Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: $556.74B
• Dividend Yield: 0.73%
• Average Volume (3M): 262.88K
• Price to Earnings (P/E): 101.8
• Beta (1Y): 0.60
• Revenue Growth: 2.69%
• EPS Growth: -47.13%
• Country: JP
• Employees: 6,402
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Beverages - Alcoholic
• EPS (TTM): -54.18
• Shares Outstanding: 78,794,300
• 10 Day Avg. Volume: 183,390
• 30 Day Avg. Volume: 262,880
• PEG Ratio: -3.37
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.73
• 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: $7,675.76
• Price Target Upside: 7.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥7,850.00 ▲(9.84%Upside)

Sapporo Holdings' overall stock score reflects strong financial performance and stable cash flows, which are offset by a high P/E ratio suggesting overvaluation and a neutral technical outlook. The company's solid fundamentals in the alcoholic beverages industry provide a foundation for growth, but the current stock price may be higher than its intrinsic value.

Sapporo Holdings Business Overview & Revenue Model

Company Description

Sapporo Holdings (2501) is a leading Japanese beverage and food company with a focus on the production and distribution of alcoholic beverages, soft drinks, and food products. The company operates through several segments, including Alcoholic Beverages, Soft Drinks, Restaurants, and Real Estate, with its flagship Sapporo Beer being widely recognized. Sapporo Holdings has a strong presence in both domestic and international markets, leveraging its heritage and expertise in brewing to deliver high-quality products.

How the Company Makes Money

Sapporo Holdings generates revenue through multiple channels, primarily from its Alcoholic Beverages segment, which includes the sale of beer, wine, and spirits. The company's iconic Sapporo Beer brand is a significant contributor to its earnings, both in Japan and in overseas markets. Additionally, the Soft Drinks segment provides revenue through the sale of non-alcoholic beverages. Sapporo Holdings also operates a Restaurant segment that includes a chain of dining establishments, contributing to its income. Furthermore, the company's Real Estate segment generates rental income from property holdings. Strategic partnerships and collaborations, as well as a focus on expanding its product offerings and market reach, further bolster Sapporo Holdings' revenue streams.

Sapporo Holdings Financial Statement Overview

Summary

Sapporo Holdings demonstrates steady financial performance with strong revenue growth and profitability improvement. The balance sheet reflects stability, though careful attention to debt levels is warranted. Cash flows are healthy, supporting overall financial health. The company appears well-positioned for continued growth in the alcoholic beverages industry.

Income Statement

Sapporo Holdings shows a positive revenue growth trend, increasing from 478.42B to 536.70B JPY over the past years. The TTM Gross Profit Margin stands at 31.3%, indicating strong profitability, and the Net Profit Margin improved to 1.0% from the previous year. However, the EBIT and EBITDA margins show slight fluctuations. Overall, the company's income statement reflects solid revenue growth and improving profitability.

Balance Sheet

The company's Debt-to-Equity Ratio is moderately high, with total debt slightly increasing. Stockholders' equity improved to 184.19B JPY, enhancing the Equity Ratio to 29.0% in the TTM. Return on Equity is relatively low at 3.0%, but the equity base is strengthening. Balance sheet stability is evident, although leverage remains a potential concern.

Cash Flow

Operating cash flow has been robust, reaching 39.72B JPY in the TTM, and Free Cash Flow showed a significant increase, reflecting a positive trend. The Free Cash Flow to Net Income Ratio of 4.32 indicates efficient cash generation. Nonetheless, fluctuations in investing and financing cash flows suggest careful monitoring is needed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	530.78B	518.63B	478.42B	437.16B	434.72B
Gross Profit	164.92B	156.84B	139.24B	133.78B	132.13B
EBITDA	37.48B	36.22B	34.38B	45.43B	9.11B
Net Income	7.71B	8.72B	5.45B	12.33B	-16.61B
Balance Sheet
Total Assets	664.96B	663.57B	639.12B	594.55B	616.35B
Cash, Cash Equivalents and Short-Term Investments	24.14B	21.60B	23.83B	21.35B	25.19B
Total Debt	236.58B	245.62B	263.20B	220.07B	268.15B
Total Liabilities	467.81B	480.32B	471.92B	431.22B	466.80B
Stockholders Equity	196.03B	182.31B	166.31B	162.57B	149.78B
Cash Flow
Free Cash Flow	18.44B	27.02B	-1.81B	17.12B	3.95B
Operating Cash Flow	36.11B	45.45B	7.81B	30.31B	16.47B
Investing Cash Flow	-5.84B	-16.44B	-46.14B	20.73B	-16.00B
Financing Cash Flow	-25.37B	-27.14B	36.47B	-53.08B	4.14B

Sapporo Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7147.00
• 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:2501, the sentiment is Negative. The current price of 7147 is below the 20-day moving average (MA) of 7182.80, below the 50-day MA of 7289.56, and below the 200-day MA of 7647.42, indicating a bearish trend. The MACD of -113.66 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 46.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2501.

Sapporo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2502	71 Outperform	$2.92T	15.30	7.40%	2.76%	4.38%	13.44%
Sector *	68 Neutral	¥195.01B	21.39	8.29%	2.29%	4.93%	0.78%
2587	67 Neutral	¥1.42T	15.99	7.61%	2.50%	3.98%	0.28%
2501	64 Neutral	$556.74B	101.81	2.87%	0.73%	2.69%	-47.13%
2590	63 Neutral	¥86.64B	23.09		0.93%	8.00%	-127.55%
2579	63 Neutral	¥417.12B	116.75	0.85%	2.40%	2.62%	-33.99%
2503	63 Neutral	$1.60T	28.25	4.91%	3.63%	9.00%	-57.41%

Sapporo Holdings Corporate Events

Sapporo Holdings Reports Q1 2025 Financial Results with Revenue Growth Amid Losses

Sapporo Holdings reported its consolidated financial results for the first quarter of 2025, showing a revenue increase of 5.2% compared to the previous year. Despite the revenue growth, the company experienced a net loss, with a profit attributable to owners of the parent at a negative 4,222 million yen. The company’s financial position showed a slight decrease in total assets and equity compared to the end of 2024. The dividend forecast for 2025 remains unchanged, with a projected year-end dividend of 60 yen per share, indicating a focus on maintaining shareholder returns despite current financial challenges.

Sapporo Holdings Announces Treasury Stock Disposition for Board Benefit Trust

Sapporo Holdings Limited has announced a decision to dispose of its treasury stock through a third-party allotment as part of an additional contribution to its Board Benefit Trust (BBT) plan. This move aims to provide performance-linked stock compensation to its directors and managing officers, enhancing their motivation to improve business performance and increase corporate value. The disposition involves 6,000 common shares at a price of 8,004 yen per share, totaling 48,024,000 yen. The decision reflects the company’s ongoing commitment to align executive incentives with shareholder interests and ensure the sustainable growth of the company.