Nippon Shinyaku Co., Ltd. (4516) AI Stock Analysis

• Market Cap: ¥219.44B
• Dividend Yield: 3.78%
• Average Volume (3M): 261.12K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.57
• Revenue Growth: 6.83%
• EPS Growth: 11.59%
• Country: JP
• Employees: 2,213
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 122.52
• Shares Outstanding: 70,251,490
• 10 Day Avg. Volume: 246,920
• 30 Day Avg. Volume: 261,120
• PEG Ratio: 0.30
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 7.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,511.75
• Price Target Upside: 8.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: ¥3,647.00 ▲(12.25% Upside)

Nippon Shinyaku Co., Ltd. scores highly due to its strong financial performance and attractive valuation, with a low P/E ratio and solid dividend yield. However, technical analysis indicates a bearish trend, which slightly offsets the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Nippon Shinyaku Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Shinyaku Co., Ltd. (4516) is a Japanese pharmaceutical company that focuses on the development, manufacturing, and marketing of prescription drugs, particularly in the fields of urology, oncology, and infectious diseases. Established in 1919, the company is committed to advancing healthcare through innovative drug solutions and is involved in both domestic and international markets. Its core products include treatments for various medical conditions, and it invests significantly in research and development to expand its product portfolio and enhance therapeutic options.

How the Company Makes Money

Nippon Shinyaku generates revenue primarily through the sale of its pharmaceutical products, which include prescription medications for various medical conditions. The company benefits from a diverse revenue model that includes direct sales to hospitals and healthcare providers, as well as partnerships with other pharmaceutical firms for co-development and marketing of drugs. Key revenue streams are derived from both the domestic Japanese market and international sales, with significant contributions from patented products that offer high margins. Additionally, the company engages in research collaborations and licensing agreements, which provide supplementary income while allowing for shared development costs. Factors contributing to its earnings include the successful launch of new drugs, expanding market presence in targeted therapeutic areas, and strategic alliances that enhance its product offerings.

Nippon Shinyaku Co., Ltd. Financial Statement Overview

Summary

Nippon Shinyaku Co., Ltd. demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is robust with low leverage and high equity, providing financial stability. While cash flow generation shows some volatility, the company maintains strong cash conversion ratios. Overall, the financial position is solid with a positive growth trajectory.

Income Statement

Nippon Shinyaku Co., Ltd. demonstrates strong revenue growth with a TTM revenue growth rate of 25.9%. The company maintains healthy profitability with a gross profit margin of 68.17% and a net profit margin of 19.02% in the TTM. EBIT and EBITDA margins are robust at 21.77% and 25.60% respectively, indicating efficient operations. The consistent improvement in margins over the years highlights strong operational performance.

Balance Sheet

The company exhibits a very low debt-to-equity ratio of 0.0096, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is solid at 12.46%, reflecting effective use of equity capital. The equity ratio stands at 86.85%, showcasing a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Operating cash flow to net income ratio is healthy at 1.12, indicating good cash generation relative to earnings. However, the free cash flow growth rate is negative at -38.1%, suggesting potential challenges in cash flow generation. The free cash flow to net income ratio of 0.91 is strong, showing effective conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	160.65B	160.23B	148.25B	144.18B	137.48B	121.89B
Gross Profit	109.51B	109.12B	98.02B	88.19B	87.29B	71.93B
EBITDA	41.12B	42.30B	36.29B	34.27B	36.59B	32.09B
Net Income	30.55B	32.56B	25.85B	22.81B	24.99B	19.54B
Balance Sheet
Total Assets	289.63B	283.64B	263.40B	237.45B	219.94B	197.03B
Cash, Cash Equivalents and Short-Term Investments	58.28B	55.24B	68.70B	71.60B	65.74B	60.80B
Total Debt	2.42B	2.72B	2.87B	2.66B	2.71B	2.84B
Total Liabilities	37.79B	36.30B	42.87B	41.52B	39.06B	34.49B
Stockholders Equity	251.52B	247.03B	220.22B	195.62B	180.58B	162.25B
Cash Flow
Free Cash Flow	32.65B	32.77B	11.23B	20.51B	18.18B	21.50B
Operating Cash Flow	35.92B	36.13B	16.29B	26.17B	21.32B	23.67B
Investing Cash Flow	-21.18B	-28.88B	-9.92B	-17.63B	-10.04B	-1.66B
Financing Cash Flow	-9.86B	-9.90B	-9.72B	-9.61B	-8.41B	-7.67B

Nippon Shinyaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3249.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4516, the sentiment is Negative. The current price of 3249 is below the 20-day moving average (MA) of 3281.97, above the 50-day MA of 3232.44, and below the 200-day MA of 3451.26, indicating a neutral trend. The MACD of 9.74 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4516.

Nippon Shinyaku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4516	77 Outperform	¥219.44B	7.19	―	3.78%	6.83%	11.59%
4553	70 Outperform	$139.92B	8.74	9.60%	2.74%	11.11%	-5.42%
4551	65 Neutral	―	―	―	―	―	―
4540	64 Neutral	$270.84B	10.47	9.09%	3.92%	14.60%	8.97%
4547	63 Neutral	$170.33B	14.41	5.93%	2.78%	15.40%	7.73%
4887	59 Neutral	¥188.99B	206.06	―	2.82%	3.52%	-95.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nippon Shinyaku Co., Ltd. Corporate Events

Nippon Shinyaku Completes Treasury Stock Disposal for Executive Compensation

Nippon Shinyaku Co., Ltd. has completed the disposal of 22,409 shares of its treasury stock, which were allocated as restricted stock compensation to six of its directors, excluding outside directors. This strategic move, valued at over 70 million yen, reflects the company’s approach to aligning executive incentives with shareholder interests, potentially impacting its governance and financial strategies.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.

Nippon Shinyaku Reports Q1 2025 Financial Results with Mixed Performance

Nippon Shinyaku Co., Ltd. reported its consolidated financial results for the first quarter ended June 30, 2025, showing a slight increase in revenue but a decline in operating profit and net income compared to the previous year. The company maintains its dividend forecast for the year ending March 31, 2026, indicating a stable outlook despite the current financial challenges.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.

Nippon Shinyaku Implements Restricted Stock Compensation Plan

Nippon Shinyaku Co., Ltd. has announced a resolution to dispose of its treasury stock as restricted stock compensation, aimed at incentivizing its directors to enhance corporate value. This move aligns with a previously approved compensation plan, allowing directors to receive shares under specific conditions, thereby promoting long-term commitment and alignment with shareholder interests.

The most recent analyst rating on (JP:4516) stock is a Hold with a Yen3900.00 price target. To see the full list of analyst forecasts on Nippon Shinyaku Co., Ltd. stock, see the JP:4516 Stock Forecast page.