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Sumitomo Dainippon Pharma Co
(4506)
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Rating:74Outperform
Price Target:
¥1,851.00
▲(27.30% Upside)
Action:Upgraded
Date:09/06/26
The score is driven primarily by the sharp improvement in financial performance (strong TTM profitability and positive free cash flow with improved leverage), tempered by historical volatility and modest operating cash flow coverage of debt. Technicals are supportive but look overextended, while valuation is attractive due to a low P/E.
Positive Factors
Profitability rebound
The sharp recovery in revenue and profitability improves the company’s ability to fund research, commercialization, and operations internally. Strong gross, net, and EBITDA margins also provide a more durable earnings base, provided the improved performance can be maintained across future reporting periods.
Negative Factors
Highly volatile earnings history
The swing from deep losses to high current profitability shows that earnings have not been stable across the cycle. Such volatility makes it harder to assess the durability of the present run-rate and can constrain consistent investment planning, especially if portfolio or business conditions change.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability rebound
The sharp recovery in revenue and profitability improves the company’s ability to fund research, commercialization, and operations internally. Strong gross, net, and EBITDA margins also provide a more durable earnings base, provided the improved performance can be maintained across future reporting periods.
Read all positive factors
Sumitomo Dainippon Pharma Co (4506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥741.53B
Dividend Yield2.6%
Average Volume (3M)3.86M
Price to Earnings (P/E)5.9
Beta (1Y)1.52
Revenue Growth14.09%
EPS Growth488.06%
CountryJP
Employees3,123
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)279.80
Shares Outstanding449,204,560
10 Day Avg. Volume4,008,070
30 Day Avg. Volume3,862,326
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)2.82
Price to Sales (P/S)1.82
P/FCF Ratio12.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,400.00Price Target Upside65.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)212.69
Revenue Forecast (FY)¥561.38B
Sumitomo Dainippon Pharma Co Business Overview & Revenue Model
Company Description
Sumitomo Pharma Co., Ltd. is a global company involved in the creation, production, and sale of a variety of products, including human pharmaceuticals, food ingredients and additives, and veterinary medicines. Its operations span across Japan, Nor...
How the Company Makes Money
Sumitomo Dainippon Pharma primarily makes money by selling prescription pharmaceutical products. Revenue is generated when its marketed drugs are supplied to wholesalers, hospitals, and pharmacies (depending on the market’s distribution structure)...
Sumitomo Dainippon Pharma Co Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Negative
The earnings call highlighted promising developments in the oncology and regenerative medicine pipelines but was overshadowed by significant financial losses, decreased revenue across all segments, and underperformance of key products, leading to a revised downward financial forecast. The call focused on strategic adjustments to address market challenges and improve profitability.Positive Updates
Development Progress in iPS Cell-Derived Therapies
Significant progress in clinical development in regenerative medicine, particularly in Parkinson's disease using iPS cell-derived dopaminergic progenitor cells. The University of California San Diego began a study in November 2023, with ongoing trials in Japan.
Negative Updates
Significant Revenue Decline
Revenue was JPY 235 billion, a decrease of JPY 225.2 billion compared to the same period last year, with declines across all segments, including Japan, North America, and Asia.
Read all updates
Q3-2024 Updates
Positive
Negative
Development Progress in iPS Cell-Derived Therapies
Significant progress in clinical development in regenerative medicine, particularly in Parkinson's disease using iPS cell-derived dopaminergic progenitor cells. The University of California San Diego began a study in November 2023, with ongoing trials in Japan.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for Sumitomo Pharma, several key financial metrics and strategic adjustments were discussed. Revenue for Q3 2023 was reported at JPY 235 billion, which marked a significant decrease of JPY 225.2 billion from the same period in the previous year. The decline was attributed to reduced revenue across all segments, including Japan, North America, and Asia. Despite a decrease in SG&A expenses and some operating income from the sale of shares in Sumitomo Pharma Animal Health, the core operating profit decreased by JPY 139.3 billion, resulting in a core operating loss of JPY 96.4 billion. The company also recorded a JPY 20.5 billion nonrecurring expense related to restructuring in North America, contributing to an operating loss of JPY 117.7 billion. Additionally, profit before taxes saw a year-on-year decrease of JPY 107.4 billion, resulting in a quarterly loss of JPY 105.2 billion. Consequently, the net profit attributable to owners of the parent decreased significantly, resulting in a loss of JPY 117.7 billion. The full-year financial forecast was revised downward, with expectations for revenue at JPY 317 billion, a reduction of JPY 45 billion from previous forecasts. The forecasted core operating profit was expected to see a reduction of JPY 72 billion, projecting a loss of JPY 134 billion. The company is also anticipating a decrease in profit attributable to owners by JPY 61 billion, forecasting a loss of JPY 141 billion. The underperformance was largely due to the North American segment, where key products like ORGOVYX, MYFEMBREE, and GEMTESA fell short of their sales plans.Sumitomo Dainippon Pharma Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 474.79B | 453.29B | 398.83B | 314.56B | 555.54B | 560.03B |
