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

• Market Cap: ¥238.73B
• Dividend Yield: 2.28%
• Average Volume (3M): 299.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,366.00 ▲(0.30% Upside)

The overall stock score reflects a mix of strong technical momentum and solid financial performance, offset by valuation concerns due to a negative P/E ratio. The company's financial health is stable, but challenges with net profitability and leverage need addressing. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and maintain product demand, supporting long-term business stability.

Cash Flow Generation

Strong free cash flow growth indicates improved cash generation capabilities, providing financial flexibility for future investments and debt management.

Gross Margin Stability

Stable gross margins suggest effective cost management and pricing strategies, which are crucial for sustaining profitability in a competitive market.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates pressure on profitability, which could affect the company's ability to reinvest in growth and manage expenses effectively.

Increased Leverage

Higher leverage can increase financial risk and limit the company's ability to invest in growth opportunities, impacting long-term financial health.

Operating Cash Flow Concerns

A lower operating cash flow to net income ratio suggests reduced cash efficiency, which may hinder the company's ability to fund operations and growth initiatives.

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	200.00B	189.02B	176.86B	163.70B	193.82B	187.22B
Gross Profit	58.78B	56.35B	54.32B	62.63B	66.65B	72.43B
EBITDA	25.30B	36.20B	36.87B	33.93B	-18.71B	37.25B
Net Income	9.88B	22.94B	13.70B	12.67B	-28.27B	12.34B
Balance Sheet
Total Assets	355.78B	348.83B	382.02B	364.17B	349.50B	393.34B
Cash, Cash Equivalents and Short-Term Investments	33.74B	38.78B	26.54B	33.26B	47.86B	54.27B
Total Debt	105.50B	91.34B	87.13B	77.07B	71.11B	71.85B
Total Liabilities	178.92B	164.01B	163.99B	151.43B	149.42B	152.59B
Stockholders Equity	176.86B	184.82B	212.66B	201.64B	190.07B	218.28B
Cash Flow
Free Cash Flow	6.41B	7.28B	-1.50B	-14.12B	10.97B	10.73B
Operating Cash Flow	19.02B	27.85B	23.15B	13.03B	34.31B	31.86B
Investing Cash Flow	-22.20B	6.48B	-23.11B	-27.13B	-30.39B	-21.79B
Financing Cash Flow	-13.24B	-32.70B	2.36B	-1.27B	-11.26B	-11.99B

SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2359.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 2359 is above the 20-day moving average (MA) of 2358.20, above the 50-day MA of 2110.67, and above the 200-day MA of 1951.71, indicating a bullish trend. The MACD of 74.45 indicates Positive momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 53.23 is Neutral, 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	¥178.16B	8.63	11.81%	2.14%	9.32%	30.85%
4569	69 Neutral	¥84.17B	9.85	―	3.36%	11.65%	93.46%
4886	67 Neutral	¥55.91B	12.50	―	2.52%	5.44%	-20.33%
4547	66 Neutral	¥195.25B	13.97	6.57%	2.48%	13.11%	41.57%
4887	63 Neutral	¥238.73B	-238.59	―	2.28%	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 Holdings Sees Revenue Growth Amid Profit Decline

Sawai Group Holdings reported a 12.5% increase in revenue for the six months ending September 30, 2025, despite a significant decline in profits due to the classification of its U.S. business as a discontinued operation. The company anticipates a strong recovery in profits for the fiscal year ending March 31, 2026, with expected operating profit and profit before tax showing substantial year-on-year growth.

The most recent analyst rating on (JP:4887) stock is a Hold with a Yen1980.00 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 Revises Financial Forecasts Amid Legal Settlement Impact

Sawai Group Holdings Co., Ltd. has revised its financial forecasts for the interim period ending September 30, 2025, and the full year ending March 31, 2026, due to recent operating results and trends. The revisions reflect a slight increase in revenue but a significant decrease in operating profit and earnings per share, attributed to the impact of a patent infringement lawsuit settlement concerning Teriparatide Subcutaneous Injection. The dividend forecast remains unchanged, and the U.S. operations are classified as discontinued.

The most recent analyst rating on (JP:4887) stock is a Hold with a Yen1980.00 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 Recognizes Litigation Expense Amid Patent Settlement

Sawai Group Holdings Co., Ltd. has announced a financial provision for a loss on litigation related to a patent infringement settlement concerning its Teriparatide Subcutaneous Injection. The company will recognize a 4 billion yen expense in its financial results for the second quarter of the fiscal year ending March 31, 2026. Despite this expense, the company has maintained its previously announced dividend amounts, indicating a stable financial outlook.

The most recent analyst rating on (JP:4887) stock is a Hold with a Yen1980.00 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 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.