Cosmo Bio Co., Ltd. (3386) AI Stock Analysis

• Market Cap: ¥8.08B
• Dividend Yield: 4.57%
• Average Volume (3M): 81.79K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.30
• Revenue Growth: 6.49%
• EPS Growth: -32.16%
• Country: JP
• Employees: 174
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 11.30
• Shares Outstanding: 6,048,000
• 10 Day Avg. Volume: 21,560
• 30 Day Avg. Volume: 81,793
• PEG Ratio: 0.70
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 20.26
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,438.00 ▲(20.84% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

Overall score is driven mainly by strong financial resilience from an exceptionally low-debt balance sheet and improved 2025 cash generation. Offsetting this, profitability has weakened significantly versus prior years, while technical signals are mixed and valuation is only moderate (supported by yield but not clearly cheap on P/E).

Positive Factors

Very low leverage / strong balance sheet

An extremely low debt load relative to equity gives enduring financial flexibility. It reduces bankruptcy risk, supports spending on R&D or inventory through cycles, and enables opportunistic M&A or capital returns without straining liquidity, strengthening long-term resilience.

Rebound in cash generation (2025)

A sharp cash-flow rebound shows the business can convert revenues into usable cash after a weak year. Sustained OCF and FCF support reinvestment in products, steady dividend policy, and balance-sheet maintenance, increasing durability of strategic initiatives over multiple quarters.

Consistent revenue growth

Steady top-line expansion indicates persistent demand for research reagents and services. A growing revenue base provides scale advantages, supports fixed-cost absorption, and underpins long-term investment in product lines that align with secular life-science research funding trends.

Negative Factors

Material margin compression

Substantially lower margins and earnings indicate structural pressure on profitability, whether from pricing, cost inflation, or product mix shifts. If persistent, this erodes return on invested capital, limits reinvestment capacity, and weakens long-term shareholder value creation.

Historic cash-flow volatility

Wide swings in free cash flow reduce predictability for capex, dividends and strategic spending. Volatility complicates multi-year planning and raises the risk that a future downturn could force cutbacks or delay investments critical to maintaining competitive position in research markets.

Weakened shareholder returns / ROE decline

A meaningful fall in ROE signals declining efficiency in converting equity into profit. Persistently low ROE can deter capital allocation to higher‑return opportunities, may pressure management to change strategy, and could limit long-term investor support absent margin recovery.

Cosmo Bio Co., Ltd. Business Overview & Revenue Model

Company Description

Cosmo Bio Company,Limited engages in the import, export, manufacture, marketing, and sale of life science research biotools. Its life science research tools include reagents, kits, instruments, software, and diagnostics products. The company offers research reagents, such as antibodies, antigens, biologically active substances, enzymes, substrates, peptides, amino acids, chemicals, carbohydrates, lipids, virus components, bacteria, and others, as well as offers detection reagents, cell and tissue culture systems, gene analysis systems, and others. It also provides research instruments comprising electrophoresis apparatuses, cell culture labware, gene manipulation systems, data analysis software, and others; drug discovery and custom research services; and clinical diagnostics. In addition, the company develops and manufactures cell/cell culture products, including adipose tissue, bone, cartilage, tooth, pancreas, liver function, cardiovascular, immune, mesenchymal stem, and feeder cells, as well as tumor cell lines, coating reagents, macrophage-related products, etc.; and assay kit related products that comprise various measurement kits, staining kits, detection/purification kits, etc. Further, it offers biotechnology research equipment, which include constant-temperature transport containers, aluminum block mat heat insulation devices, dew condensation prevention glass plates, etc.; and consigned, custom peptide synthesis, and antibody production services. The company serves laboratories, research institutes, and life-science education and testing organizations. It sells its products through outlets in Japan, as well as a network of sales agents internationally. Cosmo Bio Company,Limited was founded in 1978 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Cosmo Bio Co., Ltd. generates revenue primarily through the sale of life science research products and laboratory supplies. Key revenue streams include the distribution of high-quality reagents, antibodies, and diagnostic kits to various sectors such as academic research, pharmaceuticals, and biotechnology companies. The company also engages in partnerships with international manufacturers to expand its product offerings and enhance its market presence. Additionally, Cosmo Bio may benefit from providing specialized services and support related to its products, further contributing to its earnings. The combination of a diverse product portfolio and strategic collaborations positions the company to capitalize on the ongoing demand for innovative research tools in the life sciences sector.

