OTCPK:NPPN.Y

Stock Analysis Report

Executive Summary

Nippon Shinyaku Co., Ltd. manufactures and sells pharmaceuticals and foodstuffs in Japan, Switzerland, and internationally.

Rewards

Trading at 26.7% below its fair value

Earnings are forecast to grow 17.94% per year

Earnings grew by 10.7% over the past year

Risk Analysis

No risks detected for NPPN.Y from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Nippon Shinyaku's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

n/a

NPPN.Y

-0.5%

US Pharmaceuticals

-1.1%

US Market


1 Year Return

36.2%

NPPN.Y

6.2%

US Pharmaceuticals

17.9%

US Market

Return vs Industry: NPPN.Y exceeded the US Pharmaceuticals industry which returned 6.2% over the past year.

Return vs Market: NPPN.Y exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

NPPN.YIndustryMarket
7 Dayn/a-0.5%-1.1%
30 Dayn/a-1.0%1.4%
90 Dayn/a5.7%6.9%
1 Year36.2%36.2%8.9%6.2%20.3%17.9%
3 Year58.4%58.4%25.4%16.6%47.8%38.3%
5 Yearn/a29.7%15.7%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nippon Shinyaku undervalued compared to its fair value and its price relative to the market?

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NPPN.Y ($21.43) is trading below our estimate of fair value ($29.24)

Significantly Below Fair Value: NPPN.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NPPN.Y is poor value based on its PE Ratio (39.8x) compared to the Pharmaceuticals industry average (21.6x).

PE vs Market: NPPN.Y is poor value based on its PE Ratio (39.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NPPN.Y is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: NPPN.Y is overvalued based on its PB Ratio (4.4x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is Nippon Shinyaku forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPPN.Y's forecast earnings growth (17.9% per year) is above the savings rate (1.7%).

Earnings vs Market: NPPN.Y's earnings (17.9% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: NPPN.Y's revenue (7.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NPPN.Y's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NPPN.Y's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Nippon Shinyaku performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPPN.Y has high quality earnings.

Growing Profit Margin: NPPN.Y's current net profit margins (13.4%) are higher than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: NPPN.Y's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: NPPN.Y's earnings growth over the past year (10.7%) is below its 5-year average (21.4% per year).

Earnings vs Industry: NPPN.Y earnings growth over the past year (10.7%) exceeded the Pharmaceuticals industry 2.4%.


Return on Equity

High ROE: NPPN.Y's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nippon Shinyaku's financial position?


Financial Position Analysis

Short Term Liabilities: NPPN.Y's short term assets (¥116.7B) exceed its short term liabilities (¥23.8B).

Long Term Liabilities: NPPN.Y's short term assets (¥116.7B) exceed its long term liabilities (¥7.1B).


Debt to Equity History and Analysis

Debt Level: NPPN.Y is debt free.

Reducing Debt: NPPN.Y has not had any debt for past 5 years.

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

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


Balance Sheet

Inventory Level: NPPN.Y has a high level of physical assets or inventory.

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


Next Steps

Dividend

What is Nippon Shinyaku's current dividend yield, its reliability and sustainability?

0.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NPPN.Y's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: NPPN.Y's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), NPPN.Y'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?

5.1yrs

Average management tenure


CEO

Shigenobu Maekawa (66yo)

12.7yrs

Tenure

Mr. Shigenobu Maekawa has been President of Nippon Shinyaku Co., Ltd., since June 28, 2007. Mr. Maekawa served as Managing Director and General Manager of Finance & Accounting Division, Corporate Planning  ...


