Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: ¥1.38T
• Dividend Yield: 2.69%
• Average Volume (3M): 568.79K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.47
• Revenue Growth: 3.98%
• EPS Growth: 0.28%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Beverages - Alcoholic
• EPS (TTM): 49.90
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 681,050
• 30 Day Avg. Volume: 568,790
• PEG Ratio: -3.00
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.19
• 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: ¥4,923.15
• Price Target Upside: 10.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥4,863.00 ▲(8.82%Upside)

Suntory Beverage & Food's overall score is driven by strong financial performance and reasonable valuation. However, bearish technical indicators weigh down the score, indicating potential market challenges. The absence of earnings call and corporate events data does not affect the score as they are excluded from the analysis.

Suntory Beverage & Food Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited (2587) is a leading global company in the beverage and food industry, headquartered in Japan. It operates in various sectors including non-alcoholic beverages, health and wellness products, and food services. The company is renowned for its diverse portfolio of products, featuring popular brands such as Orangina, Lucozade, Ribena, and Suntory Oolong Tea. Suntory Beverage & Food is committed to providing high-quality products that cater to a wide range of consumer needs and preferences.

How the Company Makes Money

Suntory Beverage & Food Limited generates revenue primarily through the sale of its extensive range of beverage products, which include soft drinks, bottled water, ready-to-drink coffee and tea, and functional beverages. The company operates both in domestic and international markets, leveraging its strong brand portfolio to capture significant market share. Suntory also benefits from strategic partnerships and joint ventures that enhance its distribution capabilities and market presence. Additionally, the company's focus on innovation and new product development contributes to its ability to maintain competitive advantage and drive sales growth. Key revenue streams include direct sales to retailers and distributors as well as licensing and franchising agreements that expand its product reach.

Suntory Beverage & Food Financial Statement Overview

Summary

Suntory Beverage & Food demonstrates strong financial health across all verticals. The income statement reflects strong growth and profitability with stable margins. The balance sheet is robust with low leverage, and cash flow metrics indicate effective cash management.

Income Statement

Suntory Beverage & Food shows strong revenue growth with a consistent increase over the years, highlighted by a solid TTM revenue of ¥1,690.89 billion. The gross profit margin has been stable, with the recent TTM at 38.22%. The net profit margin is healthy at 5.24% for the TTM, indicating efficient cost management. EBIT and EBITDA margins are robust at 9.19% and 13.85% respectively, showcasing operational efficiency. Overall, the company exhibits strong and stable profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a stockholders' equity to total assets ratio of 59.61% in the TTM. The debt-to-equity ratio is low at 0.02, indicating financial stability and low leverage. Return on equity (ROE) is at 7.53% for the TTM, which is reasonable but leaves room for improvement. Overall, the balance sheet is solid, emphasizing low leverage and strong equity backing.

Cash Flow

Cash flows are healthy, with operating cash flow exceeding net income, resulting in a strong operating cash flow to net income ratio of 2.20 for the TTM. Free cash flow has shown growth, with a notable TTM free cash flow of ¥90.63 billion. The free cash flow to net income ratio is 1.02, indicating efficient conversion of earnings to cash. Overall, the cash flow position is strong, highlighting effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70T	1.59T	1.45T	1.27T	1.18T
Gross Profit	608.11B	590.00B	552.52B	523.18B	483.86B
EBITDA	237.07B	217.82B	211.70B	188.35B	167.06B
Net Income	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet
Total Assets	2.06T	1.91T	1.78T	1.68T	1.57T
Cash, Cash Equivalents and Short-Term Investments	165.05B	173.42B	203.75B	177.91B	168.20B
Total Debt	27.22B	119.92B	122.75B	165.35B	203.69B
Total Liabilities	742.75B	727.39B	723.25B	732.98B	714.70B
Stockholders Equity	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow
Free Cash Flow	85.42B	79.06B	90.28B	102.06B	71.53B
Operating Cash Flow	193.73B	158.29B	150.51B	158.18B	134.02B
Investing Cash Flow	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
Financing Cash Flow	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4469.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2587, the sentiment is Negative. The current price of 4469 is below the 20-day moving average (MA) of 4564.97, below the 50-day MA of 4641.31, and below the 200-day MA of 4837.46, indicating a bearish trend. The MACD of -33.50 indicates Positive momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 13.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2587.

Suntory Beverage & Food Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2502	71 Outperform	¥2.81T	14.74	7.40%	2.81%	4.38%	13.44%
2587	67 Neutral	¥1.38T	15.58	7.61%	2.69%	3.98%	0.28%
Sector *	65 Neutral	$26.97B	15.51	-4.18%	3.32%	1.01%	1.53%
2501	64 Neutral	¥544.98B	99.66	2.87%	0.74%	2.69%	-47.13%
2503	63 Neutral	¥1.61T	28.37	4.91%	3.73%	9.00%	-57.41%
2579	58 Neutral	¥403.91B	113.05	0.85%	2.48%	2.62%	-33.99%
2590	56 Neutral	¥85.36B	23.09		0.75%	8.00%	-127.55%

Suntory Beverage & Food Corporate Events

Suntory Beverage & Food Reports Mixed Q1 FY2025 Results Amid Market Challenges

Suntory Beverage & Food reported a mixed performance in Q1 FY2025, with strong results in Japan, Europe, and the Americas, but underperformance in the Asia-Pacific region due to challenging market conditions. The company increased marketing expenses to drive sustainable growth, which led to a decrease in overall revenue and profits. Looking ahead, Suntory faces an uncertain economic environment with rising costs and plans to implement price revisions and structural changes to meet its full-year earnings targets.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.

Suntory Beverage & Food Reports Decline in Q1 2025 Profits

Suntory Beverage & Food Limited reported a decrease in revenue and profit for the first quarter of 2025 compared to the same period in 2024. The company’s revenue fell by 1.6%, and profit attributable to owners decreased by 23.9%, reflecting challenges in maintaining growth amidst rising costs and a competitive market environment.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.

Suntory Beverage & Food Reports Q1 2025 Financial Results

Suntory Beverage & Food Limited reported a decline in its consolidated financial results for the first quarter of 2025, with revenue and profits showing a year-on-year decrease. The company experienced a reduction in operating income and profit before tax, reflecting challenges in the market. Despite these setbacks, the company maintains its dividend forecast for the fiscal year, indicating stability in shareholder returns.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.