COSMOS Pharmaceutical Corporation (3349) AI Stock Analysis

• Market Cap: ¥697.14B
• Dividend Yield: 0.8%
• Average Volume (3M): 286.15K
• Price to Earnings (P/E): 22.5
• Beta (1Y): -0.29
• Revenue Growth: 4.81%
• EPS Growth: 26.65%
• Country: JP
• Employees: 5,512
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 108.95
• Shares Outstanding: 80,001,600
• 10 Day Avg. Volume: 304,460
• 30 Day Avg. Volume: 286,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥10,647.00
• Price Target Upside: 21.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: ¥9,488.00 ▲(8.34% Upside)

The overall stock score of 60 reflects strong financial performance overshadowed by technical weaknesses and moderate valuation. The company's robust revenue growth and profitability are positive, but the negative free cash flow trend and bearish technical indicators pose risks. The valuation is reasonable, but the low dividend yield limits income potential.

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 the sale of its pharmaceutical products, which include prescription drugs and OTC medications. The company benefits from a diverse range of revenue streams, including product sales, licensing agreements, and strategic partnerships with other healthcare organizations. Key revenue streams are bolstered by the company's focus on research and development, leading to the introduction of new products that meet market needs. Additionally, COSMOS engages in collaborations with global pharmaceutical entities, which provide access to new markets and distribution channels, further enhancing its earnings potential.

COSMOS Pharmaceutical Corporation Financial Statement Overview

Summary

COSMOS Pharmaceutical Corporation shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, the negative free cash flow trend is a concern that needs addressing to ensure long-term financial health.

Income Statement

COSMOS Pharmaceutical Corporation has demonstrated strong revenue growth, with a consistent upward trajectory over the past few years. The gross profit margin and net profit margin have remained stable, indicating effective cost management. The EBIT and EBITDA margins are healthy, reflecting operational efficiency. However, the slight decline in EBIT margin in the latest year suggests potential pressure on operational costs.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is robust, showcasing effective use of shareholder funds. The equity ratio is strong, reflecting a stable financial position. However, the increase in total debt over the years warrants monitoring to ensure it remains manageable.

Cash Flow

The operating cash flow remains strong, but the free cash flow has been negative in recent years, which could pose liquidity challenges. The free cash flow to net income ratio is concerning, indicating that not all earnings are translating into free cash flow. The company needs to address the negative free cash flow trend to improve its cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00T	1.01T	964.99B	827.70B	755.41B	726.42B
Gross Profit	207.85B	213.28B	188.31B	168.72B	151.45B	145.11B
EBITDA	62.14B	64.86B	53.74B	50.19B	48.21B	46.93B
Net Income	29.44B	30.98B	24.45B	23.80B	23.16B	27.16B
Balance Sheet
Total Assets	474.10B	524.75B	476.55B	420.97B	363.05B	341.32B
Cash, Cash Equivalents and Short-Term Investments	22.77B	57.04B	52.30B	45.93B	37.36B	55.11B
Total Debt	28.53B	49.96B	34.06B	18.20B	9.41B	10.44B
Total Liabilities	225.28B	267.29B	245.10B	209.90B	172.54B	170.74B
Stockholders Equity	248.82B	257.46B	231.44B	211.07B	190.51B	170.58B
Cash Flow
Free Cash Flow	0.00	-859.00M	-635.00M	7.80B	-11.30B	1.81B
Operating Cash Flow	0.00	52.47B	55.17B	54.43B	32.19B	27.88B
Investing Cash Flow	0.00	-55.45B	-57.33B	-49.11B	-43.72B	-19.38B
Financing Cash Flow	0.00	7.72B	8.53B	3.25B	-6.22B	-5.51B

COSMOS Pharmaceutical Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8758.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3349, the sentiment is Negative. The current price of 8758 is below the 20-day moving average (MA) of 9348.85, below the 50-day MA of 9303.74, and above the 200-day MA of 8108.46, indicating a neutral trend. The MACD of -167.10 indicates Positive momentum. The RSI at 32.42 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	60 Neutral	¥697.14B	22.47		0.80%	4.81%	26.65%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
SDGCF	―	$3.66B	17.43	12.18%	2.81%	―	―
SGIPF	―	$4.79B	16.72	16.26%	1.41%	―	―
TSUSF	―	$3.85B	18.71	4.93%	3.39%	―	―
3141	72 Outperform	¥599.22B	32.88		1.24%	7.43%	-24.81%
3549	61 Neutral	¥407.77B	22.23		0.36%	14.79%	35.84%

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.