Morinaga Milk Industry Co., Ltd. (2264) AI Stock Analysis

• Market Cap: ¥286.96B
• Dividend Yield: 2.76%
• Average Volume (3M): 317.28K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 0.29
• Revenue Growth: 2.97%
• EPS Growth: -46.46%
• Country: JP
• Employees: 7,415
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Packaged Foods
• EPS (TTM): 82.90
• Shares Outstanding: 89,045,090
• 10 Day Avg. Volume: 387,820
• 30 Day Avg. Volume: 317,280
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥3,713.50
• Price Target Upside: 14.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: ¥3,427.00 ▲(5.41% Upside)

Morinaga Milk Industry's overall stock score is driven by stable revenue growth but hindered by profitability challenges and negative cash flow. The technical analysis suggests a neutral to slightly bearish outlook, while the high P/E ratio indicates potential overvaluation. The absence of earnings call and corporate events data limits further insights.

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

Company Description

Morinaga Milk Industry Co., Ltd., together with its subsidiaries, produces and sells various dairy products in Japan and internationally. The company offers milk, yogurt, cheese, and butter products, as well as chilled desserts, ice creams, infant formulas and baby foods, health foods, and liquid diet and nursing care foods; milk-based drinks, coffee drinks, chilled tea beverages, and various other products; and other products, such as creaming powders, condensed milks, and TOFU products. It also provides infant and toddler milk ingredients, including whey protein concentrate and lactose, as well as lactoferrin. In addition, the company is involved in the processing and packaging products, such as tofu and other soy-based products. Further, it engages in the mail-order sale of health food products; and offers hygiene management equipment. The company was formerly known as Nippon Rennyu Co., Ltd. and changed its name to Morinaga Milk Industry Co., Ltd. in 1949. Morinaga Milk Industry Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Morinaga 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	561.17B	547.06B	525.60B	503.35B	583.55B
Gross Profit	135.05B	131.96B	118.30B	122.28B	190.07B
EBITDA	41.46B	113.53B	45.92B	70.39B	47.20B
Net Income	5.46B	61.31B	16.88B	33.78B	18.74B
Balance Sheet
Total Assets	520.42B	566.00B	485.12B	458.79B	452.76B
Cash, Cash Equivalents and Short-Term Investments	28.56B	64.53B	21.10B	23.61B	19.26B
Total Debt	104.73B	86.82B	101.33B	89.26B	104.29B
Total Liabilities	249.32B	283.87B	257.99B	250.76B	250.85B
Stockholders Equity	266.33B	277.18B	223.03B	206.07B	199.56B
Cash Flow
Free Cash Flow	-44.68B	23.44B	-205.00M	21.39B	10.36B
Operating Cash Flow	-12.46B	56.58B	19.38B	40.27B	38.54B
Investing Cash Flow	-18.79B	25.22B	-25.46B	8.37B	-25.30B
Financing Cash Flow	-5.03B	-38.62B	2.92B	-44.52B	-2.63B

Morinaga Milk Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3251.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2264, the sentiment is Negative. The current price of 3251 is below the 20-day moving average (MA) of 3290.25, below the 50-day MA of 3292.10, and above the 200-day MA of 3117.39, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 46.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2264.

Morinaga Milk Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥221.70B	22.27	8.23%	2.16%	4.86%	-0.10%
2264	60 Neutral	¥286.96B	38.52		2.76%	2.97%	-46.46%
CBCFF	―	$2.39B	19.78	8.89%	1.79%	―	―
MEJHF	―	$5.70B	17.78	6.40%	3.55%	―	―
YZZKF	―	$4.80B	16.10	9.20%	―	―	―
5EJ	―	€1.84B	34.67	3.19%	―	―	―
2270	72 Outperform	¥188.22B	10.51		2.89%	1.33%	-15.17%

Morinaga Milk Industry Co., Ltd. Corporate Events

Morinaga Milk Reports Strong Q1 Financial Performance with Increased Profits

Morinaga Milk Industry Co., Ltd. reported a 2.2% increase in net sales for the first quarter of the fiscal year ending March 31, 2026, reaching ¥143,678 million. Despite a slight decline in ordinary profit, the company saw a significant 30.1% rise in profit attributable to owners of the parent, indicating strong operational performance. The company’s financial forecast for the full fiscal year anticipates continued growth in net sales and profits, suggesting positive momentum in its market positioning.

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

Morinaga Milk Industry Co., Ltd. has announced the acquisition of its own shares, with a total of 630,100 common shares acquired at a cost of 2,072,028,200 yen during July 2025. This move is part of a larger resolution to acquire up to 3,800,000 shares by March 2026, reflecting the company’s strategic focus on enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3000.00 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 Disposal for Executive Compensation

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

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

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

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

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

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

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

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.