One-glance verdict
Within fair range
$21.32 our estimate vs market $22.66
Wall Street consensus: $21.23 (-0.4% lower than our fair-value estimate)
6% above our estimate
Fundamentals snapshot
Shiseido Company, Limited
SSDOY · PNK · Consumer Defensive · Household & Personal Products
Current price
$22.66
52-week range
$13.60 - $23.91
Market cap
$9.06B
Balance sheet
Distressed
-4.58x Concerning
Net debt $1.47B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 2/10 years.
- Reward Dividend yield is 1.7% with 2-year payout history.
- Risk Net debt grew 27.2% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 23.2%).
What this company does
Shiseido Company, Limited
Shiseido is a large Japanese company known for its skincare, makeup, and perfumes from brands like Clé de Peau Beauté, NARS, and Drunk Elephant. It sells these products in department stores and cosmetic shops globally, with a strong focus on markets in Asia like Japan and China. Because many of its products are considered luxury items, the company's sales often depend on how willing shoppers are to spend on higher-priced goods.
How the company got here
Shiseido started in 1872 as Japan's first Western-style pharmacy, founded by Arinobu Fukuhara. It wasn't just about medicine; they even opened Japan's first soda fountain. A key shift happened in 1897 when they launched Eudermine, a skin lotion, marking their move into cosmetics. By 1916, the cosmetics department became its own business, blending Eastern aesthetics with Western science. The company expanded globally after World War II, starting in Taiwan in 1957 and eventually reaching Europe and the Americas.
What it actually does
Shiseido is a global company that makes and sells a wide range of beauty products. You've likely seen their brands in department stores or drugstores. Their products include things you put on your skin, like moisturizers and sunscreens, makeup for your face, and fragrances (perfumes and colognes). Beyond cosmetics, the company also runs restaurants, beauty salons, and is even involved in childcare and education to train future beauty professionals.
Prestige
This is Shiseido's high-end business, featuring luxury skincare, makeup, and fragrances that you would typically find at department store counters with beauty consultants. Brands in this segment include the main SHISEIDO line, Clé de Peau Beauté, and NARS. This is the company's core focus area, where they invest heavily to attract customers looking for premium, high-quality products. This segment is a major driver of the company's sales and growth.
Cosmetics
This segment includes more affordable skincare and makeup products that people can buy in drugstores and other retail shops without needing a consultant. Familiar brands like ELIXIR, ANESSA (known for sunscreen), and MAQuillAGE fall into this category. While the company is focusing more on its prestige lines, these accessible brands are especially popular in Japan and other parts of Asia.
Fragrance
This part of the business creates and sells perfumes and colognes, often by partnering with famous fashion designers. You might recognize names like ISSEY MIYAKE, narciso rodriguez, and Tory Burch Beauty. These products are sold globally and contribute to the company's high-end image.
Other
Shiseido also has several smaller business lines. This includes a restaurant business, most famously the Shiseido Parlour which started as a soda fountain in 1902. They also operate beauty salons and are involved in education, running a school for professional hair and makeup artists. These ventures leverage the company's long history and expertise in beauty and lifestyle.
What management is betting on now
Management's current strategy is heavily focused on 'skin beauty,' aiming to make skincare products account for the vast majority of their sales. They are concentrating their investments on their most prestigious and profitable brands, like SHISEIDO and Clé de Peau Beauté, to drive growth. The company is also undergoing structural reforms to improve its profitability, aiming to increase its operating margin (the profit made from each dollar of sales after paying for the costs of running the business). A key goal is to become a 'Personal Beauty Wellness Company' by 2030, connecting with customers to provide more personalized beauty solutions.
Price history
How the share price has moved
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Loading price history…
Is it cheap or expensive?
Fair value $21.32 vs current price $22.66
Wall Street consensus is the average analyst price target: $21.23 (-0.4% lower than our fair-value estimate).
Our most-likely fair value is $21.32 a share — about 5.9% away from today's price of $22.66, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $1.5B. Interest coverage -4.6x.
Net debt
$1.47B
Interest coverage
-4.58x
Shiseido Company, Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
SSDOY
BASELINE
Shiseido Company, Limited
Total debt $2.15B Interest coverage -4.58x This is the baseline the peer rows are being compared against.
Total debt $9.25B Interest coverage 5.02x This peer still has a real interest-payment cushion, while SSDOY does not.
Total debt $3.30B Interest coverage 1.53x This peer still has a real interest-payment cushion, while SSDOY does not.
Total debt $929.30M Interest coverage 3.22x This peer still has a real interest-payment cushion, while SSDOY does not.
Total debt $164.91M Interest coverage 37.30x This peer still has a real interest-payment cushion, while SSDOY does not.
What you should know
The case for and against SSDOY
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 1.7% with 2-year payout history.
Risks
-
Net debt grew 27.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 23.2%).
-
Return on equity was -3.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
8.21x
P/B
2.21x
P/S
0.01x
EV/EBITDA
2.56x
PEG ratio
0.71x
Profitability
How much profit each dollar creates
Gross margin
77.3%
Operating margin
11.1%
Net margin
-2.1%
ROE
-3.1%
ROA
2.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
1.38x
Quick ratio
0.75x
Total debt
$2.15B
Total cash
$673.69M
Growth
How the business has been compounding
Revenue TTM
$6.37B
Revenue 5Y CAGR
-3.1%
EPS TTM
-0.33
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$700.58M
Free CF TTM
$417.35M
FCF margin
6.6%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
1,236.2%
Last ex-div date
2026-06-30