Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: ¥631.05B
• Dividend Yield: 0.66%
• Average Volume (3M): 214.59K
• Price to Earnings (P/E): 89.0
• Beta (1Y): 0.60
• Revenue Growth: 0.25%
• EPS Growth: -58.68%
• 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: 150,850
• 30 Day Avg. Volume: 214,590
• 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): 157.18
• Revenue Forecast (FY): ¥536.57B

• Rating: 65 Neutral
• Price Target: ¥8,702.00 ▲(12.53% Upside)

Sapporo Holdings' stock score is primarily influenced by its financial performance and technical analysis. The company faces profitability and leverage challenges, but positive cash flow trends and bullish technical indicators provide some support. However, the high P/E ratio suggests potential overvaluation, which weighs down the overall score.

Positive Factors

Cash Generation

Improved free cash flow growth indicates enhanced cash generation capabilities, providing the company with more flexibility for investments and debt management.

Brand Strength

A strong brand presence supports market position and customer loyalty, which can lead to sustained revenue streams and competitive advantage in the beverage industry.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market segment, enhancing resilience against industry-specific downturns and supporting long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if earnings do not improve, potentially limiting the company's ability to invest in growth opportunities.

Profitability Challenges

Low net profit margins indicate difficulty in converting revenue into profit, which can hinder the company's ability to reinvest in its business and improve shareholder returns.

Revenue Decline

Negative revenue growth suggests potential market challenges or competitive pressures, which could impact the company's long-term growth prospects and market share.

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 shows mixed financial performance. Revenue growth is declining, and profitability margins are under pressure. However, the company maintains operational efficiency and strong cash flow management, indicating improved liquidity despite high leverage.

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	527.78B	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: Neutral
• Last Price: 7733.00
• 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:2501, the sentiment is Neutral. The current price of 7733 is below the 20-day moving average (MA) of 8063.85, below the 50-day MA of 7818.80, and above the 200-day MA of 7549.69, indicating a neutral trend. The MACD of 56.61 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 49.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	17.36	6.97%	2.43%	1.26%	-13.39%
2503	70 Outperform	¥1.95T	23.78	6.93%	3.06%	4.75%	-24.33%
2501	65 Neutral	¥631.05B	88.97	3.63%	0.66%	0.25%	-58.68%
2579	63 Neutral	¥522.75B	-10.75	-12.00%	1.79%	2.07%	-751.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2502	60 Neutral	¥2.49T	14.20	6.47%	3.22%	0.86%	0.55%
2590	51 Neutral	¥79.98B	-25.99	―	1.02%	6.00%	-139.78%

Sapporo Holdings Corporate Events

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.

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.

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.

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.

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.