Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: ¥584.50B
• Dividend Yield: 0.67%
• Average Volume (3M): 221.69K
• Price to Earnings (P/E): 81.7
• Beta (1Y): 0.53
• Revenue Growth: 0.25%
• EPS Growth: -58.68%
• Country: JP
• Employees: 6,402
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 23.36
• Shares Outstanding: 393,971,500
• 10 Day Avg. Volume: 169,330
• 30 Day Avg. Volume: 221,690
• PEG Ratio: -1.45
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 7.03
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥1,617.00 ▼(-79.09% Downside)

The score is mainly constrained by weak profitability (0.65% net margin), elevated leverage (1.19 debt-to-equity), and an expensive valuation (P/E 92.28). Offsetting factors include improving free cash flow growth and a longer-term technical setup that remains above the 100- and 200-day averages despite weaker near-term momentum.

Positive Factors

Established brand and diversified revenue streams

A long-standing, recognizable beer brand plus diversification into non-alcoholic beverages, food products and real estate provides durable revenue diversification. This broad footprint supports cross-channel distribution, pricing power, and resilience to cyclical weakness in any single segment over months.

Stable gross margin (~31%)

A consistent gross margin near 31% indicates sustained cost controls and product mix that protect core profitability. Over a multi-month horizon, stable gross margins give management flexibility to absorb input cost volatility and defend operating margins relative to peers.

Improving free cash flow generation

Rising free cash flow and a healthy FCF-to-net-income ratio signal stronger cash conversion. Durable cash generation supports debt repayment, capex, dividend sustainability and selective M&A, enhancing financial flexibility even if reported earnings remain pressured.

Negative Factors

Very weak net profit margin

A sub-1% net margin leaves minimal buffer for cost shocks and interest expense. Over months this constrains retained earnings, limits reinvestment capacity, and reduces shareholder returns, making the business more vulnerable to cyclical downturns or commodity cost inflation.

Elevated leverage (debt-to-equity 1.19)

High leverage increases refinancing and interest-rate risk, particularly given weak profitability. Over a 2-6 month horizon elevated debt can constrain strategic options, raise fixed financial costs, and limit the ability to invest in growth or withstand adverse demand shocks.

Negative revenue trend and declining operating margins

Falling top-line combined with shrinking EBIT/EBITDA margins suggests competitive pressure or mix deterioration. Persisting revenue decline and margin compression reduce long-term earnings power, weaken return metrics, and complicate efforts to deleverage or fund strategic initiatives.

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 faces challenges with profitability and leverage, as indicated by low net profit margins and a high debt-to-equity ratio. While cash flow metrics show positive trends, revenue growth and operational efficiency need attention. The company should focus on improving profitability and managing leverage to enhance financial stability.

Income Statement

Sapporo Holdings shows a stable gross profit margin around 31%, indicating consistent cost management. However, the net profit margin is low at 0.65% TTM, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, with a -0.7% decline in TTM, suggesting potential market challenges or competitive pressures. EBIT and EBITDA margins have decreased over time, indicating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.19 TTM, suggesting significant leverage, which could pose risks if earnings do not improve. Return on equity has decreased to 1.77% TTM, indicating reduced profitability for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the high leverage remains a concern.

Cash Flow

Sapporo Holdings has shown improvement in free cash flow growth at 7.94% TTM, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.19 TTM, suggesting moderate efficiency in converting income into cash. The free cash flow to net income ratio is 0.67 TTM, reflecting a healthy cash conversion cycle, but there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.78B	530.78B	518.63B	478.42B	437.16B	434.72B
Gross Profit	170.42B	164.92B	156.84B	139.24B	133.78B	132.13B
EBITDA	35.77B	37.48B	36.22B	34.38B	45.43B	9.11B
Net Income	7.10B	7.71B	8.72B	5.45B	12.33B	-16.07B
Balance Sheet
Total Assets	636.43B	664.96B	663.57B	639.12B	594.55B	616.35B
Cash, Cash Equivalents and Short-Term Investments	22.59B	24.14B	21.60B	23.83B	21.35B	25.19B
Total Debt	214.75B	236.58B	245.62B	263.20B	220.07B	268.15B
Total Liabilities	428.07B	467.81B	480.32B	471.92B	431.22B	466.80B
Stockholders Equity	207.27B	196.03B	182.31B	166.31B	162.57B	149.78B
Cash Flow
Free Cash Flow	25.76B	18.44B	27.02B	-1.81B	17.12B	3.95B
Operating Cash Flow	37.45B	36.11B	45.45B	7.81B	30.31B	16.47B
Investing Cash Flow	-2.89B	-5.84B	-16.44B	-46.14B	20.73B	-16.00B
Financing Cash Flow	-35.93B	-25.37B	-27.14B	36.47B	-53.08B	4.14B

