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

• Market Cap: ¥87.63B
• Dividend Yield: 3.41%
• Average Volume (3M): 6.65K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.43
• Revenue Growth: -4.57%
• EPS Growth: -2.68%
• Country: JP
• Employees: 848
• Sector: Utilities
• Sector Strength: 80
• Industry: Regulated Water
• EPS (TTM): 24.74
• Shares Outstanding: 29,855,620
• 10 Day Avg. Volume: 7,650
• 30 Day Avg. Volume: 6,653
• PEG Ratio: 74.18
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.64
• 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

• Rating: 77 Outperform
• Price Target: ¥3,293.00 ▲(12.20%Upside)

Premium Water Holdings, Inc. is rated favorably due to strong financial performance and solid technical indicators. The valuation is reasonable, making the stock attractive. However, high leverage requires monitoring. The absence of earnings call data limits insights into future prospects.

Premium Water Holdings, Inc. Business Overview & Revenue Model

Company Description

Premium Water Holdings,Inc. produces and delivers mineral water under the Premium Water brand in Japan. The company was formerly known as Water Direct Corporation and changed its name to Premium Water Holdings,Inc. in July 2016. Premium Water Holdings,Inc. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Premium Water Holdings, Inc. generates revenue through the sale of its bottled water products, which are distributed through a wide network of retail partners, including supermarkets, convenience stores, and online platforms. The company leverages strategic partnerships with distributors and retailers to enhance market penetration and brand visibility. Revenue streams are diversified across different product categories, such as natural mineral water, flavored water, and purified water, each catering to specific consumer needs. The company also invests in marketing and brand-building initiatives to drive consumer loyalty and increase sales. Additionally, Premium Water Holdings may explore opportunities in private label production for other brands, further contributing to its income.

Premium Water Holdings, Inc. Financial Statement Overview

Summary

Premium Water Holdings, Inc. exhibits strong financial performance across all verticals, with robust revenue and profit growth, solid equity base, and healthy cash flow generation. The company maintains efficient operations and prudent financial management, although it must continue to manage leverage to sustain long-term stability.

Income Statement

Premium Water Holdings, Inc. demonstrates strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The TTM (Trailing-Twelve-Months) reports a gross profit margin of 85.1% and a net profit margin of 9.02%, indicating efficient cost management and profitability. Revenue growth has been steady, with significant year-on-year increases, particularly between 2022 and 2023, suggesting robust business expansion and market demand. EBIT and EBITDA margins have also improved, highlighting operational efficiency.

Balance Sheet

The balance sheet reflects a growing equity base with a notable increase in stockholders' equity over the past few years, enhancing financial stability. The debt-to-equity ratio is relatively high but has decreased over time, indicating a prudent approach to leveraging. The return on equity (ROE) is strong at 28.05% for TTM, showcasing effective use of equity capital. The equity ratio has improved, suggesting a balanced approach to financing growth with equity.

Cash Flow

Cash flow metrics indicate healthy cash generation, with a solid operating cash flow to net income ratio of 2.62 for TTM, demonstrating efficient earnings conversion to cash. The free cash flow growth rate is positive, reflecting a capacity to fund operations and growth initiatives. The free cash flow to net income ratio is robust, ensuring adequate liquidity and financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
76.64B	80.58B	68.45B	56.34B	45.45B	37.73B
	Gross Profit
65.21B	66.87B	58.08B	48.15B	37.97B	32.00B
	EBIT
11.14B	9.44B	6.10B	4.39B	1.86B	715.70M
	EBITDA
23.29B	19.81B	16.95B	14.47B	11.65B	8.00B
	Net Income Common Stockholders
6.92B	5.78B	3.54B	3.54B	1.87B	528.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.56B	30.56B	22.39B	19.49B	10.89B	7.33B
	Total Assets
99.41B	99.41B	73.08B	61.79B	42.45B	30.35B
	Total Debt
59.49B	59.49B	46.23B	37.83B	26.23B	13.52B
	Net Debt
28.93B	28.93B	25.91B	20.96B	15.99B	6.18B
	Total Liabilities
76.64B	76.64B	58.79B	51.25B	35.76B	26.73B
	Stockholders Equity
22.75B	22.75B	14.28B	10.53B	6.67B	3.60B
Cash Flow		Free Cash Flow
12.78B	15.27B	4.78B	6.09B	5.40B	4.17B
	Operating Cash Flow
18.13B	19.67B	7.99B	9.45B	6.66B	4.80B
	Investing Cash Flow
-9.96B	-5.00B	-2.72B	-5.49B	-1.33B	-1.20B
	Financing Cash Flow
-1.64B	-9.88B	-4.13B	2.66B	-1.83B	-1.93B

Premium Water Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2935.00
• 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 2935 is above the 20-day moving average (MA) of 2900.20, above the 50-day MA of 2852.56, and above the 200-day MA of 2876.42, indicating a bullish trend. The MACD of 27.23 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 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	77 Outperform	¥87.63B	15.28		3.41%	-4.57%	-2.68%
Sector *	64 Neutral	$8.53B	10.25	4.70%	4.38%	4.14%	-13.04%
ITOEF		$2.40B	31.56	7.88%	1.27%	―	―

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.