Yakult Honsha (YKLTY) AI Stock Analysis

• Market Cap: $4.86B
• Dividend Yield: 2.56%
• Average Volume (3M): 89.00
• Price to Earnings (P/E): 16.7
• Beta (1Y): -0.10
• Revenue Growth: -3.18%
• EPS Growth: -15.48%
• Country: US
• Employees: 29,627
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.19
• Shares Outstanding: 616,570,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 89
• PEG Ratio: -2.55
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 11.49
• Enterprise Value/Market Cap: 129.45
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: 7.94
• 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: 65 Neutral
• Price Target: $9.50 ▲(16.56% Upside)
• Action: Downgraded Date: 12/03/25
• Date: Action: Downgraded 12/03/25

Yakult Honsha's strong financial performance is the most significant factor, showcasing stability and growth potential. However, the technical analysis indicates bearish momentum, which weighs down the overall score. The valuation is fair, with a reasonable P/E ratio and a decent dividend yield, providing some support to the overall score.

Positive Factors

Strong balance sheet

Yakult's low leverage and rising shareholders' equity create durable financial flexibility. A strong equity ratio reduces solvency risk, supports investment or buybacks without heavy new debt, and cushions the business during cyclical downturns, preserving strategic optionality.

Consistent cash generation

Multi-year positive free cash flow and healthy operating-cash-to-net-income metrics indicate reliable cash conversion. That sustained cash generation supports dividends, reinvestment in distribution and production, and reduces dependence on external financing over the medium term.

Durable DTC model & global footprint

The recurring direct-to-consumer 'Yakult Ladies' network creates high customer stickiness and predictable route-based revenue. Combined with local production/distribution internationally, this gives scalable market access, strong brand presence, and structural competitive advantage in core markets.

Negative Factors

Revenue decline (latest)

Reported negative revenue growth in the most recent period signals demand or volume pressure in end markets. If this trend persists, it could constrain top-line driven investments and limit operating leverage, making it harder to sustain long-term margin expansion.

Earnings contraction

A double-digit EPS decline indicates profit-per-share deterioration beyond revenue trends, reflecting margin compression or non-operating impacts. Sustained EPS weakness can limit retained earnings accumulation and reduce flexibility for dividends or strategic M&A.

Free cash flow volatility

While FCF is positive across years, recent fluctuations reduce predictability of internal funding for capex and dividends. Volatile cash conversion raises reliance on balance-sheet buffers and can complicate long-term planning for growth projects or external commitments.

Yakult Honsha Business Overview & Revenue Model

Company Description

Yakult Honsha Co., Ltd. is a Japanese multinational company specializing in probiotic products, particularly known for its flagship product, Yakult, a fermented milk drink containing the probiotic strain Lactobacillus casei Shirota. Established in 1935, Yakult operates in the food and beverage sector, focusing on promoting health and wellness through the consumption of probiotics. The company markets its products globally, with a significant presence in Asia, Europe, and the Americas, and continues to innovate in the health food sector by expanding its product line to include dietary supplements and functional foods.

How the Company Makes Money

Yakult Honsha generates revenue primarily through the sale of its probiotic beverages, with Yakult being the most recognized product. The company operates on a direct sales model, utilizing a network of sales representatives who deliver products directly to consumers, which helps maintain strong customer relationships and brand loyalty. In addition to its core probiotic drinks, Yakult also earns income from the sale of other dairy products, health foods, and supplements. Key revenue streams include domestic sales in Japan and international sales across various markets, supported by strategic partnerships with distributors and retailers. The company invests in marketing and educational campaigns to promote the health benefits of probiotics, further enhancing its market reach and driving sales growth.

Yakult Honsha Financial Statement Overview

Summary

Yakult Honsha demonstrates strong financial health with consistent revenue growth, robust profitability metrics, and a solid balance sheet. Despite a slight dip in net profit margin and fluctuations in free cash flow, the company maintains low leverage and efficient cash generation.

Income Statement

Yakult Honsha has demonstrated consistent revenue growth over the years, although there was a slight dip in 2025. The company maintains a strong gross profit margin, indicating efficient cost management. However, the net profit margin saw a decrease in the latest year due to reduced net income. Despite this, EBIT and EBITDA margins remain robust, showcasing constant operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with an impressive equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is low, suggesting conservative use of debt financing. Despite a slight increase in total debt, stockholders' equity has grown, enhancing the company's financial resilience.

Cash Flow

Yakult Honsha's cash flow statement shows positive free cash flow growth over several years, although it fluctuated in recent periods. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also favorable, suggesting good cash conversion.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	493.63B	499.68B	503.08B	483.07B	415.12B	385.71B
Gross Profit	290.45B	295.52B	299.91B	288.48B	248.42B	226.82B
EBITDA	79.29B	111.19B	108.87B	91.40B	76.97B	65.81B
Net Income	43.04B	45.53B	51.01B	50.64B	44.92B	39.27B
Balance Sheet
Total Assets	832.52B	864.32B	833.29B	749.42B	672.86B	635.10B
Cash, Cash Equivalents and Short-Term Investments	237.60B	269.06B	255.26B	241.19B	202.94B	176.25B
Total Debt	97.93B	108.10B	96.53B	77.14B	82.94B	99.25B
Total Liabilities	233.14B	234.80B	227.34B	203.93B	187.92B	195.34B
Stockholders Equity	545.60B	574.13B	549.28B	498.66B	446.07B	404.95B
Cash Flow
Free Cash Flow	0.00	84.69B	24.47B	56.23B	46.66B	32.16B
Operating Cash Flow	0.00	84.69B	70.70B	86.51B	73.39B	55.82B
Investing Cash Flow	0.00	-61.02B	-43.91B	-19.02B	-11.88B	-19.62B
Financing Cash Flow	0.00	-31.47B	-39.54B	-44.53B	-45.16B	-31.25B

Yakult Honsha Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YKLTY, the sentiment is Neutral. The current price of 8.15 is below the 20-day moving average (MA) of 8.39, above the 50-day MA of 8.14, and below the 200-day MA of 8.46, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YKLTY.

Yakult Honsha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KOF	72 Outperform	$5.58B	17.93	16.64%	3.98%	-2.81%	-2.66%
COCO	72 Outperform	$3.09B	45.43	24.16%	―	23.12%	16.20%
YKLTY	65 Neutral	$4.86B	16.66	7.18%	2.56%	-3.18%	-15.48%
PRMB	63 Neutral	$8.36B	143.54	2.50%	2.44%	244.82%	-119.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OTLY	47 Neutral	$355.65M	-2.25	-248.60%	―	3.37%	46.17%
ZVIA	46 Neutral	$107.40M	-9.32	-17.19%	―	6.17%	41.09%