Sapporo Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7733.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7733 is above the 20-day moving average (MA) of 1610.68, above the 50-day MA of 1576.57, and above the 200-day MA of 1498.73, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 34.27 is Neutral, neither overbought nor oversold. The STOCH value of 3.05 is Positive, 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
2587	72 Outperform	¥1.49T	17.45	6.97%	2.42%	1.26%	-13.39%
2503	70 Outperform	¥1.92T	23.47	6.93%	3.05%	4.75%	-24.33%
2579	63 Neutral	¥548.41B	-11.30	-12.00%	1.77%	2.07%	-751.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2502	60 Neutral	¥2.52T	14.33	6.47%	3.23%	0.86%	0.55%
2501	57 Neutral	¥584.50B	81.66	3.63%	0.67%	0.25%	-58.68%
2590	51 Neutral	¥81.14B	-26.60	―	1.01%	6.00%	-139.78%

Sapporo Holdings Corporate Events

Sapporo Holdings to Absorb Brewing Unit and Shift to Business Holding Structure

Sapporo Holdings has approved an absorption-type merger of its wholly owned subsidiary Sapporo Breweries Limited into the parent company, effective July 1, 2026, as part of a shift from a pure holding company to a business holding company structure. In parallel, the board will propose a change of the company’s trade name and partial amendments to its Articles of Incorporation at the March 2026 shareholders’ meeting, aiming to better align the corporate structure with its strategic focus. The move is intended to concentrate management resources on its domestic and overseas alcoholic beverages businesses as core operations, improve management efficiency and governance, and accelerate decision-making in response to rapidly changing market conditions in and outside Japan. By integrating the key brewing business directly under the holding company and investing continuously in human capital, Sapporo seeks to enhance profitability, raise productivity, and strengthen its global growth capabilities ahead of its 150th anniversary in 2026.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen8702.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings Shifts Dividend Policy to DOE-Based Framework

Sapporo Holdings has revised its dividend policy, shifting from a target consolidated dividend payout ratio of 30% or more to a dividend-on-equity (DOE) approach, aiming for DOE of 3% or more as a benchmark and 4% or more by 2030. The company says the new metric is intended to deliver more stable and sustainable shareholder returns while improving capital efficiency and aligning management more closely with the cost of equity, supported in part by reinvesting external capital raised in its real estate business into growth, balance-sheet strengthening and higher shareholder returns; the new policy will take effect from the year-end dividend for the fiscal year ending December 31, 2025, with the current forecast of a ¥90 year-end dividend per share left unchanged.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen8702.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Lowers 2025 Revenue, Operating Profit Forecast After Spinning Off Real Estate Unit

Sapporo Holdings has revised its full-year 2025 consolidated earnings forecast following the decision to bring in external capital to its wholly owned subsidiary Sapporo Real Estate and to classify the Real Estate business as a discontinued operation under IFRS 5. As a result, forecast revenue has been cut from ¥523.0 billion to ¥501.8 billion and core operating profit from ¥29.5 billion to ¥22.5 billion, with operating profit lowered to ¥21.1 billion, reflecting the removal of the real estate segment from continuing operations. Despite these downward revisions, net profit, profit attributable to owners of the parent and basic earnings per share remain unchanged at ¥16.5 billion and ¥211.62, respectively, and the company says the impact of the transaction on this year’s consolidated earnings will be minimal. Sapporo will maintain its dividend forecast of ¥90 per share for 2025 and will change its reportable segments from the current fiscal year to reflect the reclassification of the real estate business, signaling a clearer focus on its core beverage and food operations while using external capital to reshape its non-core assets.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen8702.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo to Spin Off Real Estate Arm via ¥477 Billion PAG–KKR-Backed Deal

