One-glance verdict
Within fair range
$20.72 our estimate vs market $22.90
Wall Street consensus: $21.23 (2.4% higher than our fair-value estimate)
11% above our estimate
Fundamentals snapshot
Shiseido Company, Limited
SSDOY · PNK · Consumer Defensive · Household & Personal Products
Current price
$22.90
52-week range
$13.60 - $23.25
Market cap
$9.15B
Balance sheet
Distressed
-4.58x Concerning
Net cash $0.00. 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 1.1% with 2-year payout history.
- Risk Net debt grew 27.2% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 23.3%).
What this company does
Shiseido Company, Limited
Shiseido is a long-standing Japanese company that sells skincare, makeup, and fragrances worldwide under well-known brands like SHISEIDO, NARS, and Drunk Elephant. The company's financial success largely depends on strong sales of these beauty products, particularly to consumers in Japan and China, which represent the biggest portion of its business.
How the company got here
Shiseido started in 1872, not as a makeup company, but as Japan's first Western-style pharmacy in Tokyo's fashionable Ginza district. Its founder, Arinobu Fukuhara, used his knowledge of Western science to create new products, including Japan's first toothpaste. In 1897, the company took a major step into beauty by launching a popular skin-softening lotion called Eudermine, shifting its focus from pharmaceuticals to cosmetics. Over the next century, it grew into a global beauty giant, expanding to the U.S. and Europe and acquiring other well-known beauty brands to build its portfolio.
What it actually does
Today, Shiseido is a global company that primarily creates and sells beauty products. You've likely seen its many brands in department stores, drugstores, and airports. The company's main focus is on skincare, makeup, and fragrances under famous names like SHISEIDO, Clé de Peau Beauté, NARS, and Drunk Elephant. Beyond the beauty counter, Shiseido also runs a small number of other businesses, including the iconic Shiseido Parlour restaurant in Tokyo, beauty salons, and even professional training schools for makeup artists.
Prestige & Cosmetics
This is Shiseido's main business and where it makes most of its money. This segment focuses on high-end, premium skincare and makeup sold in department stores and specialty shops, often with the help of beauty consultants. It also includes more accessible brands, like Elixir, that you might find on the shelf at a local drugstore. This part of the company operates worldwide, with Japan and China being its largest markets, selling products that form the core of most people's beauty routines.
Fragrance
This part of the business creates and sells perfumes and colognes. Shiseido develops its own fragrances and also holds licenses (agreements to create and sell products under another company's name) for well-known fashion designers. Brands in this segment include Issey Miyake, Narciso Rodriguez, and Zadig&Voltaire. While smaller than its skincare and makeup business, fragrances are an important part of its prestige portfolio, helping the company compete in the luxury beauty space.
Travel Retail
This segment sells Shiseido's products specifically to travelers in places like airport duty-free shops. When people are traveling internationally, they often shop for luxury goods, and this business makes sure Shiseido's brands are available to them. It's a distinct and important sales channel (a way of selling products to customers) that captures a global audience on the move. This segment focuses on the company's most popular global brands that appeal to international shoppers.
Other Businesses
This is the smallest part of Shiseido, containing its non-cosmetic ventures. The most famous is the Shiseido Parlour, a well-regarded restaurant and food business that originally opened in 1902 as a soda fountain. This segment also includes beauty salons that provide hair and spa services, as well as educational programs that train future beauty professionals. These businesses leverage the company's long history and expertise in beauty and hospitality, even though they are not the main source of revenue (the money a company makes from sales).
What management is betting on now
Management's strategy is to focus intensely on becoming a world leader in 'skin beauty' and wellness. The company is investing heavily in R&D (research and development, the process of creating new products and improving existing ones) to create innovative skincare and sun care products. They are concentrating on their most profitable prestige brands while selling off less-related businesses to simplify operations. The company also has a goal to improve its core operating profit margin (the percentage of profit made from its primary business activities before taxes and interest), aiming for more efficient and sustainable growth into the future.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $20.72 vs current price $22.90
Wall Street consensus is the average analyst price target: $21.23 (2.4% higher than our fair-value estimate).
Our most-likely fair value is $20.72 a share — about 9.5% away from today's price of $22.90, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net cash $0 - more cash than debt. Interest coverage -4.6x.
Net debt
$0.00
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 — Interest coverage -4.58x This is the baseline the peer rows are being compared against.
Total debt $9.30B Interest coverage 3.20x This peer still has a real interest-payment cushion, while SSDOY does not.
Total debt $3.42B Interest coverage 2.34x This peer still has a real interest-payment cushion, while SSDOY does not.
Total debt $916.90M 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 1.1% with 2-year payout history.
Risks
-
Net debt grew 27.2% over 3 years.
-
Insider ownership is only 0.0% (peer median: 23.3%).
-
Operating margin compressed from 4.4% to 0.0% over 3 years.
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
8.30x
P/B
2.38x
P/S
—
EV/EBITDA
—
PEG ratio
0.71x
Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
0.0%
Net margin
0.0%
ROE
—
ROA
—
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
—
Quick ratio
—
Total debt
—
Total cash
—
Growth
How the business has been compounding
Revenue TTM
$6.15B
Revenue 5Y CAGR
-3.1%
EPS TTM
-0.33
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$696.19M
Free CF TTM
$414.74M
FCF margin
6.7%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
1,236.2%
Last ex-div date
2025-12-31