Kirin Holdings Company (2503) AI Stock Analysis

• Market Cap: $1.68T
• Dividend Yield: 3.58%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.29
• Revenue Growth: 9.00%
• EPS Growth: -57.41%
• Country: JP
• Employees: 31,934
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Beverages - Alcoholic
• EPS (TTM): 30.05
• Shares Outstanding: 914,000,000
• 10 Day Avg. Volume: 2,322,900
• 30 Day Avg. Volume: 2,276,040
• PEG Ratio: -11.06
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 95.25
• 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: $2,075.14
• Price Target Upside: 0.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: ¥2,177.00 ▲(5.37%Upside)

Kirin Holdings' overall stock score is primarily influenced by its solid financial performance, which is offset by bearish technical indicators and a high valuation. The company's ability to improve profitability margins and convert cash flows effectively will be crucial for enhancing its stock appeal. Despite strong financial fundamentals, market conditions suggest caution with potential oversold signals indicating some recovery potential.

Positive Factors

Business Expansion

Kirin is focusing on expanding its Health Science product mix within the Food & Beverage domain with beverages that boost immunity.

Health Science Focus

Kirin is focusing on Health Science as a key earnings driver, aiming to turn a loss into a significant profit by 2027.

Regional Growth

Growth in the APAC region is expected due to improvements in beverage profit structures and the expansion of Blackmores and FANCL brands.

Negative Factors

Disappointing Earnings

Kirin reported a disappointing Q1 top line whichever way it was cut, with operating profit coming in well below expectations.

Market Struggle

Kyowa Hakko Bio’s continued struggle is worrisome amid softness in the amino acid market with limited visibility on turnaround.

Pharmaceutical Challenges

The pharmaceutical segment is likely to see further declines in profitability as Kirin increases R&D spending to expand its drug pipeline.

Kirin Holdings Company Business Overview & Revenue Model

Company Description

Kirin Holdings Company, Limited produces and sells alcoholic beverages, soft drinks, pharmaceuticals, and other related products in Japan and internationally. It operates through four segments: Japan Beer and Spirits Businesses, Japan Non-Alcoholic Beverages Business, Oceania Integrated Beverages Business, and Pharmaceuticals Business. The company's products include beer, happo-shu, wine, whiskey, spirits, soft drinks, dairy products, fruit juices, and other products. It also produces and sells pharmaceutical products, biochemical products, and other products. In addition, the company engages in the factories and theme park businesses; management and operation of a chain of Kirin City beer pubs; and manufacture and sale of amino acids and nucleic acids for pharmaceutical and industrial use bulk pharmaceuticals, as well as margarine, jams, and honey. Further, it is involved in the manufacture and sale of Coca-Cola products and other soft drinks, and sake and other food products; as well as manufacture and supply of Four Roses bourbon; and acts as an insurance agent. The company was formerly known as Kirin Brewery Company, Limited and changed its name to Kirin Holdings Company, Limited in July 2007. Kirin Holdings Company, Limited was founded in 1885 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kirin Holdings Company generates revenue through multiple streams, with its core income derived from the production and sale of beverages, including alcoholic beverages like beer and wine, as well as non-alcoholic beverages such as juices and soft drinks. The company also earns substantial revenue from its pharmaceutical division, where it develops and sells pharmaceuticals and health-related products. Kirin's diversified portfolio allows it to benefit from various markets, and its strategic partnerships and joint ventures, such as those with other beverage companies and pharmaceutical firms, enhance its market reach and profitability. Additionally, Kirin invests in innovative product development and marketing strategies to maintain and grow its customer base, contributing to its overall earnings.

Kirin Holdings Company Financial Statement Overview

Summary

Kirin Holdings demonstrates a commendable financial position with steady revenue and profit growth, efficient operations, and robust cash flows. Despite healthy operational metrics, the company should focus on enhancing net margins and free cash flow conversion to improve financial health further.

