Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: ¥579.80B
• Dividend Yield: 0.7%
• Average Volume (3M): 167.34K
• Price to Earnings (P/E): 169.6
• Beta (1Y): 0.60
• Revenue Growth: 0.01%
• EPS Growth: -82.82%
• Country: JP
• Employees: 6,402
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 116.79
• Shares Outstanding: 78,794,300
• 10 Day Avg. Volume: 147,100
• 30 Day Avg. Volume: 167,336
• PEG Ratio: -7.24
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 35.15
• 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
• EPS Forecast (FY): 156.82
• Revenue Forecast (FY): ¥539.22B

• Rating: 55 Neutral
• Price Target: ¥7,541.00 ▼(-2.48% Downside)

Sapporo Holdings' overall stock score is primarily impacted by its mixed financial performance and weak technical indicators. The company's strong cash flow management is a positive factor, but high leverage and declining profitability are concerns. The stock's high P/E ratio and low dividend yield suggest overvaluation, further weighing down the score.

Sapporo Holdings Business Overview & Revenue Model

Company Description

Sapporo Holdings (Ticker: 2501) is a Japanese beverage and food company primarily known for its beer production, but it also operates in various sectors including soft drinks, food products, and real estate. Founded in 1876, the company has established a strong brand presence both domestically and internationally, with its flagship product being Sapporo Beer. In addition to alcoholic beverages, Sapporo Holdings also provides a range of non-alcoholic drinks and has diversified into food products and restaurant operations, further enhancing its market reach.

How the Company Makes Money

Sapporo Holdings generates revenue through multiple key streams. The primary source of income comes from the sale of alcoholic beverages, particularly beer, which is a staple in the Japanese market and a significant export product. The company also profits from its non-alcoholic beverage segment, which includes soft drinks and bottled water. Additionally, Sapporo Holdings derives revenue from its food products, which consist of processed foods and ingredients. The company has made strategic partnerships and acquisitions, such as collaborations with local and international breweries, bolstering its product offerings and market penetration. Further, its real estate ventures, including owning and operating commercial properties, provide an additional revenue stream. Seasonal promotions, marketing campaigns, and the growing trend of craft beers have also positively impacted sales, contributing to the overall financial performance of the company.

Sapporo Holdings Financial Statement Overview

Summary

Sapporo Holdings presents a mixed financial picture. The income statement shows challenges in revenue growth and profitability, with a slight decline in revenue and net profit margin. The balance sheet reveals high leverage, posing financial risk, but the company maintains a stable asset base. Cash flow management is strong, with significant growth in free cash flow, indicating improved liquidity.

Income Statement

Sapporo Holdings shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, with a negative rate of -1.66%. However, the company maintains a stable gross profit margin of around 31%, which is a positive indicator of its ability to control production costs. The net profit margin has decreased to 1.02% from 1.45% in the previous year, reflecting challenges in maintaining profitability. EBIT and EBITDA margins are relatively stable, suggesting operational efficiency. Overall, while the company faces revenue growth challenges, it maintains reasonable profitability margins.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.29 in the TTM period, indicating significant leverage, which could pose financial risk. Return on equity has decreased to 2.79% from 3.94% in the previous year, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at approximately 30.52%, indicating a moderate level of equity financing. While the company has a stable asset base, the high leverage and declining ROE are areas of concern.

Cash Flow

Sapporo Holdings demonstrates strong cash flow management with a significant free cash flow growth rate of 98.2% in the TTM period. The operating cash flow to net income ratio is 10.20, indicating robust cash generation relative to net income. The free cash flow to net income ratio is 0.59, reflecting efficient conversion of earnings into cash. Despite previous fluctuations, the current cash flow metrics suggest improved liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.82B	530.78B	518.63B	478.42B	437.16B	434.72B
Gross Profit	166.35B	164.92B	156.84B	139.24B	133.78B	132.13B
EBITDA	33.85B	37.48B	36.22B	34.38B	45.43B	9.11B
Net Income	3.42B	7.71B	8.72B	5.45B	12.33B	-16.07B
Balance Sheet
Total Assets	632.21B	664.96B	663.57B	639.12B	594.55B	616.35B
Cash, Cash Equivalents and Short-Term Investments	19.62B	24.14B	21.60B	23.83B	21.35B	25.19B
Total Debt	229.86B	236.58B	245.62B	263.20B	220.07B	268.15B
Total Liabilities	438.12B	467.81B	480.32B	471.92B	431.22B	466.80B
Stockholders Equity	193.04B	196.03B	182.31B	166.31B	162.57B	149.78B
Cash Flow
Free Cash Flow	23.86B	18.44B	27.02B	-1.81B	17.12B	3.95B
Operating Cash Flow	35.54B	36.11B	45.45B	7.81B	30.31B	16.47B
Investing Cash Flow	1.50B	-5.84B	-16.44B	-46.14B	20.73B	-16.00B
Financing Cash Flow	-35.50B	-25.37B	-27.14B	36.47B	-53.08B	4.14B

Sapporo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7733.00
• 50DMA: Negative
• 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:2501, the sentiment is Positive. The current price of 7733 is above the 20-day moving average (MA) of 7546.05, above the 50-day MA of 7468.92, and above the 200-day MA of 7443.33, indicating a neutral trend. The MACD of -3.44 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2501.

Sapporo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2587	68 Neutral	$1.44T	16.37	6.97%	2.38%	1.26%	-13.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2579	61 Neutral	$469.91B	-9.03	-12.00%	2.09%	2.07%	-751.72%
2502	60 Neutral	$2.57T	14.62	6.47%	3.06%	0.86%	0.55%
2503	60 Neutral	$1.76T	32.69	6.93%	3.29%	4.75%	-24.33%
2501	55 Neutral	¥579.80B	169.56	1.95%	0.70%	0.01%	-82.82%
2590	51 Neutral	¥78.21B	-31.20	―	1.03%	3.54%	-135.08%

Sapporo Holdings Corporate Events

Sapporo Holdings Reports Mixed Results Amid Structural Reforms

Sapporo Holdings Limited, a prominent player in the beverage and real estate sectors, is known for its diverse portfolio that includes alcoholic beverages, food and soft drinks, and real estate investments. The company operates primarily in Japan but also has a significant presence in overseas markets.

Sapporo Holdings Sees Profit Dip in H1 2025, Forecasts Recovery

Sapporo Holdings reported a slight decline in revenue for the first half of 2025, with a notable drop in profit attributable to owners of the parent by 70.6% compared to the previous year. Despite these challenges, the company forecasts a modest revenue increase for the full year, with a significant rise in operating profit, suggesting a potential recovery in the latter half of the year.