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Shin Nippon Biomedical Laboratories

TSE:2395
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2395
TSE
¥21B
Market Cap
  1. Home
  2. JP
  3. Pharmaceuticals & Biotech
Company description

Shin Nippon Biomedical Laboratories, Ltd., a contract research organization, provides drug discovery and development services in Japan, the United States, China, Cambodia, India, and internationally. The last earnings update was 54 days ago. More info.


Add to Portfolio Compare Print
  • Shin Nippon Biomedical Laboratories has significant price volatility in the past 3 months.
2395 Share Price and Events
7 Day Returns
-5%
TSE:2395
-6.3%
JP Life Sciences
-8.9%
JP Market
1 Year Returns
-39.9%
TSE:2395
-33.1%
JP Life Sciences
-17.9%
JP Market
2395 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shin Nippon Biomedical Laboratories (2395) -5% -12.1% -19.3% -39.9% -15.2% -36.8%
JP Life Sciences -6.3% -14.8% -26.8% -33.1% -32.2% -42.6%
JP Market -8.9% -12.1% -22.9% -17.9% -10.5% -14%
1 Year Return vs Industry and Market
  • 2395 underperformed the Life Sciences industry which returned -33.1% over the past year.
  • 2395 underperformed the Market in Japan which returned -17.9% over the past year.
Price Volatility
2395
Industry
5yr Volatility vs Market

Value

 Is Shin Nippon Biomedical Laboratories undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shin Nippon Biomedical Laboratories to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shin Nippon Biomedical Laboratories.

TSE:2395 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year JP Government Bond Rate -0.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSE:2395
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year JP Govt Bond Rate -0.1%
Equity Risk Premium S&P Global 6.3%
Life Sciences Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.03 (1 + (1- 30.86%) (70.03%))
1.354
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.09% + (1.354 * 6.33%)
8.48%

Discounted Cash Flow Calculation for TSE:2395 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shin Nippon Biomedical Laboratories is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSE:2395 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 8.48%)
2020 2,288.44 Est @ 5.24% 2,109.48
2021 2,371.72 Est @ 3.64% 2,015.28
2022 2,431.50 Est @ 2.52% 1,904.51
2023 2,473.74 Est @ 1.74% 1,786.07
2024 2,503.16 Est @ 1.19% 1,665.98
2025 2,523.32 Est @ 0.81% 1,548.07
2026 2,536.86 Est @ 0.54% 1,434.67
2027 2,545.71 Est @ 0.35% 1,327.09
2028 2,551.24 Est @ 0.22% 1,225.96
2029 2,554.43 Est @ 0.12% 1,131.50
Present value of next 10 years cash flows ¥16,148.00
TSE:2395 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ¥2,554.43 × (1 + -0.09%) ÷ (8.48% – -0.09%)
¥29,767.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥29,767.55 ÷ (1 + 8.48%)10
¥13,185.77
TSE:2395 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥16,148.00 + ¥13,185.77
¥29,333.77
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥29,333.77 / 41.63
¥704.6
TSE:2395 Discount to Share Price
Calculation Result
Value per share (JPY) From above. ¥704.60
Current discount Discount to share price of ¥509.00
= -1 x (¥509.00 - ¥704.60) / ¥704.60
27.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Shin Nippon Biomedical Laboratories is available for.
Intrinsic value
28%
Share price is ¥509 vs Future cash flow value of ¥704.6
Current Discount Checks
For Shin Nippon Biomedical Laboratories to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Shin Nippon Biomedical Laboratories's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Shin Nippon Biomedical Laboratories's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shin Nippon Biomedical Laboratories's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shin Nippon Biomedical Laboratories's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSE:2395 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in JPY ¥47.80
TSE:2395 Share Price ** TSE (2020-04-03) in JPY ¥509
Japan Life Sciences Industry PE Ratio Median Figure of 9 Publicly-Listed Life Sciences Companies 16.58x
Japan Market PE Ratio Median Figure of 3,072 Publicly-Listed Companies 11.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shin Nippon Biomedical Laboratories.

