Kirin Holdings Company (2503) AI Stock Analysis

• Market Cap: ¥1.62T
• Dividend Yield: 3.64%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.27
• Revenue Growth: 9.00%
• EPS Growth: -57.41%
• Country: JP
• Employees: 31,934
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Beverages - Alcoholic
• EPS (TTM): 30.05
• Shares Outstanding: 914,000,000
• 10 Day Avg. Volume: 2,902,560
• 30 Day Avg. Volume: 2,705,600
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: ¥2,090.01
• Price Target Upside: 4.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ¥2,149.00 ▲(7.94%Upside)

Kirin Holdings scores 63, driven by robust financial performance and moderate valuation. However, technical indicators reflect a lack of bullish momentum, and high P/E suggests potential overvaluation, balancing the attractive dividend yield.

Positive Factors

APAC Region Growth

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

Health Science Business

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

Negative Factors

EPS and Profit Impact

EPS declined 6% despite a 10% increase in normalized operating profit due to FX loss, fixed asset disposal, interest income, and profits from associates impacting the quarter.

Pharmaceutical Segment

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

Q1 Financial Performance

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

Kirin Holdings Company Business Overview & Revenue Model

Company Description

Kirin Holdings Company, Limited, headquartered in Tokyo, Japan, is a diversified beverage and pharmaceutical company. It operates through several sectors, including alcoholic and non-alcoholic beverages, pharmaceuticals, and health sciences. The company is renowned for its beer brands, such as Kirin Lager and Ichiban Shibori, and has a significant presence in the soft drinks market. Kirin Holdings also engages in the development and production of pharmaceutical products and health supplements, reflecting its strategic focus on the health and wellness sector.

How the Company Makes Money

Kirin Holdings generates revenue through its diverse business operations, primarily in the beverage and pharmaceutical sectors. The company earns a significant portion of its income from the sale of alcoholic beverages, including beer, spirits, and wine, where it holds a strong market position in Japan and several international markets. Additionally, Kirin's non-alcoholic beverages, including soft drinks, juices, and teas, contribute to its revenue streams. The pharmaceutical division provides another substantial source of income, with products ranging from prescription medicines to health supplements. Kirin's strategic partnerships and joint ventures, especially in the beverage sector, enhance its distribution network and market reach, further bolstering its earnings.

Kirin Holdings Company Financial Statement Overview

Summary

Kirin Holdings shows strong financial performance with steady revenue and profit growth, efficient operations, and robust cash flows. However, modest net income margins and increasing debt levels suggest areas for improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.34T	2.13T	1.99T	1.82T	1.85T
Gross Profit	1.07T	920.79B	905.71B	822.84B	803.88B
EBITDA	253.42B	294.80B	260.36B	150.70B	189.23B
Net Income	58.21B	112.70B	111.01B	59.79B	99.84B
Balance Sheet
Total Assets	3.35T	2.87T	2.54T	2.47T	2.46T
Cash, Cash Equivalents and Short-Term Investments	127.19B	140.34B	96.44B	157.40B	169.62B
Total Debt	857.57B	733.08B	523.12B	551.47B	642.64B
Total Liabilities	1.82T	1.44T	1.29T	1.32T	1.36T
Stockholders Equity	1.18T	1.13T	980.02B	894.18B	838.58B
Cash Flow
Free Cash Flow	62.26B	89.40B	37.08B	132.97B	71.81B
Operating Cash Flow	242.84B	203.21B	135.56B	219.30B	164.84B
Investing Cash Flow	-329.38B	-226.09B	-10.40B	-56.41B	-115.98B
Financing Cash Flow	58.13B	35.91B	-167.84B	-180.46B	-52.47B

Kirin Holdings Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1991.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2503, the sentiment is Negative. The current price of 1991 is below the 20-day moving average (MA) of 1992.40, below the 50-day MA of 2010.15, and below the 200-day MA of 2025.92, indicating a bearish trend. The MACD of -5.62 indicates Negative momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 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
2802	74 Outperform	$4.06T	58.16	10.61%	1.97%	6.35%	-17.08%
2502	73 Outperform	$2.94T	15.41	7.40%	2.74%	4.38%	13.44%
2587	73 Outperform	$1.42T	16.00	7.61%	2.51%	3.98%	0.28%
Sector *	68 Neutral	¥216.11B	20.84	8.21%	2.25%	4.80%	-0.56%
2269	67 Neutral	$848.68B	16.61	6.71%	3.24%	4.39%	2.40%
2501	64 Neutral	$543.26B	99.35	2.87%	0.75%	2.69%	-47.13%
2503	63 Neutral	¥1.62T	28.47	4.91%	3.64%	9.00%	-57.41%

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.