Shiseido Company,Limited (4911) AI Stock Analysis

• Market Cap: ¥931.41B
• Dividend Yield: 2.12%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -1.20%
• EPS Growth: -2896.72%
• Country: JP
• Employees: 27,908
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -133.97
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 2,909,350
• 30 Day Avg. Volume: 2,597,383
• PEG Ratio: 0.69
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 47.29
• 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: ¥2,483.33
• Price Target Upside: 5.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ¥2,190.00 ▼(-7.20% Downside)

Shiseido's overall stock score is primarily impacted by weak financial performance and technical indicators. Despite improved cash flow and some positive earnings call highlights, the company's profitability issues and bearish technical trends weigh heavily on the score. Valuation concerns due to negative earnings further contribute to the low score.

Positive Factors

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing Shiseido to invest in growth opportunities and manage debt more effectively.

E-commerce Growth

Strong e-commerce growth in Japan reflects successful digital strategies and increased consumer engagement, supporting long-term revenue expansion.

Fragrance Segment Growth

Robust growth in the fragrance segment highlights product strength and brand appeal, contributing to Shiseido's competitive positioning.

Negative Factors

Americas Business Challenges

Challenges in the Americas, including goodwill impairments, strain profitability and highlight regional operational risks.

Drunk Elephant Sales Decline

Declining sales of Drunk Elephant impact overall revenue, indicating potential brand-specific issues that need addressing.

Net Sales Decline

A decline in net sales suggests market challenges and competitive pressures, potentially affecting long-term growth prospects.

Shiseido Company,Limited Business Overview & Revenue Model

Company Description

Shiseido 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 Money

Shiseido 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 Financial Statement Overview

Summary

Shiseido Company, Limited shows mixed financial performance. Strong gross margins and manageable leverage are positives, but profitability is a concern with negative net income and return on equity. Cash flow generation is a positive aspect, with significant growth in free cash flow, but overall financial health needs improvement.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	934.84B	990.59B	973.04B	1.07T	1.01T	920.89B
Gross Profit	715.87B	753.19B	713.36B	744.16B	738.16B	682.49B
EBITDA	39.17B	82.84B	114.10B	127.23B	179.87B	68.97B
Net Income	-49.40B	-10.81B	21.75B	34.20B	46.91B	-11.66B
Balance Sheet
Total Assets	1.21T	1.33T	1.26T	1.31T	1.18T	1.20T
Cash, Cash Equivalents and Short-Term Investments	78.16B	98.48B	126.64B	137.53B	156.50B	151.01B
Total Debt	331.76B	363.16B	280.98B	297.19B	305.84B	324.30B
Total Liabilities	623.47B	677.21B	615.11B	681.91B	611.93B	697.64B
Stockholders Equity	565.30B	632.47B	618.75B	604.26B	540.70B	485.69B
Cash Flow
Free Cash Flow	39.27B	23.54B	33.35B	-19.47B	30.43B	-9.44B
Operating Cash Flow	69.93B	48.40B	89.03B	46.73B	122.89B	64.05B
Investing Cash Flow	-42.03B	-83.74B	-35.54B	-41.31B	63.74B	-70.08B
Financing Cash Flow	-34.92B	23.36B	-75.64B	-52.42B	-176.22B	46.88B

Shiseido Company,Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2360.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4911, the sentiment is Neutral. The current price of 2360 is above the 20-day moving average (MA) of 2275.43, below the 50-day MA of 2473.34, and below the 200-day MA of 2484.79, indicating a neutral trend. The MACD of -22.15 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4911.

Shiseido Company,Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4912	76 Outperform	¥462.20B	16.05	9.77%	1.75%	2.18%	60.81%
4927	68 Neutral	$292.91B	29.33	6.05%	3.93%	-1.16%	36.30%
4452	66 Neutral	¥2.91T	23.94	11.70%	2.41%	4.62%	47.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8113	62 Neutral	¥1.63T	18.84	10.79%	3.48%	-1.56%	-1.15%
4922	57 Neutral	$302.71B	40.46	2.72%	2.64%	1.37%	-5.60%
4911	49 Neutral	¥931.41B	-16.97	―	2.12%	-1.20%	-2896.72%

Shiseido Company,Limited Corporate Events

Shiseido Announces Leadership Restructuring for Strategic Growth

Shiseido Company, Limited announced a restructuring of its executive leadership, effective January 1, 2026, as part of its Action Plan 2025-2026 aimed at sustainable growth and resilience. The new structure, featuring Chief Officers and Division Officers, is designed to enhance decision-making and execution, positioning the company to better achieve its 2030 Medium-term Strategy.

Shiseido Announces Board Restructuring Ahead of 2026 Shareholders’ Meeting

Shiseido Company, Limited has announced changes to its Board of Directors, including the nomination of new directors and the restructuring of its Nominating, Compensation, and Audit Committees. These changes, set to be finalized at the upcoming shareholders’ meeting in March 2026, are part of the company’s ongoing efforts to strengthen its governance and strategic direction, potentially impacting its market positioning and stakeholder relations.

Shiseido Implements Early Retirement Program to Boost Growth

Shiseido Company, Limited has announced the implementation of an Early Retirement Program called the ‘Next Career Support Plan’ as part of its ‘Action Plan 2025-2026.’ This initiative is aimed at restructuring and strengthening the company’s operational framework to ensure sustainable growth and profitability. The program, which targets approximately 200 employees, is expected to incur a one-time cost of 3.0 billion yen, recognized as a non-recurring item in the company’s financial results for the fourth quarter of fiscal year 2025. This move is part of Shiseido’s broader strategy to enhance its global operations and support employees in pursuing new career opportunities.

Shiseido Revises Earnings Forecasts and Recognizes Impairment Loss

Shiseido Company, Limited has revised its consolidated earnings forecasts for the fiscal year ending December 31, 2025, citing a decline in net sales due to reduced inbound tourism in Japan, a market slowdown in the U.S., and weak performance from Drunk Elephant. Despite maintaining its core operating profit forecast, the company recognized a significant goodwill impairment loss of ¥46.8 billion in its Americas Business, impacting its operating profit and profit before tax. This impairment reflects the decreased profitability in the region, although it will not affect the company’s consolidated financial results or future earnings outlook.

Shiseido Faces Financial Challenges Amid Market Pressures

Shiseido reported a challenging financial performance for the first nine months of 2025, with a 4% decline in net sales compared to the previous year. The company experienced significant losses, with a net loss of ¥44,061 million, reflecting ongoing challenges in the market. Despite these setbacks, Shiseido remains committed to its strategic initiatives and has revised its performance forecast for the fiscal year 2025, indicating efforts to stabilize and improve its financial standing.

Shiseido Unveils Ambitious 2030 Strategy for Sustainable Growth

Shiseido has unveiled its 2030 Medium-Term Strategy, aiming to maximize brand value and achieve sustainable growth. The strategy focuses on three strategic pillars: accelerating growth with brand power, evolving global operations, and driving sustainable value creation. By enhancing its brand portfolio, expanding global reach, and leveraging digital technologies, Shiseido aims to achieve a core operating profit margin exceeding 10% by 2030. The company also plans to invest in talent development and sustainability initiatives, reinforcing its commitment to creating social and corporate value.