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Asahi Group Holdings,Ltd. (ASBRF)
:ASBRF
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Positive Factors
Market Expansion
In Oceania, its recently launched Hard Rated alcoholic lemon drink quickly achieved the #1 market share in the ready-to-drink (RTD) category.
Revenue Growth
The company expects revenue growth driven by price mix improvements and premium category expansion, with Japan and Europe being key drivers.
Shareholder Returns
Focus on shareholder returns from a combination of progressive dividend growth and share buybacks, with a projected 6% increase in dividends.
Negative Factors
Cost Efficiency
Slower-than-expected progress in achieving cost efficiency savings is a key risk for the company.
Currency Risk
A stronger-than-expected JPY and continued market softness in Oceania are key risks that could impact Asahi's performance.
Profit Decline
The company's profit attributable to shareholders is expected to decline, excluding one-off gains and higher finance costs.
Asahi Group Holdings (ASBRF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.94B
Dividend Yield2.37%
Average Volume (3M)66.00
Price to Earnings (P/E)16.3
Beta (1Y)-0.05
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees28,173
SectorConsumer Defensive
Sector Strength63
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.10
Shares Outstanding1,521,010,100
10 Day Avg. Volume0
30 Day Avg. Volume66
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio14.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.03Price Target Upside26.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Asahi Group Holdings Business Overview & Revenue Model
Company DescriptionAsahi Group Holdings, Ltd., together with its subsidiaries, manufactures and sells alcoholic beverages, soft drinks, and food products in Japan and internationally. It operates through Alcohol Beverages, Soft Drinks, Food, Overseas, and Others segments. The company offers alcoholic beverage products, including imported beers, non-alcohol beer taste beverages, wines, shochu and whiskey products, ready-to-drink beverages, happoshu products, and spirits. It also provides soft drink beverages, such as ciders, carbonated soda water beverages, coffee, tea, lactic acid drinks, mineral waters, sports drinks, and fruit juices. In addition, the company offers food products comprising confectioneries, health foods, supplements, yeast extracts, powdered milk products for infants and baby foods, skin care, and others; and freeze-dried foods, including miso and other soups, porridge, risotto, stews, bowls, pastas, and curries. It provides its products primarily under the Asahi Super Dry, Clear Asahi, Black Nikka, Asahi Dry Zero, Mitsuya Cider, Wilkinson, Wonda, Asahi Juroku-cha, Asahi Oishii Mizu, Calpis, Mintia, Dear-Natura, Peroni Nastro Azzurro, Pilsner Urquell, Cool Ridge, Schweppes, Asahi Gokujo Kire Aji, Wilkinson Highball, Asahi THE RICH, Prime Rich, Zeitaku Shibori, Style Free, Zeitaku Zero, Asahi Off, HATARAKU ATAMANI, WAKODO GLOBAL, Juhinmoku no Ippai, Carlton, Great Northern, Pirate Life, Lech Free, Kozel, Ksiazece, Captain Jack, Zubr, Tyskie, and Ippon Manzoku Bar brands. Further, it is involved in the operation of restaurants; and offers fertilizers, and microbiological and biochemical products. The company was formerly known as Asahi Breweries, Ltd. and changed its name to Asahi Group Holdings, Ltd. in July 2011. Asahi Group Holdings, Ltd. was founded in 1889 and is headquartered in Tokyo, Japan.
How the Company Makes Money
Asahi Group Holdings Financial Statement Overview
Summary
Asahi Group Holdings exhibits strong revenue and profit growth, with robust operational efficiency and cost management. The balance sheet is stable with moderate leverage, while cash flows are solid, ensuring financial flexibility. Continued focus on debt management and profitability will sustain this positive trajectory.Income Statement
Asahi Group Holdings has demonstrated strong revenue growth over the years, with a notable increase of approximately 6.15% from 2023 to 2024. The gross profit margin stands at 37.34% for 2024, indicating efficient cost management. The net profit margin improved to 6.54% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins are healthy at 9.70% and 14.53% respectively, reflecting strong operational performance.85
Very Positive
Balance Sheet
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.48 in 2024, indicating moderate leverage. The return on equity is strong at 7.20%, reflecting effective use of equity to generate profits. The equity ratio of 49.38% suggests a balanced capital structure with a substantial portion of assets financed by equity. However, the relatively high total liabilities warrant careful monitoring.78
Positive
Cash Flow
Operating cash flow increased significantly, supporting a healthy free cash flow growth rate of 24.24% from 2023 to 2024. The operating cash flow to net income ratio is robust at 2.10, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.54, reflecting efficient conversion of profits into cash flow. Overall, the cash flow position is solid, enhancing financial flexibility.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.95T | 2.94T | 2.77T | 2.51T | 2.24T | 2.03T | Gross Profit |
| 1.10T | 1.10T | 923.66B | 921.84B | 852.88B | 744.61B | EBIT |
| 286.52B | 285.12B | 263.68B | 217.05B | 211.90B | 135.17B | EBITDA |
| 440.94B | 426.99B | 407.98B | 366.42B | 329.07B | 265.42B | Net Income Common Stockholders |
| 189.77B | 192.08B | 164.07B | 151.56B | 153.50B | 92.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 68.92B | 101.04B | 59.95B | 47.47B | 59.86B | 52.69B | Total Assets |
| 5.27T | 5.40T | 5.29T | 4.83T | 4.55T | 4.44T | Total Debt |
| 1.51T | 1.28T | 1.41T | 1.50T | 1.60T | 1.82T | Net Debt |
| 1.44T | 1.20T | 1.35T | 1.46T | 1.54T | 1.78T | Total Liabilities |
| 2.72T | 2.73T | 2.82T | 2.77T | 2.79T | 2.92T | Stockholders Equity |
| 2.54T | 2.67T | 2.46T | 2.06T | 1.76T | 1.52T |
| Cash Flow | Free Cash Flow | ||||
| 197.21B | 295.40B | 237.72B | 166.15B | 245.18B | 185.12B | Operating Cash Flow |
| 315.16B | 403.72B | 347.55B | 265.99B | 337.81B | 275.86B | Investing Cash Flow |
| -109.52B | -118.67B | -117.71B | -69.19B | -14.35B | -1.24T | Financing Cash Flow |
| -198.10B | -272.78B | -226.75B | -219.56B | -320.32B | 956.76B |
Asahi Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| $19.94B | 16.33 | 7.40% | 2.37% | ― | ― | ||
65 Neutral | $8.89B | 15.01 | 4.75% | 203.76% | 3.54% | -2.49% | |
| $11.63B | 28.11 | 4.91% | 3.58% | ― | ― | ||
| $6.10B | 18.24 | 6.71% | 2.98% | ― | ― | ||
| $3.93B | 110.98 | 2.87% | 0.68% | ― | ― | ||
| $9.93B | 17.02 | 7.61% | 2.26% | ― | ― | ||
79 Outperform | ¥247.88B | 15.30 | 2.44% | 6.87% | 1.26% |
* Consumer Defensive Sector Average
Performance Comparison
ASBRF
Asahi Group Holdings
13.44
1.28
10.53%
KNBWF
Kirin Holdings Company
12.85
-0.81
-5.93%
MEJHF
Meiji Holdings Co
22.24
0.32
1.46%
SOOBF
Sapporo Holdings
50.53
15.11
42.66%
STBFF
Suntory Beverage & Food
32.32
-2.89
-8.21%
JP:2531
Takara Holdings Inc.
1,269.50
236.67
22.91%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.