Cosmo Bio Co., Ltd. (3386) AI Stock Analysis

Cosmo Bio Co., Ltd.

(TSE/TYO:3386)

Select Model

Rating:69.4Neutral

Price Target:JPY 1,434.00▲(16.68% Upside)

Action:reiterated

Date:02/18/26

Cosmo Bio's strong balance sheet and healthy cash flows provide a solid foundation, but profitability remains under pressure with compressed margins. The stock's technicals are neutral with a slight upward bias from long-term trend. Valuation is fair but not compelling, with a P/E of 22.7 and dividend yield of 3.8%. The overall score of 69.4 indicates a moderately attractive investment, with caution warranted on margin improvement.

Positive Factors

Very low leverageExtremely low debt relative to equity provides durable financial flexibility: supports investment in R&D, inventory and distribution, buffers cyclical revenue swings, and reduces refinancing risk—strengthening the company's ability to fund operations and strategic moves over the next 2–6 months.

Negative Factors

Margin compressionSignificant decline in profitability versus 2020–2021 suggests structural margin pressure from pricing, mix, or cost increases. If margins do not recover, earnings power and return metrics will remain constrained despite revenue growth, limiting free cash expansion and ROE recovery.

Cosmo Bio Co., Ltd. (3386) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.00B
Dividend Yield: 4.07%
Average Volume (3M): 4,508
Price to Earnings (P/E): 19.2
Beta (1Y): 0.30
Revenue Growth: 9.39%
EPS Growth: 44.42%
Country: Japan
Employees: 182
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Diagnostics & Research

Cosmo Bio Co., Ltd. Business Overview & Revenue Model

Company Description

Cosmo Bio Company, Limited is a key player in the life science research sector, involved in the global import, export, manufacturing, marketing, and distribution of essential biotools. Their extensive product line includes biochemical reagents, speci...

How the Company Makes Money

Cosmo Bio primarily makes money by selling research-use-only life science products and related services to laboratories. Its revenue model is largely transaction-based and is supported by (1) product sales from its own brands and manufacturing activi...

Cosmo Bio Co., Ltd. Financial Statement Overview

Summary

Revenue growth is positive at 7.3%, but profitability margins remain compressed (gross margin 34.4%, net margin 3.1%). Balance sheet is exceptionally strong with negligible debt (debt-to-equity 0.002) and high equity ratio. Cash flow rebounded strongly, covering net income 1.8x. Mixed performance yields a moderate score.

Income Statement

45Neutral

Balance Sheet

95Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.28B	10.77B	10.04B	9.34B	9.55B	9.23B
Gross Profit	3.88B	3.70B	3.33B	3.25B	3.44B	3.66B
EBITDA	562.00M	509.00M	455.00M	801.00M	931.00M	1.26B
Net Income	363.00M	336.00M	262.00M	442.00M	517.00M	737.00M
Balance Sheet
Total Assets	12.84B	12.66B	11.72B	10.87B	10.31B	10.07B
Cash, Cash Equivalents and Short-Term Investments	4.07B	2.95B	2.69B	3.02B	3.04B	3.56B
Total Debt	737.00M	20.00M	22.00M	24.00M	27.00M	28.00M
Total Liabilities	2.49B	2.70B	2.17B	1.84B	1.69B	1.75B
Stockholders Equity	9.76B	9.37B	8.97B	8.45B	8.05B	7.79B
Cash Flow
Free Cash Flow	0	366.00M	25.00M	636.00M	180.00M	507.00M
Operating Cash Flow	0	595.00M	241.00M	736.00M	284.00M	648.00M
Investing Cash Flow	0	43.00M	-217.00M	-758.00M	-291.00M	-145.00M
Financing Cash Flow	0	-283.00M	-479.00M	-201.00M	-236.00M	-420.00M

Cosmo Bio Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1229.00

Price Trends

50DMA1247.26Negative

100DMA1242.50Negative

200DMA1254.96Negative

Market Momentum

MACD-6.53Positive

RSI43.86Neutral

STOCH54.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3386, the sentiment is Negative. The current price of 1229.00 is below the 20-day moving average (MA) of 1241.50, below the 50-day MA of 1247.26, and below the 200-day MA of 1254.96, indicating a bearish trend. The MACD of -6.53 indicates Positive momentum. The RSI at 43.86 is Neutral, neither overbought nor oversold. The STOCH value of 54.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3386.

Cosmo Bio Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:3386 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4570	78Outperform	JPY 9.56B	25.52	―	0.59%	13.46%	42.41%
JP:3386	69Neutral	JPY 7.16B	19.16	―	4.07%	9.39%	44.42%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:4892	50Neutral	JPY 5.64B	-6.65	―	―	364.72%	18.43%
JP:4978	43Neutral	JPY 13.03B	-25.93	―	―	-18.71%	-246.54%
JP:7776	37Underperform	JPY 7.43B	-6.32	―	―	-56.16%	3.12%

* Healthcare Sector Average

Performance Comparison

JP:3386 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3386	Cosmo Bio Co., Ltd.	1229.00	162.47	15.23%
JP:4570	Immuno-Biological Laboratories Co., Ltd.	1009.00	538.02	114.23%
JP:4892	Cyfuse Biomedical K.K.	541.00	-44.00	-7.52%
JP:4978	ReproCELL Inc.	119.00	-54.00	-31.21%
JP:7776	CellSeed Inc.	183.00	-254.00	-58.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

Cosmo Bio Co., Ltd. AI Stock Analysis