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Shiseido Company,Limited (JP:4911)
:4911
Japanese Market
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Shiseido Company,Limited (4911) AI Stock Analysis

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JP:4911

Shiseido Company,Limited

(4911)

Rating:49Neutral
Price Target:
¥2,420.00
▲(0.17% Upside)
The overall stock score reflects mixed financial performance, bearish technical indicators, and concerning valuation metrics. While there are improvements in core operating profit and cost management, the decline in net sales and profitability issues weigh heavily on the score. The technical analysis suggests bearish momentum, and the valuation is impacted by a negative P/E ratio, though the dividend yield offers some compensation.

Shiseido Company,Limited (4911) vs. iShares MSCI Japan ETF (EWJ)

Shiseido Company,Limited Business Overview & Revenue Model

Company DescriptionShiseido Company, Limited is a leading multinational cosmetics and personal care company headquartered in Tokyo, Japan. Founded in 1872, it is one of the oldest and most esteemed beauty brands globally. Shiseido operates across various sectors, offering an extensive range of products including skincare, makeup, fragrance, and hair care. The company is renowned for its innovation, combining Eastern traditions with Western science to deliver high-quality products that cater to diverse consumer needs worldwide.
How the Company Makes MoneyShiseido Company, Limited generates revenue primarily through the sale of its cosmetics and personal care products. The company's key revenue streams include skincare, which is its largest segment, followed by makeup, fragrance, and hair care products. Shiseido sells its products through multiple channels, including department stores, specialty retailers, drugstores, and e-commerce platforms, allowing it to reach a broad consumer base. Additionally, Shiseido engages in strategic partnerships and collaborations with other brands and influencers to enhance its market presence and drive sales. The company's global footprint and commitment to research and development further bolster its revenue by continually introducing innovative and effective products to the market.

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
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue951.88B990.59B973.04B1.07T1.01T920.89B
Gross Profit730.97B753.19B713.36B744.16B738.16B682.49B
EBITDA94.61B82.84B114.10B127.23B179.87B68.97B
Net Income-1.29B-10.81B21.75B34.20B46.91B-11.66B
Balance Sheet
Total Assets1.25T1.33T1.26T1.31T1.18T1.20T
Cash, Cash Equivalents and Short-Term Investments81.52B98.48B126.64B137.53B156.50B151.01B
Total Debt337.95B363.16B280.98B297.19B305.84B324.30B
Total Liabilities616.46B677.21B615.11B681.91B611.93B697.64B
Stockholders Equity613.94B632.47B618.75B604.26B540.70B485.69B
Cash Flow
Free Cash Flow23.98B23.54B33.35B-19.47B30.43B-9.44B
Operating Cash Flow54.68B48.40B89.03B46.73B122.89B64.05B
Investing Cash Flow-45.08B-83.74B-35.54B-41.31B63.74B-70.08B
Financing Cash Flow-7.04B23.36B-75.64B-52.42B-176.22B46.88B

Shiseido Company,Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2416.00
Price Trends
50DMA
2495.08
Negative
100DMA
2424.70
Positive
200DMA
2548.36
Negative
Market Momentum
MACD
-20.67
Positive
RSI
46.30
Neutral
STOCH
29.52
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 2416 is below the 20-day moving average (MA) of 2498.20, below the 50-day MA of 2495.08, and below the 200-day MA of 2548.36, indicating a bearish trend. The MACD of -20.67 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$20.49B14.78-2.98%3.11%1.86%-5.76%
49
Neutral
¥962.77B496.62
2.07%-3.60%-112.93%
$21.38B27.8310.99%3.15%
$2.20B109.471.11%3.11%
$2.90B21.177.29%2.94%
$1.94B44.763.99%5.48%
$12.18B20.5711.28%1.60%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4911
Shiseido Company,Limited
2,433.00
-776.33
-24.19%
KAOCF
Kao
46.24
-1.53
-3.20%
KOSCF
Kose
39.53
-18.57
-31.96%
LIOPF
Lion
10.82
0.44
4.24%
PORBF
Pola Orbis Holdings
9.04
-0.58
-6.03%
UNCHF
Unicharm
6.64
-5.57
-45.62%

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.

Shiseido Introduces Performance-Linked Stock Compensation Plan
Jun 30, 2025

Shiseido Company, Limited announced the implementation of a performance-linked stock compensation plan as a long-term incentive for its executive officers and employees. This plan aims to align the interests of employees with shareholders by granting share units based on performance indicators such as total shareholder return, return on invested capital, and ESG performance. The initiative is designed to motivate employees to contribute to the company’s long-term growth and sustainability.

The most recent analyst rating on (JP:4911) stock is a Hold with a Yen2900.00 price target. To see the full list of analyst forecasts on Shiseido Company,Limited stock, see the JP:4911 Stock Forecast page.

Shiseido Completes Treasury Stock Disposal for Incentive Plan
Jun 13, 2025

Shiseido Company, Limited has completed the payment procedures for the disposal of its treasury stock under a performance-linked stock compensation plan. This move, aimed at providing long-term incentive-type remuneration, involves the disposal of 91,654 shares of common stock at a price of ¥2,362 per share, totaling ¥216,486,748. The disposal is part of the company’s compensation strategy for directors, officers, and employees, and is not expected to impact the company’s earnings forecast for the fiscal year ending December 31, 2025.

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.

Shiseido Announces Leadership Change in Japan Region
Jun 4, 2025

Shiseido Company, Limited announced a significant leadership change effective July 1, 2025, with Koji Nakata being appointed as the new Representative Director, President, and CEO of Shiseido Japan Co., Ltd., taking over from Kentaro Fujiwara. This change is part of the company’s strategic move to strengthen its leadership in the Japan region, potentially impacting its market positioning and operational focus.

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.

Shiseido Announces Treasury Stock Disposal for Long-Term Incentive Plan
May 19, 2025

Shiseido Company, Limited has announced the disposal of its treasury stock as part of a performance-linked stock compensation plan. This initiative aims to motivate directors and employees by aligning their interests with shareholders and enhancing corporate value over the long term. The disposal involves 91,654 shares and is intended to reward eligible directors, officers, and employees based on performance metrics. The plan is designed to ensure a limited dilution effect and includes both stock and cash incentives, reflecting the company’s commitment to strategic growth and stakeholder alignment.

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.

Shiseido Announces Absorption-Type Merger with ETWAS Co., Ltd.
May 14, 2025

Shiseido Company, Limited has announced an absorption-type merger with its wholly-owned subsidiary, ETWAS Co., Ltd., effective July 1, 2025. This strategic move is part of Shiseido’s ‘Action Plan 2025-2026,’ aimed at reinforcing its brand foundation, rebuilding a profitable framework, and enhancing operational governance to establish a resilient business model for sustainable profit growth. The merger is expected to improve operational efficiency and streamline the company’s operations.

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.

Shiseido Reports Q1 2025 Financial Results with Profit Turnaround
May 12, 2025

Shiseido reported a decline in net sales and core operating profit for the first quarter of 2025, with net sales dropping by 8.5% compared to the previous year. Despite the decrease in sales, the company managed to achieve a profit attributable to owners of the parent, marking a turnaround from the previous year’s loss. The financial results indicate challenges in market conditions, but the company remains optimistic about its performance for the fiscal year 2025, maintaining its forecast for net sales and core operating profit growth.

Shiseido EMEA Chairman Resigns, No Successor Appointed
May 9, 2025

Shiseido Company, Limited announced the resignation of Franck Marilly, Chairman of Shiseido EMEA, effective May 31, 2025. The company has decided not to appoint a new Chairman, with Alberto Noe continuing in a leadership role as CEO of the EMEA region, which may impact the company’s strategic direction and operations in the region.

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: Aug 29, 2025