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

• Market Cap: ¥304.76B
• Dividend Yield: 1.92%
• Average Volume (3M): 223.19K
• Price to Earnings (P/E): 54.9
• Beta (1Y): 0.31
• Revenue Growth: -3.24%
• EPS Growth: -63.77%
• Country: JP
• Employees: 5,563
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Packaged Foods
• EPS (TTM): 38.55
• Shares Outstanding: 68,468,570
• 10 Day Avg. Volume: 391,070
• 30 Day Avg. Volume: 223,193
• PEG Ratio: -0.73
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.04
• 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: ¥3,699.66
• Price Target Upside: -21.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ¥4,619.00 ▼(-2.02%Downside)

Ezaki Glico Co., Ltd. faces challenges with its financial performance, mainly due to cash flow issues and declining profitability. Technical indicators show potential short-term weakness, and the valuation appears stretched with a high P/E ratio. The lack of significant earnings call insights and corporate events means these factors did not influence the evaluation.

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

Company Description

Ezaki Glico Co., Ltd. (2206) is a Japanese multinational confectionery company headquartered in Osaka, Japan. The company is renowned for its wide range of food products, primarily focusing on confectioneries and snacks. Ezaki Glico's diverse product portfolio includes iconic brands such as Pocky, Pretz, and Glico caramel, along with dairy products, processed foods, and health-related products. The company emphasizes innovation and quality, catering to both domestic and international markets.

How the Company Makes Money

Ezaki Glico Co., Ltd. generates revenue through the manufacture and sale of its diverse range of confectionery and food products. The company's key revenue streams include packaged snacks, dairy products, and health foods. Its flagship products, such as Pocky and Pretz, enjoy strong brand recognition and market presence both in Japan and internationally, contributing significantly to its earnings. Additionally, Ezaki Glico benefits from strategic partnerships, marketing campaigns, and distribution networks that enhance its market penetration and sales volumes. The company's focus on innovation and product development also plays a critical role in sustaining its revenue growth by catering to evolving consumer preferences.

Ezaki Glico Co., Ltd. Financial Statement Overview

Summary

Ezaki Glico Co., Ltd. exhibits a mixed financial picture with strong gross profit margins but decreasing net margins and operational efficiency. The balance sheet is robust with low leverage, yet cash flow challenges indicate potential issues in sustaining long-term growth.

Income Statement

Ezaki Glico Co., Ltd. has demonstrated fluctuating revenue performance with a decline from 2020 to 2022, followed by stabilization. The gross profit margin in 2024 is strong at 38.54%, indicating effective cost management. However, the net profit margin dropped to 2.45% in 2024 from 4.25% in 2023, suggesting reduced efficiency in converting revenue into actual profit. The EBIT margin also decreased, reflecting a potential concern in operational efficiency.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 72.00% in 2024, indicating a stable financial foundation. The debt-to-equity ratio is exceptionally low at 0.61%, demonstrating minimal reliance on debt financing. Return on equity has decreased to 2.98% in 2024, down from 5.38% in 2023, which could indicate less efficient use of equity capital.

Cash Flow

Ezaki Glico's cash flow from operations decreased significantly in 2024, leading to negative free cash flow, which poses a challenge for long-term sustainability. The free cash flow to net income ratio is negative, indicating that the company's earnings are not translating into cash flow effectively. Operating cash flow to net income also decreased, showing weakened cash flow generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.13B	332.59B	303.92B	338.57B	344.05B
Gross Profit	127.67B	120.35B	110.75B	158.03B	162.41B
EBITDA	29.06B	32.54B	27.93B	35.09B	34.36B
Net Income	8.11B	14.13B	8.10B	13.52B	11.84B
Balance Sheet
Total Assets	377.77B	395.74B	369.05B	356.74B	340.08B
Cash, Cash Equivalents and Short-Term Investments	60.24B	97.20B	91.93B	102.25B	98.64B
Total Debt	165.00M	30.00B	30.02B	30.35B	30.64B
Total Liabilities	105.18B	132.63B	124.30B	115.57B	117.53B
Stockholders Equity	272.00B	262.54B	244.29B	240.79B	221.75B
Cash Flow
Free Cash Flow	-15.66B	9.69B	-8.89B	4.89B	474.00M
Operating Cash Flow	1.81B	28.06B	16.80B	28.65B	17.22B
Investing Cash Flow	-10.26B	-10.37B	-20.14B	-29.19B	-12.44B
Financing Cash Flow	-39.15B	-6.09B	-10.28B	-4.86B	-9.74B

Ezaki Glico Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4714.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4714 is above the 20-day moving average (MA) of 4550.11, above the 50-day MA of 4598.10, and above the 200-day MA of 4491.76, indicating a bullish trend. The MACD of 11.94 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 94.32 is Negative, 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
2229	74 Outperform	¥351.60B	16.30	10.34%	2.13%	6.45%	4.96%
2296	72 Outperform	¥263.74B	21.55		6.83%	3.47%	-15.46%
Sector *	68 Neutral	¥198.41B	21.33	8.29%	2.33%	4.99%	3.05%
1332	68 Neutral	€272.96B	10.74	9.59%	3.65%	6.59%	6.52%
2264	63 Neutral	¥300.35B	52.42		2.66%	2.58%	-90.84%
2811	61 Neutral	¥255.15B	16.20		1.99%	25.63%	-24.35%
2206	54 Neutral	¥304.76B	54.89	2.04%	1.92%	-3.24%	-63.77%

Ezaki Glico Co., Ltd. Corporate Events

Ezaki Glico Establishes SPC for Global Growth

Ezaki Glico Co., Ltd. announced the establishment of a special purpose company, Glico Europe B.V., in the Netherlands as part of its strategy to pursue global growth investments. This move aligns with the company’s mid-term management plan to expand its business into new areas and promote global growth, with a minor expected impact on the company’s earnings for the fiscal year ending December 31, 2025.