Shiseido Company (SSDOY)
OTHER OTC:SSDOY
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Shiseido Company
(OTC:SSDOY)
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Rating:55Neutral
Price Target:
$22.00
▲(45.02% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak profitability (losses widening into 2025) despite improved revenue growth and a strong rebound in operating/free cash flow. Technicals are supportive due to a clear uptrend, but overbought signals raise near-term pullback risk. Valuation remains challenged because earnings are negative and the dividend yield is modest.
Positive Factors
Rebound in operating and free cash flow
A strong recovery to positive operating and free cash flow in 2025 provides durable internal funding for working capital, product development, and debt service. Sustained positive cash generation reduces reliance on external funding and supports strategic execution even if earnings remain volatile.
Negative Factors
Widening losses and very thin operating profit
Material deterioration to losses and very thin operating profit undermines return generation and limits reinvestment capacity. Persistent negative earnings erode ROE and could force cost cuts or strategic trade-offs, making sustainable margin recovery essential for long-term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Rebound in operating and free cash flow
A strong recovery to positive operating and free cash flow in 2025 provides durable internal funding for working capital, product development, and debt service. Sustained positive cash generation reduces reliance on external funding and supports strategic execution even if earnings remain volatile.
Read all positive factors
Shiseido Company (SSDOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.47B
Dividend Yield0.81%
Average Volume (3M)559.00
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-0.41%
EPS Growth-3130.74%
CountryUS
Employees27,908
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.05
Shares Outstanding400,000,000
10 Day Avg. Volume0
30 Day Avg. Volume559
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.52
Price to Sales (P/S)0.90
P/FCF Ratio13.33
Enterprise Value/Market Cap197.72
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit2.23
Enterprise Value/Ebitda36.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.65
Revenue Forecast (FY)$6.37B
Shiseido Company Business Overview & Revenue Model
Company Description
Shiseido 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 p...
How the Company Makes Money
Shiseido 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...
Shiseido Company Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 12, 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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.02T | 990.59B | 973.04B | 1.07T | 1.04T |
| Gross Profit | 779.02B | 753.19B | 713.36B | 744.16B | 772.21B |
| EBITDA | 93.50B | 80.80B | 114.10B | 129.77B | 111.44B |
| Net Income | -42.65B | -10.81B | 21.75B | 34.20B | 46.91B |
Balance Sheet | |||||
| Total Assets | 1.27T | 1.33T | 1.26T | 1.31T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 91.90B | 126.86B | 126.64B | 137.53B | 172.06B |
| Total Debt | 414.78B | 363.16B | 280.98B | 297.19B | 190.98B |
| Total Liabilities | 646.42B | 677.21B | 615.11B | 681.91B | 611.93B |
| Stockholders Equity | 601.17B | 632.47B | 618.75B | 604.26B | 546.09B |
Cash Flow | |||||
| Free Cash Flow | 68.64B | -2.31B | 33.35B | -19.47B | 30.43B |
| Operating Cash Flow | 115.22B | 48.40B | 89.03B | 46.73B | 122.89B |
| Investing Cash Flow | -45.53B | -83.74B | -35.54B | -41.31B | 63.74B |
| Financing Cash Flow | -80.99B | 23.36B | -75.64B | -52.42B | -176.22B |
Shiseido Company Technical Analysis
Positive
15.17
Price Trends
19.05
Positive
17.17
Positive
17.07
Positive
Market Momentum
0.39
Negative
61.97
Neutral
92.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSDOY, the sentiment is Positive. The current price of 15.17 is below the 20-day moving average (MA) of 19.37, below the 50-day MA of 19.05, and below the 200-day MA of 17.07, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.91B | 16.17 | 19.93% | 3.80% | 3.12% | 9.01% | |
64 Neutral | $3.61B | 28.63 | 10.75% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $8.47B | -21.45 | -6.80% | 0.81% | -0.41% | -3130.74% | |
52 Neutral | $980.11M | -3.02 | -2.50% | 3.51% | -1.34% | -73.59% | |
50 Neutral | $1.80B | -5.46 | -14.49% | ― | -5.68% | -358.36% | |
47 Neutral | $25.00B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
SSDOY
Shiseido Company
20.82
5.58
36.58%
EL
The Estée Lauder Companies
69.12
17.00
32.62%
IPAR
Inter Parfums
90.61
-9.40
-9.40%
COTY
Coty
2.05
-2.85
-58.16%
EPC
Edgewell Personal Care
20.98
-6.25
-22.94%
ELF
e.l.f. Beauty
61.16
7.28
13.51%
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.