Shinnihonseiyaku Co., Ltd. (4931) AI Stock Analysis

• Market Cap: ¥44.01B
• Dividend Yield: 2.53%
• Average Volume (3M): 55.11K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.39
• Revenue Growth: 2.74%
• EPS Growth: -7.19%
• Country: JP
• Employees: 316
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 31.85
• Shares Outstanding: 21,855,200
• 10 Day Avg. Volume: 51,180
• 30 Day Avg. Volume: 55,106
• PEG Ratio: -2.55
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 10.49
• 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: 62 Neutral
• Price Target: ¥2,107.00 ▼(-5.60% Downside)

Shinnihonseiyaku Co., Ltd. has a solid financial foundation with strong cash flow management and low leverage. However, the stock faces challenges from declining revenue growth and bearish technical indicators. The valuation is fair but not compelling enough to offset the negative momentum.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial risk.

Efficient Cash Flow Management

Efficient cash flow management ensures the company can sustain operations, invest in R&D, and pursue strategic initiatives, supporting long-term growth.

High Gross Profit Margins

High gross profit margins reflect effective cost management and pricing power, contributing to sustained profitability and competitive advantage in the market.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a challenge for future expansion and market share, potentially impacting the company's ability to invest in new products and technologies.

Decreased Net Profit Margin

A declining net profit margin indicates pressure on profitability, which could limit the company's ability to reinvest in its business and maintain competitive positioning.

Negative Free Cash Flow Growth

Negative free cash flow growth may constrain the company's ability to fund new projects and respond to market opportunities, affecting long-term strategic initiatives.

Shinnihonseiyaku Co., Ltd. Business Overview & Revenue Model

Company Description

Shinnihonseiyaku Co., Ltd. (4931) is a Japanese company primarily engaged in the manufacturing and sale of pharmaceutical products, including prescription drugs, over-the-counter medicines, and health supplements. The company operates in the healthcare sector, focusing on innovative drug development and providing healthcare solutions that improve patient outcomes. With a strong emphasis on research and development, Shinnihonseiyaku aims to address various medical needs through its diverse product portfolio.

How the Company Makes Money

Shinnihonseiyaku generates revenue primarily through the sale of its pharmaceutical products, which include both prescription medications and OTC drugs. The company benefits from a well-established distribution network that enables it to reach healthcare providers, pharmacies, and consumers effectively. Key revenue streams include sales from its flagship products, collaborations with healthcare institutions, and participation in government health programs. Additionally, partnerships with research organizations and other pharmaceutical companies enhance its product pipeline and market reach, contributing to sustained earnings growth.

Shinnihonseiyaku Co., Ltd. Financial Statement Overview

Summary

Shinnihonseiyaku Co., Ltd. shows strong financial health with efficient cost management and low leverage. However, declining revenue growth and net profit margin pose challenges for future growth.

Income Statement

Shinnihonseiyaku Co., Ltd. has maintained strong gross profit margins consistently above 79%, indicating efficient cost management. However, the net profit margin has slightly declined to 6.21% in the latest year, reflecting some pressure on profitability. The revenue growth rate has turned negative at -7.3%, which is a concern for future growth prospects. Despite this, the company has maintained stable EBIT and EBITDA margins, showcasing operational efficiency.

Balance Sheet

The company exhibits a strong balance sheet with a very low debt-to-equity ratio of 0.003, indicating minimal leverage and financial risk. The equity ratio is robust, suggesting a solid capital structure. However, the return on equity has slightly decreased, which could imply a need for improved profitability or asset utilization.

Cash Flow

Shinnihonseiyaku Co., Ltd. demonstrates a strong free cash flow to net income ratio of 0.99, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is also high at 0.97, reflecting strong cash flow management. However, the free cash flow growth rate has been negative in recent years, which could impact future cash availability for investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.17B	41.14B	40.04B	37.65B	36.11B	33.90B
Gross Profit	32.78B	32.58B	31.81B	30.31B	29.40B	28.46B
EBITDA	4.46B	4.48B	4.50B	3.97B	3.95B	3.83B
Net Income	2.51B	2.55B	2.79B	2.39B	2.36B	2.32B
Balance Sheet
Total Assets	26.83B	28.25B	27.22B	25.50B	23.86B	23.20B
Cash, Cash Equivalents and Short-Term Investments	17.11B	18.12B	16.34B	15.52B	14.35B	13.65B
Total Debt	120.00M	76.00M	253.00M	446.00M	1.84B	2.24B
Total Liabilities	4.70B	5.44B	5.43B	5.84B	5.94B	7.03B
Stockholders Equity	22.14B	22.81B	21.79B	19.66B	17.92B	16.17B
Cash Flow
Free Cash Flow	0.00	4.63B	1.67B	3.26B	1.91B	1.90B
Operating Cash Flow	0.00	4.69B	2.10B	3.47B	2.29B	2.07B
Investing Cash Flow	0.00	-1.79B	-382.00M	-208.00M	-496.00M	-1.36B
Financing Cash Flow	0.00	-2.10B	-902.00M	-2.10B	-1.09B	672.00M

Shinnihonseiyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2232.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4931, the sentiment is Positive. The current price of 2232 is above the 20-day moving average (MA) of 2052.10, above the 50-day MA of 2036.98, and above the 200-day MA of 2203.67, indicating a neutral trend. The MACD of 3.47 indicates Positive momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 29.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4931.

