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

• Market Cap: ¥354.65B
• Dividend Yield: 1.65%
• Average Volume (3M): 155.04K
• Price to Earnings (P/E): 48.6
• Beta (1Y): 0.30
• Revenue Growth: 8.40%
• EPS Growth: -23.50%
• Country: JP
• Employees: 5,563
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 55.36
• Shares Outstanding: 68,468,570
• 10 Day Avg. Volume: 153,710
• 30 Day Avg. Volume: 155,040
• PEG Ratio: -0.86
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -19.07
• 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: ¥3,208.91
• Price Target Upside: -35.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 146.14
• Revenue Forecast (FY): ¥353.82B

• Rating: 62 Neutral
• Price Target: ¥5,844.00 ▲(16.83% Upside)

Ezaki Glico Co., Ltd. receives a moderate overall stock score of 62. The most significant factor is the mixed financial performance, with strong gross margins but challenges in cash flow generation. Technical analysis shows strong momentum, but overbought indicators suggest caution. The high P/E ratio indicates a premium valuation, which could limit upside unless earnings growth improves. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic downturns.

Gross Margin Strength

High gross margins indicate effective cost management and pricing power, which can support profitability and provide a buffer against cost increases.

Market Expansion

Expanding into new markets can drive long-term revenue growth and diversify income sources, reducing reliance on domestic sales and enhancing global brand presence.

Negative Factors

Cash Flow Challenges

Weak cash flow generation can limit the company's ability to fund investments and operations, potentially impacting growth and financial health over time.

Declining Profit Margins

Decreasing profit margins suggest challenges in cost control or pricing, which can affect overall profitability and shareholder returns if not addressed.

Operational Efficiency Concerns

Reduced operational efficiency can hinder the company's ability to convert revenue into profit, affecting long-term competitiveness and financial performance.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.60B	331.13B	332.59B	303.92B	338.57B	344.05B
Gross Profit	128.29B	127.67B	123.85B	110.75B	158.03B	162.41B
EBITDA	29.86B	29.06B	34.05B	27.93B	35.09B	34.36B
Net Income	8.19B	8.11B	14.13B	8.10B	13.52B	11.84B
Balance Sheet
Total Assets	369.01B	377.77B	395.74B	369.05B	356.74B	340.08B
Cash, Cash Equivalents and Short-Term Investments	51.84B	60.24B	97.20B	91.93B	102.25B	98.64B
Total Debt	7.16B	165.00M	30.00B	30.02B	30.35B	30.64B
Total Liabilities	102.36B	105.18B	132.63B	124.30B	115.57B	117.53B
Stockholders Equity	266.05B	272.00B	262.54B	244.29B	240.79B	221.75B
Cash Flow
Free Cash Flow	0.00	-15.66B	9.69B	-8.89B	4.89B	474.00M
Operating Cash Flow	0.00	1.81B	28.06B	16.80B	28.65B	17.22B
Investing Cash Flow	0.00	-10.26B	-8.61B	-20.14B	-29.19B	-12.44B
Financing Cash Flow	0.00	-39.15B	-6.18B	-10.28B	-4.86B	-9.74B

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 5248.65, below the 50-day MA of 5122.04, and above the 200-day MA of 4782.77, indicating a bullish trend. The MACD of 121.95 indicates Negative momentum. The RSI at 68.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.93 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	76 Outperform	€382.98B	13.02	10.81%	2.81%	3.87%	29.64%
2229	70 Outperform	$376.65B	21.40	8.27%	2.03%	5.82%	-13.40%
2811	67 Neutral	¥239.20B	19.70	―	2.12%	3.69%	-50.13%
2264	65 Neutral	¥293.61B	39.42	―	2.48%	2.33%	-8.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	62 Neutral	¥354.65B	48.58	2.66%	1.65%	8.40%	-23.50%
2296	62 Neutral	¥288.92B	18.92	―	2.67%	6.54%	15.08%

Ezaki Glico Co., Ltd. Corporate Events

Ezaki Glico Revises Financial Forecasts for 2025

Ezaki Glico Co., Ltd. has revised its full-year consolidated financial results forecasts for the fiscal year ending December 31, 2025, due to sluggish ice cream sales and delays in the dairy business. Despite the downward revision in sales and profit forecasts, the company has decided to maintain its dividend forecasts.

The most recent analyst rating on (JP:2206) stock is a Sell with a Yen3700.00 price target. To see the full list of analyst forecasts on Ezaki Glico Co., Ltd. stock, see the JP:2206 Stock Forecast page.