KUSURI NO AOKI HOLDINGS CO.,LTD. (3549) AI Stock Analysis

• Market Cap: ¥387.34B
• Dividend Yield: 0.41%
• Average Volume (3M): 203.46K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.47
• Revenue Growth: 15.81%
• EPS Growth: 27.05%
• Country: JP
• Employees: 4,735
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 47.46
• Shares Outstanding: 95,616,980
• 10 Day Avg. Volume: 259,620
• 30 Day Avg. Volume: 203,460
• PEG Ratio: 0.58
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 800.05
• 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: ¥4,671.00 ▲(23.57% Upside)

KUSURI NO AOKI HOLDINGS CO.,LTD. has strong financial performance with robust revenue growth and profitability, but faces challenges in cash flow management. Technical analysis shows mixed signals, with short-term weakness but long-term strength. The valuation is fair, though the low dividend yield may not appeal to income investors.

Positive Factors

Revenue and profitability trends

Consistent top-line expansion alongside healthy gross margins indicates the core retail model is scaling. Durable revenue growth supports purchasing scale, supplier leverage and reinvestment in stores and services, underpinning medium-term profit resilience.

Balance sheet and returns

A moderate leverage profile with a strong ROE and solid equity ratio signals financial stability. This conservatism preserves capacity for strategic investment or weathering shocks, supporting long-term operational continuity and disciplined capital allocation.

Operating cash generation

Operating cash flow exceeding net income indicates earnings quality and core cash conversion. Reliable OCF supports working capital for store operations and inventory needs and can fund ongoing investments even when free cash flow fluctuates.

Negative Factors

Free cash flow deterioration

A dramatic drop in free cash flow undermines funding for capex, dividends, or M&A without raising external financing. Persistent FCF weakness erodes financial flexibility and can force trade-offs between growth initiatives and balance sheet repair.

EPS growth lagging revenue

Top-line gains not translating into proportional EPS improvement suggests margin pressure, cost inflation, dilution, or higher non-operating charges. Over the medium term, this weakens shareholder returns unless profitability per share is restored.

Thin net profit margin

A modest net margin provides a small buffer against rising costs or competitive price pressure. In a retail pharmacy sector with low unit margins, even moderate cost shocks or margin erosion can materially reduce net income and cash available for reinvestment.

KUSURI NO AOKI HOLDINGS CO.,LTD. Business Overview & Revenue Model

Company Description

KUSURI NO AOKI HOLDINGS CO.,LTD. (3549) is a prominent Japanese company primarily engaged in the retail of pharmaceuticals, healthcare products, and cosmetics. The company operates a chain of drugstores across Japan, focusing on providing a wide range of over-the-counter medicines, prescription drugs, dietary supplements, and personal care items. KUSURI NO AOKI is dedicated to enhancing customer health and well-being through accessible healthcare solutions, leveraging its extensive network and knowledgeable staff.

How the Company Makes Money

KUSURI NO AOKI generates revenue primarily through the sale of pharmaceuticals and healthcare products in its retail stores. The company earns money by marking up the prices of the products it sells, including both prescription and over-the-counter medications. Additionally, KUSURI NO AOKI may have strategic partnerships with pharmaceutical manufacturers and suppliers, which could provide favorable purchasing terms or exclusive product offerings, further boosting its profit margins. The company also benefits from customer loyalty programs and promotions that encourage repeat business. Seasonal sales and health campaigns may contribute to increased foot traffic and sales volume, enhancing overall earnings.

KUSURI NO AOKI HOLDINGS CO.,LTD. Financial Statement Overview

Summary

KUSURI NO AOKI HOLDINGS CO.,LTD. shows strong revenue growth and profitability with healthy margins. The balance sheet is stable with a moderate debt-to-equity ratio and strong return on equity. However, cash flow challenges, particularly in free cash flow management, are a concern.

