COSMOS Pharmaceutical Corporation (3349) AI Stock Analysis

• Market Cap: ¥629.40B
• Dividend Yield: 0.95%
• Average Volume (3M): 399.89K
• Price to Earnings (P/E): 20.2
• Beta (1Y): -0.21
• Revenue Growth: 3.73%
• EPS Growth: 18.84%
• Country: JP
• Employees: 5,512
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 103.10
• Shares Outstanding: 80,001,600
• 10 Day Avg. Volume: 586,980
• 30 Day Avg. Volume: 399,893
• PEG Ratio: 0.85
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -814.90
• 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: ¥10,250.00
• Price Target Upside: 34.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥7,939.00 ▲(3.87% Upside)

The overall stock score of 60 reflects strong financial performance with robust revenue growth and profitability. However, technical indicators suggest bearish momentum, and the negative free cash flow trend is a concern. The valuation is reasonable, but the low dividend yield may not appeal to all investors.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective product demand, supporting long-term business expansion.

Balance Sheet Health

A solid balance sheet with low leverage enhances financial stability, allowing COSMOS to invest in growth opportunities and weather economic fluctuations.

Profitability

Stable profit margins reflect strong cost control and operational efficiency, which are crucial for sustaining profitability and competitive advantage.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting the company's ability to fund operations and growth without external financing.

Debt Increase

Rising debt levels could strain financial resources, impacting the company's ability to invest in new projects and maintain financial health.

EBIT Margin Decline

A declining EBIT margin may indicate rising operational costs, which could erode profitability if not addressed, affecting long-term financial performance.

COSMOS Pharmaceutical Corporation Business Overview & Revenue Model

Company Description

COSMOS Pharmaceutical Corporation (3349) is a prominent player in the Japanese pharmaceutical industry, specializing in the manufacture and distribution of a wide range of healthcare products. The company operates primarily in the over-the-counter (OTC) drug sector, providing consumers with accessible health solutions that include pain relievers, cold remedies, and dietary supplements. In addition to OTC medications, COSMOS also engages in the development of prescription drugs and health-related products, aiming to enhance the quality of life for its customers.

How the Company Makes Money

COSMOS Pharmaceutical Corporation generates revenue through several key streams. Primarily, the company makes money by selling its OTC products in pharmacies, drugstores, and supermarkets across Japan. This includes a variety of well-known brands that cater to everyday health needs. Additionally, COSMOS earns revenue from its prescription drug offerings, which are sold to healthcare providers and institutions. The company also benefits from strategic partnerships with other pharmaceutical firms and distributors, which help expand its market reach and product availability. Furthermore, COSMOS invests in research and development to innovate new products, thereby enhancing its portfolio and ensuring sustained revenue growth.

COSMOS Pharmaceutical Corporation Financial Statement Overview

Summary

COSMOS Pharmaceutical Corporation shows strong revenue growth and profitability, supported by efficient operations and a solid balance sheet. However, the negative free cash flow trend is a concern that needs to be addressed 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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01T	1.01T	964.99B	827.70B	755.41B	726.42B
Gross Profit	213.28B	213.28B	188.31B	168.72B	151.45B	145.11B
EBITDA	64.20B	64.86B	53.74B	50.19B	48.21B	46.93B
Net Income	30.98B	30.98B	24.45B	23.80B	23.16B	27.16B
Balance Sheet
Total Assets	524.75B	524.75B	476.55B	420.97B	363.05B	341.32B
Cash, Cash Equivalents and Short-Term Investments	57.04B	57.04B	52.30B	45.93B	37.36B	55.11B
Total Debt	49.96B	49.96B	34.06B	18.20B	9.41B	10.44B
Total Liabilities	267.29B	267.29B	245.10B	209.90B	172.54B	170.74B
Stockholders Equity	257.46B	257.46B	231.44B	211.07B	190.51B	170.58B
Cash Flow
Free Cash Flow	0.00	-859.00M	-859.00M	-635.00M	7.80B	-11.30B
Operating Cash Flow	0.00	52.47B	52.47B	55.17B	54.43B	32.19B
Investing Cash Flow	0.00	-55.45B	-55.45B	-57.33B	-49.11B	-43.72B
Financing Cash Flow	0.00	7.72B	7.72B	8.53B	3.25B	-6.22B

COSMOS Pharmaceutical Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7643.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 7643 is above the 20-day moving average (MA) of 7611.01, above the 50-day MA of 7524.73, and below the 200-day MA of 8373.29, indicating a neutral trend. The MACD of 106.82 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 85.78 is Negative, 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
7649	75 Outperform	¥673.23B	15.55	15.71%	0.96%	21.81%	67.76%
3141	72 Outperform	¥646.79B	33.60	―	1.14%	7.79%	-13.09%
9989	69 Neutral	¥501.95B	15.82	11.50%	3.03%	6.32%	8.19%
3391	67 Neutral	¥1.26T	31.14	―	1.76%	―	―
3549	67 Neutral	¥349.19B	21.30	―	0.41%	15.81%	27.05%
3349	60 Neutral	¥629.40B	20.21	―	0.95%	3.73%	18.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

COSMOS Pharmaceutical Corporation Corporate Events

COSMOS Pharmaceutical Reports Modest Growth in Q3 2025 Financial Results

COSMOS Pharmaceutical Corporation reported its consolidated financial results for the three months ended August 31, 2025, showing a slight increase in net sales by 4% and a marginal growth in profit attributable to owners of the parent by 0.3%. Despite these increases, the company’s ordinary profit saw a slight decline of 0.9%. The financial forecast for the fiscal year ending May 31, 2026, anticipates continued growth in net sales and profits, albeit at a modest rate, indicating stable but slow growth in the company’s financial performance.