Asahi Group Holdings (2502) AI Stock Analysis

• Market Cap: ¥2.97T
• Dividend Yield: 2.67%
• Average Volume (3M): 3.92M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.52
• Revenue Growth: 4.38%
• EPS Growth: 13.44%
• Country: JP
• Employees: 28,173
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Beverages - Alcoholic
• EPS (TTM): 14.32
• Shares Outstanding: 1,521,010,100
• 10 Day Avg. Volume: 4,770,360
• 30 Day Avg. Volume: 3,916,920
• PEG Ratio: -3.64
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.19
• 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: ¥2,520.63
• Price Target Upside: 28.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: ¥2,174.00 ▲(10.69%Upside)

Asahi Group Holdings scores well due to its strong financial performance, highlighted by robust revenue growth and profitability. The technical analysis indicates a neutral market sentiment, and the valuation suggests the stock is fairly priced. The absence of earnings call and corporate events data does not impact the overall strong position of the company.

Positive Factors

Product Expansion

In Oceania, its recently launched Hard Rated alcoholic lemon drink quickly achieved the #1 market share in the ready-to-drink (RTD) category.

Revenue Growth

The company expects revenue growth driven by price mix improvements and premium category expansion, with Japan and Europe being key drivers.

Shareholder Returns

Focus on shareholder returns from a combination of progressive dividend growth and share buybacks, with a projected 6% increase in dividends for FY25.

Negative Factors

Currency Risks

Key risks include a stronger-than-expected JPY, continued market softness in Oceania, and slower-than-expected progress in achieving cost efficiency savings.

Profit Challenges

The company's profit attributable to shareholders is expected to decline, excluding one-off gains and higher finance costs.

Asahi Group Holdings Business Overview & Revenue Model

Company Description

Asahi Group Holdings, Ltd., together with its subsidiaries, manufactures and sells alcoholic beverages, soft drinks, and food products in Japan and internationally. It operates through Alcohol Beverages, Soft Drinks, Food, Overseas, and Others segments. The company offers alcoholic beverage products, including imported beers, non-alcohol beer taste beverages, wines, shochu and whiskey products, ready-to-drink beverages, happoshu products, and spirits. It also provides soft drink beverages, such as ciders, carbonated soda water beverages, coffee, tea, lactic acid drinks, mineral waters, sports drinks, and fruit juices. In addition, the company offers food products comprising confectioneries, health foods, supplements, yeast extracts, powdered milk products for infants and baby foods, skin care, and others; and freeze-dried foods, including miso and other soups, porridge, risotto, stews, bowls, pastas, and curries. It provides its products primarily under the Asahi Super Dry, Clear Asahi, Black Nikka, Asahi Dry Zero, Mitsuya Cider, Wilkinson, Wonda, Asahi Juroku-cha, Asahi Oishii Mizu, Calpis, Mintia, Dear-Natura, Peroni Nastro Azzurro, Pilsner Urquell, Cool Ridge, Schweppes, Asahi Gokujo Kire Aji, Wilkinson Highball, Asahi THE RICH, Prime Rich, Zeitaku Shibori, Style Free, Zeitaku Zero, Asahi Off, HATARAKU ATAMANI, WAKODO GLOBAL, Juhinmoku no Ippai, Carlton, Great Northern, Pirate Life, Lech Free, Kozel, Ksiazece, Captain Jack, Zubr, Tyskie, and Ippon Manzoku Bar brands. Further, it is involved in the operation of restaurants; and offers fertilizers, and microbiological and biochemical products. The company was formerly known as Asahi Breweries, Ltd. and changed its name to Asahi Group Holdings, Ltd. in July 2011. Asahi Group Holdings, Ltd. was founded in 1889 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Asahi Group Holdings generates revenue through multiple streams, primarily driven by its alcoholic beverages segment, which includes beer, spirits, and other alcoholic drinks. A significant portion of its income is derived from sales of its flagship Asahi Super Dry beer, which enjoys wide popularity both domestically and internationally. The company also earns revenue from its non-alcoholic beverages, including soft drinks and bottled water, and its food segment, which offers a range of snacks and nutritional products. Strategic acquisitions, such as the purchase of European beer brands, have bolstered Asahi's market presence and contributed to its earnings. Moreover, Asahi leverages partnerships and distribution agreements to enhance its market reach and product availability across different regions.