TSE:2395 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:2395 Share Price ÷ EPS (both in JPY)

= 509 ÷ 47.80

10.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shin Nippon Biomedical Laboratories is good value based on earnings compared to the JP Life Sciences industry average.
  • Shin Nippon Biomedical Laboratories is good value based on earnings compared to the Japan market.
Price based on expected Growth
Does Shin Nippon Biomedical Laboratories's expected growth come at a high price?
Raw Data
TSE:2395 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
13.7%per year
Japan Life Sciences Industry PEG Ratio Median Figure of 5 Publicly-Listed Life Sciences Companies 0.93x
Japan Market PEG Ratio Median Figure of 1,282 Publicly-Listed Companies 1.26x

*Line of best fit is calculated by linear regression .

TSE:2395 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.65x ÷ 13.7%

0.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shin Nippon Biomedical Laboratories is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Shin Nippon Biomedical Laboratories's assets?
Raw Data
TSE:2395 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in JPY ¥417.39
TSE:2395 Share Price * TSE (2020-04-03) in JPY ¥509
Japan Life Sciences Industry PB Ratio Median Figure of 16 Publicly-Listed Life Sciences Companies 2.41x
Japan Market PB Ratio Median Figure of 3,576 Publicly-Listed Companies 0.8x
TSE:2395 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:2395 Share Price ÷ Book Value per Share (both in JPY)

= 509 ÷ 417.39

1.22x

* Primary Listing of Shin Nippon Biomedical Laboratories.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shin Nippon Biomedical Laboratories is good value based on assets compared to the JP Life Sciences industry average.
X
Value checks
We assess Shin Nippon Biomedical Laboratories's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Life Sciences industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Life Sciences industry average (and greater than 0)? (1 check)
  5. Shin Nippon Biomedical Laboratories has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Shin Nippon Biomedical Laboratories expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shin Nippon Biomedical Laboratories expected to grow at an attractive rate?
  • Shin Nippon Biomedical Laboratories's earnings growth is expected to exceed the low risk savings rate of -0.1%.
Growth vs Market Checks
  • Shin Nippon Biomedical Laboratories's earnings growth is expected to exceed the Japan market average.
  • Shin Nippon Biomedical Laboratories's revenue growth is expected to exceed the Japan market average.
Annual Growth Rates Comparison
Raw Data
TSE:2395 Future Growth Rates Data Sources
Data Point Source Value (per year)
TSE:2395 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 13.7%
TSE:2395 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 8.2%
Japan Life Sciences Industry Earnings Growth Rate Market Cap Weighted Average 25.3%
Japan Life Sciences Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Japan Market Earnings Growth Rate Market Cap Weighted Average 9.1%
Japan Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSE:2395 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSE:2395 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 16,500 2,300 1
2021-03-31 15,500 2,100 1
2020-04-04
2020-03-31 14,500 1,400 1
TSE:2395 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-12-31 13,497 1,990
2019-09-30 13,167 2,988 1,915
2019-06-30 14,676 1,524
2019-03-31 15,658 2,892 1,950
2018-12-31 17,337 -49
2018-09-30 17,928 2,943 -993
2018-06-30 16,937 -2,566
2018-03-31 16,600 1,344 -3,555
2017-12-31 17,186 -1,072
2017-09-30 17,714 280 327
2017-06-30 17,230 260
2017-03-31 17,244 -849 -915

