Ezaki Glico Co., Ltd. (2206) AI Stock Analysis

• Market Cap: ¥395.13B
• Dividend Yield: 1.64%
• Average Volume (3M): 146.34K
• Price to Earnings (P/E): 76.7
• Beta (1Y): 0.25
• Revenue Growth: 8.40%
• EPS Growth: -23.50%
• Country: JP
• Employees: 5,563
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -35.06
• Shares Outstanding: 68,468,570
• 10 Day Avg. Volume: 137,410
• 30 Day Avg. Volume: 146,340
• PEG Ratio: -1.80
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 17.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 178.44
• Revenue Forecast (FY): ¥368.40B

• Rating: 65 Neutral
• Price Target: ¥6,297.00 ▲(25.89% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by strong financial stability from a conservative balance sheet and supportive technical momentum, but is held back by deteriorating profitability, uneven cash-flow consistency, and a demanding valuation (high P/E with only a modest dividend yield).

Positive Factors

Conservative balance sheet

Extremely low leverage and a conservative capital structure materially reduce refinancing and solvency risk. Over the next 2–6 months this durability gives flexibility to absorb cost shocks, fund targeted capex or M&A selectively, and preserve investment in brands without pressure to deleverage.

Return to revenue growth

Resumption of top-line growth indicates product demand recovery and supports scale economics in manufacturing and distribution. Sustained revenue expansion can underpin margin recovery, steady cash generation, and justify continued brand investment over a multi-quarter horizon.

Strong branded portfolio & retail reach

Well-known consumer brands and deep retail placement create durable shelf presence and customer loyalty. This structural advantage helps new product rollouts, seasonal promotions, and steady repeat sales, supporting predictable core volumes and long-term market positioning.

Negative Factors

Profitability has materially weakened

Rapid margin erosion signals persistent cost inflation or pricing pressure that compresses operating leverage. If structural, lower margins reduce reinvestment capacity, constrain cash available for strategic initiatives, and weaken earnings resiliency across economic cycles.

Volatile cash generation

Large swings in operating and free cash flow undermine predictability for dividends, capex and M&A. Inconsistent cash conversion increases reliance on timing or one-off items to fund operations, making long-term planning and shareholder-return programs less reliable.

Low and falling return on equity

Declining ROE despite a conservative balance sheet points to weak earnings quality and capital efficiency. Low ROE limits the company's ability to generate attractive shareholder returns and may force management to choose between growth investments and improving capital productivity.

Ezaki Glico Co., Ltd. Business Overview & Revenue Model

Company Description

Ezaki Glico Co., Ltd. (2206) is a leading Japanese food company, best known for its confectionery products, particularly its iconic Pocky snack and various other snacks, ice creams, and dairy products. Founded in 1922, Glico operates across multiple sectors, including the food and beverage industry, focusing on innovation and quality. The company has expanded its product offerings to include health-oriented snacks and nutritional products, catering to a diverse consumer base both domestically and internationally.

How the Company Makes Money

Ezaki Glico generates revenue primarily through the sale of its confectionery products, including biscuits, chocolates, and snacks, which form the bulk of its sales. The company also earns revenue from its ice cream and dairy products, which have seen growing demand. Glico has established significant partnerships with retailers and distributors, enhancing its market reach. Additionally, the company invests in marketing and promotional activities to boost brand awareness and drive sales. Through continuous innovation in product development and expanding its international presence, Glico aims to capture new markets and increase its overall revenue streams.

Ezaki Glico Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage; Balance Sheet Score 86) supports financial stability, but earnings quality has weakened as margins and net profit declined materially despite revenue returning to growth (Income Statement Score 62). Cash flow improved in 2025 yet remains inconsistent given prior weak/negative free cash flow periods (Cash Flow Score 58).