Income Statement

KUSURI NO AOKI HOLDINGS CO.,LTD. has demonstrated strong revenue growth with an 8.74% increase in the latest year. The company maintains healthy profitability with a gross profit margin of approximately 26.5% and a net profit margin of 3.55%. The EBIT and EBITDA margins are also solid at 5.30% and 7.81%, respectively. These metrics indicate robust operational efficiency and profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. The return on equity is strong at 12.20%, reflecting effective use of shareholder funds. The equity ratio stands at 41.35%, suggesting a stable financial structure with a good proportion of assets funded by equity.

Cash Flow

The cash flow analysis reveals some challenges, with a significant decline in free cash flow growth at -100.72%. However, the operating cash flow to net income ratio is 1.25, indicating that the company generates sufficient cash from operations relative to its net income. The negative free cash flow to net income ratio highlights potential issues in cash management or capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	641.21B	501.47B	436.88B	378.87B	328.33B	305.88B
Gross Profit	160.06B	132.96B	118.09B	106.11B	89.76B	90.11B
EBITDA	50.56B	39.18B	32.00B	28.74B	23.08B	24.43B
Net Income	22.82B	17.79B	12.31B	12.33B	9.84B	12.06B
Balance Sheet
Total Assets	390.46B	352.46B	303.45B	274.30B	234.20B	195.92B
Cash, Cash Equivalents and Short-Term Investments	80.63B	47.73B	49.13B	42.87B	26.35B	15.73B
Total Debt	140.22B	99.32B	96.41B	87.17B	76.10B	53.02B
Total Liabilities	247.86B	206.71B	186.03B	175.76B	147.27B	118.25B
Stockholders Equity	142.60B	145.76B	117.42B	98.54B	86.93B	77.67B
Cash Flow
Free Cash Flow	0.00	448.00M	7.20B	10.84B	-6.26B	-8.19B
Operating Cash Flow	0.00	22.17B	26.86B	31.25B	20.29B	13.85B
Investing Cash Flow	0.00	-31.08B	-21.10B	-22.26B	-27.77B	-25.53B
Financing Cash Flow	0.00	7.67B	344.00M	7.53B	18.10B	8.10B

KUSURI NO AOKI HOLDINGS CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3780.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3549, the sentiment is Negative. The current price of 3780 is below the 20-day moving average (MA) of 4424.05, below the 50-day MA of 4137.64, and below the 200-day MA of 3855.26, indicating a neutral trend. The MACD of -9.51 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 6.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3549.

KUSURI NO AOKI HOLDINGS CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7649	75 Outperform	¥670.78B	15.66	15.71%	0.96%	21.81%	67.76%
3148	75 Outperform	¥205.14B	12.63	―	2.35%	7.55%	16.01%
9989	69 Neutral	$481.72B	15.05	11.50%	3.04%	6.32%	8.19%
3391	67 Neutral	¥1.11T	27.03	―	1.72%	―	―
3549	67 Neutral	¥387.34B	21.77	―	0.41%	15.81%	27.05%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

KUSURI NO AOKI HOLDINGS CO.,LTD. Corporate Events

Kusuri no Aoki Ends Long-Standing Business and Capital Alliance with Aeon

KUSURI NO AOKI HOLDINGS CO., LTD., a Japanese drugstore and healthcare retailer listed on the TSE Prime, focuses on providing pharmaceuticals, daily necessities, and related services to consumers across its network of stores. The company has resolved to terminate its long-standing business and capital alliance with AEON Co., Ltd., originally established in 2003, following a notice of termination from AEON on January 9, 2026, with the alliance ending as of January 16, 2026; management currently expects the impact on consolidated financial results to be minimal and plans to disclose any further material effects if they arise.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4937.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Sets Extraordinary Meeting to Add Outside Director and Adopt Anti-Takeover Policy

