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

• Market Cap: ¥7.63B
• Dividend Yield: 4.57%
• Average Volume (3M): 81.79K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.34
• Revenue Growth: 6.49%
• EPS Growth: -32.16%
• Country: JP
• Employees: 174
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 3.93
• Shares Outstanding: 6,048,000
• 10 Day Avg. Volume: 21,560
• 30 Day Avg. Volume: 81,793
• PEG Ratio: -0.59
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 251.71
• 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: 67 Neutral
• Price Target: ¥1,462.00 ▲(22.86% Upside)

Cosmo Bio Co., Ltd. has a stable financial foundation with strong equity and low debt, but faces challenges with declining profitability and cash flow. The technical indicators show a bullish trend, but the stock appears overbought. The valuation is mixed, with a high P/E ratio but an attractive dividend yield.

Positive Factors

Strong Equity Position

A high equity ratio indicates financial stability and low leverage, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Revenue Growth

Consistent revenue growth suggests a strong market position and demand for products, supporting the company's ability to invest in future opportunities and innovation.

Product Portfolio and Partnerships

Strategic partnerships and a diverse product portfolio enhance market presence and competitiveness, driving long-term revenue potential and innovation in the life sciences sector.

Negative Factors

Declining Profitability

Decreasing net profit margins indicate rising costs or inefficiencies, which could affect the company's ability to reinvest in growth and maintain competitive advantages.

Cash Flow Issues

Significant reduction in free cash flow suggests potential liquidity challenges, limiting the company's ability to fund operations, pay debts, or invest in growth initiatives.

Reduced Operational Efficiency

Lower EBIT and EBITDA margins reflect reduced operational efficiency, potentially impacting profitability and the company's ability to compete effectively in the market.

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

Company Description

Cosmo Bio Co., Ltd. (3386) is a biotechnology company based in Japan that specializes in the distribution of life science research products and laboratory supplies. The company operates primarily in the fields of biotechnology and pharmaceuticals, offering a wide range of products including reagents, antibodies, and diagnostic kits. Cosmo Bio serves a diverse clientele, including academic institutions, research organizations, and pharmaceutical companies, facilitating advancements in medical research and diagnostics.

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

Cosmo Bio Co., Ltd. shows a stable financial position with strong equity and low debt. However, declining profitability and cash flow metrics in the latest year pose potential risks. The company needs to focus on improving operational efficiency and cash flow generation to enhance overall financial health.

Income Statement

Cosmo Bio Co., Ltd. has shown a stable revenue growth over the years with a slight decrease in the latest year. Gross Profit Margin remains strong at 33.17% for 2024, reflecting efficient cost management. However, the net profit margin has decreased to 2.61% in 2024 from 4.73% in 2023, indicating increased expenses or reduced profitability. EBIT and EBITDA margins are lower compared to previous years, suggesting reduced operational efficiency.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of 76.44% in 2024, indicating low leverage and financial stability. The Debt-to-Equity ratio is exceptionally low at 0.0022, which is favorable. Return on Equity has decreased to 2.92% in 2024 from 5.23% in 2023, suggesting reduced profitability relative to equity.

Cash Flow

Free Cash Flow has decreased significantly by 96.07% from 2023 to 2024, indicating potential cash flow issues. Operating Cash Flow to Net Income ratio is 0.92, suggesting good cash generation relative to net income. The Free Cash Flow to Net Income ratio is low at 0.10, reflecting less efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.31B	10.04B	9.34B	9.55B	9.23B	8.09B
Gross Profit	3.48B	3.33B	3.25B	3.44B	3.66B	3.15B
EBITDA	508.00M	455.00M	801.00M	931.00M	1.26B	1.18B
Net Income	254.00M	262.00M	442.00M	517.00M	737.00M	674.00M
Balance Sheet
Total Assets	11.79B	11.72B	10.87B	10.31B	10.07B	9.64B
Cash, Cash Equivalents and Short-Term Investments	3.19B	2.69B	3.02B	3.04B	3.56B	3.26B
Total Debt	20.00M	20.00M	20.00M	20.00M	20.00M	20.00M
Total Liabilities	2.11B	2.17B	1.85B	1.70B	1.75B	1.78B
Stockholders Equity	9.08B	8.97B	8.45B	8.05B	7.79B	7.36B
Cash Flow
Free Cash Flow	0.00	25.00M	636.00M	180.00M	507.00M	738.00M
Operating Cash Flow	0.00	241.00M	736.00M	284.00M	648.00M	803.00M
Investing Cash Flow	0.00	-217.00M	-758.00M	-291.00M	-145.00M	42.00M
Financing Cash Flow	0.00	-479.00M	-201.00M	-236.00M	-420.00M	-97.00M

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 1315.08, below the 50-day MA of 1291.58, and above the 200-day MA of 1176.12, indicating a bullish trend. The MACD of 6.63 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 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
2395	74 Outperform	¥67.61B	14.52	―	2.79%	28.06%	19.48%
3386	67 Neutral	¥7.63B	30.89	―	4.57%	6.49%	-32.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4588	50 Neutral	¥48.71B	-20.24	―	―	-9.04%	13.09%
4586	44 Neutral	¥6.83B	-4.52	―	―	-52.41%	-80.31%
4882	43 Neutral	¥3.66B	-4.64	―	―	12.03%	28.11%
4893	43 Neutral	¥6.28B	-8.02	―	―	-12.01%	26.66%