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

• Market Cap: ¥280.41B
• Dividend Yield: 1.81%
• Average Volume (3M): 792.28K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.66
• Revenue Growth: 10.55%
• EPS Growth: 7.33%
• Country: JP
• Employees: 1,636
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 17.57
• Shares Outstanding: 155,658,400
• 10 Day Avg. Volume: 576,340
• 30 Day Avg. Volume: 792,280
• PEG Ratio: 2.59
• Price to Book (P/B): 9.42
• Price to Sales (P/S): 5.22
• P/FCF Ratio: 37.47
• 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: ¥2,550.00
• Price Target Upside: 37.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 83.86
• Revenue Forecast (FY): ¥79.11B

• Rating: 66 Neutral
• Price Target: ¥1,934.00 ▲(3.92% Upside)

Kotobuki Spirits Co., Ltd. has a strong financial foundation with impressive revenue growth and profitability, supported by a robust balance sheet and solid cash flow generation. However, the technical analysis indicates a bearish trend, with the stock trading below key moving averages, which tempers the overall score. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield providing some investor income.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and product adoption, enhancing long-term business prospects and competitiveness.

Balance Sheet Health

Low leverage and a high equity ratio provide financial stability and flexibility, supporting sustainable growth and resilience against economic downturns.

Cash Generation

Strong cash generation supports ongoing operations and potential investments, ensuring the company can capitalize on growth opportunities and manage risks effectively.

Negative Factors

Technical Analysis

A bearish technical trend may reflect underlying market concerns, potentially affecting investor confidence and impacting future capital raising efforts.

Dividend Yield

A modest dividend yield might not be attractive to income-focused investors, potentially limiting the stock's appeal in a competitive market.

Earnings Call Data

Lack of recent earnings call data may hinder transparency and investor communication, potentially affecting market perception and stakeholder confidence.

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

Company Description

Kotobuki Spirits Co., Ltd. (2222) is a prominent player in the Japanese beverages industry, specializing in the production and distribution of a diverse range of alcoholic beverages, including sake, shochu, and umeshu. The company is renowned for its commitment to traditional brewing techniques while also embracing innovative practices to cater to modern consumer preferences. With a focus on quality and craftsmanship, Kotobuki Spirits has established itself as a trusted name in both domestic and international markets, making significant contributions to Japan's rich cultural heritage in beverage production.

How the Company Makes Money

Kotobuki Spirits Co., Ltd. generates revenue primarily through the sale of its alcoholic beverages, which are distributed through a combination of direct sales to retailers, partnerships with distributors, and exports to international markets. Key revenue streams include retail sales of sake and shochu, with a growing emphasis on premium products that command higher price points. The company also benefits from strategic partnerships with restaurants, bars, and hospitality venues that feature its products, enhancing brand visibility and driving sales. Additionally, Kotobuki Spirits engages in marketing campaigns and participates in industry events, which contribute to customer acquisition and retention, ultimately bolstering its financial performance.

Kotobuki Spirits Co., Ltd. Financial Statement Overview

Summary

Kotobuki Spirits Co., Ltd. exhibits a strong financial position across its income statement, balance sheet, and cash flow metrics. The company has demonstrated significant revenue growth and improved profitability, supported by efficient cost management. A healthy balance sheet with low leverage and high equity ratio underscores its financial stability. Cash flows are strong, with positive free cash flow growth, indicating robust cash generation and financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.80B	72.35B	64.04B	50.16B	32.19B	23.20B
Gross Profit	45.39B	44.80B	39.80B	30.11B	17.62B	11.64B
EBITDA	19.10B	19.10B	16.83B	11.42B	4.10B	946.60M
Net Income	12.16B	12.12B	10.83B	7.02B	1.92B	-569.63M
Balance Sheet
Total Assets	48.31B	51.98B	46.51B	36.95B	27.47B	25.05B
Cash, Cash Equivalents and Short-Term Investments	22.95B	26.08B	23.69B	17.16B	9.91B	7.31B
Total Debt	541.00M	300.00M	300.00M	440.15M	725.86M	965.74M
Total Liabilities	10.86B	11.89B	11.29B	10.44B	7.11B	5.71B
Stockholders Equity	37.45B	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: 1861.00
• 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 1861 is above the 20-day moving average (MA) of 1853.13, above the 50-day MA of 1847.37, and below the 200-day MA of 2073.09, indicating a bearish trend. The MACD of -21.45 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 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
2201	76 Outperform	¥215.74B	12.30	13.33%	3.53%	4.21%	23.86%
2211	71 Outperform	¥66.37B	34.73	―	1.14%	8.17%	10.65%
2216	68 Neutral	¥64.34B	18.16	―	4.91%	7.74%	0.96%
2217	68 Neutral	¥32.51B	25.93	―	1.33%	0.24%	-25.90%
2221	66 Neutral	¥34.62B	15.10	―	0.83%	15.03%	-26.43%
2222	66 Neutral	¥280.41B	22.57	―	1.81%	10.55%	7.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Kotobuki Spirits Co., Ltd. Corporate Events

Kotobuki Spirits Reports Strong Sales Growth Amidst Challenging Conditions

Kotobuki Spirits Co., Ltd. reported an estimated 8.2% increase in second-quarter sales for the fiscal year ending March 2026, reaching ¥18,808 million. Despite challenges such as a slowdown in inbound tourism and consumer thriftiness due to inflation, the company implemented strategies to enhance product value and sales capabilities. The first half of the fiscal year saw an 8.7% increase in net sales, indicating a positive trajectory for the company amidst a challenging business environment.

The most recent analyst rating on (JP:2222) stock is a Buy with a Yen2650.00 price target. To see the full list of analyst forecasts on Kotobuki Spirits Co., Ltd. stock, see the JP:2222 Stock Forecast page.