Kotobuki Spirits Co., Ltd. (2222) AI Stock Analysis

• Market Cap: ¥328.43B
• Dividend Yield: 1.52%
• Average Volume (3M): 567.39K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.75
• Revenue Growth: 12.98%
• EPS Growth: 12.03%
• Country: JP
• Employees: 1,636
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Food Confectioners
• EPS (TTM): 20.01
• Shares Outstanding: 155,658,400
• 10 Day Avg. Volume: 732,620
• 30 Day Avg. Volume: 567,390
• PEG Ratio: 0.16
• Price to Book (P/B): 11.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.28
• 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: ¥2,800.00
• Price Target Upside: 32.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥2,300.00 ▲(9.00%Upside)

Kotobuki Spirits Co., Ltd. has a strong financial foundation, characterized by solid revenue growth and profitability, which is the most significant factor driving the score. However, the current technical analysis indicates weak market momentum, which weighs down the overall score. The valuation is reasonable but not compelling enough to offset the technical concerns.

Kotobuki Spirits Co., Ltd. Business Overview & Revenue Model

Company Description

Kotobuki Spirits Co., Ltd. produces and sells sweets and confectionary products in Japan. It also offers cookies, cakes, and chocolate products. The company was incorporated in 1952 and is based in Yonago, Japan.

How the Company Makes Money

Kotobuki Spirits Co., Ltd. generates revenue predominantly through the sale of its confectionery products. The company's key revenue streams include domestic and international distribution of its sweets and snacks, which are sold through various channels such as retail stores, supermarkets, and online platforms. Additionally, the company may form strategic partnerships with other food and beverage entities to expand its market reach and enhance its product offerings. By leveraging its brand reputation and commitment to high-quality products, Kotobuki Spirits aims to maintain and grow its customer base, contributing to its financial performance.

Kotobuki Spirits Co., Ltd. Financial Statement Overview

Summary

Kotobuki Spirits Co., Ltd. demonstrates strong financial performance with impressive revenue growth, robust profitability, and efficient cost management. The low leverage and high equity ratio enhance its financial stability. Overall, the company is well-positioned in its industry.

Income Statement

Kotobuki Spirits Co., Ltd. has shown a strong improvement in its financial performance. The gross profit margin for the latest period is approximately 61.95%, indicating efficient cost management relative to revenue. The net profit margin stands at 16.75%, reflecting solid profitability. Revenue growth has been impressive, with a 12.98% increase from the previous year, showcasing the company's ability to expand its market presence. The EBIT margin is 24.34%, and the EBITDA margin is 26.40%, both demonstrating strong operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio of 0.01, indicating low leverage and conservative financial management. Return on equity (ROE) is 30.24%, which is excellent and highlights the company's ability to generate returns for shareholders. The equity ratio is 77.13%, suggesting a solid capital structure with a high proportion of equity financing. The strong equity position enhances financial stability.

Cash Flow

The cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 12.60%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 1.09, suggesting that the company efficiently converts its earnings into cash. The free cash flow to net income ratio is 0.83, reflecting good cash profitability. Overall, the cash flow position is solid, supporting ongoing operations and potential investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	70.81B	72.35B	64.04B	50.16B	32.19B	23.20B
Gross Profit	44.11B	44.80B	39.80B	30.11B	17.62B	11.64B
EBITDA	18.69B	19.10B	16.83B	11.42B	4.10B	946.60M
Net Income	11.96B	12.12B	10.83B	7.02B	1.92B	-569.63M
Balance Sheet
Total Assets	51.18B	51.98B	46.51B	36.95B	27.47B	25.05B
Cash, Cash Equivalents and Short-Term Investments	23.34B	26.08B	23.69B	17.16B	9.91B	7.31B
Total Debt	300.00M	300.00M	300.00M	440.15M	725.86M	965.74M
Total Liabilities	11.23B	11.89B	11.29B	10.44B	7.11B	5.71B
Stockholders Equity	39.95B	40.08B	35.22B	26.52B	20.36B	19.34B
Cash Flow
Free Cash Flow	0.00	10.08B	8.95B	8.51B	3.82B	-580.46M
Operating Cash Flow	0.00	13.20B	10.85B	9.09B	4.29B	82.90M
Investing Cash Flow	0.00	-3.44B	-2.00B	-1.62B	-526.87M	-605.09M
Financing Cash Flow	0.00	-7.37B	-2.32B	-1.22B	-1.18B	-462.90M

Kotobuki Spirits Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2110.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2222, the sentiment is Negative. The current price of 2110 is below the 20-day moving average (MA) of 2169.13, below the 50-day MA of 2195.25, and below the 200-day MA of 2130.05, indicating a bearish trend. The MACD of -41.40 indicates Positive momentum. The RSI at 42.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2222.

