Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: ¥1.52T
• Dividend Yield: 2.42%
• Average Volume (3M): 722.88K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.46
• Revenue Growth: 1.26%
• EPS Growth: -13.39%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 43.23
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 655,100
• 30 Day Avg. Volume: 722,876
• PEG Ratio: -3.23
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 22.37
• 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: ¥5,140.45
• Price Target Upside: 4.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 308.84
• Revenue Forecast (FY): ¥1.82T

• Rating: 70 Outperform
• Price Target: ¥5,280.00 ▲(7.38% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial fundamentals—especially the significantly strengthened, low-leverage balance sheet and steady operating performance—offset by weaker near-term technical signals and some cash flow variability. Valuation is supportive with a reasonable P/E and a ~2.5% dividend yield.

Positive Factors

Very low leverage / strengthened balance sheet

A near-zero debt-to-equity ratio and a materially de‑risked balance sheet give the company durable financial flexibility. Low leverage reduces refinancing and interest-rate risk, preserves capacity for capex, M&A or dividends, and supports credit resilience over the coming months.

Steady revenue growth and resilient demand

Consistent top-line expansion through 2025 implies stable demand across beverage categories and channels. This revenue durability supports scale economics, predictable manufacturing utilization and long-term planning for marketing and distribution investments, sustaining competitive positioning.

Stable gross and operating margins

Relatively steady gross and operating margins reflect pricing power, cost control and efficient operations across the portfolio. Margin stability helps preserve cash generation and reinvestment capacity even if volumes fluctuate, reinforcing the business model's long-term earnings resilience.

Negative Factors

Choppy free cash flow and weak conversion

Volatile free cash flow and sub‑1.0 conversion of net income indicate working‑capital swings or elevated investment needs. This reduces the firm’s ability to reliably fund buybacks, debt repayment or incremental capex from operations, increasing dependency on external financing in adverse periods.

Moderate net profitability

A modest net margin provides limited buffer against commodity, input or logistics cost shocks. Even with stable gross margins, lower net profitability constrains retained earnings and reinvestment, making long‑term return generation more sensitive to cost inflation or pricing pressure.

Recent EPS contraction

Negative EPS growth despite revenue gains suggests margin compression or higher non‑operating drag. If earnings do not recover to match an expanding equity base, this can dilute returns on equity and limit the company’s ability to improve per‑share metrics over the medium term.

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

Strong balance sheet de-risking (very low leverage by 2025) and steady revenue growth with stable operating/EBITDA margins support a solid score. The main drag is cash flow quality: free cash flow is choppy, declined in 2025, and recent conversion versus net income has been below 1.0.

Income Statement

Revenue has grown steadily from 2021–2025 (with a dip in 2020), reaching 1.72T in 2025, indicating resilient demand. Profitability is solid and fairly stable: gross margin has held around ~37–41%, while operating profitability has been steady near ~9–10% and EBITDA margin around ~14–15%. The main weakness is that bottom-line profitability remains moderate (net margin ~5–6%) and eased in 2025 versus 2024, suggesting some cost/price mix pressure.

Balance Sheet

The balance sheet has de-risked meaningfully, with debt falling sharply over time and reaching a very low level in 2025 versus equity (debt-to-equity ~0.01). Equity has expanded consistently from 2020–2025, supporting a stronger capital base. Returns on equity were healthy in 2021–2024 (~7–9%), though 2025 return data is not provided; the key watch item is ensuring earnings keep pace with the growing equity base to avoid return dilution.

Cash Flow

Cash generation is positive, with operating cash flow consistently strong and free cash flow remaining solid in absolute terms. However, free cash flow has been choppy and declined in 2025 (down ~16.8%), and free cash flow has covered less than half of net income in recent years (~0.41–0.65), pointing to working-capital or investment demands that can pressure conversion. Overall cash flow quality is good, but the recent softness and volatility reduce confidence versus the income statement and balance sheet.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.72T	1.70T	1.59T	1.45T	1.27T
Gross Profit	641.99B	646.88B	590.00B	552.52B	523.18B
EBITDA	240.91B	237.07B	219.09B	211.70B	188.35B
Net Income	88.72B	93.50B	82.74B	82.32B	68.68B
Balance Sheet
Total Assets	2.22T	2.06T	1.91T	1.78T	1.68T
Cash, Cash Equivalents and Short-Term Investments	148.66B	165.05B	173.42B	203.75B	177.91B
Total Debt	15.46B	85.27B	119.92B	168.92B	215.64B
Total Liabilities	792.81B	742.75B	727.39B	723.25B	732.98B
Stockholders Equity	1.32T	1.21T	1.09T	965.22B	860.59B
Cash Flow
Free Cash Flow	65.30B	85.42B	79.06B	90.28B	102.06B
Operating Cash Flow	159.31B	193.73B	158.29B	150.51B	158.18B
Investing Cash Flow	-88.84B	-101.30B	-77.80B	-42.40B	-56.87B
Financing Cash Flow	-83.98B	-112.04B	-115.40B	-92.21B	-96.11B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4917.00
• 50DMA: Positive
• 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 4917 is below the 20-day moving average (MA) of 4964.10, above the 50-day MA of 4886.67, and above the 200-day MA of 4686.45, indicating a neutral trend. The MACD of -22.06 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 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
2503	71 Outperform	¥2.20T	14.86	6.93%	3.05%	4.75%	-24.33%
2587	70 Outperform	¥1.52T	17.12	6.97%	2.42%	1.26%	-13.39%
2267	68 Neutral	¥766.46B	17.66	7.18%	2.67%	-3.87%	-16.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2502	60 Neutral	¥2.58T	14.71	6.47%	3.23%	0.86%	0.55%
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%

