Asahi Group Holdings (2502) AI Stock Analysis

• Market Cap: ¥3.04T
• Dividend Yield: 2.27%
• Average Volume (3M): 4.37M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.55
• Revenue Growth: 6.15%
• EPS Growth: 17.37%
• Country: JP
• Employees: 28,173
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Beverages - Alcoholic
• EPS (TTM): 126.68
• Shares Outstanding: 1,521,010,100
• 10 Day Avg. Volume: 3,287,990
• 30 Day Avg. Volume: 4,369,270
• PEG Ratio: 0.91
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,434.55
• Price Target Upside: 20.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Asahi Group Holdings' strong financial performance, characterized by consistent revenue and profit growth, leads the overall score. The technical analysis supports a positive trend, but limited data on momentum indicators requires caution. Valuation metrics suggest the stock is reasonably priced within its industry, offering potential for moderate returns.

Positive Factors

Market Performance

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

Product Innovation

The company is expanding its non-alcoholic beer segment to capitalize on the rising awareness of 'smart drinking.'

Negative Factors

Currency Risk

Key risks include stronger JPY, continued softness in Oceania and pace of cost savings from its global operations.

Regional Performance

Oceania was the biggest miss in the quarter, with revenues in line but A$ Core OP -16% YoY and 236bps margin contraction.

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 exhibits strong revenue and profit growth, with robust operational efficiency and cost management. The balance sheet is stable with moderate leverage, while cash flows are solid, ensuring financial flexibility. Continued focus on debt management and profitability will sustain this positive trajectory.

Income Statement

Asahi Group Holdings has demonstrated strong revenue growth over the years, with a notable increase of approximately 6.15% from 2023 to 2024. The gross profit margin stands at 37.34% for 2024, indicating efficient cost management. The net profit margin improved to 6.54% in 2024, showcasing enhanced profitability. Both EBIT and EBITDA margins are healthy at 9.70% and 14.53% respectively, reflecting strong operational performance.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.48 in 2024, indicating moderate leverage. The return on equity is strong at 7.20%, reflecting effective use of equity to generate profits. The equity ratio of 49.38% suggests a balanced capital structure with a substantial portion of assets financed by equity. However, the relatively high total liabilities warrant careful monitoring.

Cash Flow

Operating cash flow increased significantly, supporting a healthy free cash flow growth rate of 24.24% from 2023 to 2024. The operating cash flow to net income ratio is robust at 2.10, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.54, reflecting efficient conversion of profits into cash flow. Overall, the cash flow position is solid, enhancing financial flexibility.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.77T	2.51T	2.24T	2.03T	2.09T
	Gross Profit
923.66B	921.84B	852.88B	744.61B	791.75B
	EBIT
263.68B	217.05B	211.90B	135.17B	201.44B
	EBITDA
407.98B	366.42B	329.07B	265.42B	318.16B
	Net Income Common Stockholders
164.07B	151.56B	153.50B	92.83B	142.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.95B	47.47B	59.86B	52.69B	99.77B
	Total Assets
5.29T	4.83T	4.55T	4.44T	3.14T
	Total Debt
1.41T	1.50T	1.60T	1.82T	943.21B
	Net Debt
1.35T	1.46T	1.54T	1.78T	894.73B
	Total Liabilities
2.82T	2.77T	2.79T	2.92T	1.89T
	Stockholders Equity
2.46T	2.06T	1.76T	1.52T	1.25T
Cash Flow		Free Cash Flow
237.72B	166.15B	245.18B	185.12B	168.15B
	Operating Cash Flow
347.55B	265.99B	337.81B	275.86B	253.47B
	Investing Cash Flow
-117.71B	-69.19B	-14.35B	-1.24T	-103.67B
	Financing Cash Flow
-226.75B	-219.56B	-320.32B	956.76B	-158.84B

Asahi Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2015.00
• 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:2502, the sentiment is Positive. The current price of 2015 is above the 20-day moving average (MA) of 1979.83, above the 50-day MA of 1936.76, and above the 200-day MA of 1777.18, indicating a bullish trend. The MACD of 22.16 indicates Positive momentum. The RSI at 60.06 is Neutral, neither overbought nor oversold. The STOCH value of 66.45 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	77 Outperform	¥3.04T	15.77	7.35%	2.27%	6.15%	17.37%
2531	69 Neutral	¥223.47B	14.67		2.69%	4.14%	-3.87%
Sector *	64 Neutral	$8.81B	14.72	5.05%	174.27%	3.55%	3.81%

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.

Asahi Group Introduces Performance-Linked Share Units Plan

Asahi Group Holdings has announced the introduction of a new performance-linked share units (PSU) plan to be implemented from fiscal 2025. This plan aims to align the interests of executives with shareholders by granting shares based on performance targets, thereby enhancing motivation for share price appreciation and sustainable company growth. The plan will be rolled out in two phases, targeting different levels of executives, and includes a malus and clawback policy to ensure accountability.

Asahi Group Holdings Strengthens Corporate Governance for Sustainable Growth

Asahi Group Holdings has outlined its corporate governance strategy aimed at enhancing transparency and sustainable growth. The company plans to strengthen its core strategies, including digital transformation and R&D, while ensuring proper information disclosure and fostering stakeholder collaboration to increase corporate value over the medium to long term.

Asahi Group Holdings Emphasizes Sustainable Growth and Stakeholder Engagement in Governance Report

Asahi Group Holdings has released its corporate governance report, emphasizing its commitment to sustainable growth and corporate value enhancement. The company outlines its strategies for integrating digital transformation and R&D while ensuring transparency and active stakeholder communication to build trust and drive long-term success.

Asahi Group Announces Major Governance Restructuring

Asahi Group Holdings has announced a proposal for amending its Articles of Incorporation, which will be presented at the upcoming Annual General Meeting of Shareholders. The proposed changes aim to redefine organizational roles by transitioning from a Company with a Board of Company Auditors to a Company with a Nominating Committee, Audit Committee, and Compensation Committee. This restructuring is intended to bolster management supervision and execution, ultimately strengthening corporate governance and possibly enhancing shareholder value.

Asahi Group Revises Financial Policy and Targets for 2030

Asahi Group Holdings has revised its key indicator guidelines and financial policy, aiming to achieve new targets by 2030. These changes are driven by a need to improve stock valuations and address challenges such as cost increases and foreign exchange impacts. The company plans to enhance profitability and capital efficiency by focusing on EPS growth and introducing new indicators such as ROE and ROIC. In addition, Asahi will prioritize growth investments, including organic and inorganic opportunities, to improve facilities and expand its business portfolio while maintaining financial soundness.

Asahi Group Announces Increased Year-End Dividend Payout

Asahi Group Holdings announced a resolution to pay a year-end cash dividend of JPY 27.0 per share for the fiscal year ending December 31, 2024, subject to approval at the upcoming shareholders’ meeting. This decision reflects the company’s strategy to boost shareholder returns by utilizing free cash flow for dividends, after achieving a target Net Debt/EBITDA ratio of 2.49x. The payout ratio has been set at 40% a year earlier than planned, marking a positive financial milestone for Asahi.

Asahi Group Holdings Reports Strong Profit Growth Despite Decline in Comprehensive Income

Asahi Group Holdings reported a 6.2% increase in sales, reaching 2.94 trillion yen for the fiscal year ending December 2024. The company’s operating profit rose by 9.8% to 269 billion yen, and profit attributable to owners of the parent increased by 17.1% to 192 billion yen. Despite a decrease in total comprehensive income by 33.2%, the company showed strong profitability, indicating resilience and efficient operational strategies.