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Shiseido Company (SSDOY)
OTHER OTC:SSDOY
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Shiseido Company
(OTC:SSDOY)
53Neutral
Shiseido Company (SSDOY) vs. S&P 500 (SPY)
Market Cap
$6.52B
Dividend Yield1.09%
Average Volume (3M)3.13K
Price to Earnings (P/E)527.8
Beta (1Y)0.38
Revenue Growth-5.75%
EPS Growth-145.86%
CountryUS
Employees27,908
SectorConsumer Defensive
Sector Strength79
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.06
Shares Outstanding400,000,000
10 Day Avg. Volume0
30 Day Avg. Volume3,127
Financial Highlights & Ratios
PEG Ratio392.45
Price to Book (P/B)1.73
Price to Sales (P/S)0.00
P/FCF Ratio-329.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.90Price Target Upside-30.29% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
Shiseido Company Business Overview & Revenue Model
Company DescriptionShiseido Company, Limited engages in the production and sale of cosmetics in Japan and internationally. The company offers fragrances; makeup products; skincare and body care products; and hair care and styling products, as well as hair color and perm solutions for hair salons. It also engages in the restaurant and food, and retail businesses; and operates beauty salons. In addition, the company operates and supports SABFA, a professional hair makeup training school. It sells its products through department stores, specialty stores, and drug stores. The company was founded in 1872 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyShiseido Company generates revenue primarily through the sale of its diverse beauty and personal care products across multiple global markets. The company's key revenue streams include skincare, makeup, fragrance, and hair care products, with skincare being the largest contributor. Shiseido's revenue model is supported by its extensive portfolio of brands, such as Shiseido, NARS, Clé de Peau Beauté, and Anessa, which target different market segments from mass market to luxury. The company also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market presence. Additionally, Shiseido invests in research and development to continuously innovate and introduce new products that meet consumer demands and trends, further driving sales and profitability.
Shiseido Company Financial Statement Overview
Summary
Shiseido exhibits stability in cash flow management and equity, but faces challenges with declining revenue and net income. The balance sheet is solid with a balanced debt-to-equity ratio, and cash flow shows robust operational capabilities. However, the negative revenue growth rate poses concerns for future profitability.Income Statement
Shiseido's income statement reveals a mixed performance. The gross profit margin remains strong, but there's a notable decline in both total revenue and net income over the past year, leading to decreased net and EBIT margins. While the EBITDA margin is stable, the revenue growth rate is negative, indicating potential challenges in maintaining revenue streams or market share.65
Positive
Balance Sheet
The balance sheet shows reasonable stability with a balanced debt-to-equity ratio and a positive equity ratio, reflecting a solid financial position. However, the return on equity has weakened slightly due to declining net income. Overall, the company maintains strong equity levels relative to its assets, mitigating some risks associated with high liabilities.70
Positive
Cash Flow
Cash flow analysis indicates robust operational cash flow with a significant improvement in free cash flow, demonstrating effective cash management. The operating cash flow to net income ratio is strong, suggesting efficient conversion of earnings into cash, although the free cash flow growth rate is volatile, showing room for improvement in capital expenditure management.75
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 987.38B | 973.04B | 1.07T | 1.04T | 920.89B | 1.13T | Gross Profit |
| 741.15B | 713.36B | 744.16B | 772.21B | 682.49B | 876.70B | EBIT |
| 3.94B | 28.13B | 46.57B | 60.76B | 14.96B | 113.83B | EBITDA |
| 85.78B | 92.23B | 129.77B | 130.61B | 80.64B | 169.35B | Net Income Common Stockholders |
| 10.01B | 21.75B | 34.20B | 46.91B | -9.12B | 73.56B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 90.38B | 126.64B | 137.53B | 172.06B | 151.01B | 110.34B | Total Assets |
| 1.35T | 1.26T | 1.31T | 1.18T | 1.20T | 1.22T | Total Debt |
| 341.86B | 280.98B | 297.19B | 190.98B | 324.30B | 248.11B | Net Debt |
| 251.48B | 176.30B | 178.15B | 18.93B | 194.28B | 137.76B | Total Liabilities |
| 694.99B | 615.11B | 681.91B | 611.93B | 697.64B | 700.94B | Stockholders Equity |
| 629.33B | 618.75B | 604.26B | 546.09B | 485.69B | 497.70B |
| Cash Flow | Free Cash Flow | ||||
| 1.17B | 33.35B | -19.47B | 30.43B | -9.44B | -36.24B | Operating Cash Flow |
| 76.96B | 89.03B | 46.73B | 122.89B | 64.05B | 75.56B | Investing Cash Flow |
| -70.83B | -35.54B | -41.31B | 63.74B | -70.08B | -202.82B | Financing Cash Flow |
| -27.89B | -75.64B | -52.42B | -176.22B | 46.88B | 113.68B |
Shiseido Company Technical Analysis
Neutral
17.07
Price Trends
17.65
Negative
17.39
Negative
20.15
Negative
Market Momentum
-0.27
Negative
53.72
Neutral
47.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSDOY, the sentiment is Neutral. The current price of 17.07 is above the 20-day moving average (MA) of 16.43, below the 50-day MA of 17.65, and below the 200-day MA of 20.15, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 47.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSDOY.
