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Kusuri No Aoki Holdings (TSE:3549) Valuation After December Sales Momentum And New Shareholder Returns

Simply Wall St · 3d ago

Kusuri No Aoki Holdings (TSE:3549) has drawn fresh attention after reporting preliminary December 2025 sales, with all stores at 110.6% and existing stores at 100.9%, alongside several new shareholder return measures.

See our latest analysis for Kusuri No Aoki Holdings.

Those December sales figures and fresh shareholder returns arrive after a strong run, with a 15.36% 1 month share price return and 23.16% 3 month share price return. The 1 year total shareholder return of 45.50% suggests momentum has been building over a longer period despite a recent 3.16% 1 day share price pullback.

If Kusuri No Aoki Holdings has you reassessing your watchlist, it could be a good moment to look across Japanese retail and healthcare names, using healthcare stocks as a starting point for further ideas.

With sales running at 110.6% across all stores and a series of buybacks and dividends already in motion, the key question now is simple: is Kusuri No Aoki still undervalued, or is the market already pricing in future growth?

Price-to-Earnings of 22.9x: Is it justified?

Kusuri No Aoki Holdings last closed at ¥4,530, and on a P/E of 22.9x it screens as more expensive than both its industry and fair value benchmarks.

The P/E ratio compares the current share price to earnings per share, so for a retailer like Kusuri No Aoki it reflects what investors are willing to pay for each unit of current earnings.

According to the SWS checks, the stock trades on a P/E of 22.9x, while the estimated fair P/E from the regression based fair ratio model is 18.8x. That suggests the current price builds in richer earnings expectations than the level the fair ratio points to, and the SWS DCF model also indicates the share price of ¥4,530 is above an estimated fair value of ¥3,787.39.

Against peers, the gap is even clearer. The P/E of 22.9x sits well above the JP Consumer Retailing industry average of 13.4x and above the peer group average of 22.2x, implying investors are paying a premium compared with both the wider sector and closer comparables.

Explore the SWS fair ratio for Kusuri No Aoki Holdings

Result: Price-to-Earnings of 22.9x (OVERVALUED)

However, there are still clear risks, including the share price trading above both DCF and analyst estimates, as well as any slowdown in revenue or net income growth.

Find out about the key risks to this Kusuri No Aoki Holdings narrative.

Another View: What Does The DCF Say?

While the P/E of 22.9x makes Kusuri No Aoki look expensive versus its fair ratio of 18.8x and sector averages, the SWS DCF model points in the same direction. At a last close of ¥4,530 and an estimated fair value of ¥3,787.39, the shares screen as overvalued on both counts.

Look into how the SWS DCF model arrives at its fair value.

3549 Discounted Cash Flow as at Jan 2026
3549 Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Kusuri No Aoki Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Kusuri No Aoki Holdings Narrative

If you see the numbers differently, or simply prefer to test your own assumptions, you can build a personalised view in just a few minutes with Do it your way.

A great starting point for your Kusuri No Aoki Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Kusuri No Aoki is already on your radar, do not stop there. Broaden your opportunity set with a few focused screens and see what else fits your style.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.