Kirin Holdings Company (2503) AI Stock Analysis

• Market Cap: $1.74T
• Dividend Yield: 3.58%
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.28
• Revenue Growth: 9.56%
• EPS Growth: -48.35%
• Country: JP
• Employees: 31,934
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Beverages - Alcoholic
• EPS (TTM): -26.00
• Shares Outstanding: 914,000,000
• 10 Day Avg. Volume: 2,033,010
• 30 Day Avg. Volume: 2,875,060
• PEG Ratio: N/A
• 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: $2,028.32
• Price Target Upside: -6.23% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

Kirin Holdings is in solid financial health with stable income growth and profitability. The technical analysis indicates mixed signals, with the stock trading near key moving averages. Valuation concerns arise due to a high P/E ratio, although the dividend yield is attractive. No recent earnings call or corporate events data were available to influence the score.

Positive Factors

Acquisition

The new Fancl acquisition is at a reasonable valuation, which should likely succeed.

Operational Performance

The overall print was saved by a 31% increase in Kyowa Kirin OP which brought reported OP to +4% yoy.

Revenue and Income Growth

Revenue growth at 14% y/y and normalised operating income growth at 44% y/y.

Negative Factors

Earnings

The company's EPS is projected to decline by 8% largely due to higher income tax expense.

Market Challenges

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

Operational Setbacks

Kirin’s core business posted a very weak Q3 with Normalized OP down 10% yoy.

Kirin Holdings Company Business Overview & Revenue Model

Company Description

Kirin Holdings Company, Limited is a diversified Japanese company primarily engaged in the beverage, food, and pharmaceutical sectors. Established in 1907, Kirin has grown to become a leading player in the global beverage industry, producing a wide range of products including beer, wine, soft drinks, and dairy products. The company also has a significant presence in the pharmaceutical industry, developing and manufacturing a variety of health-related products. Kirin's operations are spread across multiple countries, making it a prominent international brand.

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 solid financial health with stable income growth and profitability. The balance sheet shows increased leverage, which should be monitored, but equity remains strong. Cash flows are robust, though there is room for improvement in free cash flow generation.

Income Statement

Kirin Holdings has demonstrated stable revenue growth over the years, with a notable increase in the latest year. The gross profit margin and net profit margin are healthy, though the net profit margin has shown a slight decline in recent periods. EBIT and EBITDA margins indicate strong profitability, albeit with some fluctuations.

Balance Sheet

The company maintains a solid equity base, but the debt-to-equity ratio has increased, indicating rising leverage. Return on equity remains strong, reflecting efficient use of equity. The equity ratio indicates a balanced asset financing structure, with a moderate reliance on debt.

Cash Flow

Operating cash flow is strong and covers net income well, although free cash flow has seen a recent decline. The free cash flow to net income ratio suggests effective cash management, but capital expenditures have impacted free cash flow growth rates negatively.

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
	EBIT
125.34B	201.21B	116.02B	106.66B	102.92B
	EBITDA
286.13B	294.80B	260.36B	150.70B	189.23B
	Net Income Common Stockholders
58.21B	112.70B	111.01B	59.79B	99.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
118.62B	140.34B	96.44B	157.40B	169.62B
	Total Assets
3.35T	2.87T	2.54T	2.47T	2.46T
	Total Debt
857.57B	733.08B	523.12B	551.47B	642.64B
	Net Debt
738.95B	601.68B	435.06B	401.98B	480.98B
	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: Positive
• Last Price: 2163.00
• 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:2503, the sentiment is Positive. The current price of 2163 is above the 20-day moving average (MA) of 2137.30, above the 50-day MA of 2091.15, and above the 200-day MA of 2079.11, indicating a bullish trend. The MACD of 25.00 indicates Positive momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 62.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2503.

Kirin Holdings Company 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%
2269	76 Outperform	$972.55B	19.67	6.71%	2.68%	4.60%	-25.15%
2229	74 Outperform	$371.16B	17.04	10.51%	1.91%	7.15%	8.57%
2914	72 Outperform	$7.97T	44.46	4.55%	4.03%	10.98%	-63.74%
2501	65 Neutral	$621.55B	80.59	3.93%	0.61%	2.34%	-11.61%
Sector *	64 Neutral	$8.81B	14.72	5.05%	174.27%	3.55%	3.81%
2503	64 Neutral	$1.74T	29.87	4.95%	3.58%	9.56%	-48.35%

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.