LIFEDRINK COMPANY INC. (2585) AI Stock Analysis

• Market Cap: ¥63.79B
• Dividend Yield: 0.65%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.09
• Revenue Growth: 17.33%
• EPS Growth: 12.37%
• Country: JP
• Employees: 587
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 13.73
• Shares Outstanding: 52,328,610
• 10 Day Avg. Volume: 607,160
• 30 Day Avg. Volume: 1,384,693
• PEG Ratio: 3.33
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 1.77
• P/FCF Ratio: 44.30
• 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): 78.88
• Revenue Forecast (FY): ¥52.77B

• Rating: 65 Neutral
• Price Target: ¥1,427.00 ▼(-17.94% Downside)
• Action: Reiterated Date: 02/15/26
• Date: Action: Reiterated 02/15/26

Score is driven by strong financial performance (growth, profitability, and improved free cash flow), partially offset by very weak technicals (below all key moving averages with negative MACD and oversold momentum). Valuation is moderate with a low dividend yield, offering some support but not enough to overcome the bearish trend.

Positive Factors

Revenue growth and margin profile

Sustained 16.5% top-line growth combined with healthy gross and EBITDA margins indicates a scalable core beverage business with effective pricing and cost control. These fundamentals support reinvestment, margin durability through cycles, and long-term profit generation for shareholders.

Improved cash generation

The shift to positive free cash flow and strong operating cash flow demonstrate robust cash conversion and capital management. This improves financial flexibility to fund capex, reduce leverage, or return capital, strengthening the company’s longer-term ability to invest and withstand downturns.

High return on equity

A 23.8% ROE points to effective deployment of shareholder capital and strong operational returns. Combined with a roughly 43% equity ratio, the company shows a balanced capital structure that can support growth while delivering attractive returns, aiding long-term shareholder value creation.

Negative Factors

Moderate leverage

A debt-to-equity ratio near 0.86 represents meaningful leverage that can constrain financial flexibility. In adverse demand or cost inflation scenarios, interest obligations could limit ability to finance growth or accelerate buybacks, making deleveraging a recurring strategic priority.

EPS growth lagging revenue

Revenue expansion materially outpaced EPS growth, suggesting less-than-proportional earnings conversion. This may reflect rising operating costs, margin pressure, or dilution effects, and implies the company must improve operating leverage to translate top-line gains into sustained bottom-line growth.

Limited forward visibility

The absence of forward guidance or substantive earnings-call commentary reduces visibility into management’s near-term plans and targets. For investors and planners this limits ability to assess execution risk and capital allocation choices, increasing uncertainty around strategic trajectory.

LIFEDRINK COMPANY INC. Business Overview & Revenue Model

Company Description

Lifedrink Company, Inc. manufactures and sells beverages in Japan. The company offers natural water, green tea, oolong tea, and carbonated water drinks under the LDC brand name; black oolong tea, pearl barley tea, rooibos tea, domestic tea leaves green, kagoshima tea, and organic barley tea products; and foods with functional claims and saicha products, as well as soda online. Lifedrink Company, Inc. was incorporated in 1972 and is headquartered in Osaka, Japan.

How the Company Makes Money

LIFEDRINK COMPANY INC. generates revenue primarily through the sale of its beverage products across multiple channels, including retail grocery stores, convenience stores, and e-commerce platforms. The company benefits from a multi-tiered pricing strategy that allows it to cater to both mass-market consumers and premium segments. Key revenue streams include direct sales to retailers, bulk orders from wellness-focused businesses, and subscription services for online customers. Additionally, strategic partnerships with health and wellness influencers, fitness centers, and health food retailers enhance brand visibility and drive sales. The company also explores opportunities in private label production for other brands, further diversifying its income sources.

LIFEDRINK COMPANY INC. Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew 16.5% (¥38.24B to ¥44.54B), healthy margins (gross 43.7%, net 7.6%, EBITDA 14.9%), and improving cash generation with free cash flow turning positive (¥1.78B). Balance sheet is solid but leverage is moderate (debt-to-equity 0.86), which tempers the score.

Income Statement

LIFEDRINK COMPANY INC. has demonstrated strong revenue growth with an impressive increase from ¥38.24 billion to ¥44.54 billion (16.5% growth). The gross profit margin stands at 43.7%, indicating efficient cost management. The net profit margin of 7.6% highlights solid profitability. EBIT and EBITDA margins of 10.6% and 14.9%, respectively, reflect robust operational efficiency, contributing to the company's profitability and growth.

