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SAWAI GROUP HOLDINGS Co., Ltd. (JP:4887)
:4887
Japanese Market
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SAWAI GROUP HOLDINGS Co., Ltd. (4887) AI Stock Analysis

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JP:4887

SAWAI GROUP HOLDINGS Co., Ltd.

(4887)

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Neutral 52 (OpenAI - Gpt-5.6Sol)
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)

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
Revenue growth is solid (~7% TTM) and profitability is positive, but margins have compressed (gross margin ~28.7% TTM; net margin ~4.0% TTM) and earnings have been volatile historically (notably a loss in FY2022). Balance sheet leverage is moderate but rising (D/E ~0.67 TTM) and returns are modest (ROE ~4.5% TTM). The biggest weakness is cash quality: free cash flow is negative (~-3.7B TTM) despite positive operating cash flow (~20.3B), limiting flexibility.
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue215.73B201.68B189.02B176.86B200.34B193.82B
Gross Profit61.92B58.79B56.35B54.32B62.63B68.95B
EBITDA23.33B32.04B19.44B36.88B34.87B-20.18B
Net Income8.54B10.44B11.97B13.70B12.67B-28.27B
Balance Sheet
Total Assets463.25B359.92B354.62B382.02B364.17B349.50B
Cash, Cash Equivalents and Short-Term Investments32.72B28.99B38.78B26.37B33.08B47.72B
Total Debt149.36B105.02B95.11B87.13B77.07B70.80B
Total Liabilities240.21B181.36B180.77B163.99B151.43B149.42B
Stockholders Equity223.04B178.56B173.85B212.66B201.64B190.07B
Cash Flow
Free Cash Flow-3.74B-5.98B7.28B5.23B-7.70B19.80B
Operating Cash Flow20.31B7.43B27.85B23.15B13.03B34.31B
Investing Cash Flow-29.95B-22.90B6.48B-23.11B-27.13B-30.39B
Financing Cash Flow7.60B5.59B-32.70B2.36B-1.27B-11.26B

SAWAI GROUP HOLDINGS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2359.00
Price Trends
50DMA
1656.72
Negative
100DMA
1815.77
Negative
200DMA
2002.59
Negative
Market Momentum
MACD
-14.42
Negative
RSI
43.46
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥242.94B7.682.12%12.23%3.35%
66
Neutral
¥57.11B12.882.52%-7.20%
64
Neutral
¥167.88B12.176.37%2.60%10.35%16.60%
60
Neutral
¥48.08B15.655.06%2.56%20.36%-5.53%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥161.71B21.372.28%11.08%701.86%
47
Neutral
¥194.89B23.402.92%2.14%6.78%-48.34%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4887
SAWAI GROUP HOLDINGS Co., Ltd.
1,613.50
-213.65
-11.69%
JP:4547
Kissei Pharmaceutical Co
4,105.00
-72.08
-1.73%
JP:4553
Towa Pharmaceutical Co
3,935.00
1,100.85
38.84%
JP:4554
Fuji Pharma Co., Ltd.
1,830.00
359.92
24.48%
JP:4516
Nippon Shinyaku Co., Ltd.
3,592.00
558.04
18.39%
JP:4886
ASKA Pharmaceutical Holdings Co., Ltd.
2,117.00
-276.45
-11.55%

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.Date of analysis: Aug 19, 2026