Yakult Honsha Co (2267) AI Stock Analysis

• Market Cap: ¥766.46B
• Dividend Yield: 2.67%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.19
• Revenue Growth: -3.87%
• EPS Growth: -16.49%
• Country: JP
• Employees: 29,627
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 58.13
• Shares Outstanding: 308,285,250
• 10 Day Avg. Volume: 1,698,770
• 30 Day Avg. Volume: 2,742,059
• PEG Ratio: -2.26
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 27.80
• 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: ¥3,600.00
• Price Target Upside: 49.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 152.61
• Revenue Forecast (FY): ¥485.19B

• Rating: 68 Neutral
• Price Target: ¥2,917.00 ▲(21.44% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Yakult Honsha Co's strong financial performance is the most significant factor, supported by solid profitability and balance sheet metrics. However, technical analysis indicates a bearish trend, which could impact short-term performance. The valuation is fair, providing a balanced outlook for investors.

Positive Factors

Profitability Margins

Consistently high gross and net margins indicate durable pricing power and operational efficiency in Yakult's core probiotic beverage business. Margin strength supports reinvestment, dividend capacity and resilience to cost shocks, sustaining cash returns over a multi-quarter horizon.

Balance Sheet Strength

Low leverage and a strong equity base give Yakult financial flexibility to fund capex, R&D or M&A without straining liquidity. A healthy balance sheet reduces refinancing risk and supports strategic initiatives or cyclical volatility over the next several quarters.

Cash Generation

Reliable operating cash flow and solid free cash flow enable sustained investment in manufacturing and pharmaceuticals, support dividend payouts and allow debt reduction. Even with a recent FCF decline, strong cash conversion underpins financial durability.

Negative Factors

Revenue Decline

A multi-percent revenue contraction signals weakening top-line momentum that can limit scale benefits and future margin expansion. Without renewed product growth or market expansion, persistent revenue declines could constrain reinvestment and long-term earnings growth.

EPS Weakness

Material EPS contraction outpaces revenue decline, implying margin pressure or one-off impacts affecting profitability. Sustained EPS weakness reduces retained earnings available for capex or dividends and could signal structural cost or pricing challenges over coming quarters.

Concentrated Distribution Model

Heavy reliance on domestic retail and the Yakult Lady home-delivery network concentrates exposure to Japan's demand and labor/cost dynamics. This distribution concentration can limit scalability and leave growth dependent on slower domestic trends unless international expansion accelerates.

Yakult Honsha Co Business Overview & Revenue Model

Company Description

Yakult Honsha Co., Ltd. is a Japanese company that specializes in the production and sale of probiotic products, primarily known for its flagship product, Yakult, a fermented milk drink containing the probiotic strain Lactobacillus casei Shirota. Founded in 1935, the company operates in the health and wellness sector, focusing on functional foods and beverages that promote digestive health and overall well-being. Yakult's product range includes various probiotic drinks, dairy products, and supplements, catering to both domestic and international markets.

How the Company Makes Money

Yakult Honsha generates revenue primarily through the sale of its probiotic beverages and dairy products. The company's main revenue streams come from direct sales to consumers through its extensive distribution network, which includes supermarkets, convenience stores, and direct home delivery services. Additionally, Yakult has established partnerships with various retailers and health organizations to enhance its market reach. The company also benefits from international sales, expanding its footprint in various countries, which contributes significantly to its revenue. Furthermore, Yakult invests in research and development to innovate and introduce new products, thereby attracting more customers and increasing sales. The strong brand recognition and consumer trust in its health benefits further solidify its earnings.

Yakult Honsha Co Financial Statement Overview

Summary

Yakult Honsha Co presents a strong financial profile with high profitability margins and solid balance sheet metrics. The company exhibits prudent financial management with efficient operational cash flows. However, recent revenue decline could pose challenges for future growth.

Income Statement

Yakult Honsha Co demonstrates strong profitability with a consistent Gross Profit Margin and Net Profit Margin. However, there is a slight decrease in revenue observed in the most recent year compared to the previous year, indicating challenges in top-line growth. The EBIT and EBITDA margins are healthy, showing efficient operational management.

Balance Sheet

The balance sheet reflects a robust financial position with a low Debt-to-Equity ratio, indicating moderate leverage. The company maintains a strong Equity Ratio, suggesting financial stability and a solid asset base. Return on Equity is impressive, reflecting effective utilization of shareholder funds.

Cash Flow

Yakult Honsha Co shows steady operating cash flow with a healthy Free Cash Flow, although there is a decline from the previous year. The Operating Cash Flow to Net Income Ratio indicates efficient cash generation from operations. The Free Cash Flow to Net Income Ratio remains strong, supporting future investments and debt repayment.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	493.63B	499.68B	503.08B	483.07B	415.12B	385.71B
Gross Profit	290.45B	295.52B	299.91B	288.48B	248.42B	226.82B
EBITDA	86.96B	111.19B	108.87B	104.53B	93.93B	82.21B
Net Income	43.04B	45.53B	51.01B	50.64B	44.92B	39.27B
Balance Sheet
Total Assets	832.52B	864.32B	833.29B	749.42B	672.86B	635.10B
Cash, Cash Equivalents and Short-Term Investments	237.60B	269.06B	255.26B	241.19B	202.94B	176.25B
Total Debt	97.93B	108.10B	96.53B	77.14B	82.94B	99.25B
Total Liabilities	233.14B	234.80B	227.34B	203.93B	187.92B	195.34B
Stockholders Equity	545.61B	574.13B	549.28B	498.66B	446.07B	404.95B
Cash Flow
Free Cash Flow	0.00	31.00B	24.47B	56.23B	46.66B	32.16B
Operating Cash Flow	0.00	84.69B	70.70B	86.51B	73.39B	55.82B
Investing Cash Flow	0.00	-61.02B	-43.91B	-19.02B	-11.88B	-19.62B
Financing Cash Flow	0.00	-31.47B	-39.54B	-44.53B	-45.16B	-31.25B

