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

• Market Cap: ¥97.25B
• Dividend Yield: 3.35%
• Average Volume (3M): 8.15K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.40
• 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: 14,750
• 30 Day Avg. Volume: 8,146
• 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: 64 Neutral
• Price Target: ¥3,408.00 ▲(0.09% Upside)

The overall stock score of 64 reflects strong financial performance and reasonable valuation, offset by negative technical indicators. The company's robust profitability and cash flow are strengths, but high leverage and bearish market momentum present risks. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market strategies, positioning the company well for future expansion.

Profitability

High profitability margins reflect efficient cost management and strong pricing power, supporting long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and debt reduction.

Negative Factors

High Leverage

High leverage can pose financial risks, potentially limiting the company's ability to invest in growth and weather economic downturns.

Earnings Volatility

Earnings volatility can create uncertainty in financial projections, affecting investor confidence and strategic planning.

Operating Cash Flow Coverage

Limited coverage of net income by operating cash flows may constrain the company's ability to fund operations and growth initiatives.

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	78.33B	76.89B	80.58B	76.46B	68.45B	56.34B
Gross Profit	57.37B	52.87B	66.87B	64.64B	58.08B	48.15B
EBITDA	24.59B	23.43B	19.81B	16.95B	14.52B	11.39B
Net Income	6.44B	5.63B	5.78B	6.06B	3.54B	3.19B
Balance Sheet
Total Assets	122.81B	112.08B	99.41B	86.87B	73.08B	61.79B
Cash, Cash Equivalents and Short-Term Investments	35.14B	31.90B	30.56B	25.74B	20.32B	16.87B
Total Debt	74.73B	67.77B	59.49B	53.57B	46.23B	37.83B
Total Liabilities	94.91B	87.00B	76.64B	67.23B	58.79B	51.25B
Stockholders Equity	27.88B	25.06B	22.75B	19.62B	14.28B	10.53B
Cash Flow
Free Cash Flow	16.84B	14.28B	15.27B	9.96B	4.78B	6.09B
Operating Cash Flow	21.48B	20.66B	19.67B	13.81B	7.99B	9.45B
Investing Cash Flow	-13.06B	-12.77B	-5.00B	-4.27B	-2.72B	-5.49B
Financing Cash Flow	-1.72B	-6.54B	-9.88B	-4.13B	-1.83B	2.66B

Premium Water Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3405.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 3405 is above the 20-day moving average (MA) of 3337.25, above the 50-day MA of 3352.50, and above the 200-day MA of 3121.19, indicating a neutral trend. The MACD of -35.10 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 21.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
2588	64 Neutral	¥97.25B	15.13	―	3.35%	0.46%	-6.07%
2593	57 Neutral	$311.48B	26.12	8.17%	1.49%	4.14%	9.91%

Premium Water Holdings, Inc. Corporate Events

Premium Water Holdings Reports Strong Financial Growth for First Half of 2025

Premium Water Holdings, Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a revenue increase of 3.7% year-on-year to 40,347 million yen. The company also experienced significant growth in operating profit and profit attributable to owners of the parent, with increases of 12.3% and 25.8% respectively. The announcement indicates a strong financial performance, reflecting the company’s solid market positioning and potential positive implications for stakeholders.