📊 COSM Key Takeaways
Is Cosmos Health Inc. (COSM) a Good Investment?
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.
Cosmos Health's fundamentals remain weak: revenue growth is minimal, gross margin is thin at 12.8%, and the business is still deeply unprofitable at both operating and net levels. Financial flexibility looks constrained by sub-1.0 current liquidity, very low cash, negative operating cash flow, and negative interest coverage, which together raise concern about near-term funding needs. While losses and EPS improved year over year, the improvement does not yet offset the company's poor growth quality and fragile balance-sheet liquidity.
Why Buy Cosmos Health Inc. Stock? COSM 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
- Gross margin of 12.8% is typical for wholesale pharmaceutical distribution sector
- Revenue is still growing modestly year over year, indicating the business has not stalled completely
- Leverage is not extreme, with debt-to-equity of 0.23x and long-term debt at a manageable absolute level
- Book equity remains positive at $23.13M, providing some balance-sheet cushion
COSM Stock Risks: Cosmos Health Inc. Investment 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
- Persistent operating and net losses show the core business model is not yet generating sustainable profitability
- Liquidity is tight, with a 0.99x current ratio, 0.84x quick ratio, and less than $1M of cash
- Negative operating cash flow and free cash flow increase the risk of external financing or dilution if losses continue
Key Metrics to Watch
- Quarterly operating cash flow trend and path to positive OCF
- Cash balance and burn rate relative to available liquidity facilities
- Gross margin stability and operating expense control initiatives
- Working capital management efficiency (accounts receivable and inventory turns)
- Operating cash flow and cash balance
- Gross margin and operating margin
Cosmos Health Inc. (COSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
COSM Profit Margin, ROE & Profitability Analysis
COSM vs Market Sector: How Cosmos Health Inc. Compares
How Cosmos Health Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cosmos Health Inc. Stock Overvalued? COSM Valuation Analysis 2026
Based on fundamental analysis, Cosmos Health Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cosmos Health Inc. Balance Sheet: COSM Debt, Cash & Liquidity
COSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cosmos Health Inc.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.17 indicates the company is currently unprofitable.
COSM Revenue Growth, EPS Growth & YoY Performance
COSM Quarterly Earnings & Performance
| 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.
Cosmos Health Inc. Dividends, Buybacks & Capital Allocation
COSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cosmos Health Inc. (CIK: 0001474167)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COSM
What is the AI rating for COSM?
Cosmos Health Inc. (COSM) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 91% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COSM's key strengths?
Claude: 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. ChatGPT: Revenue is still growing modestly year over year, indicating the business has not stalled completely. Leverage is not extreme, with debt-to-equity of 0.23x and long-term debt at a manageable absolute level.
What are the risks of investing in COSM?
Claude: 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. ChatGPT: Persistent operating and net losses show the core business model is not yet generating sustainable profitability. Liquidity is tight, with a 0.99x current ratio, 0.84x quick ratio, and less than $1M of cash.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is COSM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cosmos Health Inc. has a STRONG SELL rating with 91% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is COSM stock overvalued or undervalued?
Valuation metrics for COSM: ROE of -38.9% (sector avg: 15%), net margin of -19.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy COSM stock in 2026?
Our dual AI analysis gives Cosmos Health Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is COSM's free cash flow?
Cosmos Health Inc.'s operating cash flow is $-3.9M, with capital expenditures of $47.8K. FCF margin is -8.6%.
How does COSM compare to other Market stocks?
Vs Default sector averages: Net margin -19.7% (avg: 12%), ROE -38.9% (avg: 15%), current ratio 0.99 (avg: 1.8).