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Nippon Shinyaku Co., Ltd. (JP:4516)
:4516
Japanese Market
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Nippon Shinyaku Co., Ltd. (4516) AI Stock Analysis

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JP:4516

Nippon Shinyaku Co., Ltd.

(4516)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
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. (4516) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNippon 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 MoneyNippon 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
85
Very Positive
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
90
Very Positive
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
75
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue160.65B160.23B148.25B144.18B137.48B121.89B
Gross Profit109.51B109.12B98.02B88.19B87.29B71.93B
EBITDA41.12B42.30B36.29B34.27B36.59B32.09B
Net Income30.55B32.56B25.85B22.81B24.99B19.54B
Balance Sheet
Total Assets289.63B283.64B263.40B237.45B219.94B197.03B
Cash, Cash Equivalents and Short-Term Investments58.28B55.24B68.70B71.60B65.74B60.80B
Total Debt2.42B2.72B2.87B2.66B2.71B2.84B
Total Liabilities37.79B36.30B42.87B41.52B39.06B34.49B
Stockholders Equity251.52B247.03B220.22B195.62B180.58B162.25B
Cash Flow
Free Cash Flow32.65B32.77B11.23B20.51B18.18B21.50B
Operating Cash Flow35.92B36.13B16.29B26.17B21.32B23.67B
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 Price3249.00
Price Trends
50DMA
3232.44
Positive
100DMA
3236.28
Positive
200DMA
3451.26
Negative
Market Momentum
MACD
9.74
Positive
RSI
48.44
Neutral
STOCH
32.00
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥219.44B7.193.78%6.83%11.59%
70
Outperform
$139.92B8.749.60%2.74%11.11%-5.42%
65
Neutral
64
Neutral
$270.84B10.479.09%3.92%14.60%8.97%
63
Neutral
$170.33B14.415.93%2.78%15.40%7.73%
59
Neutral
¥188.99B206.062.82%3.52%-95.28%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4516
Nippon Shinyaku Co., Ltd.
3,249.00
-782.08
-19.40%
JP:4547
Kissei Pharmaceutical Co
4,145.00
400.05
10.68%
JP:4551
Torii Pharmaceutical Co
6,350.00
2,487.97
64.42%
JP:4540
Tsumura & Co
3,539.00
-1,185.42
-25.09%
JP:4553
Towa Pharmaceutical Co
2,837.00
-207.12
-6.80%
JP:4887
SAWAI GROUP HOLDINGS Co., Ltd.
1,916.50
-72.81
-3.66%

Nippon Shinyaku Co., Ltd. Corporate Events

Nippon Shinyaku Completes Treasury Stock Disposal for Executive Compensation
Aug 12, 2025

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
Aug 7, 2025

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
Jul 18, 2025

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.

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 15, 2025