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Shiseido Company (SSDOY)
OTHER OTC:SSDOY
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Shiseido Company
(OTC:SSDOY)
Rating:57Neutral
Price Target:
$17.50
▲(8.49%Upside)
Shiseido Company (SSDOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.46B
Dividend Yield0.49%
Average Volume (3M)2.51K
Price to Earnings (P/E)527.8
Beta (1Y)0.30
Revenue Growth-6.59%
EPS Growth-137.03%
CountryUS
Employees27,908
SectorConsumer Defensive
Sector Strength56
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.06
Shares Outstanding400,000,000
10 Day Avg. Volume2,169
30 Day Avg. Volume2,509
Financial Highlights & Ratios
PEG Ratio-3.98
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio111.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside11.59% Upside
Rating ConsensusHold
Number of Analyst Covering0
Shiseido Company Business Overview & Revenue Model
Company DescriptionShiseido Company, Limited engages in the production and sale of cosmetics in Japan and internationally. The company offers fragrances; makeup products; skincare and body care products; and hair care and styling products, as well as hair color and perm solutions for hair salons. It also engages in the restaurant and food, and retail businesses; and operates beauty salons. In addition, the company operates and supports SABFA, a professional hair makeup training school. It sells its products through department stores, specialty stores, and drug stores. The company was founded in 1872 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyShiseido Company makes money through the manufacturing, marketing, and sale of a diverse range of beauty and personal care products. Its revenue model is primarily based on direct sales through retail partnerships, online platforms, and company-owned stores. Shiseido's key revenue streams include skincare, which constitutes a significant portion of its sales, followed by makeup, fragrance, and personal care products. The company leverages its global brand portfolio and invests heavily in research and development to innovate new products and capture market trends. Strategic partnerships, endorsements, and collaborations with other fashion and beauty brands also contribute to its revenue, helping it to maintain a strong market presence and expand its consumer base worldwide.
Shiseido Company Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2024)
| % Change Since: -5.51%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive achievements, including exceeding profit forecasts and growth in key regions like Japan and EMEA. However, these are tempered by significant challenges such as a dividend reduction, net income deficit, and struggles in the Americas and China. The sentiment is balanced by the company's strategic focus on structural reforms, technological advancements, and new product launches.Q4-2024 Updates
Positive Updates
Exceeded Core Operating Profit Forecast
Core operating profit for the full year was JPY 36.4 billion, surpassing the revised forecast of JPY 35 billion despite a challenging environment.
Significant Growth in Japan
Japan achieved JPY 28.1 billion in operating profit, significantly exceeding the target and showing 10% growth for 2 consecutive years.
Positive Growth in China and EMEA
For the first time in 5 quarters, sales in China increased. EMEA also reported steady growth with improved profitability through focused investments.
E-commerce Growth
E-commerce sales grew in the high 20% range due to brand expansion and increased digital advertising investments.
New Product Launches and Innovations
New products such as ELIXIR's Glow Serum and Shiseido's Foundation Serum drove sales, showcasing advanced technology.
Negative Updates
Reduction in Year-End Dividend
The company decided to reduce the year-end dividend from JPY 30 per share to JPY 10 per share to secure financial flexibility.
Net Income Deficit
Net income attributable to owners of the parent company was a deficit of JPY 10.8 billion due to structural reform expenses and provisions for financial expenses.
Challenges in the Americas
Sales in the Americas declined due to the delayed recovery of Drunk Elephant, and competition intensified, affecting the brand's performance.
Sluggish Consumer Spending in China and Travel Retail
Consumer spending remained sluggish in China and Travel Retail, leading to a revenue decline in these regions.
High SG&A Costs
SG&A costs remain high, and efforts are underway to reduce these costs to improve profitability.
