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SAWAI GROUP HOLDINGS Co., Ltd.
(4887)
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Rating:52Neutral
Price Target:
¥1,621.00
▼(-31.28% Downside)
Action:Reiterated
Date:08/19/26
The score is mainly held back by weak cash-flow quality (negative free cash flow) and rising leverage alongside compressed margins, despite continued profitability and solid revenue growth. Technicals also weigh on the score due to a clear downtrend and negative momentum. Valuation is a partial offset, supported by a relatively high dividend yield, but the P/E remains moderate given the current financial pressures.
Positive Factors
Revenue growth and profitability
Continued revenue expansion and positive earnings show that the generic-drug business retains underlying demand and operating viability. This provides a foundation for sustained performance, although future benefits depend on restoring stronger margins.
Negative Factors
Compressed profit margins
Margin compression reduces the earnings generated from each unit of sales and may reflect weaker pricing power or higher cost intensity. If sustained, it can limit reinvestment, weaken returns, and make profits more sensitive to pharmaceutical pricing and cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and profitability
Continued revenue expansion and positive earnings show that the generic-drug business retains underlying demand and operating viability. This provides a foundation for sustained performance, although future benefits depend on restoring stronger margins.
Read all positive factors
SAWAI GROUP HOLDINGS Co., Ltd. (4887) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥161.71B
Dividend Yield3.41%
Average Volume (3M)299.27K
Price to Earnings (P/E)21.4
Beta (1Y)0.29
Revenue Growth11.08%
EPS Growth701.86%
CountryJP
Employees3,630
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)75.40
Shares Outstanding115,685,930
10 Day Avg. Volume288,420
30 Day Avg. Volume299,266
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.43
Price to Sales (P/S)1.27
P/FCF Ratio-42.65
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,185.71Price Target Upside-7.35% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)150.21
Revenue Forecast (FY)¥210.95B
SAWAI GROUP HOLDINGS Co., Ltd. Business Overview & Revenue Model
Company Description
Sawai Group Holdings Co., Ltd., together with its associated companies, focuses on the entire lifecycle of generic medications, from their initial research and development to manufacturing and commercialization. The company's primary operational m...
How the Company Makes Money
The company makes money primarily through its consolidated operating subsidiaries in the pharmaceutical segment. Revenue is generated mainly from the sale of generic pharmaceutical products: the group manufactures and/or outsources production of g...
SAWAI GROUP HOLDINGS Co., Ltd. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 215.73B | 201.68B | 189.02B | 176.86B | 200.34B | 193.82B |
| Gross Profit | 61.92B | 58.79B | 56.35B | 54.32B | 62.63B | 68.95B |
| EBITDA | 23.33B | 32.04B | 19.44B | 36.88B | 34.87B | -20.18B |
| Net Income | 8.54B | 10.44B | 11.97B | 13.70B | 12.67B | -28.27B |
Balance Sheet | ||||||
| Total Assets | 463.25B | 359.92B | 354.62B | 382.02B | 364.17B | 349.50B |
| Cash, Cash Equivalents and Short-Term Investments | 32.72B | 28.99B | 38.78B | 26.37B | 33.08B | 47.72B |
| Total Debt | 149.36B | 105.02B | 95.11B | 87.13B | 77.07B | 70.80B |
| Total Liabilities | 240.21B | 181.36B | 180.77B | 163.99B | 151.43B | 149.42B |
| Stockholders Equity | 223.04B | 178.56B | 173.85B | 212.66B | 201.64B | 190.07B |
Cash Flow | ||||||
| Free Cash Flow | -3.74B | -5.98B | 7.28B | 5.23B | -7.70B | 19.80B |
| Operating Cash Flow | 20.31B | 7.43B | 27.85B | 23.15B | 13.03B | 34.31B |
| Investing Cash Flow | -29.95B | -22.90B | 6.48B | -23.11B | -27.13B | -30.39B |
| Financing Cash Flow | 7.60B | 5.59B | -32.70B | 2.36B | -1.27B | -11.26B |
SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis
Negative
2359.00
Price Trends
1656.72
Negative
1815.77
Negative
2002.59
Negative
Market Momentum
-14.42
Negative
43.46
Neutral
36.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4887, the sentiment is Negative. The current price of 2359 is above the 20-day moving average (MA) of 1625.40, above the 50-day MA of 1656.72, and above the 200-day MA of 2002.59, indicating a bearish trend. The MACD of -14.42 indicates Negative momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 36.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4887.
