Ajinomoto Co Inc (JP:2802)
:2802
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Ajinomoto Co
(2802)
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Rating:61Neutral
Price Target:
¥4,913.00
▼(-1.11% Downside)
Action:ReiteratedDate:02/07/26
Overall score reflects solid underlying financial health and profitability with manageable leverage, tempered by materially weaker free cash flow momentum. Technicals are supportive but look overbought, and valuation is the primary drag due to a high P/E and modest yield.
Positive Factors
Scale & Core Profitability
Ajinomoto's large revenue base and high gross/EBITDA margins provide a durable cushion to absorb commodity and FX swings, fund ongoing R&D and production efficiency, and sustain investment in brands and distribution. This scale supports long-term competitiveness and operational resilience.
Negative Factors
Weakening free cash flow momentum
A steep fall in free cash flow and only moderate cash conversion reduce the firm's ability to finance capex, pay dividends, or execute strategic deals from internal funds. If this weakness persists it will constrain flexibility and could force higher borrowing or slower reinvestment over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Core Profitability
Ajinomoto's large revenue base and high gross/EBITDA margins provide a durable cushion to absorb commodity and FX swings, fund ongoing R&D and production efficiency, and sustain investment in brands and distribution. This scale supports long-term competitiveness and operational resilience.
Read all positive factors
Ajinomoto Co (2802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.64T
Dividend Yield1.32%
Average Volume (3M)2.05M
Price to Earnings (P/E)20.9
Beta (1Y)0.94
Revenue Growth1.99%
EPS Growth-18.79%
CountryJP
Employees34,862
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)39.64
Shares Outstanding977,735,600
10 Day Avg. Volume2,011,340
30 Day Avg. Volume2,054,526
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)3.99
Price to Sales (P/S)1.95
P/FCF Ratio24.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,716.67Price Target Upside-5.06% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)149.2
Revenue Forecast (FY)¥1.68T
Ajinomoto Co Business Overview & Revenue Model
Company Description
Ajinomoto Co., Inc. engages in the seasonings and foods, frozen foods, and healthcare and other businesses in Japan and internationally. Its Seasonings and Foods segment offers sauces and seasonings products under the AJI-NO-MOTO, HON-DASHI, Cook ...
How the Company Makes Money
Ajinomoto makes money primarily by manufacturing and selling products and ingredients that leverage its amino-acid and fermentation capabilities. Key revenue streams include: (1) Consumer foods and seasonings: Sales of branded seasonings (includin...
Ajinomoto Co Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2025)
| Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
Ajinomoto's earnings call showcased strong revenue and profit growth, particularly in the Seasonings & Foods segment, and projected a positive outlook for FY 2025. However, the company faced challenges in the Frozen Foods segment and experienced a decline in profit attributable to the parent company due to structural reforms. Delays in Bio-Pharma Services shipments and potential impacts from tariffs and economic uncertainties were noted. Overall, the highlights slightly outweigh the lowlights, indicating a cautiously optimistic sentiment.Positive Updates
Record-Breaking Revenue and Growth
Sales in FY 2024 reached JPY1.530 trillion, an increase of 6% year-on-year, and business profit was JPY159.3 billion, an increase of 7.9% year-on-year. Revenue and profit are projected to increase further in FY 2025.
Negative Updates
Challenges in the Frozen Foods Segment
The Frozen Foods segment struggled in Japan due to high raw material costs and the impact of currency translation, resulting in decreased profit.
Read all updates
Q4-2025 Updates
Positive
Negative
Record-Breaking Revenue and Growth
Sales in FY 2024 reached JPY1.530 trillion, an increase of 6% year-on-year, and business profit was JPY159.3 billion, an increase of 7.9% year-on-year. Revenue and profit are projected to increase further in FY 2025.
