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Shiseido Company (SSDOY)
OTHER OTC:SSDOY
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Shiseido Company
(OTC:SSDOY)
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Rating:45Neutral
Price Target:
$15.00
▼(-1.12% Downside)
Shiseido Company faces significant financial and technical challenges. The most impactful factor is the financial performance, with declining revenue growth and profitability issues. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. These factors contribute to a low overall stock score.
Positive Factors
Innovative Research
Shiseido's commitment to innovative research in beauty science strengthens its product offerings, enhancing its competitive edge and appeal in the global market.
Brand Portfolio
A diverse and strong brand portfolio allows Shiseido to cater to various consumer segments, supporting long-term revenue stability and market presence.
Emerging Markets Expansion
Expansion into emerging markets provides Shiseido with new growth opportunities and diversifies its revenue streams, enhancing long-term financial resilience.
Negative Factors
Declining Revenue Growth
A significant decline in revenue growth indicates challenges in maintaining sales momentum, which could impact future profitability and market share.
Negative Profit Margins
Negative profit margins highlight operational inefficiencies and profitability challenges, potentially affecting Shiseido's ability to reinvest in growth initiatives.
Decline in Free Cash Flow
A decline in free cash flow growth suggests potential liquidity issues, limiting Shiseido's ability to fund operations and strategic investments.
Shiseido Company (SSDOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.10B
Dividend Yield0.81%
Average Volume (3M)559.00
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth-0.41%
EPS Growth-3130.74%
CountryUS
Employees27,908
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.87
Shares Outstanding400,000,000
10 Day Avg. Volume0
30 Day Avg. Volume559
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)1.76
Price to Sales (P/S)1.12
P/FCF Ratio-482.68
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda0.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shiseido Company Business Overview & Revenue Model
Company DescriptionShiseido Company, Limited (SSDOY) is a leading global cosmetics company headquartered in Tokyo, Japan. Founded in 1872, Shiseido operates in the beauty and personal care sector, focusing on skincare, makeup, and fragrance products. The company's portfolio includes well-known brands such as Shiseido, NARS, Clé de Peau Beauté, and bareMinerals. Shiseido is recognized for its innovative research in beauty science and commitment to high-quality, luxurious products that cater to diverse consumer needs across various international markets.
How the Company Makes MoneyShiseido generates revenue primarily through the sale of its beauty and personal care products across multiple channels, including department stores, specialty retailers, e-commerce platforms, and direct sales. Key revenue streams include skincare, makeup, and fragrance segments, with skincare being the largest contributor. The company invests heavily in research and development to create innovative products that drive consumer interest and demand. Strategic partnerships with retailers and collaborations with influencers enhance brand visibility and sales. Additionally, Shiseido has expanded its presence in emerging markets, which contributes to its growth and profitability.
Shiseido Company Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements in cost management and structural reforms leading to improved profitability. However, these were countered by notable challenges such as declining net sales, underperformance in key markets like the Americas, and increased risks associated with Drunk Elephant. While the company is making strides in market share expansion and cost reductions, the sales decline and regional challenges present substantial hurdles.Q2-2025 Updates
Positive Updates
Core Operating Profit Exceeds Expectations
For H1, core operating profit 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.
Structural Reforms Yield Positive Results
The company implemented structural reforms and cost management strategies that resulted in improved profitability despite declining net sales, including a JPY13.2 billion increase in core operating profit in Japan.
Successful Cost Reductions
Realized JPY13.5 billion in cost reduction benefits in H1, with a full-year target increased to JPY25 billion, and a two-year target increased to JPY50 billion.
Market Share Expansion
The company expanded its market share in fragrances in Japan, Asia Pacific, and Europe, and achieved growth in China and Travel Retail in Q2 despite prior challenges.
Positive Free Cash Flow
Free cash flow turned positive at JPY17.5 billion, improving from a negative figure in Q1 due to higher profit before tax and other factors.
Negative Updates
Net Sales Decline
Net sales for H1 were JPY469.8 billion, with an underlying growth rate of minus 6%, primarily due to weakness in China Travel Retail and Drunk Elephant.
Challenges with Drunk Elephant
Drunk Elephant's performance fell far short of expectations, contributing to underperformance in the Americas, with risk of impairment losses increasing.
Americas Underperformance
The Americas market maintained YoY growth but fell short of expectations in Q2, with core operating profit dropping JPY3.3 billion due to sales decline.
Inbound Market Slowdown in Japan
The inbound market in Japan slowed down, with consumer purchases turning negative in Q2, impacting sales despite profitability improvements.
Sales Risks in H2
There are risks to achieving sales targets in H2, particularly in Japan and the Americas, with the potential for flat sales growth instead of the originally planned 4% growth.