Income Statement

Revenue returned to growth in 2025 (+5.8% YoY) after a flat 2024, but profitability has weakened meaningfully: net margin fell to ~1.4% in 2025 from ~2.5% in 2024 and ~4.2% in 2023, and operating margin similarly compressed (~2.4% in 2025 vs ~3.7% in 2024). Gross margin also stepped down versus prior years, pointing to cost/price pressure. Overall: solid top-line stability for a packaged foods profile, but the recent earnings/margin downshift is a clear negative.

Balance Sheet

Balance sheet is very conservative, highlighted by extremely low reported leverage in 2024–2025 (debt-to-equity near zero), alongside steady growth in equity and assets. Return on equity has been modest and has trended down with weaker earnings (from ~5–6% earlier years to ~3% in 2024), which is the main trade-off of the strong capital position. Overall: high financial stability with limited balance-sheet risk.

Cash Flow

Cash generation is volatile. 2025 shows a strong rebound with operating cash flow of ~¥29.4B and free cash flow of ~¥19.3B, but 2024 was weak (operating cash flow ~¥1.8B and negative free cash flow ~-¥15.7B), and 2022 also had negative free cash flow. While recent improvement is encouraging, the swingy free-cash-flow profile reduces confidence in consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	341.60B	361.39B	331.13B	332.59B	303.92B	338.57B
Gross Profit	128.29B	127.56B	127.67B	123.85B	110.75B	158.03B
EBITDA	29.86B	28.28B	29.06B	34.05B	27.93B	35.09B
Net Income	8.19B	5.04B	8.11B	14.13B	8.10B	13.52B
Balance Sheet
Total Assets	369.01B	394.13B	377.77B	395.74B	369.05B	356.74B
Cash, Cash Equivalents and Short-Term Investments	51.84B	68.63B	60.24B	97.20B	91.93B	102.25B
Total Debt	7.16B	154.00M	165.00M	30.00B	30.02B	30.35B
Total Liabilities	102.36B	115.59B	105.18B	132.63B	124.30B	115.57B
Stockholders Equity	266.05B	277.90B	272.00B	262.54B	244.29B	240.79B
Cash Flow
Free Cash Flow	0.00	19.26B	-15.66B	9.69B	-8.89B	4.89B
Operating Cash Flow	0.00	29.39B	1.81B	28.06B	16.80B	28.65B
Investing Cash Flow	0.00	-16.08B	-10.26B	-8.61B	-20.14B	-29.19B
Financing Cash Flow	0.00	-6.92B	-39.15B	-6.18B	-10.28B	-4.86B

Ezaki Glico Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5002.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2206, the sentiment is Positive. The current price of 5002 is below the 20-day moving average (MA) of 5876.00, below the 50-day MA of 5636.25, and below the 200-day MA of 5057.66, indicating a bullish trend. The MACD of 120.44 indicates Negative momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2206.

Ezaki Glico Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1332	73 Outperform	¥485.53B	16.87	10.81%	2.56%	3.87%	29.64%
2229	66 Neutral	¥398.86B	23.84	8.27%	1.95%	5.82%	-13.40%
2206	65 Neutral	¥395.13B	76.68	2.66%	1.64%	8.40%	-23.50%
2296	64 Neutral	¥339.28B	21.60	―	2.61%	6.54%	15.08%
2811	63 Neutral	¥247.07B	17.96	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2264	59 Neutral	¥436.07B	31.87	―	2.42%	2.33%	-8.76%

Ezaki Glico Co., Ltd. Corporate Events

Ezaki Glico Board Rejects Activist Shareholder’s Push for Director Changes and Potential Privatization

Ezaki Glico has disclosed that it received a shareholder proposal from LONGCHAMP SICAV, represented by Dalton Investments, seeking to nominate two outside directors, authorize large-scale share buybacks, revise restricted stock compensation, and amend the articles of incorporation to reinforce management awareness of capital costs and share price. After review by its board and its majority-outside Nomination and Compensation Committee, Glico’s directors resolved to oppose the director nominations, arguing the current board already has appropriate skill balance and diversity to execute its long-term strategy and mid-term management plan.

