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Nippon Shinyaku Co., Ltd.
(4516)
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Rating:77Outperform
Price Target:
¥4,062.00
▼(-28.11% Downside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by strong underlying financial quality (high margins and an exceptionally low-debt balance sheet) and attractive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technicals, with the stock trading below key moving averages and bearish momentum indicators.
Positive Factors
High margins
Sustained high gross, operating and net margins indicate durable pricing power and efficient cost structure typical of specialty pharma. These margins support ongoing R&D, cover commercialization costs, and provide a buffer against reimbursement or pricing pressures over months.
Negative Factors
Weaker cash conversion
Operating cash flow lagging net income and a notable decline in free cash flow signal inconsistent cash conversion. This reduces predictability of internally funded R&D and dividends, raising the risk that working-capital swings or investment timing will constrain near-term reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins
Sustained high gross, operating and net margins indicate durable pricing power and efficient cost structure typical of specialty pharma. These margins support ongoing R&D, cover commercialization costs, and provide a buffer against reimbursement or pricing pressures over months.
Read all positive factors
Nippon Shinyaku Co., Ltd. (4516) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥237.82B
Dividend Yield3.44%
Average Volume (3M)252.03K
Price to Earnings (P/E)7.7
Beta (1Y)0.27
Revenue Growth12.23%
EPS Growth3.35%
CountryJP
Employees2,309
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)468.60
Shares Outstanding70,251,490
10 Day Avg. Volume218,840
30 Day Avg. Volume252,026
Financial Highlights & Ratios
PEG Ratio-1.33
Price to Book (P/B)1.18
Price to Sales (P/S)2.02
P/FCF Ratio14.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,300.00Price Target Upside-41.59% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)418.85
Revenue Forecast (FY)¥190.93B
Nippon Shinyaku Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Shinyaku Co., Ltd., an enterprise established in Kyoto, Japan, in 1911, engages globally in the production and distribution of pharmaceutical products and functional foods. Its reach extends across Japan, Switzerland, and various internatio...
How the Company Makes Money
Nippon Shinyaku makes money mainly by selling pharmaceuticals (primarily prescription drugs) that it develops and/or commercializes. Revenue is generated when the company supplies these products to the healthcare market through its distribution an...
Nippon Shinyaku Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 180.29B | 170.77B | 160.23B | 148.25B | 144.18B | 137.55B |
| Gross Profit | 117.76B | 113.31B | 108.10B | 97.02B | 87.25B | 85.98B |
| EBITDA | 43.96B | 43.26B | 42.25B | 38.70B | 35.60B | 37.97B |
| Net Income | 31.57B | 29.72B | 32.56B | 25.85B | 22.81B | 24.99B |
Balance Sheet | ||||||
| Total Assets | 345.15B | 346.36B | 283.64B | 263.40B | 243.27B | 219.94B |
| Cash, Cash Equivalents and Short-Term Investments | 72.70B | 76.59B | 58.47B | 68.70B | 71.59B | 60.57B |
| Total Debt | 2.56B | 2.57B | 2.72B | 2.87B | 2.66B | 2.71B |
| Total Liabilities | 49.42B | 54.48B | 36.30B | 42.87B | 47.33B | 39.05B |
| Stockholders Equity | 295.41B | 291.55B | 247.03B | 220.22B | 195.63B | 180.59B |
Cash Flow | ||||||
| Free Cash Flow | 18.95B | 24.24B | 32.77B | 11.23B | 20.51B | 18.18B |
| Operating Cash Flow | 22.26B | 27.22B | 36.13B | 16.29B | 26.17B | 21.32B |
| Investing Cash Flow | -1.24B | 1.98B | -28.88B | -9.92B | -17.63B | -10.04B |
| Financing Cash Flow | -10.01B | -9.93B | -9.90B | -9.72B | -9.61B | -8.41B |
Nippon Shinyaku Co., Ltd. Technical Analysis
Negative
5650.00
Price Trends
3843.68
Negative
4203.42
Negative
4531.62
Negative
Market Momentum
-66.54
Negative
43.52
Neutral
20.50
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 5650 is above the 20-day moving average (MA) of 3567.45, above the 50-day MA of 3843.68, and above the 200-day MA of 4531.62, indicating a neutral trend. The MACD of -66.54 indicates Negative momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 20.50 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥237.82B | 7.70 | ― | 2.12% | 12.23% | 3.35% | |
76 Outperform | ¥646.87B | 5.20 | 41.78% | ― | 14.09% | 488.06% | |
73 Outperform | ¥2.56T | 9.44 | 13.65% | 2.45% | 27.87% | 47.03% | |
71 Outperform | ¥1.37T | 32.20 | 4.44% | 3.44% | 6.73% | -15.79% | |
64 Neutral | ¥9.28T | 51.30 | 2.61% | 3.54% | 3.10% | -218.63% | |
64 Neutral | ¥258.11B | 15.67 | ― | 1.81% | 3.55% | -25.21% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4516
Nippon Shinyaku Co., Ltd.
3,598.00
595.09
19.82%
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Nippon Shinyaku Co., Ltd. Corporate Events
Nippon Shinyaku Delivers Strong Q1 Results and Confirms Stable Full-Year Outlook
Aug 6, 2026
Nippon Shinyaku reported strong first-quarter fiscal 2026 results, with revenue rising 24.1% year on year to ¥49.1 billion and operating profit up 22.1%, lifting basic earnings per share to ¥149.98. Equity attributable to owners reached ...
Nippon Shinyaku Uses Restricted Stock to Tighten Director-Shareholder Alignment
Jul 21, 2026
Nippon Shinyaku Co., Ltd., a Japan-based pharmaceutical maker listed on the Tokyo Stock Exchange Prime Market, develops prescription drugs and healthcare products for domestic and international markets. The company relies on structured executive c...
Nippon Shinyaku Posts Revenue Growth but Lower Profit, Keeps Dividend Steady
May 15, 2026
Nippon Shinyaku reported consolidated revenue of ¥170.8 billion for the year ended March 31, 2026, up 6.6%, while operating profit was flat and profit attributable to owners of the parent fell 8.7%, reflecting pressure on margins despite top-...
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.