Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: $1.48T
• Dividend Yield: 2.39%
• Average Volume (3M): 722.88K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.47
• Revenue Growth: 1.26%
• EPS Growth: -13.39%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 110.77
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 655,100
• 30 Day Avg. Volume: 722,876
• PEG Ratio: 1.28
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 18.13
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 6.18
• 1Y Price Target: $4,541.35
• Price Target Upside: -5.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥5,397.00 ▲(12.20% Upside)

The overall stock score of 72 reflects strong financial performance with robust revenue growth and profitability. Technical indicators suggest neutral momentum with potential for upward movement. Valuation is fair, supported by a reasonable P/E ratio and dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitiveness and market position.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing for strategic investments and resilience against economic downturns.

Profitability

Strong profit margins reflect efficient operations and pricing power, supporting sustainable earnings and potential for reinvestment into growth initiatives.

Negative Factors

Decline in Free Cash Flow

A decline in free cash flow growth can limit the company's ability to fund new projects and return capital to shareholders, impacting long-term growth prospects.

Net Profit Margin Pressure

Pressure on net profit margins may indicate rising costs or pricing challenges, potentially affecting future profitability and competitive positioning.

ROE Efficiency

A decrease in ROE suggests challenges in generating returns from equity, which could impact investor confidence and the company's ability to attract new capital.

Suntory Beverage & Food Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited, a soft drink company, manufactures and sells beverages and foods in Japan, Europe, rest of Asia, Oceania, and the Americas. It offers mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, and food for specified health uses. The company sells its products under the Suntory Tennensui, Boss, Suntory Green Tea Iyemon, Suntory Iyemon Tokucha, Pepsi Japan cola, C.C. Lemon, Natchan!, Orangina, Oasis, Lucozade, Ribena, Schweppes, MayTea, TEA+, MYTEA Oolong Tea, Sting, Okky, goodmood, V, Toby's Estate, BRAND'S Essence of Chicken, and Nature's Twist brands. The company was founded in 2009 and is headquartered in Tokyo, Japan. Suntory Beverage & Food Limited is a subsidiary of Suntory Holdings Limited.

How the Company Makes Money

Suntory Beverage & Food generates revenue primarily through the sale of its diverse range of beverage products across multiple markets. The company's key revenue streams include sales from carbonated soft drinks, bottled water, ready-to-drink teas, and health-oriented beverages. Additionally, the company benefits from strong brand recognition and customer loyalty, which drive repeat purchases. Partnerships with retailers, distributors, and food service establishments also play a significant role in its revenue model, allowing for extensive market reach and penetration. Furthermore, Suntory Beverage & Food's focus on international expansion and product innovation helps to enhance its earnings by capturing new consumer trends and preferences.

Suntory Beverage & Food Financial Statement Overview

Summary

Suntory Beverage & Food demonstrates strong financial health with solid profitability and a stable balance sheet. The low debt-to-equity ratio and positive cash flow trends provide a cushion against potential risks. However, the recent decline in revenue growth is a concern.

Income Statement

Suntory Beverage & Food shows strong profitability with a consistent gross profit margin around 38% and a net profit margin of approximately 5.2% in the TTM. However, the revenue growth rate has turned negative at -0.3% in the TTM, indicating a potential slowdown. EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.022 in the TTM, indicating low leverage. Return on equity is solid at 7.5%, suggesting effective use of equity capital. The equity ratio is strong, showcasing financial stability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 2.3% in the TTM, indicating improving cash generation. The operating cash flow to net income ratio is 0.39, suggesting good cash conversion, though there is room for improvement. The free cash flow to net income ratio is 0.47, reflecting decent cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70T	1.70T	1.59T	1.45T	1.27T	1.18T
Gross Profit	640.25B	646.88B	590.00B	552.52B	523.18B	483.86B
EBITDA	231.04B	237.07B	219.09B	211.70B	188.35B	167.06B
Net Income	85.60B	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet
Total Assets	2.13T	2.06T	1.91T	1.78T	1.68T	1.57T
Cash, Cash Equivalents and Short-Term Investments	141.34B	165.05B	173.42B	203.75B	177.91B	168.20B
Total Debt	9.30B	85.27B	119.92B	168.92B	215.64B	253.84B
Total Liabilities	764.50B	742.75B	727.39B	723.25B	732.98B	714.70B
Stockholders Equity	1.25T	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow
Free Cash Flow	78.48B	85.42B	79.06B	90.28B	102.06B	71.53B
Operating Cash Flow	169.46B	193.73B	158.29B	150.51B	158.18B	134.02B
Investing Cash Flow	-88.67B	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
Financing Cash Flow	-90.28B	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4810.00
• 50DMA: Negative
• 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:2587, the sentiment is Positive. The current price of 4810 is below the 20-day moving average (MA) of 4848.25, below the 50-day MA of 4817.96, and above the 200-day MA of 4714.54, indicating a neutral trend. The MACD of -8.41 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2587.

Suntory Beverage & Food Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2587	72 Outperform	$1.48T	17.35	6.97%	2.39%	1.26%	-13.39%
2503	70 Outperform	¥1.92T	23.41	6.93%	3.02%	4.75%	-24.33%
2501	65 Neutral	¥631.29B	89.00	3.63%	0.64%	0.25%	-58.68%
2579	63 Neutral	¥515.42B	-10.71	-12.00%	1.80%	2.07%	-751.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2502	60 Neutral	$2.63T	14.99	6.47%	3.25%	0.86%	0.55%
2590	51 Neutral	¥78.91B	-26.20	―	1.00%	6.00%	-139.78%

Suntory Beverage & Food Corporate Events

Suntory Beverage & Food Announces Leadership Changes Amid Strategic Shift

Suntory Beverage & Food Limited announced significant changes in its leadership and corporate structure, including the appointment of Josuke Kimura as the new Representative Director, President & CEO, succeeding Makiko Ono. These changes are part of the company’s strategy to navigate a challenging external environment and drive sustainable growth through innovation and transformation, reflecting its proactive approach to evolving market dynamics.

Suntory Beverage & Food’s Q3 Revenue Steady, Income Declines

Suntory Beverage & Food Limited reported that its Q3 revenue remained consistent with the previous year, driven by moderate recovery in the APAC region and solid performance in Europe. However, operating income declined due to lower sales volumes in APAC and Japan, and the overall results did not meet expectations, highlighting challenges in market recovery and operational efficiency.

Suntory Beverage & Food Reports Mixed Financial Results for Nine Months Ending September 2025

Suntory Beverage & Food Limited reported its financial results for the nine months ending September 30, 2025, showing a slight increase in revenue to 1,278.1 billion yen. However, the company experienced a decline in operating income and profit before tax, attributed to increased selling, general, and administrative expenses. The profit for the period attributable to owners of the company decreased by 9.5%, reflecting challenges in maintaining profitability amidst rising costs.

Suntory Beverage & Food Reports Decline in Operating Income for Nine Months of 2025

Suntory Beverage & Food Limited reported its consolidated financial results for the nine months ending September 30, 2025, showing a stable revenue of 1,278,080 million yen, but a decline in operating income and profit before tax by 9.2% and 10.4%, respectively, compared to the previous year. The company also noted a decrease in net cash inflow from operating activities and a slight increase in dividends, indicating a cautious financial outlook and adjustments in its financial strategies to maintain shareholder value.