Ajinomoto Co (2802) AI Stock Analysis

• Market Cap: $3.42T
• Dividend Yield: 1.32%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 48.2
• Beta (1Y): 0.74
• Revenue Growth: 1.99%
• EPS Growth: -18.79%
• Country: JP
• Employees: 34,862
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 19.56
• Shares Outstanding: 977,735,600
• 10 Day Avg. Volume: 2,011,340
• 30 Day Avg. Volume: 2,054,526
• PEG Ratio: -0.73
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 24.47
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 18.45
• 1Y Price Target: $4,450.63
• Price Target Upside: 26.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥3,414.00 ▼(-3.01% Downside)

Ajinomoto Co's overall stock score is primarily influenced by its stable financial performance, despite some concerns about revenue growth and leverage. The technical analysis indicates bearish momentum, which negatively impacts the score. The high P/E ratio suggests overvaluation, further weighing down the score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Cash Flow Management

Strong cash flow management with positive free cash flow growth supports financial stability and provides flexibility for investments and debt management.

Product Innovation

Continuous investment in R&D fosters product innovation, maintaining a competitive edge and potentially driving future revenue growth in health and wellness markets.

Market Diversification

Diverse revenue streams across food and health sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Declining Revenue Growth

A decline in revenue growth can hinder long-term performance, affecting market share and limiting resources for reinvestment and expansion.

Increased Leverage

Higher leverage increases financial risk, potentially straining cash flow and limiting the company's ability to invest in growth opportunities.

Earnings Decline

A significant decline in earnings per share growth indicates potential challenges in maintaining profitability, which may affect investor confidence and capital raising ability.

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 Do, Ajinomoto KK Consommé, Pure Select Mayonnaise, Ros Dee, Masako, Aji-ngon, Sazón, Sajiku, and CRISPY FRY names; and solutions and ingredients to consumer foods and food service industries. This segment also provides instant noodles under the Knorr Cup Soup, and YumYum names; coffee under the Birdy and Blendy brands; powdered drink under the Birdy 3in1 name; MAXIM products; Chyotto Zeitakuna Kohiten products; and gift sets and office supplies comprising coffee vending machines, tea server, etc. The Frozen Foods segment offers Chinese dumplings, cooked rice, noodles, desserts, shumai, processed chicken, and other products. The Healthcare and Other segment provides amino acids to various industries, such as pharmaceuticals, foods, and cosmetics; sports nutrition products; personal care ingredients; and sterile products, as well as engages in the provision of contract manufacturing services for pharmaceutical intermediates and active ingredients. This segment also offers Ajinomoto Build-up Film, an interlayer insulating material for semiconductor packages. Ajinomoto Co., Inc. was founded in 1909 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ajinomoto generates revenue through several key streams. The Food Products segment, which includes seasonings, processed foods, and beverages, constitutes a significant portion of its income, driven by strong consumer demand in both domestic and international markets. The Amino Acids segment contributes to revenue through the sale of amino acids and related products for food, pharmaceuticals, and animal nutrition, leveraging the growing market for health and wellness products. The company also benefits from strategic partnerships and collaborations with other businesses in various sectors, enhancing its product offerings and expanding its market reach. Additionally, Ajinomoto invests in research and development to innovate and improve its products, which helps maintain a competitive edge and stimulate sales growth.

Ajinomoto Co Financial Statement Overview

Summary

Ajinomoto Co presents a stable financial outlook with some areas of concern. The income statement shows profitability but declining revenue growth, which could impact future performance. The balance sheet is stable but indicates increased leverage, which needs monitoring. The cash flow statement is strong, reflecting good cash management. Overall, the company is financially sound but should address revenue growth and leverage to maintain its competitive position.

Income Statement

Ajinomoto Co's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 25.3%, which is concerning. However, the company maintains a healthy gross profit margin of 36.39% and a net profit margin of 5.14%. The EBIT and EBITDA margins are also stable at 7.81% and 13.44% respectively. Despite the revenue decline, the company remains profitable, but the negative growth trajectory poses a risk.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 0.80 in the TTM period, indicating higher leverage, which could be a risk if not managed properly. However, the return on equity is reasonable at 10.36%, and the equity ratio stands at a solid 40.98%. The company shows stability in its equity base, but the rising debt levels warrant caution.