Sapporo Holdings has agreed to bring in external capital to its wholly owned real estate subsidiary, Sapporo Real Estate (SRE), through an investment by SPARK LLC, a vehicle backed by PAG and KKR, in a transaction valuing SRE at an enterprise value of ¥477 billion including debt. Upon the first closing, scheduled for June 1, 2026, SRE will be deconsolidated from Sapporo’s financial statements, allowing the group to move the real estate business off its balance sheet and redeploy capital toward its higher‑margin alcoholic beverages operations and broader growth strategy. The move follows a competitive process in which Sapporo explored multiple options for monetizing its property assets and received detailed proposals from 11 interested parties, ultimately selecting the PAG‑KKR consortium for its valuation and support plan. Post‑transaction, SPARK is expected to reinforce SRE’s business foundation, development and sales activities while preserving management autonomy, enabling continued community‑building in Ebisu and Sapporo and long‑term value enhancement of its properties, as Sapporo Holdings itself focuses on strengthening brand experiences and communication to lift group‑wide corporate value over the medium to long term.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen8702.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings Clarifies Media Reports on Real Estate Capital Injection

Sapporo Holdings Limited has clarified recent media reports suggesting it has withdrawn preferential negotiation rights related to external capital injection in its real estate business. The company confirmed that negotiations with multiple candidates are ongoing and aims to finalize these discussions by the end of the year, maintaining its original timeline.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen7541.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings to Consolidate Overseas Operations Through Company Split

Sapporo Holdings Limited announced a strategic move to transfer shares and management operations from its subsidiary, POKKA SAPPORO Food & Beverage Ltd., to itself through a simplified absorption-type company split. This decision aligns with the company’s medium- to long-term growth strategy to consolidate management of overseas soft drinks operations, aiming to improve decision-making and operational efficiency. The transfer, effective January 1, 2026, is part of Sapporo’s plan to transition to a business holding company structure, potentially impacting its global market positioning and stakeholder interests.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen7541.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings Announces Stock Split to Boost Liquidity

Sapporo Holdings Limited has announced a 5-for-1 stock split to enhance stock liquidity and broaden its investor base, effective January 1, 2026. This move will significantly increase the total number of shares outstanding and authorized, while amendments to the Articles of Incorporation will align with this change, potentially impacting shareholder benefits and dividends in the future.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen7541.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings Revises 2025 Earnings and Dividend Forecasts

Sapporo Holdings Limited has revised its full-year earnings forecast for 2025, anticipating a decrease in overall revenue due to lower sales volumes and yen appreciation in its overseas alcoholic beverages segment. However, the company expects an increase in core operating profit and net profit, driven by strong sales in the Japan Alcoholic Beverages and Real Estate businesses. Additionally, Sapporo has increased its year-end dividend forecast to 90 yen per share, reflecting its commitment to shareholder returns and improved financial performance.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen7541.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.

Sapporo Holdings Reports Mixed Financial Results and Announces Stock Split

Sapporo Holdings reported a slight decline in revenue for the nine months ending September 30, 2025, with a 0.8% decrease compared to the previous year. Despite this, the company saw a significant increase in core operating profit by 43.8%, indicating improved operational efficiency. However, profit attributable to owners of the parent decreased by 5.3%. The company announced a revision in its year-end dividend forecast, with a planned five-for-one stock split effective January 1, 2026, which could impact shareholder value and market perception.

The most recent analyst rating on (JP:2501) stock is a Hold with a Yen7541.00 price target. To see the full list of analyst forecasts on Sapporo Holdings stock, see the JP:2501 Stock Forecast page.