Kusuri No Aoki Holdings will convene an extraordinary general meeting of shareholders on February 17, 2026, at its head office in Ishikawa Prefecture to vote on key governance matters, including the election of a new outside director and the introduction of a policy to address large-scale acquisitions of its shares. The company has nominated Yoshiki Nishii, former president and chairperson of Daiichi Sankyo Healthcare, as an outside director, citing his extensive corporate management experience and deep knowledge of the healthcare and retail sectors as important to strengthening governance, responding to changing customer needs, and supporting its stand-alone growth strategy under its newly announced long-term vision and medium-term plan. Shareholders will also consider adopting a formal policy for responding to large-scale stock acquisitions, signaling management’s intention to better regulate potential takeover attempts and protect corporate value for existing stakeholders.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4082.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri no Aoki Launches Large Share Buyback Plan but Makes No Initial Purchases

Kusuri no Aoki Holdings has launched a share buyback program under Article 459, Paragraph 1 of the Companies Act, authorizing the repurchase of up to 6 million common shares, or about 6.32% of its outstanding stock (excluding treasury shares), for a maximum of 24 billion yen between December 26, 2025 and December 25, 2026 through market transactions on the Tokyo Stock Exchange, including ToSTNeT-3. However, during the initial acquisition window from December 26 to December 31, 2025, the company did not purchase any shares, meaning no treasury stock has yet been acquired under this authorization, and actual execution will depend on stock market conditions and may result in only partial or no completion of the planned buyback.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Posts Higher December Sales and Accelerates Store Openings

Kusuri No Aoki Holdings reported that for December 2025, all-store sales rose 10.6% year on year and existing-store sales increased 0.9%, driven by a 2.3% gain in average spending per customer across all outlets, even as existing-store customer traffic slipped slightly. The company continued its expansion strategy during the month, opening ten new drugstores across multiple prefectures including Kyoto, Miyagi, Ehime, Chiba, Yamagata, Shiga, Gunma, Toyama and closing one store in Ehime, underscoring its ongoing network growth and regional coverage despite selective consolidation.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Sets Record Date for February Extraordinary Shareholders’ Meeting

Kusuri No Aoki Holdings has resolved to establish January 9, 2026 as the record date to determine shareholders eligible to exercise voting rights at an Extraordinary General Meeting of Shareholders planned for late February 2026. The meeting’s detailed agenda, including specific proposals as well as the exact date, time and venue, will be decided by the board and disclosed later, signaling an upcoming governance event that may be significant for shareholder decision-making and corporate direction.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Seeks Shift to TSE Standard Market and Nagoya Main Listing to Bolster Growth

KUSURI NO AOKI HOLDINGS has resolved to shift its Tokyo Stock Exchange listing from the Prime Market to the Standard Market while simultaneously seeking a new listing on the Nagoya Stock Exchange’s Main Market. Management says the move is intended to better align the company’s listing segment with its actual business conditions, improve management efficiency, and support execution of its newly disclosed fourth medium-term management plan, with an explicit focus on sustainable growth and maximizing shareholder value. By adding a Nagoya listing, the company aims to broaden recognition among individual investors in the Tokai region, expand its investor base, and improve stock liquidity, while reiterating its commitment to transparent governance and safeguarding the interests of shareholders, investors and other stakeholders.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Launches New ¥24 Billion Share Buyback After Completing Previous Program

Kusuri No Aoki Holdings Co., Ltd. has completed a previously authorized share buyback program, acquiring 5,609,200 shares for approximately ¥22.0 billion, including 163,400 shares purchased between December 1 and 8, 2025, via open-market transactions on the Tokyo Stock Exchange. With that program now finished, the board has approved a new share repurchase authorization of up to 6 million shares, or 6.32% of outstanding stock (excluding treasury shares), with a maximum budget of ¥24.0 billion to be executed between December 26, 2025, and December 25, 2026, also through open-market purchases including ToSTNeT-3, as part of efforts to enhance shareholder returns and maintain a flexible capital policy in response to the business environment.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Marks 40th Anniversary With Sharp Dividend Increase and New Payout Policy