The board also expressed concern that the proposing shareholder is prioritizing short-term share-price gains and a potential take-private transaction, including a management buyout structure involving a private equity fund and rollover investment, which Glico believes could create conflicts of interest with general shareholders. Citing past interactions and public comments by Dalton’s chief investment officer about aiming to take Glico private, the company warned that the proposal could steer it toward privatization on terms misaligned with its focus on medium- to long-term value creation and the common interests of all shareholders.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen6199.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.

Ezaki Glico Launches ¥25 Billion Share Buyback and Cancellation Plan

Ezaki Glico has authorized a substantial share buyback of up to 4.6 million common shares, representing 7.23% of its outstanding stock excluding treasury shares, with a maximum outlay of ¥25 billion. The purchases will be executed on the Tokyo Stock Exchange between March 1 and December 30, 2026, and all acquired shares are scheduled to be cancelled, signaling a commitment to shareholder returns and balance-sheet optimization.

Management said the move is intended to enhance shareholder returns and provide flexibility in capital policy amid a changing operating environment, with part of the funding to come from borrowings. Given existing treasury stock of about 4.8 million shares at the end of 2025, the additional buyback and planned cancellation are likely to tighten the share float and may support per-share metrics, potentially improving the company’s market valuation and capital efficiency.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen6199.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.

Ezaki Glico Books ¥3.4 Billion Impairment on Powdered Baby Milk Assets

Ezaki Glico announced it has recorded a fixed asset impairment loss related to facilities used in its powdered baby milk business, a part of its Dairy Business. After reassessing the future recoverability of these assets under Japan’s impairment accounting standards, the company wrote down their book value to recoverable levels, resulting in an extraordinary loss of ¥3,393 million in its fiscal year ended December 31, 2025.

The impairment reflects management’s assessment of the business environment and future prospects for the powdered baby milk segment, suggesting weaker expected returns from this line. This extraordinary loss has been incorporated into the company’s consolidated financial results for the 2025 fiscal year and may weigh on reported profitability, signaling strategic and earnings implications for stakeholders monitoring Ezaki Glico’s dairy operations.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen6199.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.

Ezaki Glico Posts Higher Sales but Profit Slump for FY2025 Amid Margin Pressure

Ezaki Glico reported a 9.1% increase in net sales to ¥361.4 billion for the fiscal year ended December 31, 2025, but operating profit fell 21.0% and profit attributable to owners of parent dropped 37.9%. Earnings per share declined to ¥79.12, reflecting margin pressure despite higher revenues, while the operating profit margin narrowed to 2.4% and ordinary profit to total asset ratio slipped to 3.0%.

Total assets rose to ¥394.1 billion and net assets to ¥278.5 billion, with a still-solid shareholders’ equity ratio of 70.5% and higher net assets per share of ¥4,365.35. Cash flows from operating activities improved sharply to ¥27.3 billion, cash and cash equivalents increased to ¥64.7 billion, and reduced cash outflows from financing activities suggest a stabilizing balance sheet despite weaker profitability, with implications for dividends and future investment capacity.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen6199.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.

Ezaki Glico Revises 2025 Financial Forecasts Due to Product Recall and Sluggish Sales

Ezaki Glico Co., Ltd. has revised its full-year financial forecast for 2025, citing a reduction in expected net sales and profits due to a chocolate recall and sluggish sales in its ice cream and chilled products sectors. Despite these downward revisions, the company has maintained its dividend forecasts, indicating a commitment to shareholder returns amidst operational challenges.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen5844.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.

Ezaki Glico Initiates Voluntary Recall of Chocolate Products Due to Flavor Issues

Ezaki Glico Co., Ltd. has announced a voluntary recall of 20 chocolate products, including popular items like Pocky Chocolate, due to unintended flavor variations caused by spice contamination during warehouse renovations. While there are no safety concerns, the company is taking steps to prevent future occurrences and is assessing the financial impact of this recall on its fiscal year ending December 2025.

The most recent analyst rating on (JP:2206) stock is a Hold with a Yen5844.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.