Suntory Beverage (STBFY) AI Stock Analysis

• Market Cap: $9.74B
• Dividend Yield: 2.75%
• Average Volume (3M): 9.11K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.03
• Revenue Growth: 2.31%
• EPS Growth: -11.88%
• Country: US
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.14
• Shares Outstanding: 618,000,000
• 10 Day Avg. Volume: 4,585
• 30 Day Avg. Volume: 9,105
• PEG Ratio: -33.63
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 21.29
• Enterprise Value/Market Cap: 142.37
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 5.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $11.74B

• Rating: 71 Outperform
• Price Target: $17.50 ▲(10.69% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

STBFY scores well primarily on financial strength—especially its very conservative balance sheet and steady revenue/profit profile—supported by a reasonable P/E and dividend yield. The overall score is tempered by choppy free-cash-flow conversion and a mixed/neutral technical picture.

Positive Factors

Very low leverage and strong balance sheet

Exceptionally low leverage and declining debt provide durable financial flexibility. This supports long-term investment, M&A optionality, and resilience to demand shocks or higher interest rates, reducing refinancing risk and enabling consistent capital allocation over the next several years.

Steady revenue growth and improving profitability

Consistent top-line expansion with improving operating profit indicates durable demand across beverage categories and effective cost management. This trend underpins sustainable cash generation and allows continued brand investment and product innovation without eroding core profitability.

Consistently positive operating cash flow

Regular positive operating cash flow demonstrates the underlying business converts sales into cash, enabling ongoing capex, working-capital needs, and dividends. While free cash flow varies, persistent operating cash inflows support long-term financial stability and reinvestment capacity.

Negative Factors

Volatile free cash flow conversion

Material swings in free cash flow and weak coverage of net income in some years indicate working-capital and investment timing sensitivity. This reduces the predictability of cash available for dividends, buybacks or M&A and heightens reliance on balance-sheet flexibility in down cycles.

Margin pressure from cost and mix headwinds

Declining margins versus prior peaks point to persistent cost inflation or adverse product mix. If these structural pressures continue, they can compress sustainable profitability, limit reinvestment capacity, and require price increases that risk volume or market share over time.

Exposure to tariffs and aging-product demand weakness

Regulatory tariffs and weaker demand for aged spirits create structural production and inventory timing challenges. Pausing distillation reduces near-term output, forces strategic capex or inventory adjustments, and can erode long-term volume and margin recovery in the spirits portfolio.

Suntory Beverage Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited (STBFY) is a global beverage company based in Japan, specializing in a diverse range of non-alcoholic beverages. The company operates in various sectors, including soft drinks, bottled water, tea, and coffee. Suntory is known for its iconic brands, such as Orangina, Ribena, and the popular bottled water brand, Suntory Tennensui. With a strong focus on innovation and sustainability, the company aims to meet the evolving preferences of consumers worldwide.

How the Company Makes Money

Suntory Beverage & Food generates revenue primarily through the sale of its wide array of beverage products across multiple channels, including retail, food service, and online sales. Key revenue streams include carbonated soft drinks, bottled water, ready-to-drink teas, and coffee products. The company leverages strategic partnerships with retailers, distributors, and food service operators to enhance its market reach. Additionally, Suntory invests in marketing and brand development to drive consumer engagement and loyalty. The company's commitment to sustainability and product quality also plays a crucial role in maintaining its competitive edge and profitability in the global beverage market.

Suntory Beverage Financial Statement Overview

Summary

Financials are solid overall: steady revenue growth and improving profitability versus 2020, plus an exceptionally strong, low-leverage balance sheet. The key offset is cash-flow volatility and weaker cash conversion in some recent years, which lowers the quality/consistency of free cash flow.

Income Statement

Revenue has expanded steadily from 2020–2025 (2020 decline followed by multiple years of growth, including ~5.5% in 2025). Profitability is stable and improving versus earlier years: net income is higher than 2020 and operating profit has grown alongside sales. The main offset is margin pressure versus peak levels (gross margin and EBITDA margin were higher in 2021–2022 than in 2023–2024), suggesting cost inflation or mix headwinds.

Balance Sheet

Balance sheet strength is a standout: leverage is very low and improving, with total debt falling sharply from 2020 to 2025 and a very low debt-to-equity level in 2024 (~0.02). Equity and total assets have also grown consistently, supporting financial flexibility. A modest watch item is that returns on equity are solid but not accelerating meaningfully (generally mid-to-high single digits), implying growth is not overly high-return.

Cash Flow

Cash generation is healthy with consistently positive operating cash flow and free cash flow across the period, but volatility is notable. Free cash flow growth swung from strong in 2021 to declines in 2022–2023, improved in 2024, then fell again in 2025 (~-14%). In 2023–2024, free cash flow covered less than half of net income, indicating working-capital or investment demands can reduce cash conversion in some years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.80T	1.70T	1.59T	1.45T	1.27T
Gross Profit	673.11B	646.88B	590.00B	552.52B	523.18B
EBITDA	252.59B	242.75B	219.09B	212.11B	188.45B
Net Income	93.03B	93.50B	82.74B	82.32B	68.68B
Balance Sheet
Total Assets	2.22T	2.06T	1.91T	1.78T	1.68T
Cash, Cash Equivalents and Short-Term Investments	148.76B	165.05B	173.42B	203.75B	177.91B
Total Debt	15.47B	27.22B	74.43B	122.75B	165.35B
Total Liabilities	793.35B	742.75B	727.39B	723.25B	732.98B
Stockholders Equity	1.32T	1.21T	1.09T	965.22B	860.59B
Cash Flow
Free Cash Flow	68.47B	85.42B	79.06B	90.28B	102.06B
Operating Cash Flow	167.03B	193.73B	158.29B	150.51B	158.18B
Investing Cash Flow	-93.15B	-101.30B	-77.80B	-42.40B	-56.87B
Financing Cash Flow	-88.06B	-112.04B	-115.40B	-92.21B	-96.11B

Suntory Beverage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBFY, the sentiment is Negative. The current price of 15.81 is below the 20-day moving average (MA) of 16.01, above the 50-day MA of 15.67, and above the 200-day MA of 15.73, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 6.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STBFY.

Suntory Beverage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	80 Outperform	$49.96B	17.78	17.42%	8.22%	-0.68%	4.29%
STBFY	71 Outperform	$9.74B	16.41	6.97%	2.75%	2.31%	-11.88%
BUD	68 Neutral	$161.34B	23.42	8.29%	1.83%	-2.06%	21.03%
COKE	68 Neutral	$13.47B	29.75	168.34%	0.61%	4.22%	22.24%
FMX	65 Neutral	$22.59B	22.85	5.48%	4.33%	1.44%	-38.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TAP	54 Neutral	$9.71B	-4.51	-18.35%	4.08%	-4.01%	-339.22%