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shin Nippon Biomedical Laboratories's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
  • Shin Nippon Biomedical Laboratories's revenue is expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSE:2395 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Shin Nippon Biomedical Laboratories Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:2395 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 55.20 55.20 55.20 1.00
2021-03-31 50.40 50.40 50.40 1.00
2020-04-04
2020-03-31 50.40 50.40 50.40 1.00
TSE:2395 Past Financials Data
Date (Data in JPY Millions) EPS *
2019-12-31 47.80
2019-09-30 46.00
2019-06-30 36.61
2019-03-31 46.84
2018-12-31 -1.18
2018-09-30 -23.85
2018-06-30 -61.64
2018-03-31 -85.39
2017-12-31 -25.75
2017-09-30 7.85
2017-06-30 6.25
2017-03-31 -22.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Shin Nippon Biomedical Laboratories will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Shin Nippon Biomedical Laboratories's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Japan market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Japan market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shin Nippon Biomedical Laboratories has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Shin Nippon Biomedical Laboratories performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shin Nippon Biomedical Laboratories's growth in the last year to its industry (Life Sciences).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shin Nippon Biomedical Laboratories's year on year earnings growth rate has been positive over the past 5 years.
  • Shin Nippon Biomedical Laboratories has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Shin Nippon Biomedical Laboratories has become profitable in the last year making it difficult to compare the JP Life Sciences industry average.
Earnings and Revenue History
Shin Nippon Biomedical Laboratories's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shin Nippon Biomedical Laboratories Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSE:2395 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 13,497.00 1,990.00 4,308.00 339.00
2019-09-30 13,167.00 1,915.00 4,175.00 339.00
2019-06-30 14,676.00 1,524.00 4,656.00 339.00
2019-03-31 15,658.00 1,950.00 4,865.00 339.00
2018-12-31 17,337.00 -49.00 4,996.00 518.00
2018-09-30 17,928.00 -993.00 5,251.00 518.00
2018-06-30 16,937.00 -2,566.00 5,016.00 518.00
2018-03-31 16,600.00 -3,555.00 5,139.00 518.00
2017-12-31 17,186.00 -1,072.00 5,081.00 600.00
2017-09-30 17,714.00 327.00 5,177.00 600.00
2017-06-30 17,230.00 260.00 5,250.00 600.00
2017-03-31 17,244.00 -915.00 5,301.00 600.00
2016-12-31 15,880.00 -1,821.00 5,157.00 815.00
2016-09-30 15,269.00 -1,273.00 5,282.00 815.00
2016-06-30 14,922.00 -1,475.00 5,390.00 815.00
2016-03-31 14,750.00 2,646.00 5,496.00 815.00
2015-12-31 15,637.00 2,060.00 5,550.00 739.00
2015-09-30 16,344.00 401.00 5,554.00 739.00
2015-06-30 17,164.00 1,546.00 5,532.00 739.00
2015-03-31 17,835.00 -1,385.00 5,579.00 739.00
2014-12-31 18,058.00 -417.00 5,593.00 747.00
2014-09-30 17,161.00 -599.00 5,569.00 747.00
2014-06-30 17,132.00 -1,074.00 5,641.00 747.00
2014-03-31 16,926.00 -754.00 5,449.00 747.00
2013-12-31 16,993.00 -1,443.00 5,613.00 577.00
2013-09-30 17,513.00 -1,185.00 5,483.00 577.00
2013-06-30 16,837.00 -1,044.00 5,304.00 577.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Shin Nippon Biomedical Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shin Nippon Biomedical Laboratories used its assets more efficiently than the JP Life Sciences industry average last year based on Return on Assets.
  • Shin Nippon Biomedical Laboratories has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Shin Nippon Biomedical Laboratories's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Life Sciences industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shin Nippon Biomedical Laboratories has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Shin Nippon Biomedical Laboratories's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shin Nippon Biomedical Laboratories's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shin Nippon Biomedical Laboratories's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Shin Nippon Biomedical Laboratories's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shin Nippon Biomedical Laboratories's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shin Nippon Biomedical Laboratories Company Filings, last reported 3 months ago.

