Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: $1.43T
• Dividend Yield: 2.26%
• Average Volume (3M): 679.07K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.47
• Revenue Growth: 3.98%
• EPS Growth: 0.28%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Beverages - Alcoholic
• EPS (TTM): 49.90
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 547,490
• 30 Day Avg. Volume: 679,066
• PEG Ratio: 0.85
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.40
• 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: $5,505.23
• Price Target Upside: 17.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: ¥5,097.00 ▲(8.93%Upside)

Suntory Beverage & Food's overall stock score reflects its solid financial performance and fair valuation. However, the current technical analysis indicates weak market momentum, which tempers the company's otherwise strong fundamentals. The stock's potential for stability is balanced by the need for improved technical signals to drive growth.

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 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 exhibits strong financial health with robust revenue growth, stable profit margins, a solid balance sheet with low leverage, and healthy cash flows. The company is well-positioned for stability and growth, supported by effective operational and financial 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
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
646.37B	608.11B	590.00B	552.52B	523.18B	483.86B
	EBIT
155.46B	160.25B	141.73B	139.69B	118.57B	96.18B
	EBITDA
234.13B	237.07B	217.82B	211.70B	188.35B	167.06B
	Net Income Common Stockholders
88.66B	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
126.31B	165.05B	173.42B	203.75B	177.91B	168.20B
	Total Assets
1.97T	2.06T	1.91T	1.78T	1.68T	1.57T
	Total Debt
26.30B	27.22B	119.92B	122.75B	165.35B	203.69B
	Net Debt
-100.01B	-133.28B	-51.83B	-77.88B	-11.31B	36.21B
	Total Liabilities
692.33B	742.75B	727.39B	723.25B	732.98B	714.70B
	Stockholders Equity
1.18T	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow		Free Cash Flow
90.63B	85.42B	79.06B	90.28B	102.06B	71.53B
	Operating Cash Flow
194.70B	193.73B	158.29B	150.51B	158.18B	134.02B
	Investing Cash Flow
-100.36B	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
	Financing Cash Flow
-125.07B	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4679.00
• 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:2587, the sentiment is Negative. The current price of 4679 is above the 20-day moving average (MA) of 4674.05, below the 50-day MA of 4804.84, and below the 200-day MA of 4966.96, indicating a neutral trend. The MACD of -47.27 indicates Negative momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.48 is Neutral, 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
2587	68 Neutral	$1.43T	16.18	7.61%	2.26%	3.98%	0.28%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
ASBRF		$19.88B	15.19	7.40%	2.37%	―	―
CCOJF		$2.94B	121.04	0.85%	2.10%	―	―
KNBWF		$11.58B	28.11	4.91%	3.58%	―	―
SOOBF		$3.92B	111.11	2.87%	0.67%	―	―
2590	70 Outperform	¥85.84B	23.09		1.50%	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.

Suntory Beverage & Food Explores Share Trading Unit Reduction

Suntory Beverage & Food Limited is considering a reduction in the trading unit of its shares to enhance market liquidity and attract a broader investor base. The company is currently evaluating market conditions and share price trends to determine the feasibility and timing of such a move, although no specific measures have been finalized yet.

Suntory Beverage & Food Highlights Parent Company Influence and Operational Independence

Suntory Beverage & Food Limited has outlined its relationship with its parent company, Suntory Holdings Limited, which holds a controlling 59.48% stake. This relationship provides Suntory Beverage & Food with strategic advantages such as economies of scale and exclusive licensing rights for intellectual property. Despite the controlling stake, Suntory Beverage & Food operates independently in its decision-making processes, although Suntory Holdings retains significant influence over major corporate decisions.