Asahi Group Holdings (2502) AI Stock Analysis

• Market Cap: ¥2.89T
• Dividend Yield: 2.37%
• Average Volume (3M): 3.85M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.54
• Revenue Growth: 4.38%
• EPS Growth: 13.44%
• Country: JP
• Employees: 28,173
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Beverages - Alcoholic
• EPS (TTM): 14.32
• Shares Outstanding: 1,521,010,100
• 10 Day Avg. Volume: 3,552,350
• 30 Day Avg. Volume: 3,848,623
• PEG Ratio: -0.73
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.59
• 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: ¥2,462.34
• Price Target Upside: 29.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: ¥2,108.00 ▲(10.95%Upside)

The overall stock score for Asahi Group Holdings is driven primarily by its strong financial performance, showcasing robust revenue growth and efficient cash flow management. Technical analysis shows neutral signals, and the valuation remains reasonable with a good P/E ratio and dividend yield. Earnings call insights and corporate events were not factored in due to lack of data.

Positive Factors

Market 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.

Negative Factors

Cost Efficiency

Slower-than-expected progress in achieving cost efficiency savings is a key risk for the company.

Currency Risk

A stronger-than-expected JPY and continued market softness in Oceania are key risks that could impact Asahi's performance.

Profit Decline

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. is a leading global beverage and food company based in Japan. The company operates across various sectors, primarily focusing on alcoholic beverages, soft drinks, and food products. Asahi is renowned for its flagship products like Asahi Super Dry beer, along with a wide range of other alcoholic beverages, soft drinks, and nutritional products. The company has expanded its footprint internationally, establishing a strong presence in Europe, Oceania, and other regions through strategic acquisitions and partnerships.

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
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	923.66B	921.84B	852.88B	744.61B
	EBIT
286.52B	285.12B	263.68B	217.05B	211.90B	135.17B
	EBITDA
440.94B	426.99B	407.98B	366.42B	329.07B	265.42B
	Net Income Common Stockholders
189.77B	192.08B	164.07B	151.56B	153.50B	92.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.92B	101.04B	59.95B	47.47B	59.86B	52.69B
	Total Assets
5.27T	5.40T	5.29T	4.83T	4.55T	4.44T
	Total Debt
1.51T	1.28T	1.41T	1.50T	1.60T	1.82T
	Net Debt
1.44T	1.20T	1.35T	1.46T	1.54T	1.78T
	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: Negative
• Last Price: 1900.00
• 50DMA: Negative
• 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 Negative. The current price of 1900 is below the 20-day moving average (MA) of 1910.15, below the 50-day MA of 1939.46, and above the 200-day MA of 1786.83, indicating a neutral trend. The MACD of -14.25 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2502.

Asahi Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2531	79 Outperform	¥245.24B	15.14		2.47%	6.87%	1.26%
2502	72 Outperform	¥2.89T	15.16	7.40%	2.37%	4.38%	13.44%
2587	68 Neutral	¥1.43T	16.17	7.61%	2.24%	3.98%	0.28%
2269	67 Neutral	$885.21B	17.25	6.71%	2.97%	4.39%	2.51%
Sector *	65 Neutral	$8.88B	14.98	4.76%	203.76%	3.54%	-2.49%
2503	60 Neutral	¥1.68T	29.62	4.91%	3.58%	9.00%	-57.41%
2501	57 Neutral	$570.21B	103.62	2.87%	0.67%	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.

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.