Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: $566.63B
• Dividend Yield: 0.67%
• Average Volume (3M): 191.36K
• Price to Earnings (P/E): 103.6
• Beta (1Y): 0.57
• Revenue Growth: 2.69%
• EPS Growth: -47.13%
• Country: JP
• Employees: 6,402
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Beverages - Alcoholic
• EPS (TTM): -54.18
• Shares Outstanding: 78,794,300
• 10 Day Avg. Volume: 176,010
• 30 Day Avg. Volume: 191,360
• PEG Ratio: -3.67
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥7,708.00 ▲(5.78%Upside)

The overall stock score reflects strong financial performance and cash flow health, offset by technical analysis indicators that suggest a lack of bullish momentum and a high P/E ratio that points to potential overvaluation. The absence of earnings call insights and notable corporate events means these areas did not influence the score.

Sapporo Holdings Business Overview & Revenue Model

Company Description

Sapporo Holdings Limited engages in alcoholic beverages, foods and soft drinks, restaurants, and real estate businesses in Japan and internationally. It operates through Alcoholic Beverages, Food & Soft Drinks, and Real Estate segments. The company manufactures and sells beer, wine, other alcoholic beverages, foods, sundries, shochu, other food products; operates restaurants and factories; and lemon-based flavor, soft drinks, soups, and soybeans and chilled products, as well as provides consigned freight forwarding, cargo handling, warehousing, packaging, and distribution services. It also manufactures, markets, and sells beverages and food products; imports, processes, manufactures, and sells spices, herbs, and dehydrated vegetables; operates vending machines and café chain; serves tea; and manufactures and sells ice cream, miso, instant miso soup, and freeze-dried products. In addition, the company engages in the development, leasing, rental, and sale of real estate properties; and provision of utility services. As of March 31, 2021, it operated 163 restaurant outlets. The company sells its beer products under the Black label, Yebisu, GOLD STAR, and Mugi to Hop brand names. Sapporo Holdings Limited was founded in 1876 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sapporo Holdings generates revenue through multiple streams, with its primary income derived from the sale of alcoholic beverages, including beer, wine, and spirits. The company's flagship product, Sapporo Beer, is a major contributor to its sales, both domestically and internationally. Additionally, Sapporo Holdings monetizes its non-alcoholic beverages and food products, further diversifying its revenue base. The company also earns income from its real estate operations, which include property leasing and development. Strategic partnerships and collaborations with other beverage and food companies, as well as a strong distribution network, play a crucial role in enhancing its market presence and driving sales growth.

Sapporo Holdings Financial Statement Overview

Summary

Sapporo Holdings shows solid revenue growth and operational efficiency, but faces challenges with free cash flow and net profit margins. Maintaining balanced leverage and improving profitability are key to sustaining growth.

Income Statement

Sapporo Holdings has demonstrated a solid revenue growth rate of 2.34% from 2023 to 2024, contributing to a robust gross profit margin of 31.07%. The net profit margin, although relatively low at 1.45%, is improving. The EBIT margin of 4.15% and EBITDA margin of 6.22% reflect stable operational efficiency, though there is room for enhancing profitability.

Balance Sheet

The company's debt-to-equity ratio of 1.21 shows moderate leverage, indicating a balanced use of debt and equity. Return on equity at 3.93% suggests a modest return to shareholders. The equity ratio of 29.49% indicates a reasonable level of equity financing, although a higher ratio could provide greater stability against liabilities.

Cash Flow

Sapporo Holdings has faced challenges with free cash flow, which declined significantly, showing a negative growth rate of -31.78% from 2023 to 2024. The operating cash flow to net income ratio of 4.68 indicates strong cash generation relative to net income, but the free cash flow to net income ratio of 2.39 suggests pressure on free cash flow generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
536.70B	530.78B	518.63B	478.42B	437.16B	434.72B
	Gross Profit
167.90B	164.92B	156.84B	139.24B	133.78B	132.13B
	EBIT
23.11B	22.04B	17.32B	10.11B	22.03B	-14.94B
	EBITDA
35.26B	37.48B	36.22B	34.38B	45.43B	9.11B
	Net Income Common Stockholders
5.47B	7.71B	8.72B	5.45B	12.33B	-16.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.42B	24.14B	21.60B	23.83B	21.35B	25.19B
	Total Assets
634.25B	664.96B	663.57B	639.12B	594.55B	616.35B
	Total Debt
238.34B	236.58B	245.62B	263.20B	220.07B	268.15B
	Net Debt
215.92B	212.44B	228.42B	247.82B	202.70B	248.42B
	Total Liabilities
448.98B	467.81B	480.32B	471.92B	431.22B	466.80B
	Stockholders Equity
184.19B	196.03B	182.31B	166.31B	162.57B	149.78B
Cash Flow		Free Cash Flow
23.63B	18.44B	27.02B	-1.81B	17.12B	3.95B
	Operating Cash Flow
39.72B	36.11B	45.45B	7.81B	30.31B	16.47B
	Investing Cash Flow
1.60B	-5.84B	-16.44B	-46.14B	20.73B	-16.00B
	Financing Cash Flow
-36.22B	-25.37B	-27.14B	36.47B	-53.08B	4.14B

Sapporo Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7287.00
• 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 7287 is below the 20-day moving average (MA) of 7451.85, below the 50-day MA of 7681.00, and below the 200-day MA of 7649.95, indicating a bearish trend. The MACD of -123.26 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 29.26 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
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%
2501	57 Neutral	$566.63B	103.62	2.87%	0.67%	2.69%	-47.13%
ASBRF		$19.89B	16.33	7.40%	2.37%	―	―
CCOJF		$2.95B	121.04	0.85%	2.07%	―	―
KNBWF		$11.60B	28.11	4.91%	3.58%	―	―
STBFF		$9.90B	17.02	7.61%	2.26%	―	―
2590	70 Outperform	¥86.61B	23.09		1.49%	8.00%	-127.55%

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.