SAWAI GROUP HOLDINGS Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥242.94B | 7.68 | ― | 2.12% | 12.23% | 3.35% | |
66 Neutral | ¥57.11B | 12.88 | ― | 2.52% | ― | -7.20% | |
64 Neutral | ¥167.88B | 12.17 | 6.37% | 2.60% | 10.35% | 16.60% | |
60 Neutral | ¥48.08B | 15.65 | 5.06% | 2.56% | 20.36% | -5.53% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ¥161.71B | 21.37 | ― | 2.28% | 11.08% | 701.86% | |
47 Neutral | ¥194.89B | 23.40 | 2.92% | 2.14% | 6.78% | -48.34% |
* General Sector Average
JP:4887
SAWAI GROUP HOLDINGS Co., Ltd.
1,613.50
-213.65
-11.69%
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SAWAI GROUP HOLDINGS Co., Ltd. Corporate Events
Sawai Group’s Q1 Profit Slides Despite Higher Revenue, Full-Year Earnings Rebound Forecast
Aug 10, 2026
Sawai Group Holdings reported consolidated revenue of ¥51.6 billion for the three months ended June 30, 2026, up 4.3% year on year, but operating profit fell 29.0% to ¥4.95 billion, and profit attributable to owners of parent dropped 50....
Sawai Group Corrects Disclosure on Treatment of Share Acquisition Rights in Company Split
Aug 7, 2026
Sawai Group Holdings Co., Ltd. has issued a correction to its previously disclosed notice regarding a simple absorption-type company split announced on June 25, 2026. The revision clarifies how the company will handle share acquisition rights and ...
Sawai Group Completes Payment for Restricted Share-Based Executive Compensation
Jul 24, 2026
Sawai Group Holdings has completed payment for the issuance of 30,789 new common shares as part of its restricted share and performance-linked restricted share compensation programs for directors and officers. The shares, issued at ¥1,658 eac...
Sawai Group Transfers NASH Digital Therapeutics Business to Core Subsidiary
Jun 25, 2026
Sawai Group Holdings will transfer its digital therapeutics business for non-alcoholic steatohepatitis (NASH) to wholly owned subsidiary Sawai Pharmaceutical via a simple absorption-type company split effective September 1, 2026. The move is desig...
Sawai Group Issues Restricted Shares to Align Executive Pay With Performance
Jun 25, 2026
Sawai Group Holdings has approved the issuance of 30,789 new common shares as restricted and performance-linked restricted share compensation, valued at approximately ¥51 million, to directors and officers of the company and its subsidiaries....
Sawai Group to Merge Drug-Making Subsidiaries in Structural Streamlining Move
May 22, 2026
Sawai Group Holdings has approved an absorption-type merger of two wholly owned subsidiaries, making Sawai Pharmaceutical Co., Ltd. the surviving entity and Trust Pharmatech Co., Ltd. the dissolving company, effective April 1, 2027. The move aims ...
Sawai Group Holdings to Record ¥832 Million Internal Dividend From Subsidiary
May 22, 2026
Sawai Group Holdings Co., Ltd. has announced it will receive a dividend totaling 832 million yen from its consolidated subsidiary, Sawai Pharmaceutical Co., Ltd., with the payment scheduled for July 31, 2026. The dividend will be recognized as ope...
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.