Suntory Beverage (STBFY) AI Stock Analysis

• Market Cap: $10.08B
• Dividend Yield: 1.19%
• Average Volume (3M): 4.21K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.40
• Revenue Growth: -0.75%
• EPS Growth: 12.52%
• Country: US
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Beverages - Alcoholic
• EPS (TTM): 1.00
• Shares Outstanding: 618,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4,215
• PEG Ratio: 3.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.07
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

Suntory Beverage maintains a healthy financial position with strong revenue growth and profitability, contributing positively to its overall score. However, technical indicators suggest bearish momentum, and the absence of specific guidance from the earnings call offers limited insight into future prospects. The valuation appears fair, supporting the current stock level.

Suntory Beverage Business Overview & Revenue Model

Company Description

Suntory Beverage & Food Limited (STBFY) is a leading global beverage company headquartered in Japan. It operates in the non-alcoholic beverage sector, producing and distributing a wide range of products including bottled water, ready-to-drink teas and coffees, carbonated drinks, functional drinks, and fruit juices. Suntory Beverage is part of the larger Suntory Group, which has a diverse portfolio spanning alcoholic beverages, food products, and health supplements.

How the Company Makes Money

Suntory Beverage & Food Limited generates revenue primarily through the sale of its non-alcoholic beverage products across various international markets. Key revenue streams include bottled water brands such as Suntory Tennensui, ready-to-drink tea brands like Iyemon and Suntory Oolong Tea, and carbonated drinks such as Orangina and Pepsi (through a licensing agreement). The company also benefits from strategic partnerships and joint ventures that expand its market reach and product offerings. Suntory's earnings are bolstered by its strong distribution network and marketing strategies that enhance brand presence and consumer engagement globally.

Suntory Beverage Financial Statement Overview

Summary

Suntory Beverage displays strong financial health with consistent revenue growth and robust profitability margins. The balance sheet is solid with low leverage, and cash flow is stable, supporting operational needs. However, enhancing cost control could improve profitability further.

Income Statement

Suntory Beverage has demonstrated strong financial performance with consistent revenue growth, increasing from ¥1,450 billion in 2022 to ¥1,591 billion in 2023, marking a growth rate of 9.7%. The company maintains healthy profitability with a gross profit margin of 37.1% and a net profit margin of 5.2% for 2023. Additionally, EBIT and EBITDA margins are robust at 8.9% and 13.8% respectively, indicating operational efficiency. However, the net profit margin, while positive, suggests room for improvement in cost management.

Balance Sheet

Suntory Beverage's balance sheet reflects a strong equity position with a stockholders' equity of ¥1,087 billion, resulting in a high equity ratio of 56.8%. The debt-to-equity ratio is low at 0.07, indicating low leverage and reduced financial risk. The return on equity (ROE) is satisfactory at 7.6%, showing the company's effectiveness in generating returns on shareholders' equity. However, the increase in total assets and liabilities suggests a need for monitoring future leverage.

Cash Flow

The company exhibits a solid cash flow position with positive free cash flow of ¥79 billion in 2023. The free cash flow to net income ratio is approximately 0.95, indicating efficient cash generation relative to net income. Operating cash flow to net income ratio is high at 1.91, reflecting strong cash conversion capabilities. Despite a slight decline in free cash flow from the previous year, the company's cash flow remains stable and supports its operational needs.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.66T	1.59T	1.45T	1.27T	1.18T	1.30T
	Gross Profit
620.98B	590.00B	552.52B	523.18B	483.86B	536.09B
	EBIT
153.85B	141.73B	139.69B	118.57B	96.18B	113.95B
	EBITDA
229.15B	219.09B	212.11B	188.45B	167.69B	186.41B
	Net Income Common Stockholders
90.86B	82.74B	82.32B	68.68B	52.21B	68.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
147.52B	173.42B	203.75B	177.91B	168.20B	149.76B
	Total Assets
1.54T	1.91T	1.78T	1.68T	1.57T	1.57T
	Total Debt
270.87B	74.43B	122.75B	165.35B	203.69B	207.37B
	Net Debt
124.34B	-97.32B	-77.88B	-11.31B	36.21B	63.80B
	Total Liabilities
740.54B	727.39B	723.25B	732.98B	714.70B	729.73B
	Stockholders Equity
714.82B	1.09T	965.22B	860.59B	781.75B	756.57B
Cash Flow		Free Cash Flow
60.73B	79.06B	90.28B	102.06B	71.53B	111.78B
	Operating Cash Flow
161.28B	158.29B	150.51B	158.18B	134.02B	170.60B
	Investing Cash Flow
-94.18B	-77.80B	-42.40B	-56.87B	-61.22B	-59.38B
	Financing Cash Flow
-103.82B	-115.40B	-92.21B	-96.11B	-46.75B	-115.16B

Suntory Beverage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.46
• 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 STBFY, the sentiment is Positive. The current price of 16.46 is above the 20-day moving average (MA) of 16.38, above the 50-day MA of 15.83, and below the 200-day MA of 17.01, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 19.25 is Positive, 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
KO	78 Outperform	$301.34B	27.96	41.86%	2.77%	1.96%	-0.45%
MNST	76 Outperform	$56.21B	38.93	21.27%	―	4.94%	-4.13%
STBFY	75 Outperform	$10.08B	16.39	8.03%	1.19%	-0.75%	12.52%
PEP	74 Outperform	$199.61B	21.07	52.42%	3.66%	0.42%	5.77%
KDP	71 Outperform	$46.21B	32.12	5.77%	2.61%	3.62%	-32.23%
FIZZ	69 Neutral	$3.76B	20.41	40.81%	―	0.34%	9.48%
Sector *	62 Neutral	$20.30B	13.74	-10.11%	7.33%	1.63%	6.06%