Shinnihonseiyaku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3417	73 Outperform	¥19.96B	6.97	―	1.83%	4.30%	52.38%
2664	72 Outperform	¥69.20B	15.87	―	2.68%	-0.56%	5.59%
4350	70 Outperform	¥15.69B	10.09	―	2.32%	6.60%	27.97%
3544	67 Neutral	¥11.91B	21.89	―	1.24%	3.58%	-10.70%
7679	66 Neutral	¥39.62B	9.15	―	1.29%	7.12%	14.14%
4931	62 Neutral	¥44.01B	17.07	―	2.53%	2.74%	-7.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Shinnihonseiyaku Co., Ltd. Corporate Events

Shinnihonseiyaku Announces Treasury Share Disposal for Employee Stock Compensation

Shinnihonseiyaku Co., Ltd. has announced the disposal of treasury shares as part of a stock compensation plan for employees, aimed at aligning employee incentives with corporate goals. This move is expected to enhance corporate value and promote value sharing with shareholders, reflecting the company’s commitment to human capital management.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Announces Treasury Shares Disposal for Director Compensation

Shinnihonseiyaku Co., Ltd. announced the disposal of treasury shares as stock compensation for its board directors, excluding outside directors and audit committee members. This move is part of their strategy to incentivize directors by aligning their interests with shareholders and enhancing corporate value. The company has introduced two systems: the Retirement Benefit-type RS System and the Performance-based-type RS System, both involving transfer-restricted stock to replace previous compensation methods. These systems are designed to promote sustainable growth and value sharing between directors and shareholders.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Evaluates and Plans to Enhance Board Effectiveness

Shinnihonseiyaku Co., Ltd. has conducted an evaluation of its Board of Directors’ effectiveness for the fiscal year ended September 2025, in line with the Tokyo Stock Exchange’s Corporate Governance Code. The evaluation revealed that while the board’s operations received positive feedback, there are areas for improvement in board composition and agenda precision. The company plans to enhance its board’s effectiveness by refining strategic agenda setting and strengthening its composition through external recruitment and succession planning.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Announces Director Elections Ahead of Shareholders Meeting

Shinnihonseiyaku Co., Ltd. has announced the election of candidates for various director positions, including Directors of the Board, Audit & Supervisory Committee Members, and a Substitute Director. These elections are subject to approval at the upcoming Annual General Meeting of Shareholders. The re-election of current directors and the nomination of a substitute director aim to ensure continuity and compliance with regulatory requirements, potentially impacting the company’s governance structure and stakeholder confidence.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Proposes Dividend of Surplus for 2025

Shinnihonseiyaku Co., Ltd. announced a proposal for a dividend of surplus, with a record date of September 30, 2025, to be submitted at the upcoming Annual General Meeting. The proposed year-end dividend per share is 52.00 yen, reflecting the company’s policy of maintaining a dividend payout ratio of at least 35% while ensuring sufficient reserves for future business investments.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Co., Ltd. Reports Strong Growth and Sets Ambitious Targets

Shinnihonseiyaku Co., Ltd. reported a 9.4% year-over-year increase in net sales and a 4.6% rise in operating profit for the fiscal year ending September 2025, driven by the strong performance of its Fun and Health segment. The company plans to continue this growth trajectory by focusing on new product launches and strategic investments in emerging brands, aiming for significant growth by 2027.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.

Shinnihonseiyaku Reports Fiscal Year 2025 Financial Results and Optimistic Outlook

Shinnihonseiyaku Co., Ltd. reported its consolidated financial results for the fiscal year ended September 30, 2025, showing a modest increase in net sales by 2.7% to 41,140 million yen. Despite an increase in operating and ordinary profits, the profit attributable to owners of the parent decreased by 8.6%. The company announced a higher year-end dividend, reflecting a commitment to returning value to shareholders. The financial outlook for the next fiscal year is optimistic, with expected growth in net sales and profits, indicating a positive trajectory for the company’s future performance.

The most recent analyst rating on (JP:4931) stock is a Hold with a Yen2432.00 price target. To see the full list of analyst forecasts on Shinnihonseiyaku Co., Ltd. stock, see the JP:4931 Stock Forecast page.