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Shiseido Company,Limited (JP:4911)
:4911
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Shiseido Company,Limited
(4911)
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Rating:56Neutral
Price Target:
¥2,558.00
▲(0.85% Upside)
The overall stock score reflects a mixed outlook. Financial performance is hindered by profitability issues despite strong cash flow and gross margins. Technical analysis suggests a potential upward trend, but valuation concerns due to a negative P/E ratio weigh heavily. Earnings call insights show operational improvements but highlight significant sales challenges.
Shiseido Company,Limited (4911) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.05T
Dividend Yield1.97%
Average Volume (3M)2.60M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth-3.60%
EPS Growth-112.93%
CountryJP
Employees27,908
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)14.64
Shares Outstanding400,000,000
10 Day Avg. Volume2,909,350
30 Day Avg. Volume2,597,383
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,478.33Price Target Upside-2.29% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shiseido Company,Limited Business Overview & Revenue Model
Company DescriptionShiseido Company, Limited (4911) is a leading global cosmetics and skincare company headquartered in Japan. Established in 1872, Shiseido operates in various sectors including cosmetics, skincare, and fragrance, offering a wide range of products that cater to different consumer needs and preferences. The company's core product lines include high-end skincare, makeup, and fragrance brands, alongside a strong focus on research and development to innovate new beauty solutions.
How the Company Makes MoneyShiseido generates revenue primarily through the sale of its diverse range of beauty products across multiple channels including retail, online platforms, and direct sales. Key revenue streams include skincare products, makeup, and fragrances. The company benefits from a strong presence in Asia, particularly in Japan and China, where premium beauty products are in high demand. Additionally, strategic partnerships with various retailers and e-commerce platforms enhance distribution and reach. Shiseido's investment in marketing and branding, along with its commitment to research and development, allows it to maintain a competitive edge, driving consumer loyalty and repeat purchases.
Shiseido Company,Limited Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in core operating profit and successful cost reduction measures, alongside a positive free cash flow. However, these were overshadowed by a notable decline in net sales, underperformance in key areas such as Drunk Elephant and the Americas, and potential impairment risks. The challenges in maintaining sales growth amidst market weaknesses, especially in China and the Americas, were evident.Q2-2025 Updates
Positive Updates
Improvement in Core Operating Profit
Core operating profit for H1 was JPY23.4 billion, an increase of JPY4.1 billion YoY, exceeding expectations and achieving over 60% of the full-year guidance of JPY36.5 billion.
Positive Free Cash Flow
Free cash flow turned positive to JPY17.5 billion from a negative in Q1 due to factors such as higher profit before tax.
Structural Reforms Bearing Fruit
The company realized JPY13.5 billion cost reduction benefits in H1, aiming to increase the full-year target from JPY20 billion to JPY25 billion.
Market Share Expansion
The company expanded its market share in areas such as fragrances in Japan, Asia Pacific, and Europe.
Strong Performance of Key Brands
Clé de Peau Beauté, NARS, and ELIXIR are performing well and driving growth across the Company.
Negative Updates
Decline in Net Sales
Net sales for H1 were JPY469.8 billion, with an underlying growth rate of minus 6%, due to weakness in China Travel and Retail and Drunk Elephant.
Underperformance of Drunk Elephant
Drunk Elephant continued to suffer, with results far below initial expectations, contributing to potential impairment risks in the Americas.
Challenges in Americas
Consumer purchases in Americas were negative high single percent, with core operating profit dropping JPY3.3 billion due to sales decline.
Risk of Impairment Losses
Given the declining profitability of the Americas business and underperformance of Drunk Elephant, the risk of impairment losses is greater than ever.
Slowdown in Japan's Inbound Demand
Inbound consumer purchases in Japan turned negative in Q2 due to factors such as the narrowing price gap between Japan and overseas markets.