Yakult Honsha Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2402.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2267, the sentiment is Positive. The current price of 2402 is below the 20-day moving average (MA) of 2607.88, below the 50-day MA of 2541.08, and below the 200-day MA of 2538.34, indicating a bullish trend. The MACD of 14.70 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 23.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2267.

Yakult Honsha Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2587	70 Outperform	¥1.52T	17.12	6.97%	2.42%	1.26%	-13.39%
2267	68 Neutral	¥766.46B	17.66	7.18%	2.67%	-3.87%	-16.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2269	62 Neutral	¥1.11T	23.73	5.97%	2.96%	2.79%	-6.46%
2264	59 Neutral	¥440.06B	31.87	―	2.42%	2.33%	-8.76%
2593	57 Neutral	¥311.74B	25.74	8.17%	1.49%	4.14%	9.91%
2590	51 Neutral	¥83.75B	-27.46	―	1.01%	6.00%	-139.78%

Yakult Honsha Co Corporate Events

Yakult Honsha Overhauls Director Stock Pay to Emphasize Long-Term Performance

Yakult Honsha has decided to overhaul its stock remuneration framework for internal directors by introducing a new system that combines non-performance-based and performance-based share awards. The move aims to better link executive pay with the company’s medium- to long-term corporate value and share price, thereby strengthening incentives for sustainable growth and closer alignment with shareholder interests.

Under the revised scheme, the ratio of fixed, short-term cash, and long-term stock incentives for eligible directors will shift from 70:15:15 to 60:15:25, increasing the weight of equity-based compensation. The company will use a Board Benefit Trust-Restricted Stock structure, with grants tied to factors such as responsibilities, contributions to performance, and indicators including ROE, relative TSR, and employee engagement, while imposing transfer restrictions on shares during directors’ tenure to reinforce long-term commitment.

The most recent analyst rating on (JP:2267) stock is a Hold with a Yen2582.00 price target. To see the full list of analyst forecasts on Yakult Honsha Co stock, see the JP:2267 Stock Forecast page.

Yakult Boosts Dividend With 90th Anniversary Payout and Unveils Share Buyback

Yakult Honsha has revised its dividend forecast to include a 90th anniversary commemorative payout, lifting the year-end dividend for the fiscal year ending March 31, 2026 to 37 yen per share and the annual dividend to 70 yen, up from the previous 66 yen projection. The move underscores its policy of progressive and continuously increasing ordinary dividends, while using the anniversary payment to deepen shareholder support.

In parallel, the company announced a share repurchase program of up to 7.5 million shares, or about 2.56% of outstanding stock, with a maximum budget of 15 billion yen to be executed between February 12 and June 18, 2026. Together with a planned cancellation of treasury shares, these actions are designed to improve capital efficiency, reduce excess liquidity, and enhance shareholder returns under its 2025–2030 medium-term management plan.

The most recent analyst rating on (JP:2267) stock is a Hold with a Yen2582.00 price target. To see the full list of analyst forecasts on Yakult Honsha Co stock, see the JP:2267 Stock Forecast page.

Yakult Honsha Issues Supplementary Materials for Q3 FY2025 Financial Results

Yakult Honsha released supplementary materials for its financial statements covering the third quarter of the fiscal year ending December 31, 2025, detailing consolidated balance sheets, income statements, segment information and overseas dairy product sales volumes. The document also provides non-consolidated breakdowns of income and sales, along with notes on how monetary units, quantities and year-on-year percentages are presented, supporting clearer analysis by investors and other stakeholders.

The most recent analyst rating on (JP:2267) stock is a Hold with a Yen2582.00 price target. To see the full list of analyst forecasts on Yakult Honsha Co stock, see the JP:2267 Stock Forecast page.

Yakult Honsha Posts Lower Q3 Profits but Raises Dividend Forecast for FY2025

Yakult Honsha reported consolidated net sales of ¥371.8 billion for the third quarter of fiscal 2025, down 3.8% year on year, with operating profit falling 19.3% to ¥40.9 billion and ordinary profit down 19.0% to ¥55.7 billion. Profit attributable to owners of the parent slipped 4.6% to ¥41.6 billion, while total assets rose to ¥881.3 billion and the equity ratio remained robust at 65.7%, indicating a solid financial base despite weaker earnings.

The company revised its dividend forecast for fiscal 2025, planning a higher year-end payout of ¥37 per share including a ¥4 commemorative dividend, bringing the annual dividend to ¥70 per share. It left its full-year earnings forecast unchanged, signaling management’s confidence in meeting current guidance even as sales and profits soften, a stance that may reassure shareholders but highlights ongoing margin pressures in its core business.

The most recent analyst rating on (JP:2267) stock is a Hold with a Yen2582.00 price target. To see the full list of analyst forecasts on Yakult Honsha Co stock, see the JP:2267 Stock Forecast page.