Sundrug Co (9989) AI Stock Analysis

• Market Cap: $513.18B
• Dividend Yield: 0.02%
• Average Volume (3M): 400.55K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.38
• Revenue Growth: 6.66%
• EPS Growth: 5.56%
• Country: JP
• Employees: 6,662
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 59.16
• Shares Outstanding: 119,331,184
• 10 Day Avg. Volume: 381,560
• 30 Day Avg. Volume: 400,553
• PEG Ratio: 2.13
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.72
• 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: $5,050.40
• Price Target Upside: 14.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: ¥4,927.00 ▲(12.05%Upside)

Sundrug Co's strong financial performance, characterized by consistent growth, solid margins, and a stable balance sheet, is the primary driver of its score. While technical analysis indicates a potential bearish trend, the stock's valuation appears reasonable. The absence of significant corporate events or earnings call data did not impact the overall score.

Sundrug Co Business Overview & Revenue Model

Company Description

Sundrug Co (9989) is a leading Japanese company operating in the retail and pharmacy sectors. It primarily focuses on the sale of pharmaceuticals, cosmetics, and health-related products through a widespread network of drugstores and pharmacies across Japan. The company is recognized for its commitment to offering a diverse range of high-quality products that cater to the health and wellness needs of its customers.

How the Company Makes Money

Sundrug Co generates revenue primarily through its extensive network of retail outlets, which sell pharmaceuticals, cosmetics, and health-related products. The company's key revenue streams include the sale of prescription and over-the-counter medications, personal care items, and beauty products. Additionally, Sundrug Co benefits from its private-label products, which offer higher margins. The company may also engage in strategic partnerships with pharmaceutical companies and suppliers to enhance its product offerings and supply chain efficiency, further contributing to its earnings.

Sundrug Co Financial Statement Overview

Summary

Sundrug Co exhibits strong financial health with consistent revenue growth, solid margins, and a stable balance sheet with low leverage and high equity. The company generates strong cash flows, although there is room for improvement in converting these profits into free cash flow.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
789.40B	801.81B	751.78B	690.46B	648.73B	634.31B
	Gross Profit
200.25B	204.09B	189.32B	171.95B	156.51B	158.55B
	EBIT
42.60B	44.50B	41.00B	37.45B	34.05B	37.34B
	EBITDA
54.42B	61.02B	56.53B	49.52B	44.26B	46.01B
	Net Income Common Stockholders
30.18B	30.75B	29.13B	25.70B	23.85B	25.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.13B	64.96B	69.70B	80.87B	89.33B	86.50B
	Total Assets
434.03B	444.01B	420.21B	360.67B	325.77B	308.53B
	Total Debt
33.54B	38.67B	35.00B	939.00M	529.00M	114.00M
	Net Debt
-26.59B	-26.29B	-34.70B	-79.93B	-88.80B	-86.38B
	Total Liabilities
171.28B	174.29B	167.12B	124.34B	105.18B	103.37B
	Stockholders Equity
262.75B	269.71B	253.09B	236.33B	220.59B	205.16B
Cash Flow		Free Cash Flow
571.00M	7.71B	2.96B	11.27B	11.89B	15.29B
	Operating Cash Flow
8.89B	41.16B	41.19B	37.38B	31.68B	31.76B
	Investing Cash Flow
-26.57B	-35.37B	-74.85B	-28.51B	-20.66B	-17.90B
	Financing Cash Flow
14.12B	-10.60B	22.49B	-17.33B	-8.19B	-8.06B

Sundrug Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4397.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 4397 is below the 20-day moving average (MA) of 4485.30, below the 50-day MA of 4533.52, and above the 200-day MA of 4108.95, indicating a neutral trend. The MACD of -46.46 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9989.

Sundrug Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3549	78 Outperform	¥367.31B	19.24		0.40%	13.86%	98.99%
7649	74 Outperform	¥588.42B	21.99	10.45%	1.28%	17.94%	18.31%
3141	74 Outperform	¥530.30B	35.21		1.42%	5.56%	-43.50%
3391	71 Outperform	$548.63B	25.14	4.93%	0.04%	4.63%	-47.30%
9989	70 Outperform	$513.18B	16.69	11.61%	0.02%	6.66%	5.56%
3349	70 Neutral	¥701.67B	23.73		0.74%	6.96%	-3.96%
Sector *	54 Neutral	$5.38B	3.40	-45.06%	3.28%	16.75%	-0.02%

Sundrug Co Corporate Events

Sundrug Co. Reports Strong Financial Performance for FY 2025

Sundrug Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company experienced a 6.7% rise in net sales, reaching 801,811 million yen, and a 5.6% increase in profit attributable to owners of the parent, totaling 30,750 million yen. The financial results indicate a strong performance, with improvements in operating and ordinary profits, reflecting the company’s robust market positioning and operational efficiency. The company also announced an increase in annual dividends, demonstrating its commitment to returning value to shareholders.

The most recent analyst rating on (JP:9989) stock is a Buy with a Yen4100.00 price target. To see the full list of analyst forecasts on Sundrug Co stock, see the JP:9989 Stock Forecast page.