DB:SZD

Stock Analysis Report

Executive Summary

Santen Pharmaceutical Co., Ltd. researches and develops, manufactures, and markets pharmaceuticals and medical devices in Japan and internationally.

Rewards

Trading at 1.1% below its fair value

Earnings are forecast to grow 7.12% per year

Risk Analysis

No risks detected for SZD from our risk checks.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Santen Pharmaceutical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SZD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.0%

SZD

-9.0%

DE Pharmaceuticals

-9.1%

DE Market


1 Year Return

2.0%

SZD

6.1%

DE Pharmaceuticals

2.9%

DE Market

Return vs Industry: SZD exceeded the German Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: SZD exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

SZDIndustryMarket
7 Day-13.0%-9.0%-9.1%
30 Day-19.1%-8.3%-7.2%
90 Day-16.7%1.1%-6.5%
1 Year3.5%2.0%9.8%6.1%6.1%2.9%
3 Year8.8%4.0%28.1%14.1%3.5%-5.6%
5 Year20.2%12.0%27.7%7.1%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Santen Pharmaceutical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Santen Pharmaceutical undervalued compared to its fair value and its price relative to the market?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SZD (€15) is trading below our estimate of fair value (€15.17)

Significantly Below Fair Value: SZD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SZD is poor value based on its PE Ratio (25.3x) compared to the Pharmaceuticals industry average (23.1x).

PE vs Market: SZD is poor value based on its PE Ratio (25.3x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: SZD is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: SZD is overvalued based on its PB Ratio (2.4x) compared to the DE Pharmaceuticals industry average (2.1x).


Next Steps

Future Growth

How is Santen Pharmaceutical forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SZD's forecast earnings growth (7.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: SZD's earnings (7.1% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: SZD's earnings are forecast to grow, but not significantly.

Revenue vs Market: SZD's revenue (3.4% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: SZD's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SZD's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Santen Pharmaceutical performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SZD has high quality earnings.

Growing Profit Margin: SZD's current net profit margins (11.9%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: SZD's earnings have declined by -4.1% per year over the past 5 years.

Accelerating Growth: SZD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SZD had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-0.3%).


Return on Equity

High ROE: SZD's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Santen Pharmaceutical's financial position?


Financial Position Analysis

Short Term Liabilities: SZD's short term assets (¥207.4B) exceed its short term liabilities (¥59.0B).

Long Term Liabilities: SZD's short term assets (¥207.4B) exceed its long term liabilities (¥44.9B).


Debt to Equity History and Analysis

Debt Level: SZD is debt free.

Reducing Debt: SZD has no debt compared to 5 years ago when its debt to equity ratio was 20.4%.

Debt Coverage: SZD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SZD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SZD has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SZD's debt is covered by short term assets.


Next Steps

Dividend

What is Santen Pharmaceutical's current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Santen Pharmaceutical before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.9%industryaverage3.0%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: SZD's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: SZD's dividend (1.43%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: SZD's dividends per share have been stable in the past 10 years.

Growing Dividend: SZD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), SZD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Akira Kurokawa 0

12.1yrs

Tenure

JP¥107,000,000

Compensation

Mr. Akira Kurokawa has been the Chief Executive Officer and Chairman of Santen Pharmaceutical Co. Ltd. since 2008 and April 01, 2018 respectively and served as its President since 2006 until April 01, 2018 ...


CEO Compensation Analysis

Compensation vs Market: Akira's total compensation ($USD972.52K) is below average for companies of similar size in the German market ($USD3.74M).

Compensation vs Earnings: Akira's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Akira Kurokawa
Chairman & CEO12.1yrsJP¥107.00m0.040% ¥2.3m
Shigeo Taniuchi
President2.6yrsno data0.0030% ¥174.2k
Kazuo Koshiji
Senior Corp. Officer of Corporate Administration0yrsno datano data
Naveed Shams
Senior Corporate Officer0yrsno datano data
Noriaki Yamamoto
Corporate Officer5.8yrsno datano data
Motoo Sakurai
Corporate Communications Group & Investor Relations Manager0yrsno datano data
Akio Kimura
Senior Corporate Officer of Global Product Supply & Head of Manufacturing Division1.1yrsno datano data
Christopher Hohman
General Manager Corporate Communications Group0yrsno datano data
Satoshi Suzuki
Senior Corporate Officer2.8yrsno datano data
Takahiro Morita
Corporate Officer & Head of Sales Department0.8yrsno datano data

2.3yrs

Average Tenure

Experienced Management: SZD's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Akira Kurokawa
Chairman & CEO12.1yrsJP¥107.00m0.040% ¥2.3m
Shigeo Taniuchi
President2.6yrsno data0.0030% ¥174.2k
Takeshi Ito
Head of Japan Sales & Mktg Division2.6yrsno data0.0040% ¥232.8k
Hirofumi Yasuhara
Outside Corporate Auditor0.7yrsno datano data
Kanoko Oishi
Outside Director4.7yrsno datano data
Kunihito Minakawa
Outside Director1.7yrsno data0.00025% ¥14.5k
Yumiko Ito
Outside Corporate Auditor0.7yrsno datano data
Masashi Murata
Standing Corporate Auditor3.7yrsno datano data
Yutaro Shintaku
Outside Director2.7yrsno datano data
Yasuyuki Miyasaka
Outside Corporate Auditor1.7yrsno datano data

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: SZD's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Santen Pharmaceutical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Santen Pharmaceutical Co., Ltd.
  • Ticker: SZD
  • Exchange: DB
  • Founded: 1890
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: JP¥691.710b
  • Listing Market Cap: JP¥5.806b
  • Shares outstanding: 399.37m
  • Website: https://www.santen.com

Number of Employees


Location

  • Santen Pharmaceutical Co., Ltd.
  • Grand Front Osaka Tower A
  • 4-20 Ofuka-cho
  • Osaka
  • 530-8552
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNPH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
4536TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SZDDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
SNPH.YOTCPK (Pink Sheets LLC)ADRUSUSDSep 2010

Biography

Santen Pharmaceutical Co., Ltd. researches and develops, manufactures, and markets pharmaceuticals and medical devices in Japan and internationally. It offers various pharmaceutical products to treat glaucoma and ocular hypertension, such as DE-111, which is in Phase III clinical trial; DE-126 that is in Phase 2b clinical trial; DE-128, which is in Phase 2/3 clinical trial; DE-130A that is in Phase III clinical trial; and DE-117. In addition, the company provides DE-114A to treat allergic conjunctivitis that has completed phase 3 clinical trial; DE-076C for the treatment of Vernal keratoconjunctivitis; DE-109, which is in Phase 3 clinical trial to treat uveitis; and DE-122 that is in Phase 2a clinical trial for the treatment of wet age-related macular degeneration. Further, it intends to initiate Phase 2/3 clinical trial for DE-127 to treat myopia; and MD-16 for the treatment of cataract that has completed Phase III clinical trial. Additionally, the company offers over-the-counter pharmaceutical products. The company was formerly known as Santendo Pharmaceutical Co., Ltd. and changed its name to Santen Pharmaceutical Co., Ltd. in 1958. Santen Pharmaceutical Co., Ltd. was founded in 1890 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:46
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.