Company Guidance
During Shiseido Company Limited's 2025 Q2 earnings call, the company provided comprehensive guidance across various metrics. The half-year results showed net sales amounting to JPY469.8 billion, with a decline of 6% due to challenges in China Travel Retail and Drunk Elephant brands. Despite this, core operating profit reached JPY23.4 billion, exceeding expectations by JPY4.1 billion YoY, and representing over 60% of the full-year guidance of JPY36.5 billion. The company emphasized its focus on structural reforms and financial discipline, achieving a 1.5 percentage point improvement in the cost of goods sold ratio. Marketing investments decreased by JPY2.7 billion, while personnel expenses saw a JPY15 billion reduction. Shiseido also maintained high profitability in challenging regions like Travel Retail, achieving a core operating profit margin of 22.1%. For the full year, the company remains committed to reaching a core operating profit of JPY36.5 billion, despite risks to net sales, by accelerating reforms and cost management. Free cash flow turned positive at JPY17.5 billion, and the company plans to further its global cost structure transformation, aiming for a JPY25 billion reduction in 2025. The guidance also noted potential impairment risks in the Americas, with specific challenges highlighted for the Drunk Elephant brand.Shiseido Company Financial Statement Overview
Summary
Shiseido Company faces significant financial challenges, particularly in revenue growth and profitability. The income statement shows a decline in revenue growth by 24.47% TTM and a negative net profit margin of -5.28% TTM. The balance sheet is moderately stable with a debt-to-equity ratio of 0.59 TTM, but the negative return on equity is concerning. Cash flow analysis indicates a decline in free cash flow growth by 6.65% TTM, suggesting potential liquidity issues.Income Statement
The income statement reveals significant challenges, with a notable decline in revenue growth by 24.47% TTM, indicating a downturn in sales. The gross profit margin remains strong at 76.58% TTM, suggesting efficient production, but the net profit margin is negative at -5.28% TTM, highlighting profitability issues. EBIT and EBITDA margins are also low, reflecting operational inefficiencies.Balance Sheet
The balance sheet shows moderate stability with a debt-to-equity ratio of 0.59 TTM, indicating manageable leverage. However, the return on equity is negative at -8.15% TTM, pointing to challenges in generating returns for shareholders. The equity ratio is reasonable, suggesting a balanced capital structure.Cash Flow
Cash flow analysis indicates a decline in free cash flow growth by 6.65% TTM, reflecting potential liquidity issues. The operating cash flow to net income ratio is 0.21 TTM, suggesting cash flow generation is not aligned with earnings. However, the free cash flow to net income ratio of 0.56 TTM shows some ability to convert earnings into cash.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 739.18B | 990.59B | 973.04B | 1.07T | 1.04T | 920.89B |
| Gross Profit | 563.37B | 753.19B | 713.36B | 744.16B | 772.21B | 682.49B |
| EBITDA | 60.48B | 80.80B | 114.10B | 129.77B | 111.44B | 82.41B |
| Net Income | -2.39B | -10.81B | 21.75B | 34.20B | 46.91B | -11.66B |
Balance Sheet | ||||||
| Total Assets | 8.19B | 1.33T | 1.26T | 1.31T | 1.18T | 1.20T |
| Cash, Cash Equivalents and Short-Term Investments | 529.23M | 126.86B | 126.64B | 137.53B | 172.06B | 151.01B |
| Total Debt | 2.25B | 363.16B | 280.98B | 297.19B | 190.98B | 430.20B |
| Total Liabilities | 4.22B | 677.21B | 615.11B | 681.91B | 611.93B | 697.64B |
| Stockholders Equity | 3.83B | 632.47B | 618.75B | 604.26B | 546.09B | 485.69B |
Cash Flow | ||||||
| Free Cash Flow | 24.99B | -2.31B | 33.35B | -19.47B | 30.43B | -9.44B |
| Operating Cash Flow | 43.46B | 48.40B | 89.03B | 46.73B | 122.89B | 64.05B |
| Investing Cash Flow | -27.03B | -83.74B | -35.54B | -41.31B | 63.74B | -70.08B |
| Financing Cash Flow | 16.62B | 23.36B | -75.64B | -52.42B | -176.22B | 46.88B |
Shiseido Company Technical Analysis
Negative
15.17
Price Trends
15.37
Negative
16.15
Negative
16.51
Negative
Market Momentum
-0.10
Negative
46.42
Neutral
74.37
Neutral
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 15.17 is above the 20-day moving average (MA) of 15.00, below the 50-day MA of 15.37, and below the 200-day MA of 16.51, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSDOY.
Shiseido Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.83B | 17.27 | 19.95% | 3.80% | 3.12% | 9.01% | |
68 Neutral | $5.13B | 60.99 | 8.77% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $826.39M | 34.11 | 1.62% | 3.51% | -1.34% | -73.59% | |
56 Neutral | $40.98B | -42.69 | -20.73% | 1.30% | -6.36% | -554.84% | |
49 Neutral | $2.79B | -6.86 | -9.96% | ― | -5.68% | -358.36% | |
45 Neutral | $6.10B | -15.80 | -9.34% | 0.81% | -0.41% | -3130.74% |
* Consumer Defensive Sector Average
SSDOY
Shiseido Company
14.80
-1.61
-9.82%
EL
The Estée Lauder Companies
110.27
36.57
49.62%
IPAR
Inter Parfums
88.20
-36.95
-29.52%
COTY
Coty
3.12
-3.65
-53.91%
EPC
Edgewell Personal Care
17.69
-13.45
-43.19%
ELF
e.l.f. Beauty
86.05
-46.07
-34.87%
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.