10.97B	10.73B
Operating Cash Flow	27.85B	23.15B	13.03B	34.31B	31.86B
Investing Cash Flow	6.48B	-23.11B	-27.13B	-30.39B	-21.79B
Financing Cash Flow	-32.70B	2.36B	-1.27B	-11.26B	-11.99B

SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1939.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1939.5 is above the 20-day moving average (MA) of 1854.40, above the 50-day MA of 1824.27, and below the 200-day MA of 1965.10, indicating a neutral trend. The MACD of 28.87 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.93 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
4887	65 Neutral	¥192.80B	20.08		2.51%	-3.69%	-18.73%
Sector *	65 Neutral	¥347.74B	11.06	-2.99%	2.55%	11.77%	-10.16%
KSPHF	―	$1.17B	15.62	5.47%	2.08%	―	―
TRXPF	―	$1.21B	28.25	4.56%	5.12%	―	―
TWAPF	―	$1.07B	10.01	11.38%	1.24%	―	―
4886	76 Outperform	¥63.74B	13.31		2.10%	2.06%	-32.48%
4569	70 Outperform	¥78.06B	9.38		1.69%	8.83%	70.61%

SAWAI GROUP HOLDINGS Co., Ltd. Corporate Events

Sawai Group Completes Restricted Share Compensation Issuance

Sawai Group Holdings Co., Ltd. has completed the payment for the issuance of new shares as restricted share compensation, following approval from its Board of Directors. This strategic move involves issuing 19,920 shares to directors and officers, aiming to enhance corporate governance and align the interests of management with shareholders.

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.

Sawai Group Holdings Issues New Shares for Executive Compensation

Sawai Group Holdings Co., Ltd. announced the issuance of 19,920 new shares as restricted share compensation, aimed at aligning the interests of directors and officers with the company’s long-term performance goals. This initiative is designed to motivate key personnel by linking their compensation to the company’s share price and performance metrics, with a minor dilutive effect of 0.017% on existing shares.

The most recent analyst rating on (JP:4887) stock is a Buy with a Yen3000.00 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 Files Final Appeal in Patent Lawsuit

Sawai Group Holdings Co., Ltd. announced that its subsidiary, Sawai Pharmaceutical Co., Ltd., has filed a final appeal with the Supreme Court following an unfavorable ruling by the IP High Court in a patent infringement lawsuit concerning the use patent of Nalfurafine. The company is reviewing the potential financial impact of this legal development and will inform stakeholders of any significant updates.

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.

Sawai Group Holdings Revises Financial Results Due to Litigation Costs

Sawai Group Holdings Co., Ltd. announced a correction to its consolidated financial results for the fiscal year ended March 31, 2025, due to a provision for loss on litigation amounting to JPY 16,757 million. This adjustment significantly impacted the company’s financial statements, reflecting a decrease in operating profit and profit before tax, highlighting challenges in their financial performance and potential implications for stakeholders.

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.

Sawai Group Faces Legal Setback in Patent Infringement Case

Sawai Group Holdings Co., Ltd. announced that the Intellectual Property High Court of Japan ruled against its subsidiary, Sawai Pharmaceutical Co., Ltd., in a patent infringement lawsuit concerning Nalfurafine Hydrochloride OD Tablets. The court’s decision requires Sawai Pharmaceutical to pay damages amounting to over 14 billion yen. The company is assessing the financial impact and plans to appeal the decision, indicating potential implications for its financial statements and legal strategy.

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.

Sawai Group Holdings Revises Officer Remuneration with New Stock Compensation Plans

Sawai Group Holdings Co., Ltd. has revised its corporate officer remuneration plan to include a Restricted Stock Compensation Plan and a Performance-linked Restricted Stock Compensation Plan. This move is aimed at aligning the interests of its directors with shareholders by tying compensation to the company’s medium- to long-term performance and stock value. The new plan will replace the existing stock acquisition rights and requires shareholder approval at the upcoming General Meeting. This strategic shift is expected to strengthen the company’s market positioning by incentivizing directors to enhance corporate performance and value.

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.

Sawai Group Holdings Proposes Governance Structure Amendment

Sawai Group Holdings Co., Ltd. has announced a proposal to amend its Articles of Incorporation, transitioning to a company with an Audit & Supervisory Committee. This change, subject to shareholder approval, aims to enhance corporate governance and adapt to external changes, potentially impacting its operational efficiency and stakeholder confidence.

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.

Sawai Group Holdings to Receive Major Dividend from Subsidiary

Sawai Group Holdings Co., Ltd. announced it will receive a significant dividend of 19,268 million yen from its subsidiary, Sawai Pharmaceutical Co., Ltd., which will be recorded in its non-consolidated financial statements for the fiscal year ending March 31, 2026. This transaction will not affect the consolidated financial statements, indicating a strategic financial maneuver to optimize internal financial structuring without altering the overall financial outlook for stakeholders.

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.

Sawai Group Announces Board Changes Amid Governance Transition

Sawai Group Holdings Co., Ltd. announced changes in its board of directors as part of its transition to a company with an Audit and Supervisory Committee. These changes, which include new director nominations and retirements, are set to be approved at the upcoming Annual General Meeting of Shareholders, potentially impacting the company’s governance structure and oversight.

The most recent analyst rating on (JP:4887) stock is a Buy with a Yen2800.00 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 Strong Profit Growth Amid Strategic Adjustments

Sawai Group Holdings reported its consolidated financial results for the fiscal year ending March 31, 2025, revealing a significant increase in profit attributable to owners of the parent by 67.5% year-on-year, despite a decrease in total comprehensive income by 14.4%. The company also noted the classification of its U.S. business as a discontinued operation and executed a 3-for-1 stock split effective October 1, 2024, impacting earnings per share calculations. These strategic moves and financial outcomes reflect Sawai’s efforts to streamline operations and enhance shareholder value.

The most recent analyst rating on (JP:4887) stock is a Buy with a Yen2800.00 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 to Retire 12.2% of Its Shares

Sawai Group Holdings Co., Ltd. has announced the retirement of 16,016,600 of its own shares, representing 12.2% of the total shares issued before retirement. This strategic move, scheduled for April 30, 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of shares in circulation.