Cash Flow

Ajinomoto Co's cash flow statement is relatively strong. The free cash flow growth rate is positive at 19.19% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.44, suggesting adequate cash flow from operations. The free cash flow to net income ratio is 0.53, which is healthy. Overall, the company demonstrates good cash flow management, supporting its financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.53T	1.53T	1.44T	1.36T	1.15T	1.07T
Gross Profit	558.84B	550.76B	511.45B	470.39B	425.90B	406.22B
EBITDA	203.03B	209.22B	232.75B	226.85B	197.67B	168.07B
Net Income	71.29B	70.27B	87.12B	94.06B	75.72B	59.42B
Balance Sheet
Total Assets	1.74T	1.72T	1.77T	1.51T	1.46T	1.43T
Cash, Cash Equivalents and Short-Term Investments	153.56B	164.78B	171.54B	132.78B	151.45B	181.61B
Total Debt	506.37B	496.06B	491.68B	336.50B	363.96B	406.82B
Total Liabilities	960.71B	907.86B	890.43B	688.77B	717.32B	763.44B
Stockholders Equity	715.02B	746.80B	814.69B	768.68B	686.91B	620.26B
Cash Flow
Free Cash Flow	127.14B	121.79B	102.29B	49.26B	71.73B	88.76B
Operating Cash Flow	221.36B	209.90B	168.07B	117.64B	145.58B	165.65B
Investing Cash Flow	-90.90B	-77.38B	-132.43B	-30.09B	-61.57B	-66.25B
Financing Cash Flow	-155.57B	-137.68B	-6.75B	-111.06B	-123.06B	-60.39B

Ajinomoto Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3520.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2802, the sentiment is Neutral. The current price of 3520 is above the 20-day moving average (MA) of 3457.45, above the 50-day MA of 3449.00, and below the 200-day MA of 3712.70, indicating a neutral trend. The MACD of 17.14 indicates Negative momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2802.

Ajinomoto Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2897	77 Outperform	¥923.16B	18.59	9.77%	2.41%	1.46%	-2.17%
2875	76 Outperform	¥1.13T	16.93	13.26%	1.82%	3.64%	5.31%
2801	73 Outperform	¥1.34T	22.38	11.19%	1.46%	2.65%	-5.76%
2871	72 Outperform	¥484.68B	18.41	9.86%	2.58%	1.08%	2.71%
2809	71 Outperform	¥602.59B	19.59	9.28%	1.30%	5.50%	27.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	55 Neutral	$3.42T	48.16	9.46%	1.32%	1.99%	-18.79%

Ajinomoto Co Corporate Events

Ajinomoto Reports Initial Progress on ¥80 Billion Share Buyback Program

Ajinomoto Co., Inc. reported progress on its share repurchase program authorized by the board on November 6, 2025, announcing that it bought back 2,750,700 common shares for approximately JPY 9.33 billion on the Tokyo Stock Exchange between December 1 and December 31, 2025. This buyback is part of a larger program allowing repurchases of up to 30 million shares or JPY 80 billion through November 30, 2026, with the company planning to cancel all shares acquired under the program, a move that is expected to enhance capital efficiency and potentially support shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3414.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto to Cancel 27.9 Million Treasury Shares, Cutting Float by 2.77%

Ajinomoto Co., Inc. has resolved to cancel 27,902,000 of its common treasury shares, representing 2.77% of its issued shares, following acquisitions conducted via off-auction own share repurchase trading and market purchases on the Tokyo Stock Exchange between May 9 and November 17, 2025. The cancellation, scheduled for January 26, 2026, will reduce the company’s total shares outstanding to 977,735,616, a move that is expected to enhance capital efficiency and potentially improve per-share metrics for existing shareholders.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3414.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Completes Share Repurchase Program

Ajinomoto Co., Inc. has completed its share repurchase program, which was initiated following a Board of Directors resolution on May 8, 2025. The company repurchased 2,730,000 common shares for approximately JPY 10.4 billion between November 1 and November 17, 2025, through the Tokyo Stock Exchange. This move is part of a larger strategy to repurchase up to 50 million shares, with the intention to cancel all repurchased shares, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Announces Share Repurchase Plan to Enhance Shareholder Value

Ajinomoto Co., Inc. has announced a decision by its Board of Directors to repurchase up to 30 million of its own shares, representing 3.09% of the total issued shares, excluding treasury shares. This initiative, with a maximum cost of JPY 80 billion, aims to enhance shareholder returns and improve capital efficiency, with plans to cancel all repurchased shares, reflecting a strategic move to optimize its capital structure.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Reports Stable Financial Performance Amid Sales Dip

Ajinomoto Co., Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decrease in sales and business profit compared to the previous year. Despite this, the company experienced an increase in profit before income taxes and profit attributable to owners, indicating a stable financial position. The company also implemented a 2-for-1 stock split, affecting its earnings per share calculations. The financial outlook for the fiscal year ending March 31, 2026, remains positive with expected growth in sales and profit.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Reports Progress on Share Repurchase Program

Ajinomoto Co., Inc. has announced progress in its ongoing share repurchase program, which was initially resolved by the Board of Directors in May 2025. As of October 31, 2025, the company has repurchased 25,172,000 shares, spending approximately JPY 89.6 billion. This initiative is part of a broader plan to repurchase up to 50 million shares, with the aim of enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen5100.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.