Yakult Honsha Co Ltd 2267

Morningstar Rating
¥2,720.00 −28.00 (1.02%)
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Company Report

Signs of Recovery in Asia Offsets Weaker Domestic Performance

Research and development in probiotics, primarily in beverage products and pharmaceuticals, has laid the foundation for Yakult. Its flagship products are probiotic drinks marketed under the namesake brand in 40 countries across four continents, making up an estimated 80% of group sales and 90% of profits. Expanding the international footprint and enhancing domestic profitability through premiumization are the two pillars of Yakult’s growth strategy under its new midterm plan to 2030.

Price vs Fair Value

2267 is trading within a range we consider fairly valued.
Price
¥2,720.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Yakult’s increased capacity in the US allows the company to expand its distribution network and allow not just Yakult but also newer premium products in retailers across the country, driving top-line and profit growth.

Bears

Yakult’s profit growth may stall after the boom of Yakult 1000/Y1000, a key growth engine of the group’s profits, dissipates while higher living costs and price hikes resulting from inflation continue to depress sales volume in overseas markets.

News

Trading Information

Previous Close Price
¥2,748.00
Day Range
¥2,707.00–2,745.00
52-Week Range
¥2,291.00–3,092.00
Bid/Ask
¥2,720.00 / ¥2,720.50
Shares Outstanding
284.77M
Market Cap
¥774.56B
Volume/Avg
1M / 1M

Key Statistics

Price/Earnings (Normalized)
20.28
Price/Sales
1.66
Dividend Yield (Trailing)
2.54%
Dividend Yield (Forward)
2.65%
Dividend Payment Schedule
Jun, Dec
Total Yield
4.83%

Company Profile

Yakult Honsha is a pioneer in probiotics. It launched the probiotic drink Yakult in 1935 after Minoru Shirota’s discovery of Lactobacillus casei Shirota, a strain of lactic acid bacteria, which proved to be able to live in the intestines, in 1930. It operates in 40 countries across four continents, selling mainly Yakult probiotic drinks. Apart from the retail outlets, the home delivery channel, served by a team of 83,000 Yakult Ladies globally, contributes about 45% of its probiotic drink volume. Overseas markets contribute 40% of group sales and profits. Yakult has built a meaningful presence in populated emerging markets, including China, Indonesia, Mexico, and Brazil. It plans to step up expansion in the US with a new factory in Georgia, which will triple its US production capacity.
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
Stock Style Box
Mid Value
Total Number of Employees
29,618

Competitors

Valuation

Metric
2267
02319
600887
Price/Earnings (Normalized)
20.2826.2514.53
Price/Book Value
1.311.473.22
Price/Sales
1.660.731.46
Price/Cash Flow
12.297.379.96
Price/Earnings
2267
02319
600887

Financial Strength

Metric
2267
02319
600887
Quick Ratio
1.930.770.22
Current Ratio
2.290.880.62
Interest Coverage
47.654.528.32
Quick Ratio
2267
02319
600887

Profitability

Metric
2267
02319
600887
Return on Assets (Normalized)
—5.19%6.31%
Return on Equity (Normalized)
—12.66%17.90%
Return on Invested Capital (Normalized)
—6.81%7.84%
Return on Assets
2267
02319
600887

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