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Morinaga Milk Industry Co., Ltd. (JP:2264)
:2264
Japanese Market
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Morinaga Milk Industry Co., Ltd. (2264) AI Stock Analysis

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JP:2264

Morinaga Milk Industry Co., Ltd.

(2264)

Rating:58Neutral
Price Target:
¥3,414.00
▲(4.40%Upside)
Morinaga Milk Industry's overall stock score reflects its moderate financial performance and neutral technical indicators, offset by a high valuation. The company's profitability and cash flow issues are significant concerns, while the stock is relatively overvalued. These factors combine to create a cautious investment outlook.

Morinaga Milk Industry Co., Ltd. (2264) vs. iShares MSCI Japan ETF (EWJ)

Morinaga Milk Industry Co., Ltd. Business Overview & Revenue Model

Company DescriptionMorinaga Milk Industry Co., Ltd. is a leading Japanese dairy company that specializes in the production and distribution of a wide range of dairy products. Established in 1917 and headquartered in Tokyo, Japan, Morinaga Milk operates across several sectors including milk and milk-based beverages, yogurts, desserts, infant formulas, and nutritional supplements. The company is committed to delivering high-quality, innovative products that cater to the nutritional needs of its consumers, both domestically and internationally.
How the Company Makes MoneyMorinaga Milk Industry Co., Ltd. generates revenue primarily through the manufacturing and sale of its diverse array of dairy products. The company's key revenue streams include domestic sales of milk, yogurt, and other dairy beverages, which are distributed through supermarkets, convenience stores, and other retail channels. Additionally, Morinaga Milk has a significant presence in the infant formula market, both in Japan and overseas, which contributes substantially to its earnings. The company also engages in the production and sale of functional foods and nutritional supplements, which cater to health-conscious consumers. Strategic partnerships and collaborations, including joint ventures with international dairy and food companies, further bolster Morinaga Milk's revenue by expanding its product reach and market penetration.

Morinaga Milk Industry Co., Ltd. Financial Statement Overview

Summary
Morinaga Milk Industry demonstrates stable revenue growth but faces profitability challenges, evidenced by declining net profit margins and ROE. The company's balance sheet is robust with low leverage, yet cash flow issues, particularly negative free cash flow, pose a significant risk. Strategic focus on improving profitability and cash flow conversion is essential to enhance financial health.
Income Statement
65
Positive
Morinaga Milk Industry's revenue showed a moderate growth trend with a recent increase to ¥561.173 billion in 2025. The gross profit margin for 2025 stood at 24.06%, indicating efficient cost management. However, the net profit margin declined significantly to 0.97% in 2025 from a higher margin in previous years, highlighting challenges in maintaining profitability. The EBIT margin of 5.29% and EBITDA margin of 7.39% suggest moderate operational efficiency, although they have room for improvement.
Balance Sheet
70
Positive
The balance sheet indicates a strong equity base with a debt-to-equity ratio of 0.39 in 2025, suggesting a conservative leverage position. Return on equity (ROE) has decreased to 2.05% in 2025, showing a decline in shareholder returns. The equity ratio of 51.17% highlights a solid financial foundation, although the decrease in equity from previous years signals potential risks.
Cash Flow
55
Neutral
The cash flow statement reveals a concerning trend with negative operating cash flow of ¥12.456 billion and free cash flow of ¥-44.68 billion in 2025. The free cash flow to net income ratio is negative, reflecting challenges in converting earnings to cash. The operating cash flow to net income ratio is also negative, indicating inefficiencies in cash generation from operations.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue561.17B547.06B525.60B503.35B583.55B
Gross Profit135.05B131.96B118.30B122.28B190.07B
EBITDA41.46B113.53B45.92B70.39B47.20B
Net Income5.46B61.31B16.88B33.78B18.74B
Balance Sheet
Total Assets520.42B566.00B485.12B458.79B452.76B
Cash, Cash Equivalents and Short-Term Investments28.56B64.53B21.10B23.61B19.26B
Total Debt104.73B86.82B101.33B89.26B104.29B
Total Liabilities249.32B283.87B257.99B250.76B250.85B
Stockholders Equity266.33B277.18B223.03B206.07B199.56B
Cash Flow
Free Cash Flow-44.68B23.44B-205.00M21.39B10.36B
Operating Cash Flow-12.46B56.58B19.38B40.27B38.54B
Investing Cash Flow-18.79B25.22B-25.46B8.37B-25.30B
Financing Cash Flow-5.03B-38.62B2.92B-44.52B-2.63B

Morinaga Milk Industry Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3270.00
Price Trends
50DMA
3288.38
Negative
100DMA
3233.48
Positive
200DMA
3130.90
Positive
Market Momentum
MACD
-2.57
Positive
RSI
45.58
Neutral
STOCH
15.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2264, the sentiment is Neutral. The current price of 3270 is below the 20-day moving average (MA) of 3294.20, below the 50-day MA of 3288.38, and above the 200-day MA of 3130.90, indicating a neutral trend. The MACD of -2.57 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2264.

