Morinaga & Co Ltd (JP:2201)
:2201
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Morinaga & Co
(2201)
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Rating:76Outperform
Price Target:
¥3,206.00
▲(22.79% Upside)
Action:ReiteratedDate:10/18/25
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.
Positive Factors
Stable Profitability & Margins
Morinaga's stable gross and net margins alongside strong revenue and profit growth indicate durable cost control and pricing power. Consistent margins support long-term cash generation, reinvestment in brands, and resilience to cyclical sales swings over the next several months.
Negative Factors
Free Cash Flow Variability
A recent decline to negative free cash flow weakens the company’s ability to self-fund growth, dividends, or buffer shocks. Even with positive operating cash flow relative to net income, sustained negative FCF raises reliance on working capital or external financing and constrains strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Profitability & Margins
Morinaga's stable gross and net margins alongside strong revenue and profit growth indicate durable cost control and pricing power. Consistent margins support long-term cash generation, reinvestment in brands, and resilience to cyclical sales swings over the next several months.
Read all positive factors
Morinaga & Co (2201) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥230.99B
Dividend Yield3.47%
Average Volume (3M)277.57K
Price to Earnings (P/E)12.4
Beta (1Y)0.28
Revenue Growth4.21%
EPS Growth23.86%
CountryJP
Employees3,093
SectorConsumer Defensive
Sector Strength42
IndustryFood Confectioners
Share Statistics
EPS (TTM)53.86
Shares Outstanding86,111,640
10 Day Avg. Volume194,210
30 Day Avg. Volume277,570
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 Target
¥2,750.00Price Target Upside5.32% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)242.44
Revenue Forecast (FY)¥245.50B
Morinaga & Co Business Overview & Revenue Model
Company Description
Morinaga & Co., Ltd. is a leading Japanese confectionery company known for its innovative and high-quality products. Established in 1899, the company operates primarily in the food and beverage sector, specializing in a wide range of confectionery...
How the Company Makes Money
Morinaga & Co. makes money mainly by manufacturing and selling branded packaged foods, with revenue recognized from product shipments/sales to wholesalers, retailers, and other distribution partners. Its core revenue streams are (1) confectionery ...
Morinaga & Co Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 08, 2026
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.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.
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 232.28B | 228.96B | 213.37B | 194.37B | 181.25B | 168.24B |
| Gross Profit | 91.35B | 90.02B | 86.65B | 76.57B | 75.71B | 72.44B |
| EBITDA | 31.62B | 31.16B | 29.73B | 25.34B | 27.70B | 27.05B |
| 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 | 220.87B | 202.91B |
| Cash, Cash Equivalents and Short-Term Investments | 24.43B | 31.06B | 49.90B | 36.36B | 60.33B | 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 | 89.70B | 79.20B |
| Stockholders Equity | 124.16B | 130.87B | 131.20B | 124.57B | 130.03B | 122.79B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.82B | 21.08B | -16.27B | 9.52B | -7.73B |
| 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
2724.78
Positive
2680.64
Positive
2589.54
Positive
Market Momentum
33.63
Negative
67.41
Neutral
86.79
Negative
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 below the 20-day moving average (MA) of 2705.63, below the 50-day MA of 2724.78, and above the 200-day MA of 2589.54, indicating a bullish trend. The MACD of 33.63 indicates Negative momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 86.79 is Negative, 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 | ¥230.99B | 12.35 | 13.33% | 3.47% | 4.21% | 23.86% | |
72 Outperform | ¥78.08B | 6.88 | ― | 1.55% | 5.78% | 14.23% | |
72 Outperform | ¥31.57B | 10.02 | ― | 1.23% | 6.74% | 29.20% | |
69 Neutral | ¥55.22B | 20.67 | ― | 4.63% | 7.74% | 0.96% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | ¥31.13B | 48.79 | ― | 1.35% | 0.87% | -50.41% | |
49 Neutral | ¥63.66B | 14.49 | ― | 1.14% | 8.17% | 10.65% |
* Consumer Defensive Sector Average
JP:2201
Morinaga & Co
2,809.50
382.39
15.76%
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Morinaga & Co Corporate Events
Morinaga Completes Acquisition of MyMo Holdco, Inc.
Apr 2, 2026
Morinaga Co., Ltd. has completed the acquisition of shares in MyMo Holdco, Inc., effective April 1, 2026, thereby turning MyMo Holdco into a consolidated subsidiary. This move follows the company’s earlier announcement in March and signals ...
Morinaga to Buy U.S. Mochi Ice Cream Leader My/Mochi in Growth Push
Mar 6, 2026
Morinaga Co. has agreed to acquire all shares of MyMo Holdco, Inc., which indirectly owns The Mochi Ice Cream Company, making the U.S. mochi ice cream leader a wholly owned subsidiary. The deal secures a strong position in the growing U.S. frozen...
Morinaga & Co. Lifts Nine-Month Profit and Confirms Full-Year Outlook
Feb 10, 2026
Morinaga Co. reported consolidated net sales of ¥181.6 billion for the nine months ended December 31, 2025, a 2.9% year-on-year increase, with operating income edging up 1.0% to ¥19.6 billion and ordinary income roughly flat. Profit att...
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.