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Shin Nippon Biomedical Laboratories, Ltd. (2395) AI Stock Analysis

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JP:2395

Shin Nippon Biomedical Laboratories, Ltd.

(TSE/TYO:2395)

Select Model
Rating:66Neutral
Price Target:JPY 1,567.00â–²(4.05% Upside)
Action:reiterated
Date:10/07/26

The score is anchored by mixed financial performance (cooling revenue/margins, higher leverage, and inconsistent free cash flow) offset by strong technical positioning (price above key moving averages with positive MACD) and supportive valuation (low P/E and healthy dividend yield).

Positive Factors
Specialized contract research modelThe fee-for-service model addresses recurring outsourcing needs across pharmaceutical and biotechnology development. By supporting preclinical safety and evaluation work required before clinical trials, the company participates in an essential stage of the drug-development process.
Negative Factors
Revenue and margin deteriorationThe combination of declining revenue and lower margins signals weaker operating momentum after the stronger 2022–2024 period. If this normalization persists, it could reduce earnings growth, limit operating leverage, and make profitability more dependent on project mix and utilization.

Shin Nippon Biomedical Laboratories, Ltd. (2395) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%40%JP:2395+5.53%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 62.70B
Dividend Yield
3.32%
Average Volume (3M)
240.66K
Price to Earnings (P/E)
11.7
Beta (1Y)
0.82
Revenue Growth
1.72%
EPS Growth
6.07%
Country
Japan
Employees
1,680
Sector
Healthcare
Sector Strength
51
Industry
Medical - Diagnostics & Research

Shin Nippon Biomedical Laboratories, Ltd. Business Overview & Revenue Model

Company Description

Shin Nippon Biomedical Laboratories, Ltd. operates as a global contract research organization (CRO), delivering comprehensive drug discovery and development services both in Japan and internationally. Its preclinical offerings encompass a wide array...

How the Company Makes Money

The company primarily makes money by providing fee-for-service contract research services to pharmaceutical, biotechnology, and other life science customers. Its core revenue model is based on customers paying for outsourced research work (typically...

Shin Nippon Biomedical Laboratories, Ltd. Financial Statement Overview

Summary

Profitable with healthy gross margin (~49%) and net margin (~14%), but fundamentals have softened: revenue declined (~2.5% in 2026), margins have compressed versus 2022–2023, leverage has risen (debt-to-equity near 1.0), and free cash flow has been volatile with weak cash conversion (OCF ~21% of net income in 2026).

Income Statement

68Positive

Balance Sheet

62Positive

Cash Flow

44Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue33.92B32.52B32.41B26.45B25.09B17.75B
Gross Profit16.81B15.83B16.57B14.28B13.05B9.69B
EBITDA7.78B6.09B8.83B8.98B9.49B9.49B
Net Income5.37B4.57B4.92B5.53B6.06B7.13B
Balance Sheet
Total Assets100.21B105.06B92.42B76.30B58.31B39.38B
Cash, Cash Equivalents and Short-Term Investments14.33B18.54B12.03B10.61B10.53B7.00B
Total Debt37.58B41.26B34.61B26.33B18.93B9.28B
Total Liabilities57.94B61.57B52.33B42.14B31.95B19.66B
Stockholders Equity41.73B43.12B40.02B34.11B26.21B19.56B
Cash Flow
Free Cash Flow03.15B-3.82B-6.50B-951.70M4.34B
Operating Cash Flow08.33B7.04B2.11B4.00B5.95B
Investing Cash Flow0-6.79B-11.69B-6.91B-5.93B-4.27B
Financing Cash Flow04.51B5.91B5.32B6.27B-4.91B

Shin Nippon Biomedical Laboratories, Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1506.00

Price Trends

50DMA1384.60Positive
100DMA1300.90Positive
200DMA1378.99Positive

Market Momentum

MACD40.55Negative
RSI61.92Neutral
STOCH84.55Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2395, the sentiment is Positive. The current price of 1506.00 is above the 20-day moving average (MA) of 1446.25, above the 50-day MA of 1384.60, and above the 200-day MA of 1378.99, indicating a bullish trend. The MACD of 40.55 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 84.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2395.

Shin Nippon Biomedical Laboratories, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

JP:2395 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4694JP:469472OutperformJPY 143.41B18.366.22%3.32%3.88%26.78%
JP:2395JP:239566NeutralJPY 62.70B11.67―3.32%1.72%6.07%
JP:4549JP:454957NeutralJPY 76.06B41.05―2.51%3.92%-52.01%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
JP:2183JP:218350NeutralJPY 4.52B-1.19―4.00%-21.55%-497.97%

* Healthcare Sector Average

Performance Comparison

-40%-20%0%20%40%JP:2395JP:4694JP:2183JP:4549Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2395 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2395Shin Nippon Biomedical Laboratories, Ltd.1506.0099.207.05%
JP:4694BML 3835.00297.808.42%
JP:2183Linical Co., Ltd.200.00-131.75-39.71%
JP:4549Eiken Chemical Co., Ltd.2307.003.990.17%

Shin Nippon Biomedical Laboratories, Ltd. Corporate Events

SNBL Corrects Earnings Per Share Figure in Q1 FY2026 Disclosure

Aug 5, 2026

Shin Nippon Biomedical Laboratories has corrected an error in its consolidated financial results release for the three months ended June 30, 2026, specifically in the summary information on page one. The revision concerns the basic earnings per share...

Shin Nippon Biomedical Laboratories Lifts First-Half Earnings Forecast on Strong CRO Performance

Aug 5, 2026

Shin Nippon Biomedical Laboratories has sharply raised its consolidated earnings forecast for the first half of the fiscal year ending March 31, 2027, citing stronger-than-expected results in its CRO business. Revenue is now projected at ¥17,154...

SNBL Sets New Management Structure and Highlights FY3/27 Q1 CRO Strategy

Aug 5, 2026

Shin Nippon Biomedical Laboratories, Ltd. outlined its new management structure and future strategic direction alongside reporting an overview of first quarter results for the fiscal year ending March 31, 2027. The briefing highlighted consolidated f...

SNBL Delivers Strong Q1 Earnings and Confirms Dividend Outlook

Aug 5, 2026

Shin Nippon Biomedical Laboratories reported strong results for the quarter ended June 30, 2026, with revenue rising 21.5% year on year to ¥7,868 million and profit attributable to owners of the parent surging to ¥1,064 million. The turnaro...

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: Oct 07, 2026