Suntory Beverage & Food Corporate Events

Suntory Holdings Profits Slump in 2025 but Company Targets Strong Rebound in 2026

Suntory Holdings reported flat revenue for 2025, with total sales including liquor tax edging up 0.4% to ¥3.43 trillion, but operating income dropping 32.8% and profit attributable to owners plunging 50.8%. Despite weaker margins and earnings, equity attributable to owners rose, the equity ratio stayed around 47%, cash and cash equivalents increased, and the annual dividend was maintained at ¥14 per share, signaling a stable capital base and continued shareholder returns.

For 2026, the company forecasts revenue growth of about 4% and a sharp recovery in profitability, with operating income projected to rise 26.6% and profit attributable to owners to grow 32.8%, supported by a modest increase in adjusted operating income. The guidance suggests management expects a rebound in business performance after a challenging 2025, with improved earnings power and continued financial resilience for investors and other stakeholders.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen5640.00 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 to Maintain Annual Dividend at ¥120 per Share for FY2025

Suntory Beverage & Food’s board has approved a proposal for a year-end dividend of ¥60 per share for the fiscal year ended December 31, 2025, with a record date of December 31, 2025 and an effective payment date of March 26, 2026, subject to shareholder approval. The total dividend payout will be ¥18.54 billion funded from retained earnings, keeping the annual dividend flat at ¥120 per share compared with the previous year, as the company balances ongoing strategic investments and capital spending for sustainable growth with its commitment to shareholder returns.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen5640.00 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 Releases FY2025 Results and FY2026 Outlook

Suntory Beverage & Food Limited released its financial results for the fiscal year ended December 31, 2025, signaling the close of its FY2025 reporting cycle. The announcement also included a forecast for FY2026, outlining management’s expectations and strategic direction for the coming year under President and CEO Makiko Ono.

While specific figures were not disclosed in the text, the combined release of full-year results and guidance highlights the company’s efforts to provide visibility into its performance trajectory. This communication is likely intended to inform investors, analysts, and other stakeholders about operational progress and future plans in a competitive global beverage market.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen5640.00 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 Posts Higher Revenue but Lower Profit in FY2025

Suntory Beverage & Food reported consolidated revenue of ¥1,715.4 billion for the year ended December 31, 2025, a 1.1% increase from 2024, reflecting modest top-line growth in its global beverage operations. Despite higher selling, general, and administrative expenses and slightly lower gross profit margin, the company maintained revenue expansion across its portfolio.

Operating income declined 7.2% to ¥148.7 billion and profit attributable to owners of the company fell 5.1% to ¥88.7 billion, as profitability was pressured by cost factors and weaker finance income. The lower profit margin and reduced profit before tax signal a tougher earnings environment, which may influence management’s ongoing cost control efforts and capital allocation decisions, with implications for shareholders and other stakeholders monitoring margin resilience.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen5640.00 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 Posts Modest Sales Growth but Lower Profit in 2025, Keeps Dividend Steady

Suntory Beverage & Food reported a slight 1.1% increase in revenue to ¥1.72 trillion for the year ended December 31, 2025, but operating income fell 7.2% and profit attributable to owners declined 5.1%, reflecting margin pressure despite top-line growth. The company kept its annual dividend at ¥120 per share and projects 2026 revenue to rise 6.4% with modest earnings growth, signaling a focus on stable shareholder returns and steady expansion even as profitability ratios remain below the prior year.

Total assets rose to ¥2.22 trillion and equity attributable to owners increased to ¥1.32 trillion, improving the equity ratio to 59.3% and supporting a robust balance sheet. Operating cash flow decreased compared with the previous year, while continued investment and shareholder payouts resulted in net cash outflows from investing and financing activities, indicating ongoing capital deployment to support long-term growth and maintain its competitive position in the beverage market.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen5640.00 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 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.

The most recent analyst rating on (JP:2587) stock is a Hold with a Yen4600.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.