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Sundrug Co
(9989)
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Rating:69Neutral
Price Target:
¥4,102.00
▲(7.13% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by steady financial performance (consistent revenue growth, stable margins, and moderate leverage), tempered by weaker cash conversion and rising debt. Valuation is supportive due to a moderate P/E and strong dividend yield, while technical signals are weaker with the price below key moving averages and negative MACD.
Positive Factors
Steady Revenue Growth
Sustained revenue expansion indicates ongoing customer demand across pharmaceuticals, health and beauty products, and daily necessities. This broad assortment supports repeat visits and provides a durable base for continued store-network sales growth.
Negative Factors
Weak and Volatile Free Cash Flow
Weak cash conversion can limit funds available for store expansion, shareholder distributions, and debt reduction despite reported earnings. If investment requirements or working-capital swings persist, long-term financial flexibility may remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Sustained revenue expansion indicates ongoing customer demand across pharmaceuticals, health and beauty products, and daily necessities. This broad assortment supports repeat visits and provides a durable base for continued store-network sales growth.
Read all positive factors
Sundrug Co (9989) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥438.70B
Dividend Yield3.49%
Average Volume (3M)271.71K
Price to Earnings (P/E)13.8
Beta (1Y)0.18
Revenue Growth4.32%
EPS Growth0.18%
CountryJP
Employees7,457
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)268.97
Shares Outstanding119,331,184
10 Day Avg. Volume294,250
30 Day Avg. Volume271,706
Financial Highlights & Ratios
PEG Ratio7.02
Price to Book (P/B)1.60
Price to Sales (P/S)0.54
P/FCF Ratio35.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,276.67Price Target Upside11.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)284.26
Revenue Forecast (FY)¥894.20B
Sundrug Co Business Overview & Revenue Model
Company Description
Sundrug Co.,Ltd. engages in the drug store business in Japan. It operates through Drug Store Business and Discount Store Business segments. The Drug Store Business segment primarily sells pharmaceutical products, cosmetics, and daily necessities. ...
How the Company Makes Money
Sundrug Co makes money mainly through retail sales to consumers in its drugstores. Key revenue streams include: (1) Sales of pharmaceuticals, including prescription dispensing (where the company earns dispensing-related revenue and margins on reim...
Sundrug Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 850.14B | 842.51B | 801.81B | 751.78B | 690.46B | 648.73B |
| Gross Profit | 213.24B | 197.41B | 186.81B | 189.32B | 171.95B | 156.51B |
| EBITDA | 65.13B | 64.95B | 61.13B | 56.53B | 49.81B | 44.89B |
| Net Income | 31.46B | 31.39B | 30.75B | 29.13B | 25.70B | 23.85B |
Balance Sheet | ||||||
| Total Assets | 465.29B | 475.50B | 445.08B | 421.31B | 361.72B | 325.77B |
| Cash, Cash Equivalents and Short-Term Investments | 61.35B | 70.52B | 64.96B | 69.70B | 80.87B | 89.33B |
| Total Debt | 47.97B | 48.22B | 39.48B | 35.85B | 939.00M | 529.00M |
| Total Liabilities | 179.01B | 189.50B | 175.37B | 168.21B | 125.39B | 105.17B |
| Stockholders Equity | 286.27B | 286.00B | 269.71B | 253.09B | 236.33B | 220.59B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.96B | 7.71B | 4.76B | 12.59B | 12.86B |
| Operating Cash Flow | 0.00 | 43.30B | 41.16B | 41.19B | 37.38B | 31.68B |
| Investing Cash Flow | 0.00 | -32.08B | -35.37B | -74.85B | -28.51B | -20.66B |
| Financing Cash Flow | 0.00 | -5.65B | -10.60B | 22.49B | -17.33B | -8.19B |
Sundrug Co Technical Analysis
Positive
3829.00
Price Trends
3779.26
Negative
3787.14
Negative
3954.68
Negative
Market Momentum
-17.93
Negative
50.22
Neutral
74.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9989, the sentiment is Positive. The current price of 3829 is above the 20-day moving average (MA) of 3736.95, above the 50-day MA of 3779.26, and below the 200-day MA of 3954.68, indicating a neutral trend. The MACD of -17.93 indicates Negative momentum. The RSI at 50.22 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9989.
Sundrug Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥215.89B | 12.98 | ― | 2.35% | 8.76% | 8.19% | |
69 Neutral | ¥438.70B | 13.80 | 11.29% | 3.42% | 4.32% | 0.18% | |
67 Neutral | ¥532.57B | 15.91 | 10.75% | 1.20% | 12.20% | -25.42% | |
64 Neutral | ¥1.08T | 18.65 | 7.67% | 2.04% | ― | ― | |
64 Neutral | ¥527.03B | 16.27 | ― | 1.28% | 8.72% | 3.45% | |
64 Neutral | ¥402.64B | 23.57 | ― | 0.41% | 13.04% | -0.05% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:9989
Sundrug Co
3,749.00
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Sundrug Co Corporate Events
Sundrug Delivers Modest Sales Growth but Faces Margin Pressure in Q1 FY2027
Aug 14, 2026
Sundrug Co., Ltd. is a Japan-based drugstore chain listed on the Tokyo Stock Exchange, offering pharmaceuticals, cosmetics and daily-use products to consumers across its retail network. Operating within Japan’s competitive drugstore market, ...
Sundrug Completes Restricted Stock Compensation Disposal for Executives
Jul 17, 2026
Sundrug Co., Ltd., a major Japanese drugstore chain listed on the Tokyo Stock Exchange Prime Market, operates in the healthcare and daily necessities retail industry. The company provides pharmaceuticals, personal care items, and household goods, ...
Sundrug to Grant Restricted Treasury Shares as Equity Compensation to Executives
Jun 27, 2026
Sundrug has approved the disposal of 15,300 treasury shares as restricted stock compensation for eight internal directors and executive officers, with a disposal value of about ¥58.2 million at ¥3,807 per share. The move forms part of a ...
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.