TSE:2395 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 17,466.00 14,085.00 4,005.00
2019-09-30 21,129.00 14,162.00 4,626.00
2019-06-30 24,097.00 14,711.00 4,149.00
2019-03-31 28,476.00 15,242.00 5,141.00
2018-12-31 31,482.00 15,919.00 4,705.00
2018-09-30 32,885.00 18,126.00 5,694.00
2018-06-30 25,422.00 17,625.00 4,799.00
2018-03-31 26,214.00 18,447.00 5,312.00
2017-12-31 23,218.00 19,029.00 5,744.00
2017-09-30 17,645.00 19,217.00 4,583.00
2017-06-30 17,557.00 19,769.00 4,634.00
2017-03-31 22,471.00 22,413.00 7,446.00
2016-12-31 19,429.00 22,343.00 4,391.00
2016-09-30 20,600.00 23,083.00 5,048.00
2016-06-30 18,000.00 21,128.00 4,343.00
2016-03-31 16,473.00 21,717.00 4,942.00
2015-12-31 16,957.00 20,056.00 4,229.00
2015-09-30 10,962.00 21,879.00 7,806.00
2015-06-30 11,856.00 18,798.00 5,792.00
2015-03-31 9,643.00 21,818.00 7,276.00
2014-12-31 8,914.00 20,888.00 7,059.00
2014-09-30 8,806.00 21,820.00 8,125.00
2014-06-30 9,770.00 19,284.00 6,105.00
2014-03-31 10,515.00 21,252.00 9,751.00
2013-12-31 9,155.00 22,581.00 11,375.00
2013-09-30 6,548.00 23,833.00 9,829.00
2013-06-30 2,850.00 21,347.00 4,096.00
  • Shin Nippon Biomedical Laboratories's level of debt (80.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (234.2% vs 80.6% today).
  • Debt is well covered by operating cash flow (21.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Shin Nippon Biomedical Laboratories's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shin Nippon Biomedical Laboratories has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Shin Nippon Biomedical Laboratories's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.59%
Current annual income from Shin Nippon Biomedical Laboratories dividends. Estimated to be 1.28% next year.
If you bought ¥2,000 of Shin Nippon Biomedical Laboratories shares you are expected to receive ¥12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Shin Nippon Biomedical Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in Japan (1.81%).
  • Shin Nippon Biomedical Laboratories's dividend is below the markets top 25% of dividend payers in Japan (4.2%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSE:2395 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Japan Life Sciences Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.1%
Japan Market Average Dividend Yield Market Cap Weighted Average of 2988 Stocks 3%
Japan Minimum Threshold Dividend Yield 10th Percentile 1%
Japan Bottom 25% Dividend Yield 25th Percentile 1.8%
Japan Top 25% Dividend Yield 75th Percentile 4.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSE:2395 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 7.00 1.00
2021-03-31 6.00 1.00
2020-04-04
2020-03-31 5.00 1.00
TSE:2395 Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-07-01 3.000 0.459
2019-05-10 3.000 0.404
2013-02-14 0.000 0.000
2012-11-14 0.000 0.000
2012-11-12 0.000 0.000
2012-08-13 0.000 0.000
2012-06-29 0.000 0.000
2012-05-11 0.000 0.000
2011-06-30 3.000 1.324
2011-05-13 3.000 1.098
2011-02-10 3.000 0.891
2010-06-30 3.000 0.798
2010-05-14 3.000 0.710
2009-08-07 3.000 0.514
2009-06-29 3.000 0.884
2009-05-15 3.000 0.795

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shin Nippon Biomedical Laboratories is not paying a notable dividend for Japan, therefore no need to check if the payments are stable.
  • Shin Nippon Biomedical Laboratories is not paying a notable dividend for Japan, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Shin Nippon Biomedical Laboratories's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Shin Nippon Biomedical Laboratories's dividends as it is not paying a notable one for Japan.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Shin Nippon Biomedical Laboratories's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shin Nippon Biomedical Laboratories afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shin Nippon Biomedical Laboratories has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Shin Nippon Biomedical Laboratories's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ryoichi Nagata
COMPENSATION ¥144,061,000
AGE 61
TENURE AS CEO 6 years
CEO Bio

