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

Premium Water Holdings, Inc.

(TSE/TYO:2588)

Select Model

Rating:69Neutral

Price Target:JPY 4,079.00▲(8.48% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong profitability and solid free-cash-flow generation, offset by meaningful balance-sheet leverage risk and only modest revenue growth. Valuation (moderate P/E and ~3.1% yield) is a secondary positive, while technicals are neutral with mixed near-term versus longer-term signals.

Positive Factors

Strong ProfitabilityHigh gross, operating and EBITDA margins indicate meaningful profitability and operating efficiency. This provides a durable earnings base and may help the company absorb cost pressure, although future upside depends on maintaining these margins as growth remains moderate.

Negative Factors

Elevated LeverageThe debt-heavy capital structure increases exposure to refinancing costs, interest burdens and earnings volatility if operating conditions weaken. High leverage also limits financial flexibility and raises the importance of sustaining cash flow and profitability.

Premium Water Holdings, Inc. (2588) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 114.88B
Dividend Yield: 3.19%
Average Volume (3M): 3,775
Price to Earnings (P/E): 12.9
Beta (1Y): 0.40
Revenue Growth: 4.45%
EPS Growth: 41.77%
Country: Japan
Employees: 914
Sector: General
Sector Strength: 55
Industry: Beverages - Non-Alcoholic

Premium Water Holdings, Inc. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, Premium Water Holdings, Inc. manufactures and distributes mineral water throughout the country, marketing it under the 'Premium Water' brand. The company, established in 2006, was previously known as Water Direct Corpor...

How the Company Makes Money

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Premium Water Holdings, Inc. Financial Statement Overview

Summary

Strong profitability and improving net margins (TTM gross margin ~69%, EBIT ~16%, EBITDA ~32%, net margin ~10.8%) plus solid free cash flow (~19.0B, ~18.5% TTM growth) support the score. However, elevated leverage (debt-to-equity ~2.4–2.7; TTM ~2.50) meaningfully increases risk, and revenue growth is modest (~4.5% YoY), tempering the overall financial profile.

Income Statement

78Positive

Balance Sheet

54Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	81.16B	80.32B	76.89B	80.58B	76.46B	68.45B
Gross Profit	56.17B	55.99B	52.87B	66.87B	64.64B	58.08B
EBITDA	26.27B	25.89B	23.43B	19.81B	16.95B	14.52B
Net Income	8.74B	8.45B	5.63B	5.78B	6.06B	3.54B
Balance Sheet
Total Assets	131.16B	135.26B	112.41B	99.77B	86.87B	73.08B
Cash, Cash Equivalents and Short-Term Investments	36.64B	40.48B	31.90B	30.56B	25.74B	20.32B
Total Debt	79.21B	77.79B	67.77B	59.49B	53.57B	46.23B
Total Liabilities	99.48B	103.19B	87.33B	77.00B	67.23B	58.78B
Stockholders Equity	31.67B	32.06B	25.06B	22.75B	19.62B	14.28B
Cash Flow
Free Cash Flow	19.00B	18.97B	14.28B	15.27B	9.96B	4.78B
Operating Cash Flow	21.50B	21.67B	20.66B	19.67B	13.81B	7.99B
Investing Cash Flow	-8.83B	-10.74B	-12.77B	-5.00B	-4.27B	-2.72B
Financing Cash Flow	-7.59B	-2.54B	-6.54B	-9.88B	-4.13B	-1.83B

Premium Water Holdings, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price3760.00

Price Trends

50DMA3662.61Positive

100DMA3630.94Positive

200DMA3589.84Positive

Market Momentum

MACD28.93Positive

RSI56.55Neutral

STOCH23.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2588, the sentiment is Positive. The current price of 3760.00 is above the 20-day moving average (MA) of 3706.75, above the 50-day MA of 3662.61, and above the 200-day MA of 3589.84, indicating a bullish trend. The MACD of 28.93 indicates Positive momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2588.

Premium Water Holdings, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:2588 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9543	75Outperform	JPY 101.52B	10.48	7.33%	3.25%	0.10%	40.92%
JP:9533	73Outperform	JPY 466.98B	25.76	3.73%	1.76%	-2.49%	-30.83%
JP:2588	69Neutral	JPY 80.99B	12.94	―	3.19%	4.45%	41.77%
JP:9531	69Neutral	JPY 2.17T	11.07	11.52%	1.84%	3.63%	14.06%
JP:9532	68Neutral	JPY 2.25T	18.09	6.91%	2.12%	0.88%	-27.81%
JP:8174	62Neutral	JPY 279.18B	19.59	22.07%	8.06%	7.75%	9.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:2588 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2588	Premium Water Holdings, Inc.	3760.00	552.77	17.24%
JP:8174	NIPPON GAS Co	866.10	-82.58	-8.70%
JP:9532	Osaka Gas Co	5892.00	1142.47	24.05%
JP:9533	TOHO GAS Co	1275.00	146.12	12.94%
JP:9531	TOKYO GAS Co	6517.00	1209.11	22.78%
JP:9543	SHIZUOKA GAS CO. LTD.	1370.00	282.90	26.02%

Premium Water Holdings, Inc. Corporate Events

Premium Water Holdings Posts Higher Quarterly Profit and Confirms Dividend Hike

Aug 12, 2026

Premium Water Holdings reported consolidated results for the three months ended June 30, 2026, with revenue rising 4.3% year on year to ¥20.43 billion and profit attributable to owners of the parent increasing 15.3% to ¥2.17 billion. Despit...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Premium Water Holdings, Inc. AI Stock Analysis