Read all positive updates
Company Guidance
During the Ajinomoto fiscal year 2024 results briefing, the company's leadership provided guidance for fiscal year 2025, highlighting several key metrics and strategic initiatives. Ajinomoto reported record sales of JPY1.530 trillion for FY 2024, marking a 6% year-on-year increase, and a 4% rise excluding currency translation impacts. Business profit reached JPY159.3 billion, representing a 7.9% increase year-on-year, or 4.5% without currency translation effects. Looking forward, Ajinomoto forecasts continued revenue and profit growth for FY 2025, with projected sales of JPY1.618 trillion, a 5.7% increase year-on-year, or 6.7% when excluding currency translation impacts. Business profit is expected to rise by 13% to JPY180 billion. The company is also committed to shareholder returns, planning to increase dividends and repurchase shares. Ajinomoto aims to enhance corporate value through strategic initiatives like evolving ASV (Ajinomoto Shared Value) indicators, with ROE and ROIC targets set at 19% and 12%, respectively, excluding the impact of the Forge acquisition. The company is focused on boosting its operating cash flow to over JPY220 billion and plans significant investments in intangible assets to support sustainable growth.Ajinomoto Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.54T | 1.53T | 1.44T | 1.36T | 1.15T | 1.07T |
| Gross Profit | 574.13B | 550.76B | 511.45B | 470.39B | 425.90B | 406.22B |
| EBITDA | 211.56B | 209.22B | 232.75B | 226.85B | 197.67B | 168.07B |
| Net Income | 77.58B | 70.27B | 87.12B | 94.06B | 75.72B | 59.42B |
Balance Sheet | ||||||
| Total Assets | 1.90T | 1.72T | 1.77T | 1.51T | 1.46T | 1.43T |
| Cash, Cash Equivalents and Short-Term Investments | 201.84B | 164.78B | 171.54B | 132.78B | 151.45B | 181.61B |
| Total Debt | 446.93B | 496.06B | 491.68B | 336.50B | 363.96B | 406.82B |
| Total Liabilities | 1.08T | 907.86B | 890.43B | 688.77B | 717.32B | 763.44B |
| Stockholders Equity | 743.55B | 746.80B | 814.69B | 768.68B | 686.91B | 620.26B |
Cash Flow | ||||||
| Free Cash Flow | 126.14B | 121.79B | 102.29B | 49.26B | 71.73B | 88.76B |
| Operating Cash Flow | 224.97B | 209.90B | 168.07B | 117.64B | 145.58B | 165.65B |
| Investing Cash Flow | -107.01B | -77.38B | -132.43B | -30.09B | -61.57B | -66.25B |
| Financing Cash Flow | -147.54B | -137.68B | -6.75B | -111.06B | -123.06B | -60.39B |
Ajinomoto Co Technical Analysis
Positive
4968.00
Price Trends
4307.49
Positive
3893.20
Positive
3958.24
Positive
Market Momentum
72.82
Negative
56.20
Neutral
79.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2802, the sentiment is Positive. The current price of 4968 is above the 20-day moving average (MA) of 4463.74, above the 50-day MA of 4307.49, and above the 200-day MA of 3958.24, indicating a bullish trend. The MACD of 72.82 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 79.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2802.
Ajinomoto Co Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥1.14T | 13.07 | 13.07% | 1.82% | 3.64% | 5.31% | |
72 Outperform | ¥1.48T | 18.60 | 11.19% | 1.46% | 2.65% | -5.76% | |
72 Outperform | ¥510.41B | 15.17 | 9.86% | 2.58% | 1.08% | 2.71% | |
71 Outperform | ¥586.74B | 19.60 | 9.28% | 1.30% | 5.50% | 27.32% | |
66 Neutral | ¥926.70B | 12.71 | 9.77% | 2.41% | 1.46% | -2.17% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | ¥4.64T | 20.92 | 9.46% | 1.32% | 1.99% | -18.79% |
* Consumer Defensive Sector Average
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Ajinomoto Co Corporate Events
Ajinomoto Details Progress on Ongoing Share Buyback Program
Apr 2, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by its board in November 2025, under which it can buy back up to 30 million common shares for as much as JPY 80 billion through November 2026. Between Mar...
Ajinomoto to Book ¥38 Billion Internal Dividend With No Impact on Consolidated Earnings
Mar 5, 2026
Ajinomoto Co., Inc. will receive dividends totaling 7.6 billion baht, or about 38 billion yen, from its consolidated subsidiary Ajinomoto Co., (Thailand) Ltd., following a resolution dated March 5, 2026, with payments scheduled across four dates i...
Ajinomoto Reports Steady Progress on Large-Scale Share Buyback Program
Mar 3, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by its board in November 2025, under which it may buy back up to 30 million common shares for as much as JPY 80 billion through November 2026. The company...
Ajinomoto to Sell Tokyo Head Office Property, Booking Large Capital Gain
Feb 5, 2026
Ajinomoto Co., Inc. has resolved to transfer the land and building of its head office in Kyobashi, Chuo-ku, Tokyo as part of a broader initiative to improve capital efficiency and support its previously announced head office relocation. The fixed ...
Ajinomoto Cuts Sales Outlook but Lifts Profit Forecast for FY2025
Feb 5, 2026
Ajinomoto has revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, trimming projected sales to ¥1.6 trillion from ¥1.618 trillion but slightly increasing its business profit outlook to ¥181 billion ...
Ajinomoto Lifts Full-Year Outlook as Profit Climbs on Modest Sales Growth
Feb 5, 2026
Ajinomoto reported modest top-line growth for the nine months ended December 31, 2025, with sales rising 1.1% year-on-year to ¥1.16 trillion, while business profit increased 5.6% to ¥145.99 billion and profit attributable to owners of th...
Ajinomoto Reports Progress on Ongoing Share Buyback and Planned Share Cancellation
Feb 3, 2026
Ajinomoto has reported progress on a previously approved share buyback program, repurchasing 2,706,300 common shares for approximately JPY 9.24 billion on the Tokyo Stock Exchange between January 1 and January 31, 2026. This brings cumulative repu...
Ajinomoto Revamps Top Executive Lineup to Bolster Global Food Business
Jan 29, 2026
Ajinomoto Co., Inc. has announced executive leadership changes effective April 1, 2026, appointing Hiroshi Kaho as Representative Executive Officer Executive Vice President and Chief Human Resources Officer, and Ichiro Sakakura as Representative ...
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.