Asahi Group Holdings Financial Statement Overview

Summary

Asahi Group Holdings shows robust financial health with strong revenue growth, solid profitability, and efficient cash flow management. The moderate leverage and strong cash generation capabilities support its operations and financial commitments, indicating a well-managed company poised for continued growth.

Income Statement

Asahi Group Holdings has demonstrated robust revenue growth, with a consistent increase in total revenue over the years, highlighted by a TTM revenue of ¥2,953 billion. The company has maintained strong profitability, with a gross profit margin of 37.37% and a net profit margin of 6.42% in the TTM period. The EBIT and EBITDA margins are solid at 9.70% and 14.93%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.59, showing a reasonable level of leverage. The return on equity (ROE) is strong at 7.46%, suggesting effective use of equity to generate profits. The equity ratio stands at 48.26%, indicating a balanced capital structure with significant equity financing.

Cash Flow

The cash flow statement shows a positive trend, with a free cash flow of ¥197 billion and an operating cash flow to net income ratio of 1.66, highlighting strong cash-generating ability relative to net income. The free cash flow to net income ratio is 1.04, indicating efficient conversion of profits into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95T	2.94T	2.77T	2.51T	2.24T	2.03T
Gross Profit	1.10T	1.10T	998.93B	921.84B	852.88B	744.61B
EBITDA	440.94B	426.99B	404.54B	366.42B	329.07B	265.42B
Net Income	189.77B	192.08B	164.07B	151.56B	153.50B	92.83B
Balance Sheet
Total Assets	5.27T	5.40T	5.29T	4.83T	4.55T	4.44T
Cash, Cash Equivalents and Short-Term Investments	68.92B	101.04B	59.95B	47.47B	59.86B	52.69B
Total Debt	1.51T	1.28T	1.41T	1.50T	1.60T	1.82T
Total Liabilities	2.72T	2.73T	2.82T	2.77T	2.79T	2.92T
Stockholders Equity	2.54T	2.67T	2.46T	2.06T	1.76T	1.52T
Cash Flow
Free Cash Flow	197.21B	295.40B	237.72B	166.15B	245.18B	185.12B
Operating Cash Flow	315.16B	403.72B	347.55B	265.99B	337.81B	275.86B
Investing Cash Flow	-109.52B	-118.67B	-117.71B	-69.19B	-14.35B	-1.24T
Financing Cash Flow	-198.10B	-272.78B	-226.75B	-219.56B	-320.32B	956.76B

Asahi Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1964.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2502, the sentiment is Positive. The current price of 1964 is above the 20-day moving average (MA) of 1901.76, above the 50-day MA of 1911.45, and above the 200-day MA of 1777.53, indicating a bullish trend. The MACD of 13.26 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 49.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2502.

Asahi Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2502	76 Outperform	¥2.97T	15.56	7.40%	2.67%	4.38%	13.44%
2531	68 Neutral	¥236.75B	14.61		2.56%	6.87%	1.26%
2587	68 Neutral	$1.43T	16.09	7.61%	2.60%	3.98%	0.28%
2503	67 Neutral	¥1.64T	28.87	4.91%	3.67%	9.00%	-57.41%
2269	67 Neutral	$867.90B	16.98	6.71%	3.16%	4.39%	2.40%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%
2501	64 Neutral	$571.46B	104.51	2.87%	0.71%	2.69%	-47.13%

Asahi Group Holdings Corporate Events

Asahi Group Holdings Announces Pricing of New Unsecured Straight Bonds

Asahi Group Holdings, Ltd. has announced the pricing of its 27th and 28th Unsecured Straight Bonds, with total issues amounting to JPY 40 billion and JPY 10 billion, respectively. The proceeds from these bonds will be used to partially redeem Euro-denominated Straight Bonds maturing in September 2025, reflecting Asahi’s strategic financial management and commitment to maintaining its credit ratings.