Sundrug Co Ltd (JP:9989)
:9989
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Sundrug Co
(9989)
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Rating:68Neutral
Price Target:
¥4,098.00
▼(-0.94% Downside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by steady financial performance (growth and stable margins) tempered by weaker cash conversion and rising debt. Valuation is supportive (moderate P/E and strong dividend yield), but technicals are a clear near-term headwind with the stock trading below key moving averages and negative momentum indicators.
Positive Factors
Steady revenue growth
Consistent top-line growth over multiple years indicates durable demand for Sundrug's retail offering and effective merchandising. Steady revenues improve planning visibility, support scale advantages in purchasing and supplier terms, and underpin long-term investment in stores and customer retention programs.
Negative Factors
Volatile free cash flow
Weak and erratic free cash flow reduces the company's ability to sustainably pay dividends, buy back shares, or rapidly deleverage. It suggests working-capital swings or elevated investments that could constrain discretionary spending and limit resilience if sales or margins deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent top-line growth over multiple years indicates durable demand for Sundrug's retail offering and effective merchandising. Steady revenues improve planning visibility, support scale advantages in purchasing and supplier terms, and underpin long-term investment in stores and customer retention programs.
Read all positive factors
Sundrug Co (9989) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥439.63B
Dividend Yield3.04%
Average Volume (3M)271.71K
Price to Earnings (P/E)14.6
Beta (1Y)0.29
Revenue Growth5.08%
EPS Growth2.07%
CountryJP
Employees6,662
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)268.49
Shares Outstanding119,331,184
10 Day Avg. Volume294,250
30 Day Avg. Volume271,706
Financial Highlights & Ratios
PEG Ratio7.02
Price to Book (P/B)1.60
Price to Sales (P/S)0.54
P/FCF Ratio35.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,720.00Price Target Upside14.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)294.1
Revenue Forecast (FY)¥909.88B
Sundrug Co Business Overview & Revenue Model
Company Description
Sundrug Co.,Ltd. operates and manages drug stores and dispensing pharmacies in Japan. It also operates discount stores that offers food, cosmetics, home appliances, clothing, car supplies, sports and goods, alcoholic beverages, and pharmaceutical ...
How the Company Makes Money
Sundrug makes money primarily through retail sales in its drugstore operations. Key revenue streams include (1) over-the-counter pharmaceuticals and quasi-drugs, where the company earns gross profit on product margins; (2) health and personal care...
Sundrug Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 814.94B | 842.51B | 801.81B | 751.78B | 690.46B | 648.73B |
| Gross Profit | 203.56B | 197.41B | 186.81B | 189.32B | 171.95B | 156.51B |
| EBITDA | 63.58B | 65.59B | 61.89B | 56.24B | 49.52B | 44.26B |
| Net Income | 31.40B | 31.39B | 30.75B | 29.13B | 25.70B | 23.85B |
Balance Sheet | ||||||
| Total Assets | 442.27B | 475.50B | 445.08B | 421.31B | 361.72B | 325.77B |
| Cash, Cash Equivalents and Short-Term Investments | 62.98B | 70.52B | 64.96B | 69.70B | 80.87B | 89.33B |
| Total Debt | 44.22B | 48.22B | 39.48B | 35.85B | 939.00M | 529.00M |
| Total Liabilities | 172.20B | 189.50B | 175.37B | 168.21B | 125.39B | 105.17B |
| Stockholders Equity | 270.06B | 286.00B | 269.71B | 253.09B | 236.33B | 220.59B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.96B | 7.71B | 4.76B | 12.59B | 12.86B |
| Operating Cash Flow | 0.00 | 43.30B | 41.16B | 41.19B | 37.38B | 31.68B |
| Investing Cash Flow | 0.00 | -32.08B | -35.37B | -74.85B | -28.51B | -20.66B |
| Financing Cash Flow | 0.00 | -5.65B | -10.60B | 22.49B | -17.33B | -8.19B |
Sundrug Co Technical Analysis
Negative
4137.00
Price Trends
3982.75
Negative
4087.98
Negative
4213.37
Negative
Market Momentum
-30.64
Positive
39.11
Neutral
18.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9989, the sentiment is Negative. The current price of 4137 is above the 20-day moving average (MA) of 3889.63, above the 50-day MA of 3982.75, and below the 200-day MA of 4213.37, indicating a bearish trend. The MACD of -30.64 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9989.
Sundrug Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥204.83B | 12.71 | ― | 2.35% | 7.84% | 17.59% | |
68 Neutral | ¥439.63B | 14.57 | 11.37% | 3.04% | 5.08% | 2.07% | |
67 Neutral | ¥368.12B | 16.82 | ― | 0.41% | 14.59% | 7.84% | |
66 Neutral | ¥580.69B | 17.44 | 15.71% | 0.96% | 15.07% | 72.98% | |
62 Neutral | ¥947.68B | 19.41 | ― | 1.72% | ― | ― | |
60 Neutral | ¥499.01B | 16.97 | ― | 0.93% | 6.74% | 6.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:9989
Sundrug Co
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Sundrug Co Corporate Events
Sundrug Delivers Steady FY2026 Growth and Nudges Up Dividend as It Guides for Further Gains
May 15, 2026
Sundrug reported steady growth for the fiscal year ended March 31, 2026, with net sales rising 5.1% to ¥842.5 billion and operating profit up 5.2% to ¥46.8 billion, while profit attributable to owners of parent inched up 2.1% to ¥31...
Sundrug posts steady profit growth and higher dividend on solid FY2026 results
May 15, 2026
Sundrug Co., Ltd., a leading Japanese drugstore and pharmacy chain listed in Tokyo, focuses on retailing pharmaceuticals, cosmetics and daily necessities to consumers seeking affordable, convenient healthcare and lifestyle products. The company ha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.