Yomeishu Seizo Co., Ltd. (2540) AI Stock Analysis

• Market Cap: ¥55.44B
• Dividend Yield: 1.12%
• Average Volume (3M): 30.65K
• Price to Earnings (P/E): 71.0
• Beta (1Y): 0.17
• Revenue Growth: -1.83%
• EPS Growth: -6.10%
• Country: JP
• Employees: 301
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 21.69
• Shares Outstanding: 16,500,000
• 10 Day Avg. Volume: 45,040
• 30 Day Avg. Volume: 30,650
• PEG Ratio: -2.08
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 4.07
• P/FCF Ratio: -15.24
• 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: 68 Neutral
• Price Target: ―

Yomeishu Seizo Co., Ltd. demonstrates solid financial stability, with strong equity and no debt. However, declining profitability and the absence of free cash flow raise concerns about operational efficiency and growth prospects. The high P/E ratio implies potential overvaluation, although the stock's positive technical momentum suggests current market optimism.

Yomeishu Seizo Co., Ltd. Business Overview & Revenue Model

Company Description

Yomeishu Seizo Co., Ltd. produces and sells herbal liqueurs and pharmaceutical products in Japan, Hong Kong, Malaysia, Singapore, and Taiwan. It offers Yomeishu, an herbal liqueur; ginger, ginseng, honey, and medicinal liqueur; fruit and herbs liqueur; Kanomori and Kanoshizuku gin; and craft gin cocktail products. The company also provides Yomeishu cough drops; Yomeishu Seizo Amazake; Herb-no-Megumi; Ururu vinegar drinks; ginger black vinegar drinks; and dilution type black vinegar drinks. In addition, it offers Koken Seisai designated quasi-pharmaceutical and health products through the mail order site www.yomeishu-online.jp. Further, the company operates CLASUWA, a commercial complex; rents/leases real estate properties; manages restaurants and shops; and generates, supplies, and sells electricity through natural energy. Yomeishu Seizo Co., Ltd. was incorporated in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yomeishu Seizo Co., Ltd. generates revenue primarily through the sale of its health-focused beverages, with the Yomeishu tonic being its flagship product. The company markets its products through various retail channels, including supermarkets, pharmacies, and online platforms, both domestically and internationally. Additionally, Yomeishu Seizo may engage in strategic partnerships and collaborations with other companies to expand its market reach and product offerings. The company's earnings are significantly influenced by consumer demand for health and wellness products, as well as its ability to innovate and introduce new products that meet consumer preferences.

Yomeishu Seizo Co., Ltd. Financial Statement Overview

Summary

Yomeishu Seizo Co., Ltd. showcases strong financial stability with a debt-free balance sheet and a high equity ratio. However, the declining revenue and net profit margins over recent periods indicate challenges in maintaining profitability and growth. The absence of free cash flow further points to potential operational concerns.

Income Statement

The company's gross profit margin is strong at 58.3% (TTM), indicating efficient cost management. However, the net profit margin has decreased from 9.3% to 7.6% (TTM), suggesting a decline in profitability. Revenue has decreased over the years, with a decline from JPY 10.64 billion (2023) to JPY 9.98 billion (TTM), reflecting a challenging growth environment.

Balance Sheet

The company has a robust equity position with a debt-to-equity ratio of 0, reflecting no reliance on debt financing. The equity ratio is high at 85.3% (TTM), indicating strong financial stability. ROE has slightly decreased from 2.39% (2023) to 1.62% (TTM), suggesting some weakness in generating returns on equity.

Cash Flow

The cash flow statement indicates a lack of free cash flow generation, with a negative free cash flow in the latest annual report. Both operating and free cash flow ratios are unavailable due to zero net income (TTM), highlighting potential operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.99B	10.02B	10.24B	10.65B	10.58B	10.38B
Gross Profit	5.63B	5.42B	6.14B	6.60B	6.68B	6.39B
EBITDA	2.14B	1.70B	1.97B	2.01B	1.97B	1.68B
Net Income	784.26M	679.58M	952.82M	1.02B	949.90M	807.56M
Balance Sheet
Total Assets	52.55B	53.52B	54.42B	49.56B	48.61B	47.87B
Cash, Cash Equivalents and Short-Term Investments	5.05B	5.71B	8.15B	8.93B	5.89B	9.14B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.92B	7.46B	7.77B	6.77B	6.43B	6.31B
Stockholders Equity	45.63B	46.06B	46.64B	42.79B	42.18B	41.56B
Cash Flow
Free Cash Flow	0.00	-2.67B	-1.92B	1.36B	1.29B	752.61M
Operating Cash Flow	0.00	473.12M	667.52M	1.75B	1.81B	1.41B
Investing Cash Flow	0.00	-1.19B	2.31B	-1.45B	-1.40B	-217.20M
Financing Cash Flow	0.00	-623.03M	-760.15M	-554.77M	-551.81M	-551.50M

Yomeishu Seizo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4020.00
• 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:2540, the sentiment is Positive. The current price of 4020 is above the 20-day moving average (MA) of 3973.75, above the 50-day MA of 3886.30, and above the 200-day MA of 3097.10, indicating a bullish trend. The MACD of 39.40 indicates Positive momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 56.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2540.

Yomeishu Seizo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2874	74 Outperform	¥69.42B	15.26	―	2.03%	3.24%	―
2915	73 Outperform	¥30.70B	10.42	―	2.23%	1.16%	-23.94%
2540	68 Neutral	¥55.44B	70.97	―	1.12%	-1.83%	-6.10%
2923	67 Neutral	¥42.22B	14.83	―	0.78%	10.79%	27.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2266	62 Neutral	¥23.50B	69.65	―	1.66%	-3.66%	-77.47%
2831	60 Neutral	¥30.26B	12.26	―	1.87%	0.57%	12.46%