Income Statement

Kirin Holdings exhibits a strong financial performance with its TTM gross profit margin at 45.77% and a net profit margin of 2.38%. The company shows a healthy revenue growth rate of 6.03% from 2024 to 2025, indicative of a solid market position. The EBIT margin at 7.87% and EBITDA margin at 12.77% for TTM highlight operational efficiency but suggest room for improvement in net profitability. Overall, the income statement reflects steady revenue and profit growth, though with modest net income margins.

Balance Sheet

Kirin Holdings maintains a balanced financial structure with a debt-to-equity ratio of 0.94, indicating manageable leverage. The return on equity (ROE) is 5.13%, showing moderate returns for shareholders. An equity ratio of 33.89% indicates a fair amount of shareholder equity compared to total assets. While the company has a robust asset base, its rising debt levels warrant careful monitoring to avoid increased financial risk.

Cash Flow

The cash flow statement reveals a positive trajectory with a free cash flow growth rate of 54.44% from 2024 to 2025. The operating cash flow to net income ratio of 3.76 demonstrates strong cash generation ability relative to earnings. However, with a free cash flow to net income ratio of 0.31, there is room for improvement in translating profits into free cash flows. The company showcases healthy operational cash flows but faces challenges in converting those effectively into free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.38T	2.34T	2.13T	1.99T	1.82T	1.85T
	Gross Profit
1.09T	1.07T	920.79B	905.71B	822.84B	803.88B
	EBIT
187.52B	125.34B	201.21B	116.02B	106.66B	102.92B
	EBITDA
304.46B	253.42B	294.80B	260.36B	150.70B	189.23B
	Net Income Common Stockholders
56.65B	58.21B	112.70B	111.01B	59.79B	99.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
122.52B	127.19B	140.34B	96.44B	157.40B	169.62B
	Total Assets
3.26T	3.35T	2.87T	2.54T	2.47T	2.46T
	Total Debt
1.03T	857.57B	733.08B	523.12B	551.47B	642.64B
	Net Debt
912.07B	738.95B	601.68B	435.06B	401.98B	480.98B
	Total Liabilities
1.87T	1.82T	1.44T	1.29T	1.32T	1.36T
	Stockholders Equity
1.11T	1.18T	1.13T	980.02B	894.18B	838.58B
Cash Flow		Free Cash Flow
17.66B	62.26B	89.40B	37.08B	132.97B	71.81B
	Operating Cash Flow
213.20B	242.84B	203.21B	135.56B	219.30B	164.84B
	Investing Cash Flow
-309.44B	-329.38B	-226.09B	-10.40B	-56.41B	-115.98B
	Financing Cash Flow
81.62B	58.13B	35.91B	-167.84B	-180.46B	-52.47B

Kirin Holdings Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2066.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2503, the sentiment is Negative. The current price of 2066 is below the 20-day moving average (MA) of 2080.78, below the 50-day MA of 2100.07, and below the 200-day MA of 2081.81, indicating a bearish trend. The MACD of -11.37 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2503.

Kirin Holdings Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.89B	15.01	4.75%	203.76%	3.54%	-2.49%
2503	60 Neutral	$1.68T	29.60	4.91%	3.58%	9.00%	-57.41%
ASBRF		$19.84B	16.33	7.40%	2.37%	―	―
AJINF		$24.90B	54.81	8.89%	1.06%	―	―
MEJHF		$6.09B	18.24	6.71%	2.98%	―	―
SOOBF		$3.93B	110.98	2.87%	0.68%	―	―
STBFF		$9.93B	17.02	7.61%	2.26%	―	―

Kirin Holdings Company Corporate Events

Kirin Holdings Strengthens Board with New Independent Directors

Kirin Holdings Company has announced the nomination of several experienced individuals as Independent Non-executive Directors and Audit & Supervisory Board Members, aiming to enhance its corporate governance and strategic oversight. The newly appointed directors bring extensive expertise in areas such as pharmaceuticals, international business, corporate governance, and legal affairs, which are expected to contribute to the company’s growth and value enhancement, particularly in the health science domain.