Company Guidance
In the call, the company provided guidance for fiscal year 2025, projecting net sales of JPY 995 billion with a real growth rate of 4%, excluding foreign exchange fluctuations. They expect core operating income to reach JPY 36.5 billion, aiming for a further increase beyond this baseline. The company highlighted a strategic focus on achieving a core operating profit margin of 7% by 2026 through continuous structural reforms and investments in key brands. For 2024, core operating profit was JPY 36.4 billion, while net income was a deficit of JPY 10.8 billion, due to structural reform expenses. They anticipate significant profit growth in Japan and Americas, with a target of JPY 50 billion in Japan, supported by new product launches and organizational changes. The company aims to enhance their global earnings base by expanding structural reforms and optimizing costs, and they expect free cash flow to turn positive in 2025.Shiseido Company Financial Statement Overview
Summary
Shiseido Company demonstrates strong gross profit margins but struggles with profitability due to a negative net income and declining EBIT and EBITDA margins. The balance sheet shows increased leverage, posing financial risk, although the equity ratio remains healthy. Cash flow analysis indicates issues in generating free cash flow despite strong operating cash flow.Income Statement
The gross profit margin is strong at approximately 76% for 2024, indicating efficient cost management. However, net profit margin is negative, signaling challenges in profitability. The revenue growth rate from 2023 to 2024 is modest at 1.8%, which shows limited top-line growth. EBIT and EBITDA margins have declined compared to the previous year, pointing to increased operational costs or reduced operating efficiency.65
Positive
Balance Sheet
The debt-to-equity ratio has increased to 0.57 in 2024, reflecting rising leverage which could pose higher financial risk. Return on Equity (ROE) is negative, indicating that the company is not generating profits from its equity base. However, the equity ratio stands at around 47.5%, suggesting a balanced asset structure despite the leverage concerns.58
Neutral
Cash Flow
The free cash flow has turned negative in 2024, raising concerns about cash generation capability. Operating cash flow to net income ratio is favorable, indicating strong cash generation relative to accounting profits. However, the free cash flow to net income ratio is negative, highlighting challenges in converting profits to free cash.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 990.59B | 973.04B | 1.07T | 1.04T | 920.89B |
| Gross Profit | 753.19B | 713.36B | 744.16B | 772.21B | 682.49B |
| EBITDA | 80.80B | 92.23B | 129.77B | 130.61B | 80.64B |
| Net Income | -10.81B | 21.75B | 34.20B | 46.91B | -9.12B |
Balance Sheet | |||||
| Total Assets | 1.33T | 1.26T | 1.31T | 1.18T | 1.20T |
| Cash, Cash Equivalents and Short-Term Investments | 126.86B | 126.64B | 137.53B | 172.06B | 151.01B |
| Total Debt | 363.16B | 280.98B | 297.19B | 190.98B | 324.30B |
| Total Liabilities | 677.21B | 615.11B | 681.91B | 611.93B | 697.64B |
| Stockholders Equity | 632.47B | 618.75B | 604.26B | 546.09B | 485.69B |
Cash Flow | |||||
| Free Cash Flow | -2.31B | 33.35B | -19.47B | 30.43B | -9.44B |
| Operating Cash Flow | 48.40B | 89.03B | 46.73B | 122.89B | 64.05B |
| Investing Cash Flow | -83.74B | -35.54B | -41.31B | 63.74B | -70.08B |
| Financing Cash Flow | 23.36B | -75.64B | -52.42B | -176.22B | 46.88B |
Shiseido Company Technical Analysis
Negative
16.13
Price Trends
16.81
Negative
17.30
Negative
18.27
Negative
Market Momentum
-0.07
Positive
39.99
Neutral
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSDOY, the sentiment is Negative. The current price of 16.13 is below the 20-day moving average (MA) of 17.36, below the 50-day MA of 16.81, and below the 200-day MA of 18.27, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.99 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSDOY.
Shiseido Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.28B | 25.36 | 22.16% | 2.40% | 10.32% | 18.55% | |
72 Outperform | $6.16B | 57.75 | 15.97% | ― | 28.28% | -14.79% | |
65 Neutral | €15.09B | 13.05 | -4.03% | 3.85% | -1.58% | -101.37% | |
61 Neutral | $31.08B | 147.29 | -17.27% | 1.62% | -3.70% | -235.59% | |
60 Neutral | $4.33B | 40.12 | -10.58% | ― | -1.68% | -302.11% | |
57 Neutral | $6.46B | 527.80 | -0.62% | 0.49% | -6.59% | -137.03% | |
44 Neutral | $460.25M | 5.74 | -23.99% | ― | -4.39% | -326.42% |
* Consumer Defensive Sector Average
Performance Comparison
SSDOY
Shiseido Company
16.13
-13.22
-45.04%
EL
The Estée Lauder Companies
86.56
-10.46
-10.78%
HELE
Helen Of Troy
22.70
-34.05
-60.00%
IPAR
Inter Parfums
130.47
9.48
7.84%
COTY
Coty
4.94
-5.02
-50.40%
ELF
e.l.f. Beauty
110.90
-66.62
-37.53%
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.