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

• Market Cap: €293.74B
• Dividend Yield: 1.97%
• Average Volume (3M): 163.03K
• Price to Earnings (P/E): 52.9
• Beta (1Y): 0.28
• Revenue Growth: -3.24%
• EPS Growth: -63.77%
• Country: JP
• Employees: 5,563
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Packaged Foods
• EPS (TTM): 38.55
• Shares Outstanding: 68,468,570
• 10 Day Avg. Volume: 234,670
• 30 Day Avg. Volume: 163,030
• PEG Ratio: -2.74
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -18.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥4,700.00 ▲( 4.03% Upside)

Ezaki Glico Co., Ltd.'s overall stock score is influenced primarily by its mixed financial performance. Strong gross margins are offset by weak net margins and cash flow issues. Technical indicators suggest bearish sentiment, while the high P/E ratio indicates potential overvaluation.

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. showcases a mixed financial picture. The income statement reflects strong gross margins but weakened net profitability and operating efficiency. The balance sheet is strong with low leverage and a high equity ratio, providing stability. However, the cash flow statement highlights challenges in cash generation, which could impact future investments and growth initiatives. The company needs to focus on improving cash flow efficiency and profit margins to enhance its financial health.

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
	EBIT
11.06B	18.52B	12.85B	19.31B	18.52B
	EBITDA
29.06B	34.05B	27.93B	35.09B	34.36B
	Net Income Common Stockholders
8.11B	14.13B	8.10B	13.52B	11.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
60.24B	97.20B	91.93B	102.25B	98.64B
	Total Assets
377.77B	395.74B	369.05B	356.74B	340.08B
	Total Debt
165.00M	30.00B	30.02B	30.35B	30.64B
	Net Debt
-56.45B	-67.20B	-61.68B	-71.67B	-67.26B
	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: Negative
• Last Price: 4518.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2206, the sentiment is Negative. The current price of 4518 is below the 20-day moving average (MA) of 4689.00, below the 50-day MA of 4691.72, and above the 200-day MA of 4480.43, indicating a neutral trend. The MACD of -33.98 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 12.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2914	78 Outperform	$7.83T	43.64	4.55%	4.06%	10.98%	-63.74%
2801	74 Outperform	¥1.30T	20.74	12.17%	1.76%	7.29%	9.77%
2229	74 Outperform	¥378.00B	17.52	10.34%	1.90%	7.15%	8.57%
2802	74 Outperform	¥3.41T	48.92	8.89%	1.14%	8.76%	-0.23%
Sector *	64 Neutral	$8.78B	14.55	4.78%	173.91%	3.39%	2.17%
2503	64 Neutral	$1.67T	29.40	4.91%	3.58%	9.00%	-57.41%
2206	55 Neutral	€293.74B	52.90	2.04%	1.97%	-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.