Balance Sheet

The company maintains a balanced financial position with a debt-to-equity ratio of 0.86, indicating moderate leverage. The return on equity is 23.8%, showcasing strong returns on shareholders' investments. An equity ratio of 42.8% suggests a stable capital structure, although there is room for improvement in reducing debt levels to enhance financial stability.

Cash Flow

Operating cash flow has grown to ¥5.20 billion, indicating strong cash-generating ability. The free cash flow growth rate is commendable, reversing from a negative to a positive ¥1.78 billion. The operating cash flow to net income ratio of 1.53 signifies efficient cash conversion. The improvement in free cash flow to net income ratio highlights effective capital management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.67B	44.54B	38.24B	30.25B	25.39B	22.73B
Gross Profit	20.75B	19.46B	16.34B	12.76B	10.82B	8.94B
EBITDA	6.99B	6.62B	5.72B	4.21B	3.01B	1.94B
Net Income	3.54B	3.39B	3.15B	2.08B	2.32B	1.40B
Balance Sheet
Total Assets	37.10B	33.21B	30.65B	22.16B	17.13B	14.00B
Cash, Cash Equivalents and Short-Term Investments	3.44B	3.01B	3.74B	4.33B	3.89B	2.67B
Total Debt	15.05B	12.19B	13.27B	9.04B	7.71B	9.16B
Total Liabilities	22.54B	18.98B	19.30B	14.01B	10.89B	11.97B
Stockholders Equity	14.56B	14.23B	11.34B	8.16B	6.24B	2.03B
Cash Flow
Free Cash Flow	0.00	1.78B	-4.09B	363.00M	787.00M	1.50B
Operating Cash Flow	0.00	5.20B	4.61B	3.77B	2.92B	2.11B
Investing Cash Flow	0.00	-4.10B	-8.77B	-5.00B	-2.13B	-267.00M
Financing Cash Flow	0.00	-1.83B	3.55B	1.66B	438.00M	-1.29B

LIFEDRINK COMPANY INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1739.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2585, the sentiment is Negative. The current price of 1739 is above the 20-day moving average (MA) of 1413.20, above the 50-day MA of 1616.90, and below the 200-day MA of 2015.32, indicating a bearish trend. The MACD of -128.41 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 25.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2585.

LIFEDRINK COMPANY INC. 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%

LIFEDRINK COMPANY INC. Corporate Events

LifeDrink Corrects Full-Year Forecast, Keeps Profit Outlook Lower Despite EPS Tweak

LifeDrink Company Inc. has corrected numerical data in its recently revised full-year consolidated earnings forecasts for the fiscal year ending March 31, 2026. The corrections mainly affect the projection for basic earnings per share, which has been adjusted slightly upward from 66.31 yen to 66.62 yen, while other key figures such as revenue, operating profit, ordinary profit, and profit attributable to owners of parent remain unchanged from the previously announced revision.

The updated forecast still calls for revenue of 52.2 billion yen and operating profit of 5.22 billion yen, representing modest top-line growth but a notable decline in profitability versus the earlier forecast. Compared with the prior outlook, LifeDrink continues to signal only a 0.4% revenue increase but around a 20% decrease in operating and ordinary profit and a roughly 22% drop in profit attributable to owners of parent, underscoring pressure on margins despite steady sales expectations.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1293.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LIFEDRINK Corrects EPS Figures in Q3 FY2026 Results Materials

LIFEDRINK COMPANY, INC. has disclosed that numerical errors were found in its previously released presentation materials for third-quarter fiscal 2026 financial results. The company has issued corrected materials to address inaccuracies in reported earnings per share figures for the quarter and the revised full-year forecasts.

The corrections specifically affect EPS data and related year-on-year variances in the financial results and forecast sections of the presentation. By promptly amending these figures, the company aims to restore accuracy in its investor communications and ensure stakeholders rely on updated, corrected performance indicators.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1293.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LifeDrink Corrects Earnings Data and Lowers Growth Rates in FY2025 Results

LifeDrink Company Inc. has issued corrections to its previously announced consolidated financial results for the nine months ended December 31, 2025, adjusting key per-share figures and share data. The company slightly raised reported earnings per share and diluted earnings per share, and revised the number of treasury shares and average shares outstanding, changes that fine-tune its reported profitability metrics and may affect investor analysis of its capital structure.