Dr. Ryoichi Nagata, M.D., Ph.D., F.F.P.M., has been the President of Shin Nippon Biomedical Laboratories, Ltd. since January 1991 and also has been its Global Chief Executive Officer since April 2014. Dr. Nagata has been General Manager of Global Sales Division at Shin Nippon Biomedical Laboratories, Ltd. since April 2014 and served as its General Manager of Global Operations Division since April 2014. Dr. Nagata served as an Advisor of Shin Nippon Biomedical Laboratories, Ltd. since June 2009. Dr. Nagata served as General Manager of Overall Sales Division and General Manager of Global Business Development Division at Shin Nippon Biomedical Laboratories, Ltd. since May 2012. He serves as the Chief Executive Officer and President of SNBL Group at SNBL U.S.A. Ltd. He serves as the Chief Executive Officer of SNBL USA, Ltd. He served as a Senior Clinical Pharmacologist by the Japanese Society of Clinical Pharmacology. Dr. Nagata has been the Chairman at Shin Nippon Biomedical Laboratories, Ltd. since June 2009. Dr. Nagata has been a Director of Shin Nippon Biomedical Laboratories, Ltd. since January 1991. Dr. Nagata serves as an Adjunct Professor at Hokkaido University, St. Marianna University School of Medicine, and Kouchi University. He serves as a Guest Lecturer at the University of Rhode Island, Kagoshima University, Hiroshima University, and Kanazawa University. Dr. Nagata serves as an active participant in government, industry, and local community affairs. He has lectured at training sessions for newly-appointed state government officials. Dr. Nagata serves as the Chairman at SNBL Clinical Pharmacology Center, Inc. He served as Chairman of the Association of Contract Studies for Safety of Chemical Substances, as a Member of the Kagoshima City Information Network Committee, a Member of Environmental Chemicals' Metabolism Study Group organized by the Ministry of Environment, and as a Trustee of The Association for Preventive Medicine of Japan. He is a full Member of the American College of Toxicology, American Society of Toxicology, and American College of Clinical Pharmacology, and a councilor of the Japanese Society of Clinical Pharmacology, Japanese Society of Toxicological Sciences, and Japanese Pharmacological Society. Dr. Nagata has been honored with many awards, including from the National Federation of Labor Standards Association in 1994, Nihon Keizai Shimbun (Nikkei), Inc. in 1996 for its contribution to community revitalization, Kagoshima Chamber of Commerce (its grand prize for industry and economy) in 1998 and Minami Nihon Newspaper Inc. in 2003. Dr. Nagata received his Doctor of Medicine degree from St. Marianna University School of Medicine and post-doctoral degree from Kagoshima University, Faculty of Medicine. He is certified as a Fellow (FFPM) by the Faculty of Pharmaceutical Medicine of the Royal College of Physicians of the United Kingdom, as a Toxicology Expert by the Japanese Society of Toxicological Sciences.

CEO Compensation
  • Insufficient data for Ryoichi to compare compensation growth.
  • Insufficient data for Ryoichi to establish whether their remuneration is reasonable compared to companies of similar size in Japan.
Management Team Tenure

Average tenure and age of the Shin Nippon Biomedical Laboratories management team in years:

6
Average Tenure
61
Average Age
  • The average tenure for the Shin Nippon Biomedical Laboratories management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ryoichi Nagata

TITLE
Chairman
COMPENSATION
¥144M
AGE
61
TENURE
6 yrs

Toshihiko Seki

TITLE
Global Chief Financial Officer
AGE
65
TENURE
6 yrs

Tomoaki Honda

TITLE
Executive Officer and Overall Manager of Compliance Department

Jun Ozaki

TITLE
Executive Officer and Manager of Personnel Department

Koichiro Fukuzaki

TITLE
Chief of Global Corporate Strategy Office
AGE
61
TENURE
4.2 yrs

Ken Takanashi

TITLE
Senior Managing Director and Overall Manager of Overseas Business Department
AGE
55
TENURE
15.8 yrs

