Suntory Beverage (STBFY) AI Stock Analysis

• Market Cap: $9.84B
• Dividend Yield: 1.55%
• Average Volume (3M): 3.38K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.13
• Revenue Growth: 1.39%
• EPS Growth: -2.72%
• Country: US
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.28
• Shares Outstanding: 618,000,000
• 10 Day Avg. Volume: 3,760
• 30 Day Avg. Volume: 3,377
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: $17.50
• Price Target Upside: 10.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $17.50 ▲(10.97% Upside)

Suntory Beverage's strong financial performance, characterized by robust revenue growth and effective cost management, is the primary driver of its stock score. The technical analysis indicates stability with mild bullish momentum, while the valuation suggests the stock is fairly priced with a modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Suntory Beverage Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited, a soft drink company, manufactures and sells beverages and foods in Japan, Europe, rest of Asia, Oceania, and the Americas. It offers mineral water, coffee drinks, tea drinks, carbonated drinks, sports drinks, and food for specified health uses. The company sells its products under the Suntory Tennensui, Boss, Suntory Green Tea Iyemon, Suntory Iyemon Tokucha, Pepsi Japan cola, C.C. Lemon, Natchan!, Orangina, Oasis, Lucozade, Ribena, Schweppes, MayTea, TEA+, MYTEA Oolong Tea, Sting, Okky, goodmood, V, Toby's Estate, BRAND'S Essence of Chicken, and Nature's Twist brands. The company was founded in 2009 and is headquartered in Tokyo, Japan. Suntory Beverage & Food Limited is a subsidiary of Suntory Holdings Limited.

How the Company Makes Money

Suntory Beverage generates revenue through several key streams, primarily from the sales of its non-alcoholic beverages. The company markets its products through various channels, including retail, food service, and e-commerce, enabling it to reach a broad customer base. Key revenue streams include the sale of bottled water, carbonated soft drinks, ready-to-drink tea, and coffee products. Additionally, Suntory Beverage benefits from strategic partnerships with retailers and distributors, enhancing its market reach and distribution efficiency. The company also invests in marketing and brand development to strengthen consumer loyalty and drive sales growth. Fluctuations in consumer trends and preferences, alongside the expansion into emerging markets, further contribute to its financial performance.

Suntory Beverage Financial Statement Overview

Summary

Suntory Beverage has demonstrated robust revenue growth and effective cost management, contributing to healthy profitability. The balance sheet is strong with prudent leverage, but a recent increase in total debt warrants attention. Cash flow generation is stable, though free cash flow growth shows some volatility.

Income Statement

Suntory Beverage has demonstrated robust revenue growth with a steady increase over the years, signifying strong market demand. The gross profit and EBIT margins are healthy, reflecting effective cost management and operational efficiency. However, the slight decline in net profit margin from the previous year indicates potential challenges in managing expenses or a change in revenue composition.

Balance Sheet

The company maintains a solid equity ratio, indicating a strong financial foundation and effective asset management. The debt-to-equity ratio is low, suggesting prudent leverage usage. Return on Equity (ROE) is consistent, displaying steady profitability on shareholders' investments. However, a recent increase in total debt could be a point of concern if it continues without corresponding asset growth.

Cash Flow

Suntory Beverage exhibits stable operating cash flow, with a positive trend in free cash flow, demonstrating effective cash management. The operating cash flow to net income ratio indicates robust cash generation from operations. However, the free cash flow growth rate has shown some volatility, which could imply fluctuating capital expenditures or changes in operational cash requirements.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.70T	1.59T	1.45T	1.27T	1.18T
Gross Profit	646.88B	590.00B	552.52B	523.18B	483.86B
EBITDA	242.75B	219.09B	212.11B	188.45B	167.69B
Net Income	93.50B	82.74B	82.32B	68.68B	52.21B
Balance Sheet
Total Assets	2.06T	1.91T	1.78T	1.68T	1.57T
Cash, Cash Equivalents and Short-Term Investments	165.05B	173.42B	203.75B	177.91B	168.20B
Total Debt	27.22B	74.43B	122.75B	165.35B	203.69B
Total Liabilities	742.75B	727.39B	723.25B	732.98B	714.70B
Stockholders Equity	1.21T	1.09T	965.22B	860.59B	781.75B
Cash Flow
Free Cash Flow	85.42B	79.06B	90.28B	102.06B	71.53B
Operating Cash Flow	193.73B	158.29B	150.51B	158.18B	134.02B
Investing Cash Flow	-101.30B	-77.80B	-42.40B	-56.87B	-61.22B
Financing Cash Flow	-112.04B	-115.40B	-92.21B	-96.11B	-46.75B

Suntory Beverage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.77
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBFY, the sentiment is Positive. The current price of 15.77 is below the 20-day moving average (MA) of 15.78, above the 50-day MA of 15.67, and below the 200-day MA of 16.05, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 59.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STBFY.

Suntory Beverage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBFY	75 Outperform	$9.84B	16.59	7.45%	1.55%	1.39%	-2.72%
ABEV	75 Outperform	36.59B	14.15	15.95%	1.98%	-0.79%	-10.83%
BUD	75 Outperform	117.95B	16.41	7.48%	1.76%	-2.06%	21.03%
FMX	72 Outperform	20.19B	36.07	8.99%	4.62%	-2.73%	-37.93%
COKE	72 Outperform	9.94B	19.10	35.92%	5.19%	3.22%	23.88%
TAP	66 Neutral	8.99B	8.68	7.72%	4.08%	-5.48%	-6.99%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%