LIFEDRINK COMPANY INC. (2585) AI Stock Analysis

• Market Cap: ¥90.84B
• Dividend Yield: 0.65%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.26
• Revenue Growth: 17.33%
• EPS Growth: 12.37%
• Country: JP
• Employees: 587
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 26.17
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,167.00 ▲(24.61% Upside)

LIFEDRINK COMPANY INC. demonstrates strong financial performance with robust revenue and profit growth, which is the most significant factor in its overall score. However, bearish technical indicators and a relatively high P/E ratio weigh down the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product strategy, supporting long-term business expansion and stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and reducing reliance on external financing.

Profitability

Solid profitability margins reflect efficient operations and cost management, providing a buffer against market fluctuations and supporting sustainable growth.

Negative Factors

Debt Levels

Moderate leverage could limit financial flexibility and increase risk if revenue growth slows, necessitating careful debt management.

Valuation Concerns

High valuation may limit upside potential and increase investor expectations, pressuring the company to maintain high growth rates.

Short-term Bearish Trend

While a short-term trend, sustained bearish conditions could impact investor sentiment and capital raising opportunities if prolonged.

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

LIFEDRINK COMPANY INC. exhibits strong financial health with robust revenue and profit growth, solid margins, and efficient cash flow management. The company maintains a moderate leverage position, indicating a stable financial structure. Continued focus on debt reduction and maintaining growth momentum will further strengthen its financial standing.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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 below the 20-day moving average (MA) of 1765.90, below the 50-day MA of 1892.54, and below the 200-day MA of 2034.09, indicating a bearish trend. The MACD of -43.26 indicates Negative momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 42.71 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
2573	72 Outperform	¥52.09B	36.41	―	0.60%	3.62%	5.25%
2597	72 Outperform	¥13.69B	23.58	―	0.68%	19.53%	43.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2585	62 Neutral	¥90.84B	24.70	―	0.65%	17.33%	12.37%
2594	57 Neutral	¥42.82B	94.57	―	0.60%	10.46%	―
2586	52 Neutral	¥14.16B	25.16	―	―	106.61%	―
2590	51 Neutral	¥81.14B	-26.60	―	1.01%	6.00%	-139.78%

LIFEDRINK COMPANY INC. Corporate Events

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.

LIFEDRINK COMPANY Secures Loan for Manufacturing Expansion

LIFEDRINK COMPANY INC. has announced a decision by its Board of Directors to secure a loan from several financial institutions to fund the expansion of its beverage manufacturing line at the Gotemba factory. This initiative is part of the company’s strategy to enhance its production and sales capabilities. The financial impact of this borrowing on the company’s fiscal year ending March 2026 is expected to be minor.

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.