Bourbon Corporation (2208) AI Stock Analysis

• Market Cap: ¥65.35B
• Dividend Yield: 1.55%
• Average Volume (3M): 10.35K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.20
• 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: 76 Outperform
• Price Target: ¥3,105.00 ▲(18.92% Upside)

Bourbon Corporation's strong financial performance, particularly in revenue growth and balance sheet strength, is a key positive factor. The valuation is attractive with a reasonable P/E ratio and a decent dividend yield. However, technical indicators suggest mixed momentum, with short-term bullishness but potential overbought conditions. Cash flow challenges remain a concern, highlighting the need for improved cash generation.

Positive Factors

Conservatively levered balance sheet

Very low debt-to-equity (~0.05) provides durable financial flexibility. This reduces bankruptcy and refinancing risk, supports steady capital allocation (capex, dividends, M&A), and allows the company to weather demand shocks without relying on external financing.

Improving profitability vs. 2023

A material recovery in operating and net margins indicates improved cost structure, pricing power, or mix shift. Sustained margin improvement can convert modest revenue growth into stronger earnings, enhancing cash generation and capacity to invest or return capital over the medium term.

Revenue recovery trend

Consistent revenue growth after a prior decline suggests stabilizing demand and potential market share recovery. Durable top-line improvement provides a platform for operating leverage and margin expansion if maintained through product competitiveness or distribution strength.

Negative Factors

Thin free cash flow conversion

Low FCF-to-net-income weakens earnings quality; reported profits are not reliably translating into cash. That constrains sustainable dividends, buybacks, or debt reduction, and reduces the firm's ability to self-fund growth without external financing over the medium term.

Volatile free cash flow swings

Year-to-year FCF volatility complicates planning and increases financial risk. Irregular cash generation can force precautionary liquidity buffers, curtail capital investment, or necessitate short-term borrowing in downturns, reducing long-run capital efficiency and strategic optionality.

Moderate return on equity

ROE of ~8% signals only moderate capital efficiency despite improvement. Without sustained margin expansion or faster revenue growth, the company may struggle to generate high shareholder returns relative to peers, limiting long-term upside from current operations.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	113.47B	103.72B	97.38B	94.45B	118.44B
Gross Profit	29.11B	24.48B	21.96B	24.00B	50.26B
EBITDA	13.11B	9.26B	6.45B	9.24B	8.98B
Net Income	5.57B	3.07B	1.10B	3.37B	3.17B
Balance Sheet
Total Assets	95.84B	94.23B	87.63B	83.26B	78.87B
Cash, Cash Equivalents and Short-Term Investments	17.39B	19.59B	16.18B	16.79B	14.79B
Total Debt	3.86B	5.34B	5.75B	1.07B	1.36B
Total Liabilities	34.34B	37.80B	34.09B	30.48B	28.31B
Stockholders Equity	61.49B	56.43B	53.54B	52.79B	50.56B
Cash Flow
Free Cash Flow	-294.00M	4.46B	-3.60B	3.18B	2.29B
Operating Cash Flow	6.53B	9.81B	2.12B	8.09B	8.05B
Investing Cash Flow	-6.47B	-5.29B	-6.74B	-5.12B	-5.63B
Financing Cash Flow	-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: Negative
• STOCH: Neutral

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 2697.80, above the 50-day MA of 2575.34, and above the 200-day MA of 2547.42, indicating a bullish trend. The MACD of 58.98 indicates Negative momentum. The RSI at 77.11 is Negative, neither overbought nor oversold. The STOCH value of 56.74 is Neutral, 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
2208	76 Outperform	¥65.35B	12.39	―	1.55%	5.78%	14.23%
2209	75 Outperform	¥32.59B	12.40	―	1.23%	6.74%	29.20%
2211	71 Outperform	¥65.96B	34.52	―	1.14%	8.17%	10.65%
2216	68 Neutral	¥73.04B	20.62	―	4.63%	7.74%	0.96%
2217	68 Neutral	¥32.81B	36.18	―	1.35%	0.87%	-50.41%
2221	66 Neutral	¥35.32B	15.40	―	0.84%	15.03%	-26.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%