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SAWAI GROUP HOLDINGS Co., Ltd. (JP:4887)
:4887
Japanese Market

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

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JP

SAWAI GROUP HOLDINGS Co., Ltd.

(4887)

Rating:69Neutral
Price Target:
¥1,952.00
▲(7.08%Upside)
The overall stock score reflects a combination of strong financial performance and attractive valuation, which are dampened by bearish technical indicators. The financial health of the company is robust with improved profitability and efficient operations, but technical analysis suggests caution due to bearish momentum. The stock's valuation is appealing, making it potentially attractive for long-term investors despite short-term technical weaknesses.

SAWAI GROUP HOLDINGS Co., Ltd. (4887) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSAWAI GROUP HOLDINGS Co., Ltd. (4887) is a Japanese company primarily engaged in the manufacture and sale of generic pharmaceuticals. The company operates within the healthcare sector, focusing on providing affordable and high-quality generic drugs to enhance accessibility and reduce healthcare costs. SAWAI GROUP is known for its extensive product portfolio, which covers a broad range of therapeutic areas, ensuring comprehensive healthcare solutions for various medical needs.
How the Company Makes MoneySAWAI GROUP HOLDINGS Co., Ltd. generates revenue through the production and sale of generic pharmaceuticals. The company's primary revenue stream is its extensive portfolio of generic drugs, which are distributed to hospitals, pharmacies, and wholesalers. SAWAI leverages its manufacturing capabilities to produce cost-effective alternatives to branded drugs, thus capturing a significant share of the pharmaceutical market. The company also invests in research and development to expand its product offerings and maintain competitive pricing. Strategic partnerships and collaborations with other healthcare entities further enhance its market presence and contribute to its earnings. Additionally, SAWAI's focus on operational efficiency and cost management plays a critical role in sustaining its profitability in a competitive industry.

SAWAI GROUP HOLDINGS Co., Ltd. Financial Statement Overview

Summary
The company's financial performance is strong, with notable recovery in profitability and efficient operations. Key indicators such as gross and net profit margins, as well as EBIT and EBITDA margins, have shown improvement. However, there is room for improvement in asset efficiency and capital optimization.
Income Statement
78
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue189.02B176.86B200.34B193.82B187.22B
Gross Profit56.35B54.32B62.63B66.65B72.43B
EBITDA36.20B36.87B33.93B-18.71B37.25B
Net Income22.94B13.70B12.67B-28.27B12.34B
Balance Sheet
Total Assets348.83B382.02B364.17B349.50B393.34B
Cash, Cash Equivalents and Short-Term Investments38.78B26.54B33.26B47.86B54.27B
Total Debt91.34B82.89B73.13B66.75B71.85B
Total Liabilities164.01B163.99B151.43B149.42B152.59B
Stockholders Equity184.82B212.66B201.64B190.07B218.28B
Cash Flow
Free Cash Flow7.28B-1.50B-14.12B10.97B10.73B
Operating Cash Flow27.85B23.15B13.03B34.31B31.86B
Investing Cash Flow6.48B-23.11B-27.13B-30.39B-21.79B
Financing Cash Flow-32.70B2.36B-1.27B-11.26B-11.99B

SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1823.00
Price Trends
50DMA
1869.16
Negative
100DMA
1923.61
Negative
200DMA
1975.54
Negative
Market Momentum
MACD
-5.60
Negative
RSI
49.16
Neutral
STOCH
28.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4887, the sentiment is Neutral. The current price of 1823 is above the 20-day moving average (MA) of 1804.97, below the 50-day MA of 1869.16, and below the 200-day MA of 1975.54, indicating a neutral trend. The MACD of -5.60 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4887.

SAWAI GROUP HOLDINGS Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥147.30B7.7611.38%2.67%13.89%17.38%
77
Outperform
¥80.33B9.65
0.66%8.83%70.61%
76
Outperform
¥64.64B13.50
2.06%2.06%-32.48%
75
Outperform
$164.61B14.705.47%2.23%16.87%11.24%
69
Neutral
¥181.27B18.88
2.96%-3.69%-18.73%
65
Neutral
¥177.54B31.984.56%1.90%9.56%5.09%
51
Neutral
$7.41B0.36-61.88%2.33%17.09%1.64%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4887
SAWAI GROUP HOLDINGS Co., Ltd.
1,833.00
-335.73
-15.48%
JP:4569
KYORIN Pharmaceutical Co.,Ltd.
1,516.00
-125.47
-7.64%
JP:4886
ASKA Pharmaceutical Holdings Co., Ltd.
2,447.00
3.35
0.14%
JP:4547
Kissei Pharmaceutical Co
4,030.00
876.69
27.80%
JP:4553
Towa Pharmaceutical Co
2,991.00
106.21
3.68%
JP:4551
Torii Pharmaceutical Co
6,320.00
2,679.92
73.62%

SAWAI GROUP HOLDINGS Co., Ltd. Corporate Events

Sawai Group Holdings Issues New Shares for Executive Compensation
Jun 25, 2025

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
Jun 9, 2025

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
Jun 3, 2025

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
May 28, 2025

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
May 23, 2025

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
May 23, 2025

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
May 23, 2025

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
May 14, 2025

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
May 14, 2025

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
Apr 25, 2025

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.

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.Date of analysis: May 29, 2025