COSMOS Pharmaceutical Corporation (3349) AI Stock Analysis

• Market Cap: ¥712.42B
• Dividend Yield: 0.73%
• Average Volume (3M): 338.02K
• Price to Earnings (P/E): 24.1
• Beta (1Y): -0.28
• Revenue Growth: 6.96%
• EPS Growth: -3.96%
• Country: JP
• Employees: 5,512
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 99.86
• Shares Outstanding: 80,001,600
• 10 Day Avg. Volume: 283,680
• 30 Day Avg. Volume: 338,023
• PEG Ratio: 7.95
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 67.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥9,825.00
• Price Target Upside: 9.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 70 Neutral
• Price Target: ¥9,629.00 ▲(7.59%Upside)

The most significant factor is the company's strong financial performance, underscored by robust revenue growth and a stable balance sheet. Technical analysis also supports a positive outlook, though mixed signals may indicate caution. Valuation metrics suggest the stock is fairly valued, but the low dividend yield is a secondary consideration.

COSMOS Pharmaceutical Corporation Business Overview & Revenue Model

Company Description

COSMOS Pharmaceutical Corporation operates a chain of drug stores in Japan. It also operates 1,130 stores in the Kanto, Chubu, Kansai, Chugoku, Shikoku, and Kyushu regions. The company was founded in 1983 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

COSMOS Pharmaceutical Corporation generates revenue primarily through its extensive network of drugstores, where it sells a variety of pharmaceutical and healthcare products. The company's key revenue streams include the sale of prescription medications, over-the-counter drugs, and health-related goods. Additionally, COSMOS benefits from its strategic locations and customer loyalty programs, which drive consistent foot traffic and repeat purchases. Partnerships with pharmaceutical manufacturers and efficient supply chain management also play a crucial role in maintaining competitive pricing and ensuring product availability, further contributing to the company's financial performance.

COSMOS Pharmaceutical Corporation Financial Statement Overview

Summary

COSMOS Pharmaceutical Corporation exhibits solid financial health with strong revenue growth, stable profitability margins, and a sound balance sheet. The company's low leverage and robust operating cash flow are positive, but the negative Free Cash Flow due to capital investments is a short-term concern.

Income Statement

COSMOS Pharmaceutical Corporation demonstrates strong revenue growth, showing a Revenue Growth Rate of 16.6% from 2023 to 2024. The Gross Profit Margin is stable at 19.5% for 2024, with a respectable Net Profit Margin of 2.5%. The EBIT Margin stands at 3.3%, and the EBITDA Margin is at 5.6%. These stable margins reflect the company's robust profitability and efficient operations in the pharmaceutical industry.

Balance Sheet

The company maintains a healthy financial position, with a Debt-to-Equity Ratio of 0.15, indicating low leverage. The Return on Equity is 10.6%, reflecting efficient use of equity. The Equity Ratio is 48.6%, suggesting a strong equity base supporting its assets. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

Operating Cash Flow to Net Income Ratio is robust at 2.26, highlighting strong cash conversion. However, the Free Cash Flow has turned negative in 2024, influenced by significant capital expenditures. Despite this, the company's ability to generate operating cash flow remains a positive aspect.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
994.50B	964.99B	827.70B	755.41B	726.42B	684.40B
	Gross Profit
201.45B	188.31B	168.72B	151.45B	145.11B	134.98B
	EBIT
36.01B	31.50B	30.13B	29.80B	33.15B	29.09B
	EBITDA
48.04B	53.74B	47.50B	44.91B	46.93B	42.66B
	Net Income Common Stockholders
27.30B	24.45B	23.80B	23.16B	27.16B	21.43B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.13B	52.30B	45.93B	37.36B	55.11B	52.12B
	Total Assets
486.57B	476.55B	420.97B	363.05B	341.32B	320.28B
	Total Debt
25.68B	34.06B	18.20B	9.41B	10.44B	12.12B
	Net Debt
-13.45B	-18.24B	-27.73B	-27.95B	-44.66B	-40.00B
	Total Liabilities
243.09B	245.10B	209.90B	172.54B	170.74B	174.61B
	Stockholders Equity
243.49B	231.44B	211.07B	190.51B	170.58B	145.68B
Cash Flow		Free Cash Flow
0.00	-635.00M	7.80B	-11.30B	1.81B	39.51B
	Operating Cash Flow
0.00	55.17B	54.43B	32.19B	27.88B	65.46B
	Investing Cash Flow
0.00	-57.33B	-49.11B	-43.72B	-19.38B	-26.96B
	Financing Cash Flow
0.00	8.53B	3.25B	-6.22B	-5.51B	-5.41B

COSMOS Pharmaceutical Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8950.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3349, the sentiment is Positive. The current price of 8950 is above the 20-day moving average (MA) of 8914.52, above the 50-day MA of 8743.99, and above the 200-day MA of 7547.48, indicating a bullish trend. The MACD of 42.45 indicates Positive momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3349.

COSMOS Pharmaceutical Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3349	70 Neutral	¥712.42B	24.09		0.73%	6.96%	-3.96%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
SDGCF		$3.55B	17.60	11.61%	0.02%	―	―
SGIPF		$4.11B	23.04	10.45%	1.29%	―	―
TSUSF		$3.80B	18.71	4.93%	0.04%	―	―
3549	78 Outperform	¥369.20B	19.34		0.40%	13.86%	98.99%
3141	74 Outperform	¥529.99B	35.19		1.42%	5.56%	-43.50%

COSMOS Pharmaceutical Corporation Corporate Events

COSMOS Pharmaceutical Reports Strong Financial Growth for Nine-Month Period

COSMOS Pharmaceutical Corporation reported a significant increase in its financial performance for the nine months ending February 28, 2025, with net sales rising by 5.2% and operating profit increasing by 33.2% compared to the previous period. The company’s improved financial results reflect a robust operational strategy, enhancing its market position and potentially benefiting stakeholders through increased profitability and shareholder value.