- Shiseido’s net income for the second quarter stood at 5.85 billion yen, surpassing the estimated 5.43 billion yen.
- Net sales were recorded at 241.59 billion yen, falling short of the estimated 251.16 billion yen.
- The operating income was reported at 10.88 billion yen.
- The company declared a dividend of 20.00 yen, below the estimated 23.33 yen.
- Shiseido’s forecast for the full year remains at a net income of 6.00 billion yen, significantly below the estimated 9.12 billion yen.
- The full-year net sales forecast is maintained at 995.00 billion yen, exceeding the estimate of 979.02 billion yen.
- The full-year dividend forecast remains unchanged at 40.00 yen, matching the estimate.
- Analyst recommendations include 4 buys, 11 holds, and 2 sells.
Shiseido Company on Smartkarma
Analyst coverage of Shiseido Company on Smartkarma reveals a mix of challenges and opportunities. Mark Chadwick, in his report “Shiseido (4911) | Beauty in the Bargain Bin,” highlights the strength of Shiseido’s core brand. However, the company faces hurdles such as weak growth and high costs, leading to deeply discounted valuations. Chadwick suggests that margin recovery is possible through aggressive cost-cutting, which could potentially double core operating margins. Moreover, if management fails to deliver, Shiseido’s global brand equity and low valuation make it an attractive acquisition target for private equity or industry buyers.
A look at Shiseido Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Shiseido Company, Limited, a manufacturer of cosmetic and toiletry products, presents a mixed long-term outlook based on its Smartkarma Smart Scores. The company scores moderately across the board with a Value score of 3, and Dividend, Growth, Resilience, and Momentum scores all at 2. While not excelling in any particular category, Shiseido shows promise in terms of its overall value and resilience in the market.
Despite middling scores in growth and momentum, Shiseido’s diverse product offerings spanning makeup, skincare, beauty salon services, pharmaceuticals, foodstuffs, and fine chemicals position it well for long-term stability. Investors may find the company’s balanced scoring indicative of consistent performance and potential for sustained growth in the competitive cosmetic industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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