Company Guidance
During the Shiseido Company Limited 2025 Q2 earnings briefing, the company outlined several key metrics and strategic initiatives for the fiscal year. The core operating profit for H1 was reported at JPY23.4 billion, an increase of JPY4.1 billion year-over-year, surpassing expectations and achieving over 60% of the full-year guidance of JPY36.5 billion. Despite a 6% decline in net sales to JPY469.8 billion, profitability improved due to structural reforms and cost reductions, including a JPY13.5 billion cost reduction benefit in H1, with a full-year target increased from JPY20 billion to JPY25 billion. The company's focus remains on achieving a core operating profit of JPY36.5 billion by accelerating reforms and maintaining rigorous cost management. While challenges persist, notably in the Americas and with Drunk Elephant, there are opportunities for growth in China and Travel Retail. The company also aims to improve its operating profit margin to double digits, reflecting a commitment to sustainable growth and competitiveness.Shiseido Company,Limited Financial Statement Overview
Summary
The financial performance is mixed, with strong gross margins and cash flow growth but negative net income and return on equity. The income statement shows a slight decline in revenue growth and a negative net profit margin, while the balance sheet indicates moderate financial stability with manageable leverage.Income Statement
The income statement shows mixed results. The TTM data indicates a slight decline in revenue growth at -1.81%, and the net profit margin is negative at -0.40%, indicating a loss. However, the gross profit margin remains strong at 76.61%, suggesting efficient production processes. EBIT and EBITDA margins are modest, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects moderate financial stability. The debt-to-equity ratio is 0.60, indicating manageable leverage. However, the return on equity is negative at -0.60%, highlighting profitability issues. The equity ratio is not explicitly calculated but suggests a balanced asset structure.55
Neutral
Cash Flow
Cash flow analysis reveals positive trends. Free cash flow growth is strong at 170.87%, and the operating cash flow to net income ratio is 0.13, indicating adequate cash generation relative to earnings. However, the free cash flow to net income ratio is low at 0.19, suggesting limited cash available after capital expenditures.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 951.88B | 990.59B | 973.04B | 1.07T | 1.01T | 920.89B |
| Gross Profit | 730.97B | 753.19B | 713.36B | 744.16B | 738.16B | 682.49B |
| EBITDA | 94.61B | 82.84B | 114.10B | 127.23B | 179.87B | 68.97B |
| Net Income | -1.29B | -10.81B | 21.75B | 34.20B | 46.91B | -11.66B |
Balance Sheet | ||||||
| Total Assets | 1.25T | 1.33T | 1.26T | 1.31T | 1.18T | 1.20T |
| Cash, Cash Equivalents and Short-Term Investments | 81.52B | 98.48B | 126.64B | 137.53B | 156.50B | 151.01B |
| Total Debt | 337.95B | 363.16B | 280.98B | 297.19B | 305.84B | 324.30B |
| Total Liabilities | 616.46B | 677.21B | 615.11B | 681.91B | 611.93B | 697.64B |
| Stockholders Equity | 613.94B | 632.47B | 618.75B | 604.26B | 540.70B | 485.69B |
Cash Flow | ||||||
| Free Cash Flow | 23.98B | 23.54B | 33.35B | -19.47B | 30.43B | -9.44B |
| Operating Cash Flow | 54.68B | 48.40B | 89.03B | 46.73B | 122.89B | 64.05B |
| Investing Cash Flow | -45.08B | -83.74B | -35.54B | -41.31B | 63.74B | -70.08B |
| Financing Cash Flow | -7.04B | 23.36B | -75.64B | -52.42B | -176.22B | 46.88B |
Shiseido Company,Limited Technical Analysis
Negative
2536.50
Price Trends
2528.92
Positive
2513.15
Positive
2514.70
Positive
Market Momentum
19.66
Positive
44.75
Neutral
17.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4911, the sentiment is Negative. The current price of 2536.5 is below the 20-day moving average (MA) of 2640.30, above the 50-day MA of 2528.92, and above the 200-day MA of 2514.70, indicating a neutral trend. The MACD of 19.66 indicates Positive momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4911.
Shiseido Company,Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.80T | 20.61 | 11.28% | 3.11% | -1.04% | -6.98% | |
68 Neutral | $297.77B | 46.33 | 3.99% | 3.88% | -0.89% | -34.14% | |
66 Neutral | $3.04T | 26.61 | 10.99% | 2.34% | 4.26% | 61.42% | |
66 Neutral | $419.99B | 20.49 | 7.29% | 1.87% | 1.29% | 4.72% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $345.44B | 115.34 | 1.11% | 2.38% | 2.82% | -79.45% | |
56 Neutral | ¥1.05T | -808.82 | ― | 1.97% | -3.60% | -112.93% |
* Consumer Defensive Sector Average
JP:4911
Shiseido Company,Limited
2,509.00
-415.67
-14.21%
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Shiseido Company,Limited Corporate Events
Shiseido Reports Mixed Financial Results for First Half of 2025
Aug 6, 2025
Shiseido reported a decrease in net sales by 7.6% for the first half of 2025 compared to the previous year, but saw a significant increase in core operating profit by 21.3%. The company also experienced a substantial rise in profit before tax, indicating a recovery from the previous year’s losses. Despite the drop in total comprehensive income, the company’s financial position remains stable with a slight increase in equity ratio, and it plans to maintain its dividend forecast for the fiscal year.
The most recent analyst rating on (JP:4911) stock is a Sell with a Yen1700.00 price target. To see the full list of analyst forecasts on Shiseido Company,Limited stock, see the JP:4911 Stock Forecast page.
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.