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Morinaga & Co (JP:2201)
:2201
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Morinaga & Co
(OTC:2201)
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Rating:76Outperform
Price Target:
¥2,924.00
▲(11.99% Upside)
Morinaga & Co's strong financial performance and attractive valuation are the primary drivers of its score. Technical indicators suggest neutral market momentum, which slightly tempers the overall outlook.
Morinaga & Co (2201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥215.62B
Dividend Yield3.53%
Average Volume (3M)244.54K
Price to Earnings (P/E)12.7
Beta (1Y)0.29
Revenue Growth5.97%
EPS Growth19.36%
CountryJP
Employees3,093
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)59.62
Shares Outstanding86,111,640
10 Day Avg. Volume197,780
30 Day Avg. Volume244,536
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.69
Price to Sales (P/S)0.96
P/FCF Ratio-78.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Morinaga & Co Business Overview & Revenue Model
Company DescriptionMorinaga&Co., Ltd. manufactures, purchases, and sells confectionaries, food stuffs, frozen desserts, and health products in Japan and internationally. It offers confectionary products, including caramels, biscuits, chocolates, etc.; food products comprising cocoa, cake mix, etc.; frozen desserts, such as ice cream, etc.; and health products, including jelly drinks, etc. The company also provides health foods and beverages through mail services. It offers its products under the Morinaga Milk Caramel, Morinaga Milk Cocoa, Morinaga Ramune, Ottotto, Morinaga Biscuits, Chocoball, Amazake, Carré de chocolat, DARS, HI-CHEW, Morinaga Cocoa, Choco Monaka Jumbo, Vanilla Monaka Jumbo, Pari Pari Bar, Ita Choco Ice, ICEBOX, Morinaga Aojiru, Morinaga Collagen Drink, in BAR, and in Jelly brands. The company was founded in 1899 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyMorinaga & Co generates revenue through the sale of its diverse portfolio of confectionery and food products. The company's primary revenue streams include chocolates, candies, and biscuits, which are distributed through various channels such as retail stores, supermarkets, and online platforms. Additionally, Morinaga has a segment dedicated to health foods, which caters to the growing demand for nutritious and functional food options. The company also engages in strategic partnerships and collaborations to enhance its product offerings and market reach, contributing to its overall earnings. Furthermore, Morinaga invests in research and development to innovate and introduce new products, which helps maintain its competitive edge in the industry.
Morinaga & Co Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in net sales and strong performance in key segments like the U.S. business and Frozen Desserts. Strategic initiatives and successful market expansions are positive indicators for future growth. However, challenges such as increased costs, expected profit declines in H2, and pressure on profit margins due to raw material costs present notable challenges. The overall sentiment is cautiously optimistic with a recognition of areas requiring attention.Q2-2024 Updates
Positive Updates
Record-Breaking Net Sales and Growth
Net sales for Q2 reached JPY 109.6 billion, an increase of JPY 11.2 billion over the previous year, representing 111.4% of the previous year's sales. This was JPY 3.6 billion higher than the forecast announced 6 months prior.
U.S. Business Performance
Significant earnings contribution from the U.S. business with sales on a local currency basis reaching 130% of the previous year's level in H1 and a forecast of 127% for H2.
Strong Performance in Frozen Desserts
Frozen Desserts outperformed the market with a growth of 114.2% compared to the market's 111.8% from April to September. Ita Choco Ice shipments were 141% of the previous year's shipments.
Confectionery Segment Success
Morinaga Biscuits brand achieved record sales in September with a market growth of 124.4%, significantly higher than the overall market growth of 103.6%.
HI-CHEW Market Expansion
HI-CHEW achieved record total brand sales with a market growth of 129% compared to the year before the previous year. The rollout of HI-CHEW Day in August was well received.
Revised Positive Earnings Forecast
Revised net sales forecast for the fiscal year ending March 2024 is JPY 210 billion, an increase of JPY 15.7 billion over the previous year, with operating income expected to increase by JPY 3.5 billion.
Increase in Operating Margin
Operating income was JPY 14.1 billion, an increase of JPY 3.9 billion from the previous year, with an operating margin improvement of 2.5 percentage points to 12.9%.
Successful Strategic Initiatives
Company's strategic initiatives in DX, human resources, and advertising have contributed to the overall growth and are expected to continue supporting future business expansion.
Negative Updates
Operating Income Decline Expected in H2
Operating income for H2 of the consolidated total is expected to decrease compared to the previous year due to increased strategic investments and advertising expenses.
Impact of Raw Material Costs
Raw materials are expected to increase by about JPY 4.8 billion, impacting profitability, despite efforts to offset through price revisions.
Challenges in In Jelly and Direct Marketing
Shipments for in Jelly fell below the previous year's level at 99% in H1 due to last year's special demand impact. Direct Marketing requires significant additional advertising investment for future growth.
Profit Margin Pressure in Confectionery & Foodstuffs
The Confectionery & Foodstuffs business has been significantly affected by the soaring cost of raw materials, with a forecasted operating margin of 3.8%, up from 2% in the previous year but still under pressure.
Potential Cost of Unsold Stocks
The company anticipates incurring costs for the disposal of unsold stocks, contributing to the expected decrease in profitability in H2.