Kotobuki Spirits Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2221	74 Outperform	¥34.26B	10.56		0.84%	13.43%	60.07%
2222	68 Neutral	¥328.43B	27.05		1.52%	12.98%	12.03%
Sector *	65 Neutral	$26.88B	15.06	-4.01%	3.23%	1.02%	2.11%
MGAAF		$1.35B	12.42	13.35%	0.02%	―	―
2216	69 Neutral	¥69.28B	19.44		2.43%	11.18%	28.19%
2211	65 Neutral	¥61.83B	38.12		1.25%	3.75%	44.95%
2217	59 Neutral	¥33.57B	27.25		1.80%	0.62%	-32.02%

Kotobuki Spirits Co., Ltd. Corporate Events

Kotobuki Spirits Announces Treasury Stock Disposal for Executive Incentives

Kotobuki Spirits Co., Ltd. has announced a strategic move to dispose of treasury stock as part of a restricted shares remuneration plan aimed at incentivizing directors and executive employees. This initiative is designed to align the interests of the company’s leadership with shareholders by promoting long-term value sharing, with a significant transfer restriction period of 60 years to ensure commitment.

The most recent analyst rating on (JP:2222) stock is a Buy with a Yen2800.00 price target. To see the full list of analyst forecasts on Kotobuki Spirits Co., Ltd. stock, see the JP:2222 Stock Forecast page.

Kotobuki Spirits Introduces Restricted Shares Remuneration System

Kotobuki Spirits Co., Ltd. has introduced a restricted shares remuneration system for its senior management employees, aimed at incentivizing them to increase the company’s corporate value and align their interests with those of shareholders. This system involves the issuance or disposal of common shares under certain conditions, including transfer restrictions and management of shares in special accounts to ensure compliance with the restriction period.

The most recent analyst rating on (JP:2222) stock is a Buy with a Yen2800.00 price target. To see the full list of analyst forecasts on Kotobuki Spirits Co., Ltd. stock, see the JP:2222 Stock Forecast page.

Kotobuki Spirits Achieves Record Sales and Profits Amid Strategic Expansion

Kotobuki Spirits Co., Ltd. reported record high sales and profits for the third consecutive period, driven by increased inbound sales and strategic store openings. Despite challenges such as rising labor costs and raw material prices, the company successfully expanded its market presence and improved financial performance, indicating strong industry positioning and positive implications for stakeholders.

The most recent analyst rating on (JP:2222) stock is a Buy with a Yen2800.00 price target. To see the full list of analyst forecasts on Kotobuki Spirits Co., Ltd. stock, see the JP:2222 Stock Forecast page.

Kotobuki Spirits Reports Strong Sales Growth Amidst Challenging Environment

Kotobuki Spirits Co., Ltd. announced an estimated 13.0% increase in full-year sales for the fiscal year ending March 31, 2025, reaching 72,342 million yen. This growth is attributed to strong inbound sales and new store openings, despite a challenging business environment with cooling consumer confidence due to rising prices. Inbound sales, particularly at international terminals, saw a significant year-on-year increase of 40.6%, surpassing the 10 billion yen mark for the first time and achieving the company’s mid-term target ahead of schedule.

Kotobuki Spirits Revises Dividend Forecast Upward

Kotobuki Spirits Co., Ltd. announced a revision of its dividend forecast for the fiscal year ending March 31, 2025, increasing the dividend from 28 yen to 32 yen per share. This decision reflects the company’s strong business performance and commitment to shareholder returns, with the revised dividend to be proposed at the upcoming Ordinary General Shareholders Meeting in June 2025.