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COSM Stock Analysis - Cosmos Health Inc. AI Rating

COSM Nasdaq Wholesale-Drugs, Proprietaries & Druggists' Sundries NV CIK: 0001474167
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-09-30
AI Rating
STRONG SELL
92% Confidence

📊 COSM Key Takeaways

Revenue: $45.6M
Net Margin: -19.7%
Free Cash Flow: $-3.9M
Current Ratio: 0.99x
Debt/Equity: 0.23x
EPS: $-0.32
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Cosmos Health exhibits severe fundamental deterioration with negative profitability across all levels (operating margin -11.6%, net margin -19.7%) while generating negative free cash flow of -3.9M despite modest 2% revenue growth. The company's liquidity crisis is evident with a current ratio of 0.99x, minimal cash reserves of $889K, and negative operating cash flow, creating immediate solvency concerns for a wholesale drug distributor requiring substantial working capital.

COSM Strengths

  • + Modest revenue growth of 2.0% YoY demonstrates business persistence in challenging environment
  • + Moderate leverage with debt-to-equity ratio of 0.23x provides some balance sheet flexibility
  • + Gross margin of 12.8% is typical for wholesale pharmaceutical distribution sector

COSM Risks

  • ! Severe liquidity crisis: current ratio of 0.99x with only $889K cash and negative operating cash flow creates imminent refinancing/covenant risk
  • ! Persistent unprofitability: negative operating income of -$5.3M and net loss of -$9.0M indicate structural operational problems, not temporary headwinds
  • ! Negative free cash flow of -$3.9M with FCF margin of -8.6% demonstrates unsustainable business model that burns cash despite revenue generation
  • ! Interest coverage ratio of -4.3x indicates inability to service debt from operations, forcing reliance on asset depletion or external financing

Key Metrics to Watch

COSM Financial Metrics

Revenue
$45.6M
Net Income
$-9.0M
EPS (Diluted)
$-0.32
Free Cash Flow
$-3.9M
Total Assets
$69.5M
Cash Position
$889.4K

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

COSM Profitability Ratios

Gross Margin 12.8%
Operating Margin -11.6%
Net Margin -19.7%
ROE -38.9%
ROA -12.9%
FCF Margin -8.6%

COSM vs Default Sector

How Cosmos Health Inc. compares to Default sector averages

Net Margin
COSM -19.7%
vs
Sector Avg 12.0%
COSM Sector
ROE
COSM -38.9%
vs
Sector Avg 15.0%
COSM Sector
Current Ratio
COSM 1.0x
vs
Sector Avg 1.8x
COSM Sector
Debt/Equity
COSM 0.2x
vs
Sector Avg 0.7x
COSM Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

COSM Balance Sheet & Liquidity

Current Ratio
0.99x
Quick Ratio
0.84x
Debt/Equity
0.23x
Debt/Assets
66.7%
Interest Coverage
-4.25x
Long-term Debt
$5.4M

COSM 5-Year Financial Trend

COSM 5-year financial data: Year 2020: Revenue $55.4M, Net Income -$3.3M, EPS $-0.25. Year 2021: Revenue $56.2M, Net Income $820.8K, EPS $0.06. Year 2022: Revenue $56.2M, Net Income -$8.0M, EPS $-23.74. Year 2023: Revenue $53.4M, Net Income -$13.8M, EPS $-33.16. Year 2024: Revenue $54.4M, Net Income -$18.5M, EPS $-2.15.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Cosmos Health Inc.'s revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $-2.15 indicates the company is currently unprofitable.

COSM Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-8.6%
Free cash flow / Revenue

COSM Quarterly Performance

Quarterly financial performance data for Cosmos Health Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $12.4M -$5.4M $-0.17
Q2 2025 $13.2M -$2.6M $-0.10
Q1 2025 $13.7M -$818.1K $-0.03
Q3 2024 $12.4M -$459.9K $-0.27
Q2 2024 $12.4M -$459.9K $-0.09
Q1 2024 $12.3M -$459.9K $-0.04
Q3 2023 $12.0M $203.3K $-0.27
Q2 2023 $12.4M $203.3K $-0.09

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

COSM Capital Allocation

Operating Cash Flow
-$3.9M
Cash generated from operations
Capital Expenditures
$47.8K
Investment in assets
Dividends
None
No dividend program

COSM SEC Filings

Access official SEC EDGAR filings for Cosmos Health Inc. (CIK: 0001474167)

📋 Recent SEC Filings

Date Form Document Action
Feb 13, 2026 4 xslF345X05/form4.xml View →
Feb 12, 2026 4 xslF345X05/form4.xml View →
Jan 26, 2026 4 xslF345X05/form4.xml View →
Jan 21, 2026 4 xslF345X05/form4.xml View →
Jan 15, 2026 4 xslF345X05/form4.xml View →

Frequently Asked Questions about COSM

What is the AI rating for COSM?

Cosmos Health Inc. (COSM) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are COSM's key strengths?

Modest revenue growth of 2.0% YoY demonstrates business persistence in challenging environment. Moderate leverage with debt-to-equity ratio of 0.23x provides some balance sheet flexibility.

What are the risks of investing in COSM?

Severe liquidity crisis: current ratio of 0.99x with only $889K cash and negative operating cash flow creates imminent refinancing/covenant risk. Persistent unprofitability: negative operating income of -$5.3M and net loss of -$9.0M indicate structural operational problems, not temporary headwinds.

What is COSM's revenue and growth?

Cosmos Health Inc. reported revenue of $45.6M.

Does COSM pay dividends?

Cosmos Health Inc. does not currently pay dividends.

Where can I find COSM SEC filings?

Official SEC filings for Cosmos Health Inc. (CIK: 0001474167) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is COSM's EPS?

Cosmos Health Inc. has a diluted EPS of $-0.32.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-09-30 | Powered by Claude AI