Financials Sundrug Co.,Ltd.

Equities

9989

JP3336600006

Drug Retailers

Delayed Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
4,528 ^JPY	+0.13%		+3.50%	-0.09%

2023	Harris Associates says cautious on Japan, all in on Europe	RE
2023	Consolidation to boost value of Japan's still fragmented drugstore sector - Orbis	RE

Valuation

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	356,525	404,474	473,445	347,847	425,016	529,557	-	-
Enterprise Value (EV) ¹	286,286	323,775	386,950	258,517	344,144	448,111	451,762	453,670
P/E ratio	14.9 x	17.1 x	18.7 x	14.6 x	16.5 x	18.5 x	17.2 x	15.9 x
Yield	2.16%	1.97%	1.73%	2.39%	2.75%	2.58%	2.8%	2.99%
Capitalization / Revenue	0.61 x	0.65 x	0.75 x	0.54 x	0.62 x	0.7 x	0.65 x	0.61 x
EV / Revenue	0.49 x	0.52 x	0.61 x	0.4 x	0.5 x	0.6 x	0.56 x	0.52 x
EV / EBITDA	6.59 x	7.2 x	8.41 x	5.84 x	6.95 x	7.82 x	7.34 x	6.92 x
EV / FCF	14 x	15.9 x	29.3 x	23.5 x	38.8 x	80.5 x	45.3 x	32.2 x
FCF Yield	7.16%	6.31%	3.41%	4.26%	2.58%	1.24%	2.21%	3.1%
Price to Book	2.09 x	2.17 x	2.31 x	1.58 x	1.8 x	2.1 x	1.97 x	1.85 x
Nbr of stocks (in thousands)	116,894	116,900	116,900	116,923	116,923	116,952	-	-
Reference price ²	3,050	3,460	4,050	2,975	3,635	4,528	4,528	4,528
Announcement Date	5/10/19	5/15/20	5/14/21	5/13/22	5/15/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	588,069	617,769	634,310	648,734	690,462	751,932	809,559	867,710
EBITDA ¹	43,475	44,963	46,008	44,261	49,520	57,301	61,518	65,600
EBIT ¹	35,233	36,604	37,345	34,052	37,452	42,170	45,127	48,781
Operating Margin	5.99%	5.93%	5.89%	5.25%	5.42%	5.61%	5.57%	5.62%
Earnings before Tax (EBT) ¹	35,071	34,648	37,188	34,675	37,710	42,280	45,620	49,340
Net income ¹	23,933	23,692	25,329	23,853	25,703	28,657	30,814	33,367
Net margin	4.07%	3.84%	3.99%	3.68%	3.72%	3.81%	3.81%	3.85%
EPS ²	204.8	202.7	216.7	204.0	219.8	245.1	263.5	285.3
Free Cash Flow ¹	20,503	20,421	13,187	11,023	8,868	5,570	9,962	14,074
FCF margin	3.49%	3.31%	2.08%	1.7%	1.28%	0.74%	1.23%	1.62%
FCF Conversion (EBITDA)	47.16%	45.42%	28.66%	24.9%	17.91%	9.72%	16.19%	21.45%
FCF Conversion (Net income)	85.67%	86.19%	52.06%	46.21%	34.5%	19.43%	32.33%	42.18%
Dividend per Share ²	66.00	68.00	70.00	71.00	100.0	116.9	126.7	135.2
Announcement Date	5/10/19	5/15/20	5/14/21	5/13/22	5/15/23	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2020 S1	2021 S1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2025 Q1	2025 Q2	2025 Q3	2025 Q4
Net sales ¹	316,821	316,459	162,557	326,754	164,905	157,075	166,455	172,768	339,223	180,330	170,909	182,146	189,561	371,707	194,265	186,212	200,000	207,000	211,000	203,000
EBITDA	-	-	10,793	-	12,139	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	19,807	19,671	8,329	17,928	9,513	6,655	9,058	9,453	18,511	10,982	7,959	9,899	10,710	20,609	12,607	9,230	10,800	11,700	13,600	9,900
Operating Margin	6.25%	6.22%	5.12%	5.49%	5.77%	4.24%	5.44%	5.47%	5.46%	6.09%	4.66%	5.43%	5.65%	5.54%	6.49%	4.96%	5.4%	5.65%	6.45%	4.88%
Earnings before Tax (EBT)	19,936	19,564	-	18,310	9,618	-	9,155	-	18,513	11,156	8,041	10,064	-	20,594	12,735	-	-	-	-	-
Net income ¹	13,532	13,478	5,654	12,455	6,549	4,851	6,298	6,424	12,722	7,642	5,339	6,900	7,154	14,054	8,727	5,769	7,600	8,200	9,500	6,700
Net margin	4.27%	4.26%	3.48%	3.81%	3.97%	3.09%	3.78%	3.72%	3.75%	4.24%	3.12%	3.79%	3.77%	3.78%	4.49%	3.1%	3.8%	3.96%	4.5%	3.3%
EPS ²	115.8	115.3	48.36	106.5	56.01	-	53.87	-	108.8	65.36	-	59.02	61.18	120.2	74.62	52.33	-	-	-	-
Dividend per Share ²	34.00	35.00	-	35.00	-	-	-	-	50.00	-	-	-	57.00	57.00	-	57.00	-	63.00	-	63.00
Announcement Date	11/8/19	11/11/20	11/12/21	11/12/21	2/14/22	5/13/22	8/12/22	11/14/22	11/14/22	2/14/23	5/15/23	8/10/23	11/14/23	11/14/23	2/14/24	-	-	-	-	-

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	70,239	80,699	86,495	89,330	80,872	81,447	77,795	75,887
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	20,503	20,421	13,187	11,023	8,868	5,570	9,963	14,074
ROE (net income / shareholders' equity)	14.7%	13.2%	12.9%	11.2%	11.3%	11.8%	11.9%	12%
ROA (Net income/ Total Assets)	14.1%	13.6%	12.9%	11%	11.1%	9.99%	10.1%	10.4%
Assets ¹	170,076	174,211	196,389	217,065	231,336	286,898	303,625	322,153
Book Value Per Share ²	1,463	1,598	1,754	1,886	2,021	2,158	2,298	2,451
Cash Flow per Share	275.0	274.0	291.0	291.0	323.0	-	-	-
Capex ¹	10,588	11,853	18,574	22,336	38,393	35,800	36,480	36,860
Capex / Sales	1.8%	1.92%	2.93%	3.44%	5.56%	4.76%	4.51%	4.25%
Announcement Date	5/10/19	5/15/20	5/14/21	5/13/22	5/15/23	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Sundrug Co.,Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

D-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

4,528 JPY

Average target price

4,962 JPY

Spread / Average Target

+9.58%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Retail - Drugs with Grocery

	1st Jan change	Capi.
SUNDRUG CO.,LTD.	-0.09%	3.36B
COSMOS PHARMACEUTICAL CORPORATION	-11.64%	3.62B
TSURUHA HOLDINGS INC.	-23.44%	3.06B
SUGI HOLDINGS CO.,LTD.	+7.56%	2.67B
LBX PHARMACY CHAIN	+7.46%	2.59B
KUSURI NO AOKI HOLDINGS CO., LTD.	-9.26%	1.75B
CREATE SD HOLDINGS CO., LTD.	+9.30%	1.35B
GREAT TREE PHARMACY CO., LTD.	-20.60%	957M
SHUYU CIVILIAN PHARMACY CORP., LTD.	-38.42%	704M
CAWACHI LIMITED	-1.85%	370M

Retail - Drugs with Grocery