The company also corrected its full-year forecast for the fiscal year ending March 31, 2026, leaving revenue and profit yen amounts unchanged but lowering the year-on-year growth rates for revenue, operating profit, ordinary profit, and profit attributable to owners of parent. While the absolute earnings outlook remains intact, the moderated growth percentages suggest a less aggressive expansion trajectory than initially indicated, which could temper market expectations regarding the company’s pace of performance improvement.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1293.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LIFEDRINK Cuts Profit Outlook for FY2026 as Tea and Logistics Costs Climb

LIFEDRINK COMPANY, INC. revised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, trimming profit expectations despite a slight increase in projected revenue to 52.2 billion yen. Operating profit, ordinary profit, and profit attributable to owners of the parent are now expected to be about 20–22 percent lower than the previous forecast, even though they remain above last year’s actual results.

Management attributed the downgrade primarily to higher logistics expenses and surging prices for tea raw materials, which are squeezing margins despite top-line growth. The company kept its year-end dividend forecast unchanged, signaling an intention to maintain shareholder returns even as profitability comes under pressure from cost inflation in its supply chain.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LIFEDRINK Lifts Q3 Earnings but Cuts Full-Year Outlook on Cost Pressures

LIFEDRINK COMPANY INC. reported third-quarter fiscal 2026 results showing a 13% year-on-year increase in production volume, supported by contributions from the Gotemba Factory, O Beverage, and full-scale output at N Beverage. Revenue rose 18% and operating profit climbed 10% as expanded sales channels and cost-reduction measures, including in-house bottle production, offset higher logistics and labor expenses.

Despite this growth, the company has revised down its full-year earnings forecast due to deteriorating logistics efficiency, particularly in e-commerce, and sharply higher raw green tea leaf costs. Management plans to counter these pressures by overhauling warehouse operations, building a multi-hub e-commerce logistics network, adjusting prices, and sourcing tea leaves from overseas, while maintaining an unchanged medium-term strategy centered on “Max Production, Max Sales.”

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LIFEDRINK COMPANY Lifts Full-Year Outlook on Double-Digit Revenue Growth

LIFEDRINK COMPANY reported strong performance for the nine months ended December 31, 2025, with revenue rising 17.7% year on year to ¥40.67 billion and profit attributable to owners of parent up 6.7% to ¥3.08 billion. Earnings per share also increased, reflecting steady profit growth despite a slight decline in the equity-to-asset ratio as total assets expanded.

The company kept its interim dividend at zero but plans to raise the year-end dividend to ¥14 per share for the fiscal year ending March 31, 2026, up from ¥12 in the prior year. Management also upgraded its full-year forecast, now projecting a 28.3% jump in revenue to ¥52.2 billion and a 12.6% rise in bottom-line profit, signaling continued business expansion and improved earnings capacity, as highlighted by a 12.8% increase in forecast EBITDA.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

Life Drink Company Creates Tea Farming Subsidiary to Secure Raw Materials and Support Domestic Production

Life Drink Company has resolved to establish a wholly owned subsidiary, LD Agri Co., Ltd. in Kagoshima, to secure a stable supply of raw tea leaves for its green tea beverages and help sustain Japan’s domestic tea production base amid rising global demand and shrinking cultivation areas. The new unit will lease tea fields, operate crude tea processing plants, deploy smart farming technologies such as automated harvesters and sensor-based fertilizer management to boost productivity and quality, and coordinate closely with the company’s existing Chiran Factory, reflecting a push toward vertical integration and a sustainable tea-farming model that strengthens its cost competitiveness and long-term sourcing resilience.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen1926.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.

LIFEDRINK Completes Acquisition of Gunma Beverage Plant Assets to Boost Capacity

LIFEDRINK COMPANY, INC. has completed the acquisition of the assets of the Gunma Factory from POKKA SAPPORO Food & Beverage Ltd. as of January 1, 2026, via its wholly owned subsidiary Gunma Beverage Co., Ltd. The acquired assets—covering land, buildings, machinery and equipment—are intended to boost the group’s production volume, support further enhancements in capacity and profitability, and underpin a strategy of achieving profit growth outpacing sales growth, while the company expects only a minor impact on its consolidated results for the fiscal year ending March 31, 2026 and therefore is maintaining its earnings forecast.

The most recent analyst rating on (JP:2585) stock is a Hold with a Yen2167.00 price target. To see the full list of analyst forecasts on LIFEDRINK COMPANY INC. stock, see the JP:2585 Stock Forecast page.