Morinaga Milk Industry Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥359.73B16.5610.34%2.08%6.45%4.96%
72
Outperform
¥189.84B13.42
2.85%1.72%-28.42%
72
Outperform
$647.05B17.708.78%1.19%4.25%4.06%
68
Neutral
¥197.01B21.388.29%2.28%4.93%0.72%
67
Neutral
$844.83B16.466.71%3.25%4.39%2.40%
58
Neutral
¥290.06B50.50
2.75%2.58%-90.84%
58
Neutral
¥300.81B54.142.04%1.94%-3.24%-63.77%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2264
Morinaga Milk Industry Co., Ltd.
3,270.00
-104.76
-3.10%
JP:2270
MEGMILK SNOW BRAND Co., Ltd.
2,811.00
141.33
5.29%
JP:2206
Ezaki Glico Co., Ltd.
4,637.00
158.14
3.53%
JP:2229
CALBEE
2,786.00
-477.42
-14.63%
JP:2269
Meiji Holdings Co
3,076.00
-565.68
-15.53%
JP:2212
Yamazaki Baking Co
3,214.00
-355.09
-9.95%

Morinaga Milk Industry Co., Ltd. Corporate Events

Morinaga Milk Announces Treasury Stock Disposal for Executive Compensation
Jul 17, 2025

Morinaga Milk Industry Co., Ltd. announced its decision to dispose of 23,900 shares of treasury stock as restricted stock compensation. This move is part of a plan to align the interests of its directors and managing officers with those of shareholders, aiming to enhance corporate value and incentivize leadership to contribute to stock price growth. The restricted stock plan, approved in 2018, sets a 30-year transfer restriction period to ensure long-term commitment from eligible officers.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Announces Treasury Stock Acquisition
Jul 1, 2025

Morinaga Milk Industry Co., Ltd. announced the acquisition of 496,700 of its own shares at a total cost of 1,638,576,200 yen during June 2025. This move is part of a broader strategy approved by the board to acquire up to 3.8 million shares, with a maximum expenditure of 10 billion yen, through market purchases on the Tokyo Stock Exchange by March 2026.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Announces Status of Treasury Stock Acquisition
Jun 2, 2025

Morinaga Milk Industry Co., Ltd. announced the status of its treasury stock acquisition, revealing that no shares were acquired between May 14 and May 31, 2025. Despite the board’s approval to acquire up to 3,800,000 shares by March 31, 2026, the company has not yet initiated any purchases, which may impact its market strategy and investor relations.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Issues New Bonds to Bolster Growth
May 28, 2025

Morinaga Milk Industry Co., Ltd. announced the issuance of its 21st and 22nd series of unsecured straight bonds, each valued at 10 billion yen, with maturities of five and ten years respectively. This strategic financial move is expected to strengthen the company’s capital structure and support its long-term growth objectives, potentially impacting its market position positively.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Industry Announces Treasury Share Acquisition to Boost Shareholder Value
May 13, 2025

Morinaga Milk Industry Co., Ltd. has announced a decision to acquire treasury shares as part of its strategy to enhance shareholder returns and optimize capital structure. The company aims to increase its total payout ratio by raising dividends and acquiring treasury stock, which will be canceled to improve capital efficiency and shareholder value.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Unveils Growth Plans with Strong FY2025 Results
May 13, 2025

Morinaga Milk Industry Co., Ltd. reported a 2.6% increase in net sales for the fiscal year ending March 2025, with significant contributions from its global business and efficient sales promotion. The company has outlined a medium-term business plan for 2025–2028, targeting a net sales increase to ¥630.0 billion by March 2029, supported by growth strategies, structural reforms, and organizational culture changes.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Reports Mixed Financial Results, Plans Dividend Increase
May 13, 2025

Morinaga Milk Industry Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in net sales and operating profit, but a significant drop in profit attributable to owners of the parent. The company experienced a decrease in total assets and net assets, while cash flows from operating, investing, and financing activities were negative. Despite these challenges, the company plans to increase dividends and forecasts growth in net sales and profits for the next fiscal year.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Reports Financial Results and Projects Growth
May 13, 2025

Morinaga Milk Industry Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in net sales and operating profit. However, the company experienced a significant drop in profit attributable to owners of the parent, mainly due to a decrease in comprehensive income. The company also executed a stock split, impacting earnings per share calculations. Despite these challenges, Morinaga Milk is projecting growth in net sales and profits for the next fiscal year, indicating a positive outlook for its future operations.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

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.Date of analysis: Jul 18, 2025