Kirin Holdings Company (2503) AI Stock Analysis

• Market Cap: ¥1.92T
• Dividend Yield: 3.05%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.28
• Revenue Growth: 4.75%
• EPS Growth: -24.33%
• Country: JP
• Employees: 31,934
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 61.72
• Shares Outstanding: 914,000,000
• 10 Day Avg. Volume: 2,420,760
• 30 Day Avg. Volume: 2,571,096
• PEG Ratio: -0.59
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 26.66
• 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: ¥2,433.33
• Price Target Upside: 1.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,637.00 ▲(9.99% Upside)

Kirin Holdings receives a solid score due to strong financial performance characterized by robust revenue growth and operational efficiency. The technical analysis supports a positive trend, enhancing the stock's attractiveness. However, challenges with profitability and leverage, along with a fair valuation, moderate the overall score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and market presence.

Cash Generation

Strong free cash flow growth enhances financial flexibility, enabling strategic investments and debt reduction, contributing to long-term stability.

Operational Efficiency

Stable margins reflect efficient operations, allowing Kirin to maintain profitability and competitiveness in the market over time.

Negative Factors

Profitability Challenges

Decreasing net profit margins indicate pressure on profitability, which could impact future earnings and shareholder returns if not addressed.

Leverage Concerns

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in turning income into cash, which may affect liquidity and ability to fund operations.

Kirin Holdings Company Business Overview & Revenue Model

Company Description

Kirin Holdings Company, Limited (Ticker: 2503) is a prominent Japanese beverage and food conglomerate, primarily known for its production of alcoholic and non-alcoholic beverages, including beer, soft drinks, and dairy products. Founded in 1907, Kirin operates across several sectors, including its core beer division, which features well-known brands such as Kirin Lager and Ichiban Shibori. The company also engages in the pharmaceutical and biotechnology sectors, producing health-related products. With a strong presence in both domestic and international markets, Kirin focuses on innovation and sustainability in its product offerings.

How the Company Makes Money

Kirin Holdings generates revenue through multiple key streams. The largest revenue source comes from its alcoholic beverage segment, particularly beer sales, which contribute significantly to the company's profits. Additionally, Kirin earns income from non-alcoholic beverages, including soft drinks and mineral water, catering to health-conscious consumers. The dairy segment, which includes products such as milk and yogurt, further diversifies their earnings. Kirin also capitalizes on its pharmaceutical and biotechnology businesses, which add to its revenue through health supplements and treatments. Strategic partnerships and joint ventures, particularly in overseas markets, amplify Kirin's reach and profitability, allowing for increased market share and access to new customer bases. Innovation in product development and a focus on sustainability initiatives also play a crucial role in driving sales and enhancing brand loyalty.

Kirin Holdings Company Financial Statement Overview

Summary

Kirin Holdings demonstrates a stable but cautious financial outlook. While operational efficiency has improved, revenue decline and increased leverage pose challenges. The company needs to address cash flow issues to enhance financial stability. Overall, the financial health is moderate with room for improvement in revenue growth and cash flow management.

Income Statement

Kirin Holdings shows a mixed performance in its income statement. The TTM gross profit margin of 45.78% is stable, but the net profit margin has slightly decreased to 2.38%. Revenue has declined by 15.1% in the TTM period, indicating potential challenges in sales growth. However, the EBIT and EBITDA margins have improved to 8.59% and 12.78% respectively, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 0.94 in the TTM period, indicating higher leverage, but it remains manageable. Return on equity has slightly decreased to 4.77%, showing a decline in profitability. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow growth is negative at -3.59% in the TTM period, and the operating cash flow to net income ratio is 0.26, indicating potential cash flow challenges. The free cash flow to net income ratio is low at 8.28%, suggesting limited cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39T	2.34T	2.13T	1.99T	1.82T	1.85T
Gross Profit	1.12T	1.07T	963.47B	905.71B	822.84B	803.88B
EBITDA	297.56B	253.42B	294.80B	260.36B	150.70B	189.23B
Net Income	81.78B	58.21B	112.70B	111.01B	59.79B	71.94B
Balance Sheet
Total Assets	3.31T	3.35T	2.87T	2.54T	2.47T	2.46T
Cash, Cash Equivalents and Short-Term Investments	131.72B	127.19B	140.34B	96.44B	157.40B	161.67B
Total Debt	976.85B	857.57B	733.08B	523.12B	551.47B	720.78B
Total Liabilities	1.85T	1.82T	1.44T	1.29T	1.32T	1.36T
Stockholders Equity	1.17T	1.18T	1.13T	980.02B	894.18B	838.58B
Cash Flow
Free Cash Flow	46.84B	62.26B	89.40B	37.08B	132.97B	71.81B
Operating Cash Flow	233.96B	242.84B	203.21B	135.56B	219.30B	164.84B
Investing Cash Flow	-167.64B	-329.38B	-226.09B	-10.40B	-56.41B	-115.98B
Financing Cash Flow	-91.28B	58.13B	35.91B	-167.84B	-180.46B	-52.47B

Kirin Holdings Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2397.50
• 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 2397.5 is above the 20-day moving average (MA) of 2346.42, above the 50-day MA of 2317.16, and above the 200-day MA of 2121.05, indicating a bullish trend. The MACD of 11.38 indicates Positive momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.44 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
2269	74 Outperform	¥972.82B	21.13	5.97%	2.96%	2.79%	-6.46%
2587	72 Outperform	$1.49T	17.45	6.97%	2.42%	1.26%	-13.39%
2503	70 Outperform	¥1.92T	23.47	6.93%	3.05%	4.75%	-24.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2502	60 Neutral	¥2.52T	14.33	6.47%	3.23%	0.86%	0.55%
2501	57 Neutral	¥584.50B	81.66	3.63%	0.67%	0.25%	-58.68%
2802	55 Neutral	$3.30T	45.82	9.46%	1.32%	1.99%	-18.79%