Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: $1.46T
• Dividend Yield: 2.44%
• Average Volume (3M): 987.21K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.47
• Revenue Growth: 1.56%
• EPS Growth: -3.00%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Beverages - Alcoholic
• EPS (TTM): 83.23
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 1,468,450
• 30 Day Avg. Volume: 987,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: $4,823.70
• Price Target Upside: 2.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥5,221.00 ▲(10.92% Upside)

Suntory Beverage & Food's overall stock score is driven by its strong financial performance, particularly its low leverage and positive cash flow trends. Technical analysis indicates moderate bullish momentum, while valuation metrics suggest the stock is fairly priced. The absence of earnings call data and corporate events limits additional insights.

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 manufacture and sale of its extensive range of beverage and food products. Key revenue streams include the domestic Japanese market and international operations in regions such as Asia, Europe, and the Americas. The company benefits from strong brand recognition and loyalty, which help drive sales across its various product lines. Additionally, Suntory Beverage & Food engages in strategic partnerships and acquisitions to expand its market presence and product offerings, further contributing to its revenue growth. The company also focuses on innovation and sustainability to enhance its competitive edge and meet consumer demand for healthier and environmentally friendly products.

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	1.69T	1.70T	1.59T	1.45T	1.27T	1.18T
Gross Profit	642.45B	646.88B	590.00B	552.52B	523.18B	483.86B
EBITDA	232.15B	237.07B	219.09B	211.70B	188.35B	167.06B
Net Income	88.14B	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet
Total Assets	2.10T	2.06T	1.91T	1.78T	1.68T	1.57T
Cash, Cash Equivalents and Short-Term Investments	145.88B	165.05B	173.42B	203.75B	177.91B	168.20B
Total Debt	48.18B	27.22B	119.92B	168.92B	215.64B	253.84B
Total Liabilities	782.38B	742.75B	727.39B	723.25B	732.98B	714.70B
Stockholders Equity	1.22T	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow
Free Cash Flow	92.69B	85.42B	79.06B	90.28B	102.06B	71.53B
Operating Cash Flow	189.14B	193.73B	158.29B	150.51B	158.18B	134.02B
Investing Cash Flow	-95.91B	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
Financing Cash Flow	-97.88B	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4707.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2587, the sentiment is Positive. The current price of 4707 is above the 20-day moving average (MA) of 4668.15, above the 50-day MA of 4601.06, and below the 200-day MA of 4733.07, indicating a neutral trend. The MACD of 15.75 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 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	71 Outperform	$1.46T	16.55	7.45%	2.44%	1.56%	-3.00%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
ASBRF	―	$19.37B	16.84	6.47%	3.82%	―	―
CCOJF	―	$3.26B	112.14	-14.55%	4.65%	―	―
KNBWF	―	$12.29B	33.60	4.64%	4.58%	―	―
SOOBF	―	$3.95B	155.47	1.95%	0.81%	―	―
2590	63 Neutral	¥83.52B	23.09		0.96%	3.54%	-135.08%

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.