| Gross Profit | 261.08B | 256.89B | 225.38B | 157.08B | 342.95B | 371.18B |
| EBITDA | 131.91B | 131.32B | 51.73B | -281.07B | -3.50B | 124.36B |
| Net Income | 112.66B | 106.86B | 23.63B | -314.97B | -74.51B | 56.41B |
Balance Sheet | ||||||
| Total Assets | 844.88B | 804.57B | 742.60B | 907.51B | 1.13T | 1.31T |
| Cash, Cash Equivalents and Short-Term Investments | 76.64B | 44.31B | 23.12B | 29.05B | 143.48B | 202.98B |
| Total Debt | 160.66B | 217.19B | 314.25B | 427.86B | 346.37B | 284.54B |
| Total Liabilities | 436.33B | 512.10B | 573.13B | 751.37B | 727.96B | 634.44B |
| Stockholders Equity | 408.56B | 292.47B | 169.48B | 156.06B | 406.75B | 607.89B |
Cash Flow | ||||||
| Free Cash Flow | 60.67B | 67.11B | 8.00B | -252.66B | 3.47B | 23.89B |
| Operating Cash Flow | 64.46B | 71.72B | 16.50B | -241.89B | 11.94B | 31.24B |
| Investing Cash Flow | 26.91B | 22.55B | 99.75B | 33.04B | -145.99B | -21.91B |
| Financing Cash Flow | -55.33B | -91.27B | -108.84B | 77.85B | 51.59B | -17.79B |
Sumitomo Dainippon Pharma Co Technical Analysis
Positive
1454.00
Price Trends
1401.61
Positive
1535.36
Positive
1926.70
Negative
Market Momentum
73.72
Negative
72.85
Negative
89.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4506, the sentiment is Positive. The current price of 1454 is above the 20-day moving average (MA) of 1451.30, above the 50-day MA of 1401.61, and below the 200-day MA of 1926.70, indicating a neutral trend. The MACD of 73.72 indicates Negative momentum. The RSI at 72.85 is Negative, neither overbought nor oversold. The STOCH value of 89.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4506.
Sumitomo Dainippon Pharma Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥741.53B | 5.91 | 35.89% | 2.60% | 14.09% | 488.06% | |
73 Outperform | ¥2.56T | 9.39 | 16.46% | 2.44% | 27.87% | 47.03% | |
73 Outperform | ¥232.23B | 7.36 | ― | 3.60% | 12.23% | 3.35% | |
72 Outperform | ¥1.32T | 31.27 | 4.77% | 3.41% | 6.73% | -15.79% | |
64 Neutral | ¥165.02B | 11.97 | 6.31% | 2.79% | 10.35% | 16.60% | |
64 Neutral | ¥9.18T | 50.37 | 2.40% | 3.48% | 3.10% | -218.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:4506
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Sumitomo Dainippon Pharma Co Corporate Events
Sumitomo Pharma to Book Extraordinary Income From Retirement Benefit Trust Asset Return
Aug 28, 2026
Sumitomo Pharma plans to receive a full return of its retirement benefit trust assets, after determining that its plan assets are consistently overfunded relative to defined benefit obligations. This move reflects a balance sheet optimization unde...
Sumitomo Pharma Rejects Short-Seller Report, Defends AMCHEPRY Approval
Aug 11, 2026
Sumitomo Pharma has rejected a Gotham City Research report published on August 7, 2026, which it says is based on unilateral and unacceptable assertions, while noting that GCR and related parties hold short positions in the company’s stock. ...
Sumitomo Pharma Rebuts Short-Seller Report, Defends Accounting Practices
Aug 7, 2026
Sumitomo Pharma has issued a detailed rebuttal to a report from Gotham City Research that alleged irregularities in its business operations and accounting practices. The company argues that many of the report’s claims are factually incorrect...
Sumitomo Pharma Rejects Allegations in Gotham City Research Report
Aug 4, 2026
Sumitomo Pharma Co., Ltd. has responded to a report issued by Gotham City Research LLC that raises allegations about the company and its group’s financial reporting and accounting practices. The company clarified that the report represents t...
Sumitomo Pharma Q1 FY2026 Profit Surges Despite Higher Costs
Jul 31, 2026
Sumitomo Pharma reported a strong rise in first-quarter fiscal 2026 revenue to ¥129.5 billion, up 19.9% year on year, driven by higher sales despite a significant increase in cost of sales. Gross profit edged up to ¥68.1 billion, while n...
Sumitomo Pharma Flags Uncertainty in Q1 FY2026 Outlook
Jul 31, 2026
Sumitomo Pharma has released materials related to its financial results conference for the first quarter of fiscal 2026, covering the period from April 1 to June 30, 2026. The company emphasizes that the materials include forecasts and projections...
Sumitomo Pharma Affirms Independence as Sumitomo Chemical Retains Control
Jun 25, 2026
Sumitomo Pharma detailed its relationship with parent company Sumitomo Chemical after a public share offering reduced the parent’s voting stake from 51.81% to at least 45.84%, while it remains the controlling shareholder. The pharma group le...
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.