COSMOS Pharmaceutical Corporation (3349) AI Stock Analysis

• Market Cap: ¥545.98B
• Dividend Yield: 0.93%
• Average Volume (3M): 399.89K
• Price to Earnings (P/E): 22.8
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 402.44
• Revenue Forecast (FY): ¥1.08T

• Rating: 60 Neutral
• Price Target: ¥7,034.00 ▲(5.00% Upside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

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

Consistent revenue growth

Sustained revenue growth indicates expanding retail penetration and product demand, supporting long-term sales momentum. Stable top-line expansion provides capacity to reinvest in stores, distribution and merchandising, strengthening competitive position in the drugstore channel over the next 2–6 months and beyond.

Solid balance sheet

Low leverage and a strong equity ratio give the company durable financial flexibility to fund store expansion, absorb shocks, and invest in operational improvements. Robust return on equity suggests efficient capital use, underpinning long-term solvency and strategic optionality for growth or M&A.

Stable margins and operational efficiency

Consistent gross and net margins with healthy EBIT/EBITDA reflect effective cost control and merchandising mix discipline. Margin durability supports resilient profitability in retail, enabling sustained investment in pricing, promotions and store operations without eroding long-term earnings power.

Negative Factors

Negative free cash flow trend

Negative free cash flow despite solid operating cash flow signals that earnings are not fully converting to discretionary cash, likely due to capex or working capital demands. This constrains the company’s ability to self-fund expansion, pay higher dividends, or buffer downturns without drawing on liquidity or capital markets.

Rising total debt trend

An upward trend in total debt erodes some of the balance sheet strength and increases interest and refinancing exposure if it continues. Combined with negative free cash flow, rising debt could reduce financial flexibility and elevate leverage-related risk over a multi-quarter horizon.

Slight EBIT margin decline

A recent dip in EBIT margin points to cost or mix pressures in the retail model (e.g., procurement, wages, rents). If persistent, margin erosion can compress sustainable profitability and limit the upside from revenue growth unless offset by efficiency gains or better product mix management.

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 makes money mainly through retail sales in its drugstore operations. Its core revenue stream is product sales to consumers in physical stores, typically spanning (1) pharmaceuticals (including prescription dispensing where licensed pharmacies operate, and over-the-counter medicines), and (2) non-pharmaceutical items commonly carried by Japanese drugstores, such as health and beauty products, household goods, and everyday consumables. Revenue is recognized from the sale of these goods at the point of purchase; margins depend on the mix of higher-margin categories (often cosmetics/health & beauty and some OTC items) versus lower-margin staples. The company’s earnings are also influenced by store footprint expansion, same-store sales performance, merchandising/pricing strategy, and procurement efficiency (buying inventory from manufacturers/wholesalers and selling through at retail). Specific details on material partnerships, the exact category revenue split, and the proportion of revenue from prescription dispensing versus non-pharmaceutical retail are null.

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	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	1.01T	964.99B	827.70B	755.41B	726.42B
Gross Profit	213.28B	188.31B	168.72B	151.45B	145.11B
EBITDA	64.85B	53.74B	50.19B	48.21B	52.44B
Net Income	30.98B	24.45B	23.80B	23.16B	27.16B
Balance Sheet
Total Assets	525.17B	476.98B	421.41B	363.50B	341.78B
Cash, Cash Equivalents and Short-Term Investments	57.04B	52.30B	45.93B	37.36B	55.11B
Total Debt	49.96B	34.06B	18.20B	9.41B	10.44B
Total Liabilities	267.71B	245.53B	210.33B	172.99B	171.20B
Stockholders Equity	257.46B	231.44B	211.07B	190.51B	170.58B
Cash Flow
Free Cash Flow	-859.00M	-859.00M	-635.00M	7.80B	-11.30B
Operating Cash Flow	52.47B	52.47B	55.17B	54.43B	32.19B
Investing Cash Flow	-55.45B	-55.45B	-57.33B	-49.11B	-43.72B
Financing Cash Flow	7.72B	7.72B	8.53B	3.25B	-6.22B

COSMOS Pharmaceutical Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6699.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 6699 is below the 20-day moving average (MA) of 6806.90, below the 50-day MA of 6998.28, and below the 200-day MA of 8078.46, indicating a bearish trend. The MACD of -96.71 indicates Negative momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 is Neutral, 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
7649	75 Outperform	¥683.98B	23.29	15.71%	0.96%	21.81%	67.76%
3148	75 Outperform	¥207.67B	13.66	―	2.35%	7.55%	16.01%
9989	69 Neutral	¥470.27B	14.05	11.37%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.09T	25.31	―	1.72%	―	―
3549	67 Neutral	¥364.68B	20.79	―	0.41%	15.81%	27.05%
3349	60 Neutral	¥545.98B	22.79	―	0.93%	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 Overhauls Organization, Launches Legal and Hotel Departments

COSMOS Pharmaceutical Corporation has announced a series of organizational and personnel changes effective February 1, 2026, aimed at strengthening governance and diversifying its business. The company will establish a new Legal Affairs Department to reinforce its internal structure and launch a Hotel Department, signaling a clearer commitment to hotel-related operations, while dissolving the Product Development Department and integrating its functions into the Products Department as a dedicated Product Development Section. Alongside these structural shifts, several key executives will assume new roles, including Director Futoshi Shibata becoming Director and Manager of the newly created Legal Affairs Department and Yukitaka Uno moving to lead the new Hotel Department, reshaping the leadership lineup across planning, finance, products, store development, and hotel divisions to better align with the revised organization.

The most recent analyst rating on (JP:3349) stock is a Buy with a Yen9500.00 price target. To see the full list of analyst forecasts on COSMOS Pharmaceutical Corporation stock, see the JP:3349 Stock Forecast page.

COSMOS Pharmaceutical Posts Steady First-Half Growth and Confirms Full-Year Outlook

COSMOS Pharmaceutical reported consolidated net sales of ¥537.2 billion for the six months ended November 30, 2025, up 6.2% year on year, with operating profit rising 1.6% to ¥20.7 billion and profit attributable to owners of parent increasing 1.5% to ¥14.6 billion, indicating continued but moderating earnings growth following a strong prior-year comparison. The company’s financial position remained solid, with total assets of ¥542.7 billion and an equity ratio of 49.6%, and it maintained its full-year forecast for the fiscal year ending May 31, 2026, projecting modest profit growth and annual dividends of ¥75 per share, underscoring stable shareholder returns and steady, if slower, expansion in a mature domestic retail market.

The most recent analyst rating on (JP:3349) stock is a Buy with a Yen9500.00 price target. To see the full list of analyst forecasts on COSMOS Pharmaceutical Corporation stock, see the JP:3349 Stock Forecast page.