Ajinomoto Co (2802) AI Stock Analysis

• Market Cap: $4.44T
• Dividend Yield: 0.9%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 56.6
• 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: 1,005,637,630
• 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: 0.97
• Enterprise Value/Revenue: 2.80
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 20.87
• 1Y Price Target: $4,558.25
• Price Target Upside: 28.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥3,695.00 ▲(4.20% Upside)

Ajinomoto Co's overall stock score reflects a challenging financial and technical environment. The most significant factor is the company's financial performance, which shows stable profitability but declining revenue growth and increasing leverage. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation metrics suggest the stock may be overvalued, with a high P/E ratio and low dividend yield. These factors combined result in a cautious outlook for the stock.

Positive Factors

Business Model Strength

Ajinomoto's diversified revenue streams from food products and amino acids provide resilience against market fluctuations, supporting long-term stability.

Competitive Advantages

Continuous R&D investment enhances Ajinomoto's product offerings, maintaining its competitive edge and driving sustainable growth in health and wellness markets.

Profitability Margins

A strong gross profit margin indicates effective cost management, ensuring profitability despite revenue challenges, which is crucial for long-term success.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests declining sales, which could impact Ajinomoto's market position and long-term financial health if not addressed.

Increasing Leverage

Rising leverage may strain Ajinomoto's financial flexibility, increasing risk and potentially impacting its ability to invest in future growth.

Negative Free Cash Flow Growth

Declining free cash flow growth limits Ajinomoto's ability to reinvest in its business, potentially hindering future expansion and innovation efforts.

Ajinomoto Co Business Overview & Revenue Model

Company Description

Ajinomoto Co., Inc. is a Japanese multinational company primarily engaged in the production of amino acids, seasonings, processed foods, and pharmaceuticals. Founded in 1909, the company operates in two main segments: Food Products and Amino Acids. Its core offerings include umami seasoning products, frozen foods, and health-related ingredients, catering to both consumer and industrial markets. Ajinomoto is known for its flagship product, Ajinomoto seasoning, as well as a variety of other food and health products that enhance flavor and nutrition.

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 exhibits a stable yet challenging financial performance. While profitability margins remain reasonable, declining revenue growth and increasing leverage are areas of concern. The company must focus on reversing the negative revenue trend and managing debt levels to ensure long-term financial health. Cash flow generation is moderate, but the negative growth in free cash flow needs attention to support future investments.

Income Statement

Ajinomoto Co's income statement shows a mixed performance. The TTM gross profit margin is healthy at 36.39%, indicating effective cost management. However, the net profit margin has decreased to 5.14%, reflecting challenges in converting revenue into profit. The revenue growth rate is negative at -9.8%, suggesting a decline in sales compared to the previous period. EBIT and EBITDA margins are stable, but the decline in revenue growth is a concern.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has increased to 0.80, indicating higher leverage, which could pose risks if not managed properly. Return on equity is at 10.36%, showing decent profitability relative to shareholder equity. The equity ratio stands at 40.17%, reflecting a balanced capital structure, but the rising debt levels warrant caution.

Cash Flow

Cash flow analysis indicates some challenges. The free cash flow growth rate is negative at -12.42%, highlighting a decrease in available cash for reinvestment. The operating cash flow to net income ratio is 0.44, suggesting moderate cash generation from operations. The free cash flow to net income ratio is 0.53, indicating that a significant portion of net income is converted into free cash flow, but the decline in growth is concerning.

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	556.37B	550.76B	511.45B	470.39B	425.90B	406.22B
EBITDA	205.48B	209.22B	232.75B	226.85B	197.67B	168.07B
Net Income	78.52B	70.27B	87.12B	94.06B	75.72B	59.42B
Balance Sheet
Total Assets	1.75T	1.72T	1.77T	1.51T	1.46T	1.43T
Cash, Cash Equivalents and Short-Term Investments	197.92B	164.78B	171.54B	132.78B	151.45B	181.61B
Total Debt	558.42B	496.06B	491.68B	336.50B	363.96B	406.82B
Total Liabilities	979.01B	907.86B	890.43B	688.77B	717.32B	763.44B
Stockholders Equity	702.12B	746.80B	814.69B	768.68B	686.91B	620.26B
Cash Flow
Free Cash Flow	106.67B	121.79B	102.29B	49.26B	71.73B	88.76B
Operating Cash Flow	202.21B	209.90B	168.07B	117.64B	145.58B	165.65B
Investing Cash Flow	-91.73B	-77.38B	-132.43B	-30.09B	-61.57B	-66.25B
Financing Cash Flow	-94.86B	-137.68B	-6.75B	-111.06B	-123.06B	-60.39B

Ajinomoto Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3546.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2802, the sentiment is Negative. The current price of 3546 is below the 20-day moving average (MA) of 3925.55, below the 50-day MA of 4105.76, and below the 200-day MA of 3608.15, indicating a bearish trend. The MACD of -163.23 indicates Positive momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 15.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2802.

Ajinomoto Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2875	76 Outperform	$1.04T	15.72	13.26%	1.95%	3.64%	5.31%
2801	73 Outperform	$1.21T	20.13	11.19%	1.46%	2.65%	-5.76%
2212	71 Outperform	¥659.81B	16.59	9.18%	1.17%	3.53%	4.88%
2897	68 Neutral	$817.87B	16.30	9.77%	2.48%	1.46%	-2.17%
2269	64 Neutral	¥873.40B	18.97	5.97%	3.22%	2.79%	-6.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	54 Neutral	$4.44T	56.58	9.46%	0.90%	1.99%	-18.79%

Ajinomoto Co Corporate Events

Ajinomoto Co. Reports Modest Profit Growth Amid Sales Dip

Ajinomoto Co., Inc. is a Japanese company primarily engaged in the production and sale of seasonings, processed foods, and amino acids, operating within the food and chemical industries. Known for its flagship product, AJI-NO-MOTO, the company has a significant global presence.

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.

Ajinomoto Co. Advances Share Repurchase Program

Ajinomoto Co., Inc. has announced the progress of its share repurchase program, initially resolved in May 2025. The company has repurchased 1,888,000 common shares for approximately JPY 7.95 billion between September 1 and September 30, 2025, as part of a broader plan to buy back up to 50 million shares by November 30, 2025. This move is part of Ajinomoto’s strategy to optimize its capital structure and enhance shareholder value, with plans to cancel all repurchased shares.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen4620.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Advances Share Repurchase Program

Ajinomoto Co., Inc. has announced the progress of its share repurchase program, which was resolved by the Board of Directors in May 2025. As of August 31, 2025, the company has repurchased 20,380,400 shares for a total of JPY 69.35 billion, with plans to cancel all repurchased shares. This move is part of a broader strategy to optimize capital structure and enhance shareholder value.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.