Suntory Beverage & Food (2587) AI Stock Analysis

• Market Cap: $1.44T
• Dividend Yield: 2.4%
• Average Volume (3M): 722.88K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.48
• Revenue Growth: 1.56%
• EPS Growth: -3.00%
• Country: JP
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 83.23
• Shares Outstanding: 309,000,000
• 10 Day Avg. Volume: 655,100
• 30 Day Avg. Volume: 722,876
• PEG Ratio: 1.28
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 18.13
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: 6.15
• 1Y Price Target: $5,372.05
• Price Target Upside: 11.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥5,061.00 ▲(5.44% Upside)

Suntory Beverage & Food's strong financial performance, characterized by solid profitability and a stable balance sheet, is the most significant factor in its overall score. However, the bearish technical indicators and fair valuation suggest caution. The absence of recent earnings call insights or notable corporate events leaves the financial and technical aspects as the primary influences on the score.

Suntory Beverage & Food Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited (2587) is a leading global beverage company headquartered in Japan, specializing in the production and distribution of a wide range of non-alcoholic beverages, including soft drinks, bottled water, and tea. The company operates in various sectors, including carbonated drinks, ready-to-drink teas, and health drinks, with a strong portfolio of popular brands such as Orangina, Lucozade, and Suntory's premium bottled water offerings. Suntory Beverage & Food is committed to sustainability and innovation in its products, leveraging advanced technology and market research to meet consumer demands worldwide.

How the Company Makes Money

Suntory Beverage & Food generates revenue primarily through the sale of its diverse range of beverage products across multiple markets. The company's key revenue streams include sales from carbonated soft drinks, bottled water, ready-to-drink teas, and health-oriented beverages. Additionally, the company benefits from strong brand recognition and customer loyalty, which drive repeat purchases. Partnerships with retailers, distributors, and food service establishments also play a significant role in its revenue model, allowing for extensive market reach and penetration. Furthermore, Suntory Beverage & Food's focus on international expansion and product innovation helps to enhance its earnings by capturing new consumer trends and preferences.

Suntory Beverage & Food Financial Statement Overview

Summary

Suntory Beverage & Food demonstrates strong financial health with solid profitability and a stable balance sheet. The low debt-to-equity ratio and positive cash flow trends provide a cushion against potential risks. However, the recent decline in revenue growth is a concern.

Income Statement

Suntory Beverage & Food shows strong profitability with a consistent gross profit margin around 38% and a net profit margin of approximately 5.2% in the TTM. However, the revenue growth rate has turned negative at -0.3% in the TTM, indicating a potential slowdown. EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.022 in the TTM, indicating low leverage. Return on equity is solid at 7.5%, suggesting effective use of equity capital. The equity ratio is strong, showcasing financial stability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 2.3% in the TTM, indicating improving cash generation. The operating cash flow to net income ratio is 0.39, suggesting good cash conversion, though there is room for improvement. The free cash flow to net income ratio is 0.47, reflecting decent cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.69T	1.70T	1.59T	1.45T	1.27T	1.18T
Gross Profit	642.45B	646.88B	590.00B	552.52B	523.18B	483.86B
EBITDA	232.15B	237.07B	219.09B	211.70B	188.35B	167.06B
Net Income	88.14B	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet
Total Assets	2.10T	2.06T	1.91T	1.78T	1.68T	1.57T
Cash, Cash Equivalents and Short-Term Investments	145.88B	165.05B	173.42B	203.75B	177.91B	168.20B
Total Debt	48.18B	27.22B	119.92B	168.92B	215.64B	253.84B
Total Liabilities	782.38B	742.75B	727.39B	723.25B	732.98B	714.70B
Stockholders Equity	1.22T	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow
Free Cash Flow	92.69B	85.42B	79.06B	90.28B	102.06B	71.53B
Operating Cash Flow	189.14B	193.73B	158.29B	150.51B	158.18B	134.02B
Investing Cash Flow	-95.91B	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
Financing Cash Flow	-97.88B	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage & Food Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4800.00
• 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:2587, the sentiment is Positive. The current price of 4800 is above the 20-day moving average (MA) of 4745.35, above the 50-day MA of 4682.58, and above the 200-day MA of 4685.60, indicating a bullish trend. The MACD of 10.16 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 57.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2587.

Suntory Beverage & Food Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2587	68 Neutral	$1.44T	16.37	7.45%	2.40%	1.56%	-3.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2579	61 Neutral	$469.91B	-9.03	-12.00%	2.17%	2.07%	-751.72%
2502	60 Neutral	$2.57T	14.62	6.47%	3.06%	0.86%	0.55%
2503	60 Neutral	$1.76T	32.69	4.64%	3.28%	5.26%	-60.98%
2501	55 Neutral	¥585.09B	171.11	1.95%	0.69%	0.01%	-82.82%
2590	51 Neutral	¥78.21B	-31.20	―	1.04%	3.54%	-135.08%

Suntory Beverage & Food Corporate Events

Suntory Holdings Reports Decline in First Half 2025 Financial Performance Amid Global Challenges

Suntory Holdings Limited reported a decline in financial performance for the first half of 2025, with revenue and profit figures falling compared to the previous year. The company faced challenges due to economic uncertainty, currency fluctuations, and declining demand in major markets, particularly impacting its overseas operations. Despite these challenges, certain product segments in Japan and Europe showed resilience, maintaining or exceeding previous year’s performance levels.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.

Suntory Beverage & Food Reports Decline in H1 2025 Financial Results

Suntory Beverage & Food Limited reported a decrease in revenue and profit for the first half of 2025 compared to the same period in 2024. The company’s revenue fell by 1.3%, while operating income and profit for the period also saw declines of 11.2% and 12.4%, respectively. The financial results indicate challenges in maintaining profitability amidst rising selling, general, and administrative expenses, as well as increased finance costs. These results may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.

Suntory Beverage & Food Reports Decline in First Half 2025 Financial Results

Suntory Beverage & Food Limited reported a decline in its consolidated financial results for the first half of 2025, with revenue decreasing by 1.3% and operating income dropping by 11.2% compared to the previous year. Despite this downturn, the company maintained a stable dividend forecast, indicating a commitment to shareholder returns amidst challenging market conditions.

The most recent analyst rating on (JP:2587) stock is a Buy with a Yen6900.00 price target. To see the full list of analyst forecasts on Suntory Beverage & Food stock, see the JP:2587 Stock Forecast page.