Sundrug Co (9989) AI Stock Analysis

• Market Cap: $530.95B
• Dividend Yield: 2.87%
• Average Volume (3M): 309.11K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.34
• Revenue Growth: 6.64%
• EPS Growth: 6.38%
• Country: JP
• Employees: 6,662
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 67.92
• Shares Outstanding: 119,331,184
• 10 Day Avg. Volume: 204,110
• 30 Day Avg. Volume: 309,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 9.35
• 1Y Price Target: $5,334.51
• Price Target Upside: 19.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ¥5,006.00 ▲(12.14% Upside)

Sundrug Co's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid balance sheet metrics. However, technical indicators suggest bearish momentum, which weighs down the overall score. The valuation is reasonable, providing some support to the stock's attractiveness.

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 products, as well as fresh food, kerosene, etc. The company was founded in 1957 and is headquartered in Fuchu, Japan.

How the Company Makes Money

Sundrug Co. generates revenue primarily through the sale of pharmaceuticals, over-the-counter medicines, cosmetics, and health-related goods in its retail stores. The company capitalizes on its widespread retail presence and brand reputation to attract a large customer base. Additionally, Sundrug may engage in strategic partnerships with health and beauty product manufacturers to offer exclusive or premium products, thereby enhancing its product offerings and profit margins. Other revenue streams could include loyalty programs and online sales, although the core business remains its physical retail operations.

Sundrug Co Financial Statement Overview

Summary

Sundrug Co demonstrates consistent revenue and profit growth with strong profit margins and solid balance sheet metrics. The company shows efficient cash generation, although there is room for improvement in free cash flow conversion. Overall, the financials reflect a strong and stable financial position within the industry.

Income Statement

Sundrug Co has demonstrated consistent revenue growth, with a 6.66% increase in the most recent year. The company maintains healthy profit margins with a gross profit margin of 25.45% and a net profit margin of 3.84% for the latest period. EBIT and EBITDA margins are strong at 5.55% and 7.61% respectively, indicating efficient operational performance. Overall, the income statement reflects a robust financial health with a positive growth trajectory.

Balance Sheet

The balance sheet of Sundrug Co is solid, characterized by a low debt-to-equity ratio of 0.14, suggesting minimal leverage risk. The company has a strong equity ratio of 60.73%, indicating a healthy reliance on equity financing. Return on equity stands at 11.40%, highlighting efficient use of equity to generate profits. The company exhibits financial stability with a strong equity base and manageable debt levels.

Cash Flow

Sundrug Co's cash flow statement shows a positive free cash flow growth rate of 160.31% recently, demonstrating effective cash generation capabilities. The operating cash flow to net income ratio stands at 1.34, indicating strong cash generation relative to reported profits. The free cash flow to net income ratio of 0.25 suggests room for improvement in converting profits into free cash flow. Overall, the cash flow position is strong, with excellent cash generation and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	801.81B	751.78B	690.46B	648.73B	634.31B
Gross Profit	204.09B	189.32B	171.95B	156.51B	158.55B
EBITDA	61.02B	56.53B	49.52B	44.26B	46.01B
Net Income	30.75B	29.13B	25.70B	23.85B	25.33B
Balance Sheet
Total Assets	444.01B	420.21B	360.67B	325.77B	308.53B
Cash, Cash Equivalents and Short-Term Investments	64.96B	69.70B	80.87B	89.33B	86.50B
Total Debt	38.67B	35.00B	939.00M	529.00M	114.00M
Total Liabilities	174.29B	167.12B	124.34B	105.18B	103.37B
Stockholders Equity	269.71B	253.09B	236.33B	220.59B	205.16B
Cash Flow
Free Cash Flow	7.71B	2.96B	11.27B	11.89B	15.29B
Operating Cash Flow	41.16B	41.19B	37.38B	31.68B	31.76B
Investing Cash Flow	-35.37B	-74.85B	-28.51B	-20.66B	-17.90B
Financing Cash Flow	-10.60B	22.49B	-17.33B	-8.19B	-8.06B

Sundrug Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4464.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9989, the sentiment is Neutral. The current price of 4464 is below the 20-day moving average (MA) of 4662.05, below the 50-day MA of 4622.98, and above the 200-day MA of 4325.68, indicating a neutral trend. The MACD of -21.19 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 8.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9989.

Sundrug Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3391	78 Outperform	589.97B	27.00	7.73%	16.62%	4.63%	-47.30%
7649	75 Outperform	713.94B	16.68	10.25%	0.92%	20.18%	82.36%
3141	72 Outperform	574.60B	31.30	6.02%	1.31%	7.43%	-24.81%
9989	69 Neutral	$530.95B	16.91	12.18%	2.87%	6.64%	6.38%
3549	64 Neutral	417.23B	22.63	12.20%	0.35%	14.79%	35.84%
3349	63 Neutral	709.79B	22.81	12.03%	0.79%	4.81%	26.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sundrug Co Corporate Events

Sundrug Co. Revises Financial Forecasts Upward Amid Increased Dividends

Sundrug Co., Ltd. has revised its non-consolidated financial forecasts for the fiscal year ending March 31, 2026, due to increased profits from dividends received from its consolidated subsidiaries. The company’s updated forecast indicates a significant rise in ordinary and net profits, reflecting a strong financial performance that surpasses initial estimates, although it will not affect the consolidated financial forecasts.

The most recent analyst rating on (JP:9989) stock is a Hold with a Yen4700.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.

Sundrug Co. Reports Strong Q1 2025 Financial Performance

Sundrug Co., Ltd. reported a positive financial performance for the three months ending June 30, 2025, with a 6.7% increase in net sales and a 12.4% rise in operating profit compared to the previous year. The company maintains a stable financial position with a slight increase in equity ratio, indicating strong market positioning and potential growth, which is reassuring for stakeholders.

The most recent analyst rating on (JP:9989) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.

Sundrug Co. Reports Dividend Income from Subsidiaries

Sundrug Co., Ltd. announced it has received dividends totaling 6,176 million yen from its subsidiaries, DIREX CORPORATION and SEIKODO PHARMACY CO., LTD. This dividend income will be recorded as non-operating income in the company’s non-consolidated financial results for the fiscal year ending March 31, 2026, without affecting the consolidated financial results.

The most recent analyst rating on (JP:9989) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.

Sundrug Co. Completes Treasury Share Disposal for Stock Compensation

Sundrug Co., Ltd. has completed the payment for the disposal of 15,600 treasury shares as restricted stock compensation, a decision made during the Board of Directors’ meeting on June 20, 2025. This move is aimed at aligning the interests of its directors and executive officers with the company’s performance, potentially impacting its corporate governance and stakeholder relations.

The most recent analyst rating on (JP:9989) stock is a Buy with a Yen5400.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.

Sundrug Co. Announces Treasury Shares Disposal for Executive Incentives

Sundrug Co., Ltd. announced the disposal of 15,600 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers to align with shareholder interests and sustainably increase corporate value. This initiative reflects the company’s commitment to fostering shared value with stakeholders and enhancing its market position.

The most recent analyst rating on (JP:9989) stock is a Buy with a Yen4700.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.