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

• Market Cap: ¥105.62B
• Dividend Yield: 2.88%
• Average Volume (3M): 9.52K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.40
• Revenue Growth: -2.03%
• EPS Growth: -6.76%
• Country: JP
• Employees: 848
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 63.47
• Shares Outstanding: 29,963,718
• 10 Day Avg. Volume: 7,650
• 30 Day Avg. Volume: 9,523
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,830.00
• Price Target Upside: 8.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥3,830.00 ▲(8.65% Upside)

Premium Water Holdings, Inc. has a solid financial foundation with strong profitability and cash flow metrics. The technical indicators show positive momentum, supporting the stock's performance. Valuation is fair, with a reasonable P/E ratio and attractive dividend yield. However, the high leverage is a risk factor that needs monitoring.

Premium Water Holdings, Inc. Business Overview & Revenue Model

Company Description

Premium Water Holdings, Inc. (2588) is a leading company in the bottled water industry, primarily engaged in the production, distribution, and sale of high-quality bottled water products. The company operates through various sectors, including manufacturing, logistics, and retail, and is recognized for its commitment to providing safe, pure, and delicious bottled water options to consumers. Its core products include a wide range of bottled water offerings, encompassing still, sparkling, flavored, and functional water varieties.

How the Company Makes Money

Premium Water Holdings, Inc. generates revenue through the sale of its bottled water products, which are distributed to both retail and commercial customers. The company's key revenue streams include direct sales to major retail chains, online sales, and partnerships with distributors and wholesalers. Additionally, Premium Water Holdings, Inc. may engage in strategic partnerships with hospitality and food service providers to expand its market presence. Its earnings are significantly influenced by its ability to maintain high production standards, efficient supply chain management, and effective marketing strategies to enhance brand recognition and consumer loyalty.

Premium Water Holdings, Inc. Financial Statement Overview

Summary

Premium Water Holdings, Inc. demonstrates 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: 3525.00
• 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:2588, the sentiment is Positive. The current price of 3525 is above the 20-day moving average (MA) of 3455.00, above the 50-day MA of 3321.80, and above the 200-day MA of 3022.92, indicating a bullish trend. The MACD of 44.46 indicates Positive momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 73.35 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	74 Outperform	¥105.62B	17.22		2.88%	-2.03%	-6.76%
2593	64 Neutral	347.85B	27.75	8.12%	1.27%	4.54%	20.36%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Premium Water Holdings, Inc. Corporate Events

Premium Water Holdings Reports Fiscal Year 2025 Financial Results

Premium Water Holdings, Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in revenue by 4.6% to 76,895 million yen, while operating profit increased by 21.7% to 11,482 million yen. Despite a slight decline in profit attributable to owners of the parent, the company forecasts growth in revenue and profit for the next fiscal year, indicating a positive outlook for stakeholders.