Fact based stock research
Shionogi (TSE:4507)

JP3347200002

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Shionogi stock research in summary

shionogi.co.jp

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Shionogi (Pharmaceuticals, Japan) shares have much better financial characteristics than comparable stocks. Shares of Shionogi are a good value (attractively priced) with a consolidated Value Rank of 78 (better than 78% of alternatives), are safely financed (Safety Rank of 90, which means low debt burdens), but show below-average growth (Growth Rank of 22). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Shionogi's financial characteristics. As the company Shionogi's key financial metrics exhibit good value (Obermatt Value Rank of 78) but low growth (Obermatt Growth Rank of 22) while being safely financed (Obermatt Safety Rank of 90), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 78% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	78
Growth Rank	22
Safety Rank	90
Combined Rank	82

Country	Japan
Industry	Pharmaceuticals
Index	TOPIX 100, Nikkei 225
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Shionogi

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	48	49	50	78
GROWTH
GROWTH	31	95	15	22
SAFETY
SAFETY	76	92	96	90
SENTIMENT
SENTIMENT	n/a	88	55	^new
360° VIEW
360° VIEW	n/a	99	53	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Shionogi is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	48	49	50	78
GROWTH
GROWTH	31	95	15	22
SAFETY
SAFETY	76	92	96	90
COMBINED
COMBINED	54	96	50	82

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Shionogi the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 78 (better than 78% compared with alternatives) for 2024, Shionogi shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Shionogi. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 95 which means that the stock price compared with what market professionals expect for future profits is lower than for 95% of comparable companies, indicating a good value concerning Shionogi's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67, and for Dividend Yield with a Dividend Yield Rank of 73. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 79% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 21). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 78, is a buy recommendation based on Shionogi's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Shionogi has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Shionogi shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	9	22	19	21
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	66	69	79	95
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	35	52	53	67
DIVIDEND YIELD
DIVIDEND YIELD	69	62	58	73
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	48	49	50	78

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Shionogi; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 22 (better than 22% compared with alternatives), Shionogi shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Shionogi. Only Capital Growth has a good rank of 62, which means that currently professionals expect the company to grow its invested capital more than 27% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 16 which means that currently professionals expect the company to grow less than 84% of its competitors. Profit Growth with a rank of 27 and Stock Returns with a rank of 30 are also low (below 70% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 22, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Shionogi is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	21	88	4	16
PROFIT GROWTH
PROFIT GROWTH	69	38	30	27
CAPITAL GROWTH
CAPITAL GROWTH	n/a	53	37	62
STOCK RETURNS
STOCK RETURNS	92	97	59	30
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	31	95	15	22

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Shionogi.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2024, the company Shionogi has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Shionogi is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Shionogi. Leverage is at 85, meaning the company has a below-average debt-to-equity ratio. It has less debt than 85% of its competitors. Refinancing is at a rank of 72, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 72% of its competitors. Finally, Liquidity is also good at a rank of 92, which means that the company generates more profit to service its debt than 92% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Shionogi has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Shionogi but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	79	86	93	85
REFINANCING
REFINANCING	15	55	69	72
LIQUIDITY
LIQUIDITY	100	90	96	92
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	92	96	90

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Shionogi and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	48	37	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	60	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	92	94	^new
MARKET PULSE
MARKET PULSE	n/a	40	35	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	88	55	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Shionogi.
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