Leadership Team

NamePositionTenureCompensationOwnership
Shigenobu Maekawa
President & Representative Director12.7yrsno data0.077% ¥4.3m
Taro Sakurai
Department Manager of Finance & Accounting Department and Corporate Officer0yrsno datano data
Takashi Takaya
Head of Administration Division & Director1.7yrsno data0.0058% ¥319.8k
Shouzou Sano
MD. Head of Sales & Marketing Division and Director5.1yrsno data0.0089% ¥492.2k
Koji Honma
General Manager of Personnel Dept. & Corporate Officer0yrsno datano data
Akira Matsuura
MD, Head of Research & Development Division and Director9.7yrsno data0.019% ¥1.0m
Hirokata Harada
Corporate Officer & Head of Medical Supervisory Division0yrsno datano data
Hitoshi Saito
Head of Resource Procurement5.7yrsno data0.0082% ¥451.3k
Kenro Kobayashi
Head of Functional Food Division & Director5.1yrsno data0.0074% ¥409.8k
Takanori Edamitsu
Head of Business Management & Director1.7yrsno data0.0049% ¥270.7k

5.1yrs

Average Tenure

66yo

Average Age

Experienced Management: NPPN.Y's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shigenobu Maekawa
President & Representative Director12.7yrsno data0.077% ¥4.3m
Takashi Takaya
Head of Administration Division & Director1.7yrsno data0.0058% ¥319.8k
Shouzou Sano
MD. Head of Sales & Marketing Division and Director5.1yrsno data0.0089% ¥492.2k
Akira Matsuura
MD, Head of Research & Development Division and Director9.7yrsno data0.019% ¥1.0m
Hitoshi Saito
Head of Resource Procurement5.7yrsno data0.0082% ¥451.3k
Kenro Kobayashi
Head of Functional Food Division & Director5.1yrsno data0.0074% ¥409.8k
Takanori Edamitsu
Head of Business Management & Director1.7yrsno data0.0049% ¥270.7k
Toru Nakai
Head of Global Business Division & Director1.1yrsno data0.0050% ¥278.9k
Hitoshi Sakata
External Director7.1yrsno data0.0024% ¥131.5k
Yukio Sugiura
External Director6.7yrsno data0.0024% ¥131.5k

5.4yrs

Average Tenure

66yo

Average Age

Experienced Board: NPPN.Y's board of directors are considered experienced (5.4 years average tenure).


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

Nippon Shinyaku Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nippon Shinyaku Co., Ltd.
  • Ticker: NPPN.Y
  • Exchange: OTCPK
  • Founded: 1911
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: JP¥616.961b
  • Listing Market Cap: JP¥5.524b
  • Shares outstanding: 67.35m
  • Website: https://www.nippon-shinyaku.co.jp

Number of Employees


Location

  • Nippon Shinyaku Co., Ltd.
  • 14, Nishinosho-Monguchi-cho
  • Kisshoin
  • Kyoto
  • 601-8550
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4516TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NPPN.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2016

Biography

Nippon Shinyaku Co., Ltd. manufactures and sells pharmaceuticals and foodstuffs in Japan, Switzerland, and internationally. The company operates through Pharmaceuticals and Functional Food segments. It offers drugs for urological diseases, inflammation and allergies, hematologic malignancies, cardiovascular and metabolic diseases, gastrointestinal disorders, and other diseases. Its products comprise Zalutia for urinary disorder caused by benign prostatic; Eviprostat for prostatic hypertrophy; Bladderon for pollakisuria; Estracyt for prostate cancer; Cialis for erectile dysfunction; Vidaza for myelodysplastic syndrome; Cylocide for solid tumor and acute leukemia; CylocideN for relapsed and refractory acute leukemia and malignant lymphoma; Gazyva for humanized anti-CD20 monoclonal antibody; and Trisenox and Amnolake for relapsed and refractory acute promyelocytic leukemia. The company’s products also include Uptravi, Adcirca, and Opsumit for pulmonary arterial hypertension; Regtect for maintaining alcohol abstinence; Lunabel LD and Lunabel ULD for dysmenorrhea; Erizas, a dry powder inhaler solution for allergic rhinitis; Baynas for allergic rhinitis; Azunol Gargle liquid, a gargling solution containing azulene; Isobide for oral osmotic diuresis/meniere's disease; Cephadol for vertigo; Livostin for allergic rhinitis and conjunctivitis; and Onetram and Tramal for cancer and chronic pain. In addition, it researches and develops, and markets drugs in the areas of urology, gynecology, otorhinolaryngology, and orthopedics. In addition, the company provides functional foods, such as health food ingredients, preservatives, protein preparations, supplements, and spice and condiments. Nippon Shinyaku Co., Ltd. was founded in 1911 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:37
End of Day Share Price2020/02/18 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.