Hidenobu Sameshima

TITLE
Chief of Safety Research Office and Senior Managing Director
AGE
64
TENURE
6 yrs

Masahiro Uto

TITLE
Chief of Drug Metabolism Analysis Center and Executive Officer

Satoshi Matsumoto

TITLE
Chief of President Office and Director
AGE
51
TENURE
6 yrs

Kazumi Uchi

TITLE
Chief of Finance and Director
AGE
62
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure and age of the Shin Nippon Biomedical Laboratories board of directors in years:

8.8
Average Tenure
61
Average Age
  • The tenure for the Shin Nippon Biomedical Laboratories board of directors is about average.
Board of Directors

Ryoichi Nagata

TITLE
Chairman
COMPENSATION
¥144M
AGE
61
TENURE
10.8 yrs

Toshihiko Seki

TITLE
Global Chief Financial Officer
AGE
65
TENURE
14.8 yrs

Koichiro Fukuzaki

TITLE
Chief of Global Corporate Strategy Office
AGE
61
TENURE
23 yrs

Satoshi Matsumoto

TITLE
Chief of President Office and Director
AGE
51
TENURE
7.8 yrs

Kazumi Uchi

TITLE
Chief of Finance and Director
AGE
62
TENURE
7.8 yrs

Shinji Nitanda

TITLE
Director
AGE
51
TENURE
9.8 yrs

Hideyuki Hirama

TITLE
Director
AGE
42
TENURE
6.8 yrs

Shinichi Fukumoto

TITLE
External Director
AGE
61
TENURE
4.8 yrs

Takashi Yamashita

TITLE
External Director
AGE
63
TENURE
4.8 yrs

Mieno Hagimoto

TITLE
External Auditor
AGE
45
TENURE
16.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (¥) Value (¥)
X
Management checks
We assess Shin Nippon Biomedical Laboratories's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shin Nippon Biomedical Laboratories has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Shin Nippon Biomedical Laboratories, Ltd., a contract research organization, provides drug discovery and development services in Japan, the United States, China, Cambodia, India, and internationally. The company offers pre-clinical laboratory services, such as Good Laboratory Practice inspections; general and specific toxicity studies; pathological examinations; PK/PD of biopharmaceuticals, immunotoxicity tests, and antibody production; reproductive and developmental toxicity studies; pharmacological efficacy studies; analytical studies; and clinical pathology. It also engages in the establishment and validation of analytical methods, analysis of biological samples, and calculation of pharmacokinetic parameters; and provides absorption, distribution, metabolism, and excretion studies using radioisotope-labeled compounds. In addition, the company offers site management organization services for clinical trials; clinical contract research organization services; and translational research services, including research and development of nasal delivery systems, nucleic acid adjuvants, and regenerative medicines. Shin Nippon Biomedical Laboratories, Ltd. was founded in 1957 and is headquartered in Tokyo, Japan.

Details
Name: Shin Nippon Biomedical Laboratories, Ltd.
2395
Exchange: TSE
Founded: 1957
¥21,190,734,828
41,632,092
Website: http://www.snbl.co.jp
Address: Shin Nippon Biomedical Laboratories, Ltd.
St. Luke’s Tower,
28th floor,
Tokyo,
104-0044,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 2395 Common Stock The Tokyo Stock Exchange JP JPY 08. Mar 2004
DB YB3 Common Stock Deutsche Boerse AG DE EUR 08. Mar 2004
Number of employees
Current staff
Staff numbers
935
Shin Nippon Biomedical Laboratories employees.
Industry
Life Sciences Tools and Services
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 14:48
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/02/13
Last earnings filing: 2020/02/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.