Premium Water Holdings, Inc. (2588) AI Stock Analysis

• Market Cap: ¥101.44B
• Dividend Yield: 3.31%
• Average Volume (3M): 4.59K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.42
• Revenue Growth: 0.46%
• EPS Growth: -6.07%
• Country: JP
• Employees: 848
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 69.05
• Shares Outstanding: 29,969,118
• 10 Day Avg. Volume: 3,690
• 30 Day Avg. Volume: 4,590
• PEG Ratio: -5.06
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 5.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥3,553.00 ▲(4.35% Upside)

Premium Water Holdings, Inc. has strong financial performance with high profitability and cash flow metrics. However, technical indicators suggest bearish momentum, and the high leverage is a potential risk. The valuation is reasonable with a good dividend yield, making it a moderately attractive investment.

Positive Factors

Profitability

High profitability margins indicate effective cost management and operational efficiency, contributing to long-term financial stability and competitive advantage.

Cash Flow Generation

Strong cash flow generation supports future growth initiatives and debt servicing, enhancing the company's ability to invest in strategic opportunities.

Market Position

Diverse product offerings and market reach position the company well to capture a growing segment of health-conscious consumers, driving revenue growth.

Negative Factors

High Leverage

Significant leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, potentially impacting long-term stability.

Revenue Growth Fluctuations

Fluctuating revenue growth may signal challenges in maintaining consistent market expansion, affecting long-term strategic planning and investor confidence.

Earnings Growth Decline

Declining earnings growth can impact the company's ability to reinvest in business operations and may affect its attractiveness to investors seeking growth.

Premium Water Holdings, Inc. Business Overview & Revenue Model

Company Description

Premium Water Holdings, Inc. (2588) is a company focused on the bottled water industry, specializing in the production and distribution of premium quality water products. Operating primarily in the beverage sector, the company offers a range of bottled water varieties, including spring water, purified water, and flavored water, catering to both retail and wholesale markets. Premium Water Holdings, Inc. is committed to sustainability and quality, sourcing its water from pristine locations and utilizing eco-friendly packaging solutions.

How the Company Makes Money

Premium Water Holdings, Inc. generates revenue through multiple streams primarily centered around the sale of bottled water products. The company sells its products directly to consumers through retail channels, including supermarkets, convenience stores, and online platforms, as well as to businesses in the food service and hospitality sectors. Key revenue streams include wholesale distribution agreements with large retailers and strategic partnerships with restaurants and hotels for exclusive water supply contracts. Additionally, the company may benefit from private label partnerships, allowing other brands to sell its water under their own labels. The emphasis on premium quality and sustainable practices positions Premium Water Holdings, Inc. to capture a growing segment of health-conscious consumers, further driving its revenue growth.

Premium Water Holdings, Inc. Financial Statement Overview

Summary

Premium Water Holdings, Inc. shows strong profitability with high margins and consistent revenue growth. However, the high debt-to-equity ratio poses a risk, requiring careful management to maintain financial stability.

Income Statement

Premium Water Holdings, Inc. demonstrates strong profitability with a high gross profit margin of 80.67% and a solid net profit margin of 7.32% for TTM. The revenue growth rate of 4.6% TTM indicates a positive trend, although it has fluctuated in previous years. The EBIT and EBITDA margins are robust at 14.09% and 30.26%, respectively, showcasing effective cost management and operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.70, indicating significant leverage, which could pose a risk if not managed properly. However, the return on equity is strong at 23.29%, reflecting efficient use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

The cash flow position is healthy, with a free cash flow growth rate of 9.95% TTM. The operating cash flow to net income ratio is 0.48, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.69 suggests that a substantial portion of earnings is being converted into free cash flow, supporting future growth and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.70B	76.89B	80.58B	76.46B	68.45B	56.34B
Gross Profit	59.91B	52.87B	66.87B	64.64B	58.08B	48.15B
EBITDA	23.95B	23.43B	19.81B	16.95B	14.52B	11.39B
Net Income	6.08B	5.63B	5.78B	6.06B	3.54B	3.19B
Balance Sheet
Total Assets	116.16B	112.08B	99.41B	86.87B	73.08B	61.79B
Cash, Cash Equivalents and Short-Term Investments	31.24B	31.90B	30.56B	25.74B	20.32B	16.87B
Total Debt	72.47B	67.77B	59.49B	53.57B	46.23B	37.83B
Total Liabilities	90.60B	87.00B	76.64B	67.23B	58.79B	51.25B
Stockholders Equity	25.54B	25.06B	22.75B	19.62B	14.28B	10.53B
Cash Flow
Free Cash Flow	15.70B	14.28B	15.27B	9.96B	4.78B	6.09B
Operating Cash Flow	20.95B	20.66B	19.67B	13.81B	7.99B	9.45B
Investing Cash Flow	-12.43B	-12.77B	-5.00B	-4.27B	-2.72B	-5.49B
Financing Cash Flow	-4.06B	-6.54B	-9.88B	-4.13B	-1.83B	2.66B

Premium Water Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3405.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2588, the sentiment is Positive. The current price of 3405 is above the 20-day moving average (MA) of 3344.75, above the 50-day MA of 3370.72, and above the 200-day MA of 3080.75, indicating a bullish trend. The MACD of -2.34 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 68.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2588.

Premium Water Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2588	67 Neutral	¥101.44B	15.61	―	3.31%	0.46%	-6.07%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
2593	57 Neutral	$329.98B	26.08	8.17%	1.42%	4.14%	9.90%

Premium Water Holdings, Inc. Corporate Events

Premium Water Holdings Reports Strong Financial Performance for Q2 2025

Premium Water Holdings, Inc. reported its consolidated financial results for the three months ended June 30, 2025, showing a notable increase in revenue and profits compared to the previous year. The company experienced a 4.3% rise in revenue and a significant 31.7% increase in profit attributable to the owners of the parent. This financial performance reflects the company’s strong market positioning and operational efficiency, suggesting positive implications for stakeholders and a robust outlook for the fiscal year ending March 31, 2026.