Japan Tobacco 2914.T
Japan Tobacco is a Japanese conglomerate dedicated to the manufacture and sale of tobacco products (cigarettes, rolling tobacco, heated tobacco products) and, to a lesser extent, food and pharmaceutical products, with a strong international presence. Japan Tobacco shows solid fundamentals: operating margin of 31.74%, ROIC of 19.44% and net debt/EBITDA of only 0.71, with earnings growth of 44.6% supporting its international expansion. Valuation (P/E 20.43) is reasonable for the quality of the business, although cash conversion (21.66%) is a weak point to watch.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Japan Tobacco is a Japanese conglomerate dedicated to the manufacture and sale of tobacco products (cigarettes, rolling tobacco, heated tobacco products) and, to a lesser extent, food and pharmaceutical products, with a strong international presence. Japan Tobacco shows solid fundamentals: operating margin of 31.74%, ROIC of 19.44% and net debt/EBITDA of only 0.71, with earnings growth of 44.6% supporting its international expansion. Valuation (P/E 20.43) is reasonable for the quality of the business, although cash conversion (21.66%) is a weak point to watch.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.2 |
| Quality / Moat | 6.3 |
| Valuation | 5.4 |
| Growth | 8.3 |
| Dividend | 6.8 |
| Momentum | 8.8 |
| Risk & Context | 9.1 |
OVERALL SCORE: 7.2/10
Context and risks
Structural regulatory risk of the tobacco sector (plain packaging, excise taxes, advertising restrictions) in its key markets, Japan and Europe. The country of domicile (Japan) adds a moderate governance risk already reflected in the reference.
News considered in the analysis
- JAPAN TOB (JAPAY) Upgraded to Buy: Here's What You Should Know — Upgrade de analista a Comprar; refuerza la tesis pero no aporta información fundamental nueva.
- Is Bunzl (BZLFY) Outperforming Other Consumer Staples Stocks This Year? — Listículo comparativo de un competidor sin información sobre Japan Tobacco.
- Bear of the Day: Turning Point Brands (TPB) — Noticia sobre un competidor pequeño; sin impacto directo en Japan Tobacco.
- Altria Group (MO): A Winner in President Trump’s Stock Portfolio? — Ruido sobre otro competidor; sin relevancia para Japan Tobacco.
- Altria vs. Turning Point Brands: Which Tobacco Stock Is a Better Buy in 2026? — Comparativa genérica entre competidores; sin información nueva sobre Japan Tobacco.
Verdict: Hold or accumulate on dips; the combination of growth, attractive dividend and sound balance sheet offsets the sector's regulatory risk.
Main risk: The main risk is regulatory: higher excise taxes, advertising restrictions and plain packaging in its key markets (Japan, Europe) could compress margins and volume, a structural risk that no financial ratio captures.
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