Hokkaido Coca-Cola Bottling Co., Ltd. (2573) AI Stock Analysis

• Market Cap: ¥54.15B
• Dividend Yield: 0.6%
• Average Volume (3M): 9.42K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.26
• Revenue Growth: 3.62%
• EPS Growth: 5.25%
• Country: JP
• Employees: 1,185
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 17.11
• Shares Outstanding: 13,607,996
• 10 Day Avg. Volume: 7,530
• 30 Day Avg. Volume: 9,416
• PEG Ratio: 3.98
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 210.22
• 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: 61 Neutral
• Price Target: ¥4,183.00 ▲(5.76% Upside)
• Action: Downgraded Date: 02/09/26
• Date: Action: Downgraded 02/09/26

The score is driven primarily by improving profitability and an exceptionally low-leverage balance sheet, partially offset by weak/volatile free cash flow. Technical indicators are neutral to slightly bearish, and valuation is a headwind due to a high P/E and low dividend yield.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a sizeable equity base provide durable financial flexibility: the company can fund capex, absorb demand shocks, and delay refinancing pressure. This conservative positioning supports solvency and strategic optionality over the next several quarters.

Margin Improvement

Meaningful recovery in gross and operating margins since 2022 indicates sustained cost control and improved pricing/mix. Durable margin expansion increases operating cash generation potential and strengthens the earnings base available for reinvestment and shareholder returns.

Revenue Stability

Modest but consistent top-line growth shows resilient end-market demand and improving price/mix dynamics. Predictable revenue trends support capacity planning and allow incremental margin leverage, reducing the likelihood of sudden top-line shocks in the medium term.

Negative Factors

Weak Free Cash Flow

A sharp decline in free cash flow and low conversion versus net income materially limits internal funding for dividends, buybacks, or M&A. Weak cash conversion raises vulnerability to working-capital swings and constrains the firm’s ability to flex during adverse operating conditions.

Thin Net Margin

Very low net margins leave a limited buffer against input-cost increases or execution slippage. Small adverse moves in commodity or logistics costs can meaningfully erode profits, increasing earnings volatility and limiting scope for durable internal reinvestment.

Modest Return on Equity

ROE remains modest despite improvement, signalling limited capital efficiency. Persistently low returns constrain the company’s ability to compound shareholder value quickly and may limit free cash available for growth initiatives versus higher-return alternatives.

Hokkaido Coca-Cola Bottling Co., Ltd. Business Overview & Revenue Model

Company Description

Hokkaido Coca-Cola Bottling Co.,Ltd. manufactures and sells soft drinks in Hokkaido, Japan. The company was incorporated in 1940 and is headquartered in Sapporo, Japan. Hokkaido Coca-Cola Bottling Co.,Ltd. is a subsidiary of Dai Nippon Printing Co., Ltd.

How the Company Makes Money

Hokkaido Coca-Cola Bottling Co., Ltd. generates revenue primarily through the sales of its beverage products. The company benefits from a diverse range of revenue streams, including direct sales to retailers, partnerships with restaurants and cafes, and the distribution of products to vending machines and convenience stores. Key revenue drivers include the popularity of its flagship Coca-Cola products as well as a growing portfolio of non-carbonated beverages. Additionally, the company may engage in promotional partnerships and marketing collaborations with local businesses, enhancing its visibility and sales. Seasonal promotions and limited-time offerings also contribute to sales spikes, while maintaining a strong brand presence in the regional market helps sustain customer loyalty and repeat purchases.

Hokkaido Coca-Cola Bottling Co., Ltd. Financial Statement Overview

Summary

Improving profitability and steady revenue trends support the score (gross margin ~31.8% and EBIT margin ~4.3% in 2025), and the balance sheet is very conservative (debt-to-equity ~0.026). The main offset is weaker cash-flow quality, with 2025 free cash flow dropping sharply to ~¥0.26B and low conversion (~8% of net income).

Income Statement

Revenue has been broadly stable to modestly growing, with 2025 up about 2.9% after a flat 2024, showing improving demand/price mix versus the prior period volatility. Profitability has strengthened meaningfully since 2022: gross margin recovered to ~31.8% in 2025 (from ~29.5% in 2022), and operating profitability improved with EBIT margin rising to ~4.3% in 2025 (from ~1.6% in 2022). Net margin remains thin at ~2.8% in 2025, leaving earnings more exposed to cost inflation and execution slippage than higher-margin peers.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage: debt-to-equity is ~0.026 in 2025, and equity is sizable (¥43.4B) relative to assets (¥54.3B), supporting financial flexibility. Returns are positive but not high—return on equity is ~3.9% in 2025 (up from ~1.4% in 2022), indicating improving profitability but still modest capital efficiency.

Cash Flow

Cash generation is mixed. Operating cash flow was solid in 2025 (¥3.24B), but free cash flow fell sharply to ~¥0.26B from ~¥1.43B in 2024, suggesting heavier investment needs or working-capital pressure. Free cash flow conversion is a key weakness: 2025 free cash flow was only ~8% of net income (versus ~40% in 2024), which reduces near-term flexibility for buybacks/dividends or accelerated reinvestment despite improving earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	57.42B	59.09B	56.86B	56.37B	51.60B	52.00B
Gross Profit	18.46B	18.78B	18.12B	17.17B	15.25B	17.79B
EBITDA	4.38B	4.69B	4.18B	3.86B	2.95B	3.12B
Net Income	1.51B	1.67B	1.54B	1.31B	556.00M	632.00M
Balance Sheet
Total Assets	53.17B	54.25B	51.91B	51.07B	48.01B	48.91B
Cash, Cash Equivalents and Short-Term Investments	8.46B	9.57B	10.25B	9.38B	8.75B	9.47B
Total Debt	1.03B	1.12B	1.09B	1.07B	1.03B	941.00M
Total Liabilities	10.58B	10.88B	9.80B	10.22B	8.18B	8.47B
Stockholders Equity	42.59B	43.37B	42.12B	40.85B	39.84B	40.43B
Cash Flow
Free Cash Flow	0.00	256.00M	1.43B	820.00M	-53.00M	1.42B
Operating Cash Flow	0.00	3.24B	3.60B	3.25B	2.00B	3.13B
Investing Cash Flow	0.00	-3.22B	-2.03B	-1.95B	-2.03B	-2.05B
Financing Cash Flow	0.00	-696.00M	-700.00M	-684.00M	-675.00M	-2.79B

Hokkaido Coca-Cola Bottling Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3955.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2573, the sentiment is Positive. The current price of 3955 is below the 20-day moving average (MA) of 3977.75, below the 50-day MA of 3986.51, and above the 200-day MA of 3717.92, indicating a bullish trend. The MACD of 9.77 indicates Negative momentum. The RSI at 68.47 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2573.

Hokkaido Coca-Cola Bottling Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2267	68 Neutral	¥766.46B	17.66	7.18%	2.67%	-3.87%	-16.49%
2585	65 Neutral	¥63.79B	17.76	―	0.65%	17.33%	12.37%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2573	61 Neutral	¥54.15B	33.16	―	0.60%	3.62%	5.25%
2579	60 Neutral	¥687.22B	-14.22	-12.00%	1.77%	2.07%	-751.72%
2593	57 Neutral	¥311.74B	25.74	8.17%	1.49%	4.14%	9.91%
2590	51 Neutral	¥83.75B	-27.46	―	1.01%	6.00%	-139.78%