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2579: Share Buybacks And Dividend Increase Will Offset Weaker Medium Term Outlook

Digital Transformation And Japanese Health Trends Will Revitalize Vending Operations

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2579
AnalystConsensusTarget
Not Invested
Published 14 Mar 2025

Update shared on 11 Dec 2025

Fair value Increased 2.94%
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AnalystConsensusTarget's Fair Value
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1Y
19.1%
7D
5.2%

Analysts have modestly raised their price target on Coca-Cola Bottlers Japan Holdings from ¥2,942.50 to ¥3,029.00, citing updated assumptions that balance slightly higher discount rates and marginally lower growth and margin expectations against a still-supportive valuation framework.

What's in the News

  • Completed share repurchase of 12,383,700 shares, representing 7.08% of outstanding shares, for approximately ¥29,999.81 million under the November 6, 2024 buyback program (company disclosure)
  • Issued updated dividend guidance for full year 2025, targeting a payout of ¥32.00 per share versus ¥28.00 a year earlier (company guidance)
  • Revised fiscal 2026 guidance to lower expected revenue to ¥887,900 million and widened projected operating and net losses, citing softer demand and delayed fixed asset sales despite better business income trends (company guidance)
  • Reported ongoing treasury share repurchases through September 30, 2025, totaling 11,655,000 shares or 6.65% for ¥28,153.82 million as part of the broader buyback plan (company disclosure)
  • Scheduled an October 31, 2025 board meeting to consider cancellation of acquired treasury shares under Article 178 of the Companies Act (board agenda)

Valuation Changes

  • Fair Value: risen slightly from ¥2,942.50 to ¥3,029.00, reflecting a modest upward revision in the intrinsic valuation estimate.
  • Discount Rate: increased slightly from 4.72% to 4.80%, implying a marginally higher required return and risk assessment.
  • Revenue Growth: reduced meaningfully from 54.90% to 40.65%, signaling a more conservative outlook on top line expansion.
  • Net Profit Margin: edged down slightly from 2.47% to 2.43%, indicating a modestly weaker long term profitability assumption.
  • Future P/E: ticked up slightly from 22.00x to 22.37x, suggesting a small increase in the valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.