Kusuri No Aoki Holdings has revised its dividend forecast for the fiscal year ending May 31, 2026, significantly increasing its planned shareholder payout to commemorate the 40th anniversary of its founding. The company now plans a year-end dividend of 48 yen per share, including a 40 yen commemorative component on top of an 8 yen ordinary dividend, resulting in a total annual dividend of 56 yen per share versus the previously forecast 16 yen. This move accompanies the launch of its fourth medium-term management plan, under which Kusuri No Aoki has reset its basic policy to target a 30% dividend payout ratio, signaling a more shareholder-friendly capital allocation stance and reinforcing its commitment to rewarding long-term investors as it enters a new strategic phase.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Sets ¥1 Trillion Sales Target in 50th Anniversary Vision and New Medium-Term Plan

Kusuri No Aoki Holdings has unveiled a 10-year “50th Anniversary Vision” covering fiscal 2026–2035 that targets net sales of ¥1 trillion by its 50th anniversary in 2035 and aims to rank among Japan’s top 20 retailers, following the early achievement of ¥500 billion in sales and 1,000 stores in fiscal 2025. To support this long-term ambition, the company launched a Fourth Medium-Term Management Plan for fiscal 2026–2030 built around the “Evolution of Food & Drug + Dispensing,” with goals of lifting net sales to ¥800 billion and operating profit to ¥44 billion by 2030 through strengthening fresh food offerings, expanding private-brand and dispensing businesses, and pursuing aggressive M&A to add around 400 stores, thereby reinforcing its role as local life infrastructure and responding to intensifying price competition and changing household needs.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Posts Strong First-Half Growth but Forecasts Profit Decline, Boosts 40th Anniversary Dividend

Kusuri No Aoki Holdings reported consolidated net sales of ¥279.8 billion for the six months ended November 20, 2025, up 15.2% year on year, with operating profit rising 6.7% to ¥13.5 billion and profit attributable to owners of parent increasing 11.8% to ¥9.6 billion, reflecting solid earnings momentum even after the absence of a prior-year stock compensation expense. While total assets expanded to ¥385.8 billion, net assets and the capital adequacy ratio declined, and the company forecast full-year fiscal 2026 net sales of ¥560.0 billion but expects double-digit declines in profit metrics, indicating higher costs or investment burdens ahead; at the same time, it raised its dividend forecast, including a large commemorative year-end payout tied to its 40th anniversary, signaling continued shareholder returns despite anticipated profit pressure.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

KUSURI NO AOKI Reports Increased Sales and Expands Store Network

KUSURI NO AOKI HOLDINGS CO., LTD. reported its monthly sales report for November 2025, showing a steady increase in sales and customer traffic across all stores compared to the previous months. The company also expanded its operations by opening several new drugstores and dispensing pharmacies in various regions, indicating a strategic move to enhance its market presence and accessibility.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

KUSURI NO AOKI Announces Treasury Share Cancellation

KUSURI NO AOKI HOLDINGS CO., LTD. has announced a decision by its Board of Directors to cancel 9,480,700 of its common treasury shares, which represents 9.02% of the total issued shares before cancellation. This move, scheduled for November 20, 2025, will reduce the total number of issued shares to 95,616,980, with only 2,013 shares remaining as treasury shares, effectively minimizing the company’s treasury stock holdings.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.

Kusuri No Aoki Holdings Reports Strong October Sales and Expands Store Network

In October 2025, KUSURI NO AOKI HOLDINGS CO., LTD. reported a growth in sales and customer traffic, with all stores showing a sales increase of 114.1% compared to the previous year. The company continues to expand its footprint by opening several new drugstores and dispensing pharmacies across various regions in Japan, indicating a robust growth strategy.

The most recent analyst rating on (JP:3549) stock is a Hold with a Yen4228.00 price target. To see the full list of analyst forecasts on KUSURI NO AOKI HOLDINGS CO.,LTD. stock, see the JP:3549 Stock Forecast page.