COSMOS Pharmaceutical Corporation (3349) AI Stock Analysis

• Market Cap: ¥584.34B
• Dividend Yield: 0.93%
• Average Volume (3M): 399.89K
• Price to Earnings (P/E): 18.6
• Beta (1Y): -0.27
• 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: ¥9,500.00
• Price Target Upside: 24.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥7,064.00 ▼(-7.58% Downside)
• 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

Consistent top-line expansion signals durable demand for OTC and prescription products, supporting scale advantages and R&D funding. Over 2-6 months, steady revenue growth underpins market position, helps absorb fixed costs, and supports reinvestment without relying on volatile financing.

Stable margins and efficiency

Stable gross and net margins indicate effective cost control across manufacturing and distribution, sustaining profitability despite pricing or input cost cycles. This margin resilience supports long-term cash generation potential and provides flexibility to defend market share in OTC channels.

Solid balance sheet and ROE

Low leverage, a strong equity ratio, and robust ROE provide financial flexibility to fund R&D, strategic investments or weather sector shocks. A healthy balance sheet reduces refinancing risk and supports disciplined capital allocation over the medium term.

Negative Factors

Negative free cash flow trend

Persistent negative free cash flow means reported earnings are not fully converting to cash, pressuring liquidity and increasing dependence on external financing or asset sales. Over months this can limit capex, R&D investment, or dividend capacity if not corrected.

Rising total debt

An increase in total debt, while currently manageable, raises leverage risk if revenue or margins weaken. Higher debt can constrain strategic options, elevate interest costs, and reduce financial resilience over the medium term, especially if cash conversion remains weak.

Slight decline in EBIT margin

A recent dip in EBIT margin signals emerging cost pressures or adverse product mix shifts. If persistent, margin erosion would reduce operating cash flow, limit reinvestment capacity, and pressure competitiveness in the OTC market without sustained cost or pricing actions.

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	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	64.86B	53.74B	50.19B	48.21B	46.93B
Net Income	30.98B	24.45B	23.80B	23.16B	27.16B
Balance Sheet
Total Assets	524.75B	476.55B	420.97B	363.05B	341.32B
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	267.29B	245.10B	209.90B	172.54B	170.74B
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: 7643.00
• 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 7643 is above the 20-day moving average (MA) of 7164.75, above the 50-day MA of 7426.22, and below the 200-day MA of 8284.85, indicating a bearish trend. The MACD of -1.33 indicates Negative momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 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	¥672.29B	15.26	15.71%	0.96%	21.81%	67.76%
3148	75 Outperform	¥212.73B	13.14	―	2.35%	7.55%	16.01%
9989	69 Neutral	$490.03B	15.74	11.50%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.22T	30.21	―	1.72%	―	―
3549	67 Neutral	¥382.65B	21.43	―	0.41%	15.81%	27.05%
3349	60 Neutral	¥584.34B	18.65	―	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.