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Kotobuki Spirits Co., Ltd. (JP:2222)
:2222
Japanese Market
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Kotobuki Spirits Co., Ltd. (2222) AI Stock Analysis

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JP:2222

Kotobuki Spirits Co., Ltd.

(2222)

Rating:72Outperform
Price Target:
¥2,268.00
▲(15.27% Upside)
The overall stock score is primarily driven by the strong financial performance of Kotobuki Spirits Co., Ltd., with robust revenue growth and profitability. However, the technical analysis indicates weak market momentum, and the valuation suggests that the stock may be overvalued, both of which dampen the overall score.

Kotobuki Spirits Co., Ltd. (2222) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKotobuki Spirits Co., Ltd. (2222) is a Japanese company engaged in the manufacturing and sale of confectionery products. The company operates primarily in the food sector, offering a diverse range of sweets, cakes, and other confectionery items. Kotobuki Spirits is known for its innovative approach to traditional Japanese confections, blending time-honored techniques with modern tastes to appeal to a wide range of consumers.
How the Company Makes MoneyKotobuki Spirits Co., Ltd. generates revenue primarily through the sale of its confectionery products, both domestically and internationally. The company has a broad distribution network that includes retail stores, online platforms, and partnerships with other food and beverage companies. By leveraging its brand reputation and commitment to high-quality products, Kotobuki Spirits has established a strong market presence. Additionally, the company may engage in seasonal promotions and limited edition releases, which can drive sales during peak times such as holidays and festivals. Collaboration with other brands and expansion into new markets also contribute to its revenue streams.

Kotobuki Spirits Co., Ltd. Financial Statement Overview

Summary
Kotobuki Spirits Co., Ltd. exhibits a strong financial position with significant revenue growth, high profitability margins, efficient cost management, low leverage, and robust cash flows. These factors collectively indicate a solid financial performance.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue72.35B64.04B50.16B32.19B23.20B
Gross Profit44.80B39.80B30.11B17.62B11.64B
EBITDA19.10B16.83B11.42B4.10B946.60M
Net Income12.12B10.83B7.02B1.92B-569.63M
Balance Sheet
Total Assets51.98B46.51B36.95B27.47B25.05B
Cash, Cash Equivalents and Short-Term Investments26.08B23.69B17.16B9.91B7.31B
Total Debt300.00M300.00M440.15M725.86M965.74M
Total Liabilities11.89B11.29B10.44B7.11B5.71B
Stockholders Equity40.08B35.22B26.52B20.36B19.34B
Cash Flow
Free Cash Flow10.08B8.95B8.51B3.82B-580.46M
Operating Cash Flow13.20B10.85B9.09B4.29B82.90M
Investing Cash Flow-3.44B-2.00B-1.62B-526.87M-605.09M
Financing Cash Flow-7.37B-2.32B-1.22B-1.18B-462.90M

Kotobuki Spirits Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1967.50
Price Trends
50DMA
2095.23
Negative
100DMA
2182.32
Negative
200DMA
2166.11
Negative
Market Momentum
MACD
-39.07
Positive
RSI
36.94
Neutral
STOCH
15.74
Positive
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 1967.5 is below the 20-day moving average (MA) of 2025.20, below the 50-day MA of 2095.23, and below the 200-day MA of 2166.11, indicating a bearish trend. The MACD of -39.07 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.74 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥90.77B25.05
3.82%8.76%11.82%
74
Outperform
¥34.68B10.63
0.83%13.43%60.08%
73
Outperform
¥200.78B12.1614.37%2.46%7.31%21.56%
72
Outperform
¥300.03B24.60
1.56%12.31%10.55%
65
Neutral
¥64.75B38.68
1.18%5.37%-2.18%
64
Neutral
¥33.08B26.85
1.30%0.62%-32.02%
63
Neutral
$20.32B12.52-7.33%3.14%2.92%-10.01%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2222
Kotobuki Spirits Co., Ltd.
1,934.00
287.37
17.45%
JP:2211
Fujiya Co., Ltd.
2,532.00
-48.16
-1.87%
JP:2216
KANRO Co., Ltd.
1,985.00
1,131.99
132.71%
JP:2217
Morozoff Limited
1,567.00
134.85
9.42%
JP:2221
Iwatsuka Confectionery Co., Ltd.
3,015.00
491.44
19.47%
JP:2201
Morinaga & Co
2,447.50
-197.67
-7.47%

Kotobuki Spirits Co., Ltd. Corporate Events

Kotobuki Spirits Reports Modest Growth in Q1 2025 Financial Results
Aug 1, 2025

Kotobuki Spirits Co., Ltd. reported a modest increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 9.3% compared to the previous year. Despite a slight increase in operating and ordinary profits, the company’s profit attributable to owners of the parent grew by 1.7%. The company maintains a strong equity-to-asset ratio of 77.5%, indicating financial stability. The forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and profits, reflecting a positive outlook for the company’s future performance.

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 Increased Sales Amid Organizational Changes
Aug 1, 2025

Kotobuki Spirits Co., Ltd. reported its financial results for the first quarter of FY2026, showing an increase in net sales and gross profit compared to the previous year. Despite the growth in sales, the company experienced a slight decrease in operating profit, attributed to changes in gross profit rates and increased SG&A expenses. The organizational restructuring, including the merging of segments, is expected to streamline operations and potentially impact future financial performance.

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 Finalizes Treasury Stock Disposal for Remuneration
Jul 23, 2025

Kotobuki Spirits Co., Ltd. has completed the payment procedures for the disposal of treasury stock as restricted shares remuneration, as resolved by its Board of Directors. This move involves the disposal of 70,431 shares at a price of 2,065 yen per share, amounting to a total value of 145,440,015 yen, and is aimed at providing remuneration to select directors and executive employees, potentially impacting the company’s financial strategy and stakeholder interests.

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 9.3% Increase in Q1 Sales Amid Challenging Market Conditions
Jul 10, 2025

Kotobuki Spirits Co., Ltd. reported an estimated 9.3% year-on-year increase in sales for the first quarter of the fiscal year ending March 31, 2026, totaling 16,976 million yen. Despite challenges such as a slowdown in inbound consumption and sluggish personal consumption growth due to rising prices, the company focused on enhancing product value and sales capabilities, resulting in a 14.8% increase in inbound sales.

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 Announces Treasury Stock Disposal for Executive Incentives
Jun 24, 2025

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
May 13, 2025

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
May 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 16, 2025