Company Guidance
In the earnings call for Q2 of the fiscal year ending March 2024, Eijiro Oota, the executive of 2201.T, reported impressive financial results, with net sales reaching JPY 109.6 billion, which is JPY 11.2 billion higher than the previous year and JPY 3.6 billion above the forecast. Operating income was JPY 14.1 billion, surpassing the previous year by JPY 3.9 billion and exceeding the forecast by JPY 2.2 billion, resulting in an operating margin of 12.9%. The U.S. business significantly contributed to earnings growth, amid a JPY 2.9 billion impact from increased raw materials and energy costs. The company forecasts net sales of JPY 210 billion for the fiscal year, indicating a JPY 15.7 billion increase from the previous year. Despite anticipating decreased profits in H2 due to increased strategic investments and advertising, the firm expects an operating income of JPY 18.7 billion and net income of JPY 13.6 billion, both surpassing previous year figures. Furthermore, the ratio of overseas sales to total sales is projected to exceed the midterm target, supported by strong growth in the U.S. market.Morinaga & Co Financial Statement Overview
Summary
Morinaga & Co shows strong revenue and profit growth with stable margins, indicating efficient operations. The balance sheet is robust with low leverage, though there are slight concerns about equity stability. Cash flow variability is a challenge, suggesting a need for improved liquidity management.Income Statement
Morinaga & Co has demonstrated strong revenue and profit growth over the years. The gross profit margin and net profit margin have remained stable, indicating efficient cost management. The revenue growth rate from 2024 to 2025 was approximately 7.3%, showing a positive upward trajectory. EBIT and EBITDA margins are solid, supporting profitability.Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio, reflecting prudent financial leverage. Return on Equity (ROE) shows a healthy return for shareholders. However, there is a slight decrease in stockholders' equity from 2024 to 2025, which may indicate potential risks in equity stability.Cash Flow
Morinaga & Co's cash flow statement shows variability in free cash flow, with a significant decline in the recent year, turning negative. Despite this, the operating cash flow to net income ratio remains positive, suggesting operational efficiency. The free cash flow to net income ratio signals potential challenges in liquidity management.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 232.28B | 228.96B | 213.37B | 194.37B | 181.25B | 199.99B |
| Gross Profit | 91.37B | 90.02B | 86.69B | 76.65B | 75.83B | 105.65B |
| EBITDA | 34.63B | 34.32B | 30.17B | 24.13B | 49.38B | 27.04B |
| Net Income | 17.88B | 17.71B | 15.15B | 10.06B | 27.77B | 13.42B |
Balance Sheet | ||||||
| Total Assets | 209.25B | 209.99B | 223.64B | 205.23B | 214.30B | 201.91B |
| Cash, Cash Equivalents and Short-Term Investments | 24.43B | 31.06B | 49.90B | 36.36B | 56.65B | 31.57B |
| Total Debt | 24.00B | 20.19B | 20.32B | 20.44B | 10.98B | 10.92B |
| Total Liabilities | 83.48B | 77.59B | 90.99B | 79.37B | 83.13B | 78.00B |
| Stockholders Equity | 124.16B | 130.87B | 131.20B | 124.56B | 130.03B | 123.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.82B | 19.70B | -16.55B | 9.50B | -7.75B |
| Operating Cash Flow | 0.00 | 10.76B | 30.17B | -2.97B | 24.82B | 12.13B |
| Investing Cash Flow | 0.00 | -9.84B | -5.34B | -14.21B | 9.31B | -19.86B |
| Financing Cash Flow | 0.00 | -18.01B | -14.07B | -7.35B | -5.94B | -4.08B |
Morinaga & Co Technical Analysis
Positive
2611.00
Price Trends
2619.93
Positive
2483.95
Positive
2484.83
Positive
Market Momentum
-2.67
Negative
54.38
Neutral
73.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2201, the sentiment is Positive. The current price of 2611 is above the 20-day moving average (MA) of 2597.94, below the 50-day MA of 2619.93, and above the 200-day MA of 2484.83, indicating a bullish trend. The MACD of -2.67 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2201.
Morinaga & Co Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥215.62B | 12.72 | 14.37% | 3.53% | 5.97% | 19.36% | |
68 Neutral | ¥58.67B | 11.64 | ― | 1.52% | 8.26% | 24.25% | |
67 Neutral | ¥32.87B | 26.22 | ― | 1.30% | 0.24% | -25.90% | |
65 Neutral | ¥35.03B | 10.99 | ― | 0.83% | 15.24% | 43.88% | |
65 Neutral | ¥66.14B | 39.84 | ― | 1.15% | 5.37% | -2.18% | |
63 Neutral | ¥82.52B | 22.78 | ― | 4.08% | 8.76% | 11.82% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
JP:2201
Morinaga & Co
2,649.00
-75.48
-2.77%
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Morinaga & Co Corporate Events
Morinaga & Co. Reports Mixed Financial Results for Q1 2025
Aug 7, 2025
Morinaga & Co. reported a 5.8% increase in net sales for the three months ending June 30, 2025, compared to the same period last year. However, comprehensive income saw a significant decline of 52.5%. The company forecasts a modest increase in net sales for the fiscal year ending March 31, 2026, but anticipates a decrease in operating and ordinary income. This financial performance indicates a challenging environment, potentially impacting stakeholder confidence and requiring strategic adjustments to maintain growth.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.