Cosmo Bio Co., Ltd. Financial Statement Overview

Summary

Very strong balance sheet with extremely low leverage (debt ¥20M vs equity ~¥9.37B) supports resilience. Cash flow rebounded sharply in 2025 (OCF ¥595M; FCF ¥366M), but profitability has compressed materially versus 2020–2021, with net income down to ¥336M in 2025 despite revenue growth—keeping the score below the top tier.

Income Statement

Revenue has grown over time (¥8.1B in 2020 to ¥10.8B in 2025), with a solid 2024 rebound (+7.5%) and continued growth in 2025 (+4.4%). However, profitability has meaningfully compressed from 2020–2021 levels: net income fell from ¥674–737M (2020–2021) to ¥336M in 2025, and operating profit also stepped down versus prior years (e.g., ¥1.05B EBIT in 2021 vs. ¥342M in 2025). Overall, the top line is stable-to-growing, but margin pressure is the key weakness.

Balance Sheet

The balance sheet is very conservatively financed: total debt is only ¥20M versus equity of ~¥9.37B (extremely low leverage). Equity and assets have steadily expanded from 2020 to 2025, supporting financial flexibility and resilience. The main drawback is that shareholder returns have cooled from earlier years (return on equity was ~9–10% in 2020–2021 and ~2.9% in 2024), reflecting weaker profitability rather than balance-sheet strain.

Cash Flow

Cash generation is positive and improved recently: operating cash flow rose to ¥595M in 2025 from ¥241M in 2024, and free cash flow increased to ¥366M from ¥25M. That said, cash flow has been volatile across years (e.g., free cash flow ¥738M in 2020, ¥507M in 2021, ¥180M in 2022, ¥636M in 2023, then a sharp dip in 2024), which reduces confidence in consistency. Still, the 2025 rebound is a clear near-term positive.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.31B	10.77B	10.04B	9.34B	9.55B	9.23B
Gross Profit	3.48B	3.70B	3.33B	3.25B	3.44B	3.66B
EBITDA	508.00M	509.00M	455.00M	801.00M	931.00M	1.26B
Net Income	254.00M	336.00M	262.00M	442.00M	517.00M	737.00M
Balance Sheet
Total Assets	11.79B	12.66B	11.72B	10.87B	10.31B	10.07B
Cash, Cash Equivalents and Short-Term Investments	3.19B	2.95B	2.69B	3.02B	3.04B	3.56B
Total Debt	20.00M	20.00M	20.00M	20.00M	20.00M	20.00M
Total Liabilities	2.11B	2.70B	2.17B	1.85B	1.70B	1.75B
Stockholders Equity	9.08B	9.37B	8.97B	8.45B	8.05B	7.79B
Cash Flow
Free Cash Flow	0.00	366.00M	25.00M	636.00M	180.00M	507.00M
Operating Cash Flow	0.00	595.00M	241.00M	736.00M	284.00M	648.00M
Investing Cash Flow	0.00	43.00M	-217.00M	-758.00M	-291.00M	-145.00M
Financing Cash Flow	0.00	-283.00M	-479.00M	-201.00M	-236.00M	-420.00M

Cosmo Bio Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1190.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3386, the sentiment is Positive. The current price of 1190 is below the 20-day moving average (MA) of 1334.60, below the 50-day MA of 1323.91, and below the 200-day MA of 1215.61, indicating a bullish trend. The MACD of 16.34 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 64.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3386.

Cosmo Bio Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4556	85 Outperform	¥9.33B	16.07	―	2.53%	3.14%	-2.85%
4570	72 Outperform	¥15.70B	43.15	―	―	12.91%	37.96%
3386	70 Outperform	¥8.08B	23.54	―	4.57%	6.49%	-32.16%
4978	59 Neutral	¥17.82B	-54.84	―	―	1.24%	-33.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7776	49 Neutral	¥14.17B	-11.63	―	―	-42.49%	-2.37%
4892	48 Neutral	¥6.66B	-7.70	―	―	56.17%	-11.63%