Yomeishu Seizo Co., Ltd. (2540) AI Stock Analysis

• Market Cap: ¥57.85B
• Dividend Yield: 1.03%
• Average Volume (3M): 33.22K
• Price to Earnings (P/E): 78.6
• Beta (1Y): 0.17
• Revenue Growth: -0.50%
• EPS Growth: -18.80%
• Country: JP
• Employees: 301
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): -0.22
• Shares Outstanding: 16,500,000
• 10 Day Avg. Volume: 53,310
• 30 Day Avg. Volume: 33,223
• PEG Ratio: -2.08
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 4.07
• P/FCF Ratio: -15.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ―

Yomeishu Seizo Co., Ltd. demonstrates solid financial stability, with strong equity and no debt. However, declining profitability and the absence of free cash flow raise concerns about operational efficiency and growth prospects. The high P/E ratio implies potential overvaluation, although the stock's positive technical momentum suggests current market optimism.

Positive Factors

Financial Stability

Yomeishu Seizo Co., Ltd. maintains strong financial stability with no reliance on debt financing, which provides flexibility and reduces financial risk.

Product Focus

The company's focus on health-related beverages aligns with consumer trends towards wellness, potentially supporting long-term demand for its products.

Cost Management

Efficient cost management is reflected in the high gross profit margin, indicating the company's ability to maintain profitability despite revenue challenges.

Negative Factors

Revenue Decline

The declining revenue trend suggests challenges in market demand or competitive pressures, which could impact long-term growth prospects.

Profitability Concerns

A declining net profit margin indicates potential issues in maintaining profitability, which could affect future earnings and shareholder returns.

Cash Flow Issues

The absence of free cash flow generation highlights potential operational inefficiencies, which may limit the company's ability to invest in growth opportunities.

Yomeishu Seizo Co., Ltd. Business Overview & Revenue Model

Company Description

Yomeishu Seizo Co., Ltd. is a well-established company in Japan, primarily engaged in the production and distribution of health-related beverages. The company is renowned for its herbal liqueurs, particularly the Yomeishu tonic, which is made from a blend of natural herbs and alcohol. Yomeishu Seizo Co., Ltd. operates within the food and beverage sector, focusing on products that promote wellness and health.

How the Company Makes Money

Yomeishu Seizo Co., Ltd. generates revenue primarily through the sale of its health-focused beverages, with the Yomeishu tonic being its flagship product. The company markets its products through various retail channels, including supermarkets, pharmacies, and online platforms, both domestically and internationally. Additionally, Yomeishu Seizo may engage in strategic partnerships and collaborations with other companies to expand its market reach and product offerings. The company's earnings are significantly influenced by consumer demand for health and wellness products, as well as its ability to innovate and introduce new products that meet consumer preferences.

Yomeishu Seizo Co., Ltd. Financial Statement Overview

Summary

Yomeishu Seizo Co., Ltd. showcases strong financial stability with a debt-free balance sheet and a high equity ratio. However, the declining revenue and net profit margins over recent periods indicate challenges in maintaining profitability and growth. The absence of free cash flow further points to potential operational concerns.

Income Statement

The company's gross profit margin is strong at 58.3% (TTM), indicating efficient cost management. However, the net profit margin has decreased from 9.3% to 7.6% (TTM), suggesting a decline in profitability. Revenue has decreased over the years, with a decline from JPY 10.64 billion (2023) to JPY 9.98 billion (TTM), reflecting a challenging growth environment.

Balance Sheet

The company has a robust equity position with a debt-to-equity ratio of 0, reflecting no reliance on debt financing. The equity ratio is high at 85.3% (TTM), indicating strong financial stability. ROE has slightly decreased from 2.39% (2023) to 1.62% (TTM), suggesting some weakness in generating returns on equity.

Cash Flow

The cash flow statement indicates a lack of free cash flow generation, with a negative free cash flow in the latest annual report. Both operating and free cash flow ratios are unavailable due to zero net income (TTM), highlighting potential operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.99B	10.02B	10.24B	10.65B	10.58B	10.38B
Gross Profit	5.63B	5.42B	6.14B	6.60B	6.68B	6.39B
EBITDA	2.14B	1.70B	1.97B	2.01B	1.97B	1.68B
Net Income	784.26M	679.58M	952.82M	1.02B	949.90M	807.56M
Balance Sheet
Total Assets	52.55B	53.52B	54.42B	49.56B	48.61B	47.87B
Cash, Cash Equivalents and Short-Term Investments	5.05B	5.71B	8.15B	8.93B	5.89B	9.14B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.92B	7.46B	7.77B	6.77B	6.43B	6.31B
Stockholders Equity	45.63B	46.06B	46.64B	42.79B	42.18B	41.56B
Cash Flow
Free Cash Flow	0.00	-2.67B	-1.92B	1.36B	1.29B	752.61M
Operating Cash Flow	0.00	473.12M	667.52M	1.75B	1.81B	1.41B
Investing Cash Flow	0.00	-1.19B	2.31B	-1.45B	-1.40B	-217.20M
Financing Cash Flow	0.00	-623.03M	-760.15M	-554.77M	-551.81M	-551.50M

Yomeishu Seizo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4430.00
• 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:2540, the sentiment is Positive. The current price of 4430 is above the 20-day moving average (MA) of 4405.25, above the 50-day MA of 4228.60, and above the 200-day MA of 3398.31, indicating a bullish trend. The MACD of 73.22 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2540.

Yomeishu Seizo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2874	74 Outperform	¥72.42B	15.92	―	1.79%	4.41%	-41.73%
2915	72 Outperform	¥32.24B	12.14	―	2.16%	-0.25%	-41.09%
2540	68 Neutral	¥57.85B	78.63	―	1.03%	-0.50%	-18.80%
2831	64 Neutral	¥30.73B	12.45	―	2.01%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2266	62 Neutral	¥24.06B	24.30	―	1.63%	-1.14%	3.35%
2923	62 Neutral	¥38.99B	13.70	―	0.77%	10.79%	27.11%