Suntory Beverage & Food Limited stock has the potential for a further uptrend as indicators sway towards the positive side, and financials YoY are strong.

Overview

Suntory Holdings Limited is a Japanese multinational brewing and distilling company group. The company was first founded in 1899 and it is one of the oldest companies in the distribution of alcoholic beverages in Japan. It also distributes ready-to-drink products such as sugar-free tea and water. The soft drink market in Japan, which Suntory Holdings targets, has been experiencing long-term growth and as a result, the company has benefited. The head office is based in Minato City, Tokyo, Japan.   

Financials

Comparing the 2021 financial results to 2020, total revenue grew Ұ90,780bn with gross profit rising Ұ39,326bn year-on-year. Operating income came in at Ұ118,568bn versus Ұ96,177 in the prior year and after all the expenses and tax, profit for the year totalled Ұ83,029bn. This was an Ұ18,735bn increase from the previous year. Earnings per share also rose by Ұ53.28. Total assets grew to Ұ1,676,926 trillion from Ұ1,574,251 trillion and liabilities grew from Ұ714,694bn to Ұ732,974bn, however, the rise in assets offsets the increase in liabilities. This brought the total equity value of the company to Ұ943,952bn (an Ұ84,396bn jump).

Technicals

From a technical overview, its current share price sits at Ұ5,211. Towards the upside, minor resistance sits at Ұ5,238 then further resistance at Ұ5,296 then major resistance at Ұ5,347. A break above the major resistance, which corresponds with the upper trendline of the ascending triangle, could see the stock reach its all-time high. Towards the downside, support levels sit at Ұ5,114 then at Ұ5,067 then at Ұ5,022. A break below these levels may see the stock slide towards the major support at Ұ4,881, which corresponds with the lower trendline of the triangle. Looking at the technical indicators, MACD is currently negative but swaying towards positive and RSI is positive as it reads 59.

Summary

The financials of the company are strong with a solid gradual increase year-on-year. Total equity highlights continuous growth as assets offset liabilities and operating income after expenses is healthy. Earnings per share also rose 23% YoY. Based on the technicals, indicators are slightly mixed but swaying more towards the positive side. The stock is also 41% up since January 4^th, a positive earnings report could give it that boost to test the major resistance level. However, a report lower than expectations could see a decline in the opposite direction.