Shiseido Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.85B | 21.45 | 22.16% | 2.56% | 10.32% | 18.55% | |
67 Neutral | $3.82B | 40.25 | 14.24% | ― | 46.27% | -26.45% | |
64 Neutral | $8.78B | 14.76 | 5.05% | 174.28% | 3.62% | 3.48% | |
63 Neutral | $625.88M | 5.05 | 7.45% | ― | -4.93% | -23.61% | |
62 Neutral | $4.51B | 40.12 | -10.58% | ― | -1.68% | -302.11% | |
53 Neutral | $6.52B | 527.80 | -1.71% | 1.09% | -5.75% | -145.86% | |
53 Neutral | $21.94B | 147.29 | -17.27% | 3.31% | -3.70% | -235.59% |
* Consumer Defensive Sector Average
Performance Comparison
SSDOY
Shiseido Company
17.07
-12.79
-42.83%
EL
The Estée Lauder Companies
60.99
-70.75
-53.70%
HELE
Helen Of Troy
27.28
-79.23
-74.39%
IPAR
Inter Parfums
118.97
1.95
1.67%
COTY
Coty
4.69
-6.48
-58.01%
ELF
e.l.f. Beauty
66.84
-94.89
-58.67%
Shiseido Company Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2024)
| % Change Since: 4.66%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive achievements, including exceeding profit forecasts and growth in key regions like Japan and EMEA. However, these are tempered by significant challenges such as a dividend reduction, net income deficit, and struggles in the Americas and China. The sentiment is balanced by the company's strategic focus on structural reforms, technological advancements, and new product launches.Q4-2024 Updates
Positive Updates
Exceeded Core Operating Profit Forecast
Core operating profit for the full year was JPY 36.4 billion, surpassing the revised forecast of JPY 35 billion despite a challenging environment.
Significant Growth in Japan
Japan achieved JPY 28.1 billion in operating profit, significantly exceeding the target and showing 10% growth for 2 consecutive years.
Positive Growth in China and EMEA
For the first time in 5 quarters, sales in China increased. EMEA also reported steady growth with improved profitability through focused investments.
E-commerce Growth
E-commerce sales grew in the high 20% range due to brand expansion and increased digital advertising investments.
New Product Launches and Innovations
New products such as ELIXIR's Glow Serum and Shiseido's Foundation Serum drove sales, showcasing advanced technology.
Negative Updates
Reduction in Year-End Dividend
The company decided to reduce the year-end dividend from JPY 30 per share to JPY 10 per share to secure financial flexibility.
Net Income Deficit
Net income attributable to owners of the parent company was a deficit of JPY 10.8 billion due to structural reform expenses and provisions for financial expenses.
Challenges in the Americas
Sales in the Americas declined due to the delayed recovery of Drunk Elephant, and competition intensified, affecting the brand's performance.
Sluggish Consumer Spending in China and Travel Retail
Consumer spending remained sluggish in China and Travel Retail, leading to a revenue decline in these regions.
High SG&A Costs
SG&A costs remain high, and efforts are underway to reduce these costs to improve profitability.
Company Guidance
In the call, the company provided guidance for fiscal year 2025, projecting net sales of JPY 995 billion with a real growth rate of 4%, excluding foreign exchange fluctuations. They expect core operating income to reach JPY 36.5 billion, aiming for a further increase beyond this baseline. The company highlighted a strategic focus on achieving a core operating profit margin of 7% by 2026 through continuous structural reforms and investments in key brands. For 2024, core operating profit was JPY 36.4 billion, while net income was a deficit of JPY 10.8 billion, due to structural reform expenses. They anticipate significant profit growth in Japan and Americas, with a target of JPY 50 billion in Japan, supported by new product launches and organizational changes. The company aims to enhance their global earnings base by expanding structural reforms and optimizing costs, and they expect free cash flow to turn positive in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.