Bourbon Corporation (2208) AI Stock Analysis

• Market Cap: ¥78.56B
• Dividend Yield: 1.55%
• Average Volume (3M): 10.35K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.24
• Revenue Growth: 5.78%
• EPS Growth: 14.23%
• Country: JP
• Employees: 4,211
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 94.95
• Shares Outstanding: 27,700,000
• 10 Day Avg. Volume: 8,730
• 30 Day Avg. Volume: 10,350
• PEG Ratio: 0.14
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -207.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,689.00 ▲(41.29% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by improving profitability and a strong, low-debt balance sheet, tempered by weak and volatile free cash flow conversion. Technicals are supportive with price above key moving averages and positive MACD, while valuation appears reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Conservative balance sheet / low leverage

Very low debt (TTM debt-to-equity ~0.05) and a sizable equity base give durable financial flexibility. This reduces refinancing and interest-rate risk, enabling investment or buffer through cycles while supporting the recent profitability recovery without leveraging returns.

Improving profitability

Meaningful margin improvement versus 2023 reflects lasting operational progress in cost control or pricing. Sustained higher margins increase earnings quality and provide room to fund reinvestment or returns, supporting a structurally stronger profit profile over coming quarters.

Revenue recovery trend

A multi-year revenue recovery indicates regained demand or market share after the 2023 trough. Steady top-line improvement underpins margin gains and supports scale economics, making the earnings recovery more durable if the company sustains underlying sales momentum.

Negative Factors

Thin, volatile free cash flow

Low FCF-to-net-income conversion and large swings (positive in 2024, negative in 2025, TTM recovered) reduce confidence that earnings convert into cash. This limits durable capacity to fund capex, dividends or buybacks and raises sensitivity to working-capital shocks.

Moderate returns on capital

ROE improved but remains in the mid-single digits, suggesting the business currently generates only modest returns on invested capital. Persistently moderate returns can constrain long-term value creation unless the company sustains further margin or asset-efficiency improvements.

Margins still modest and slightly softening

Despite improvement from 2023, margins are modest and have softened versus the latest annual, indicating lingering cost or pricing pressure. Structural margin weakness limits free cash generation and exposes profitability to input-cost increases or competitive pricing dynamics.

Bourbon Corporation Business Overview & Revenue Model

Company Description

Bourbon Corporation manufactures and sells food and beverage products in Japan and internationally. The company offers cookies, wheat flour crackers, bean snacks, candies, deserts, rice biscuits, snacks, delicacies, chocolates, chewing gums, mineral water, coffee, cocoa beverages, and other soft drinks; and powdered cocoa, liquor, rice, bread, and instant ramen. It markets its products through vending machines and mail orders. The company was formerly known as Kitanihon Shokuhin Kogyo Corporation and changed its name to Bourbon Corporation in June 1989. Bourbon Corporation was founded in 1924 and is headquartered in Kashiwazaki, Japan.

How the Company Makes Money

Bourbon Corporation generates revenue primarily through the sale of its confectionery products. The company's key revenue streams include wholesale distribution to retailers, direct sales through its own branded stores, and online sales via e-commerce platforms. Bourbon Corporation also benefits from strategic partnerships with major retailers and distributors, which help to expand its market reach. Additionally, the company invests in marketing and product innovation to drive sales and maintain its competitive edge in the confectionery sector.

Bourbon Corporation Financial Statement Overview

Summary

Earnings have recovered with improved operating and net margins versus 2023 and a very conservatively levered balance sheet, but free cash flow conversion is thin and has been volatile, reducing confidence in the quality and durability of the earnings improvement.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up ~2.8%, extending a multi-year recovery from the 2023 decline, with annual revenue also trending higher versus 2024. Profitability has improved meaningfully versus 2023, with stronger operating and net margins (TTM net margin ~4.5% vs ~1.1% in 2023) and solid EBITDA profitability. However, margins remain modest for the sector and softened slightly versus the latest annual period (TTM vs 2025 annual), suggesting some cost or pricing pressure.

Balance Sheet

The balance sheet is conservatively positioned with low leverage (TTM debt-to-equity ~0.05, down from ~0.11 in 2023) and a sizable equity base relative to assets. Returns have improved alongside earnings, with TTM return on equity around 8.1% (up from ~2.0% in 2023), indicating better profitability without relying on debt. The main limitation is that returns are still moderate rather than exceptional, which may cap valuation upside unless profitability continues to expand.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in TTM, but free cash flow is relatively thin (TTM free cash flow ~1.5B vs net income ~5.3B), and the free-cash-flow-to-net-income conversion is low, implying reinvestment needs or working-capital drag. Volatility is also notable: free cash flow swung from strong positive in 2024 to negative in 2025 annual, while TTM recovered to positive again—creating lower confidence in steady cash yield despite improving earnings.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	118.35B	113.47B	103.72B	97.38B	94.45B	118.44B
Gross Profit	29.36B	29.11B	24.48B	21.96B	24.00B	50.26B
EBITDA	12.68B	13.11B	9.26B	6.45B	9.24B	8.98B
Net Income	5.31B	5.57B	3.07B	1.10B	3.37B	3.17B
Balance Sheet
Total Assets	99.71B	95.84B	94.23B	87.63B	83.26B	78.87B
Cash, Cash Equivalents and Short-Term Investments	15.96B	17.39B	19.59B	16.18B	16.79B	14.79B
Total Debt	2.93B	3.86B	5.34B	5.75B	1.07B	1.36B
Total Liabilities	35.21B	34.34B	37.80B	34.09B	30.48B	28.31B
Stockholders Equity	64.50B	61.49B	56.43B	53.54B	52.79B	50.56B
Cash Flow
Free Cash Flow	1.52B	-294.00M	4.46B	-3.60B	3.18B	2.29B
Operating Cash Flow	7.04B	6.53B	9.81B	2.12B	8.09B	8.05B
Investing Cash Flow	-5.70B	-6.47B	-5.29B	-6.74B	-5.12B	-5.63B
Financing Cash Flow	-2.29B	-2.23B	-1.18B	3.97B	-1.08B	-932.00M

Bourbon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2611.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2208, the sentiment is Positive. The current price of 2611 is below the 20-day moving average (MA) of 3130.45, below the 50-day MA of 2851.10, and above the 200-day MA of 2600.43, indicating a bullish trend. The MACD of 138.69 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 88.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2208.

Bourbon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2201	76 Outperform	¥230.21B	12.04	13.33%	3.47%	4.21%	23.86%
2207	75 Outperform	¥45.41B	14.66	―	1.51%	5.86%	57.87%
2209	75 Outperform	¥32.71B	13.34	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥78.56B	14.90	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥59.89B	16.47	―	4.63%	7.74%	0.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2211	49 Neutral	¥63.43B	31.23	―	1.14%	8.17%	10.65%