Suntory Beverage & Food Ltd. (2587) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lifedrink Co., Inc.

Suntory Beverage & Food Ltd.

Hokkaido Coca-Cola Bottling Co., Ltd.

ITO EN, LTD.

Coca-Cola Bottlers Japan Holdings, Inc.

Japan Foods Co., Ltd.

Why is Suntory Beverage & Food Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.44

Poor long term growth as Net Sales has grown by an annual rate of 5.55% and Operating profit at 5.92% over the last 5 years

Flat results in Jun 25

CASH AND EQV(HY) Lowest at JPY 272,196 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 7.31%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.48%

With ROE of 9.52%, it has a very attractive valuation with a 1.22 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.02%, its profits have risen by 1.1% ; the PEG ratio of the company is 12.1

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

The stock has generated a return of 0.02% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 34.80%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suntory Beverage & Food Ltd. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Suntory Beverage & Food Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Suntory Beverage & Food Ltd.

-1.76%

562.45

20.05%

Japan Nikkei 225

36.76%

1.32

26.39%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.55%

EBIT Growth (5y)

5.92%

EBIT to Interest (avg)

45.44

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.35

Tax Ratio

26.78%

Dividend Payout Ratio

39.66%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.21%

ROE (avg)

9.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.22

EV to EBIT

8.13

EV to EBITDA

5.50

EV to Capital Employed

1.24

EV to Sales

0.79

PEG Ratio

12.07

Dividend Yield

ROCE (Latest)

15.23%

ROE (Latest)

9.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 189,143 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 72.08%

RAW MATERIAL COST(Y)

Fallen by 1.19% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -8.01 %

DIVIDEND PER SHARE(HY)

Highest at JPY 4.48

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at JPY 272,196 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.31%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.48%

INTEREST(Q)

Highest at JPY 1,618 MM

Here's what is working for Suntory Beverage & Food Ltd.

Operating Cash Flow

Highest at JPY 189,143 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Debt-Equity Ratio

Lowest at -8.01 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at JPY 4.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Dividend Payout Ratio

Highest at 72.08%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 1.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Suntory Beverage & Food Ltd.

Interest

At JPY 1,618 MM has Grown at 14.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 1,618 MM

in the last five periods and Increased by 14.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 272,196 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 7.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.48%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio