Update shared on 06 Dec 2025
Fair value Decreased 2.04%Analysts have slightly lowered their price target for Shiseido Company from ¥2,604 to approximately ¥2,551, as modestly softer expectations for long term revenue growth and valuation multiples more than offset a small improvement in projected profit margins.
What's in the News
- Shiseido recognized a goodwill impairment loss of ¥46.8 billion in its consolidated results for the third quarter of fiscal 2025, reflecting weaker performance in certain businesses (company disclosure).
- The company revised its full year 2025 guidance to forecast net sales of ¥965 billion and an operating loss of ¥42 billion, compared with prior expectations of ¥995 billion in net sales and ¥13.5 billion in operating profit (company guidance).
- Management now expects a loss attributable to owners of parent of ¥52 billion and basic loss per share of ¥130.17 for 2025, versus previous guidance of a ¥6 billion profit and earnings per share of ¥15.02 (company guidance).
- The weaker outlook is driven by softer inbound tourism spending in Japan, a U.S. market slowdown, and continued underperformance of the Drunk Elephant brand, partly offset by structural reforms and cost controls (company guidance).
- A board meeting scheduled for November 10, 2025 will consider director nominations and the composition of the Nominating, Compensation, and Audit Committees, along with other governance matters (board agenda).
Valuation Changes
- Fair Value Estimate: Lowered slightly from approximately ¥2,604 to about ¥2,551 per share, reflecting modestly softer long term assumptions.
- Discount Rate: Reduced slightly from around 6.51 percent to about 6.10 percent, implying a marginally lower required return.
- Revenue Growth: Trimmed slightly from roughly 3.39 percent to about 3.13 percent, indicating more conservative top line expectations.
- Net Profit Margin: Raised modestly from about 4.72 percent to roughly 4.89 percent, incorporating a small improvement in projected profitability.
- Future P/E: Reduced moderately from around 25.3x to about 23.6x, signaling a somewhat lower valuation multiple assumption.
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