Sapporo Holdings (2501) AI Stock Analysis

• Market Cap: $590.55B
• Dividend Yield: 0.68%
• Average Volume (3M): 236.27K
• Price to Earnings (P/E): 172.7
• Beta (1Y): 0.58
• Revenue Growth: 0.01%
• EPS Growth: -82.82%
• Country: JP
• Employees: 6,402
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Beverages - Alcoholic
• EPS (TTM): 77.11
• Shares Outstanding: 78,794,300
• 10 Day Avg. Volume: 211,950
• 30 Day Avg. Volume: 236,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 23.33
• 1Y Price Target: $7,726.60
• Price Target Upside: 3.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥7,729.00 ▲(3.52% Upside)

Sapporo Holdings scores a 60, driven primarily by strong cash flow management and positive technical indicators. However, the high P/E ratio and low dividend yield suggest potential overvaluation and limited income return, which weigh down the overall score. The lack of earnings call data and notable corporate events means these factors 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 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 presents a mixed financial picture. The company faces challenges in revenue growth and profitability, as seen in the income statement. The balance sheet highlights high leverage, which could pose risks, but the company maintains a stable asset base. On the positive side, 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: 7466.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 7466 is above the 20-day moving average (MA) of 7319.45, above the 50-day MA of 7203.78, and below the 200-day MA of 7613.61, indicating a neutral trend. The MACD of 120.71 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 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
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
2501	60 Neutral	$590.55B	172.71	1.95%	0.68%	0.01%	-82.82%
ASBRF	―	$19.37B	16.84	6.47%	3.95%	―	―
CCOJF	―	$3.25B	112.14	-14.55%	4.65%	―	―
KNBWF	―	$12.29B	33.60	4.64%	4.61%	―	―
STBFF	―	$9.86B	16.58	7.45%	3.98%	―	―
2590	63 Neutral	¥83.52B	23.09		0.96%	3.54%	-135.08%

Sapporo Holdings Corporate Events

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.

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.