Ajinomoto Co (2802) AI Stock Analysis

• Market Cap: $3.61T
• Dividend Yield: 1.06%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 51.8
• Beta (1Y): 0.77
• Revenue Growth: 6.35%
• EPS Growth: -114.08%
• Country: JP
• Employees: 34,862
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): -11.77
• Shares Outstanding: 1,005,637,630
• 10 Day Avg. Volume: 2,508,210
• 30 Day Avg. Volume: 2,590,823
• PEG Ratio: 7.26
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.12
• 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: $4,017.13
• Price Target Upside: 9.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: ¥3,864.00 ▲(5.54%Upside)

Ajinomoto Co's stock is supported by strong financial performance and a positive technical trend, but the high P/E ratio suggests overvaluation. The overbought technical indicators indicate a potential for short-term price corrections. The lack of earnings call and corporate events data results in a focus on fundamental and technical analysis.

Positive Factors

Market Performance

Ajinomoto's share price has a potential upside of 32-39% based on the sum-of-the-parts analysis, reflecting a transformation in the company's earnings structure.

Product Innovation

Ajinomoto Co. monopolizes the sale of Ajinomoto Build-up Film (ABF), a critical component in high-end chips, maintaining its dominance through innovation and responsiveness to client demands.

Shareholder Actions

Ajinomoto continues to maintain a shareholder-friendly capital management stance, targeting a total shareholder return of 50% or more through a progressive dividend policy and share buybacks.

Negative Factors

Financial Performance

Frozen Foods margins have been softening again in FY3/25, with an estimated dip to 3.8%.

Industry Risks

A key downside risk will be industry-wide cutback on AI capex spend, which will hamper growth of its functional materials segment, a major growth driver.

Operational Risks

Ajinomoto has announced another round of layoffs in their North America Frozen Food business, signaling that the restructuring agenda continues unabated, despite the abrupt change of Global CEO last month.

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 Co. makes money primarily through its diverse portfolio of products in the food and biotechnology sectors. The company's revenue streams are largely driven by the sale of seasonings, processed foods, frozen foods, and beverages, which cater to both consumer and commercial markets. Additionally, Ajinomoto generates income from its amino acids and pharmaceuticals segments, supplying ingredients for food products, dietary supplements, and medical applications. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Key factors contributing to its earnings include a robust distribution network, a strong brand presence, and ongoing investments in research and development to innovate and improve its product lines.

Ajinomoto Co Financial Statement Overview

Summary

Ajinomoto Co presents a strong financial profile with excellent profitability, efficient operations, and robust cash generation. The company is growing steadily with a solid capital structure. While there is moderate leverage, the firm manages its financials well, reflecting stability and potential for sustainable growth in the packaged foods industry.

Income Statement

Ajinomoto Co demonstrates strong profitability and growth. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 36.05%, and the net profit margin stands at 6.04%. Revenue growth is robust at 5.80% from the previous year. EBIT margin is healthy at 10.65%, and EBITDA margin is 16.15%, indicating efficient operational management. Overall, the company shows solid revenue growth and profitability.

Balance Sheet

The balance sheet reflects a sound financial position, with a debt-to-equity ratio of 0.66, which is manageable. The return on equity (ROE) is 11.33%, showing efficient use of equity capital. The equity ratio is 43.71%, suggesting a stable capital structure with a decent proportion of equity financing. While leverage is moderate, the company maintains a healthy equity base.

Cash Flow

Cash flow analysis reveals strong financial health. The free cash flow growth rate is impressive at 33.49%, and the operating cash flow to net income ratio is 2.33, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.39, reflecting efficient cash management. Overall, cash flow metrics indicate robust cash generation and management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.52T	1.44T	1.36T	1.15T	1.07T	1.10T
	Gross Profit
549.01B	511.45B	470.39B	425.90B	406.22B	403.87B
	EBIT
162.26B	146.68B	148.93B	124.57B	101.12B	48.77B
	EBITDA
245.98B	232.75B	226.85B	197.67B	168.07B	118.79B
	Net Income Common Stockholders
91.96B	87.12B	94.06B	75.72B	59.42B	18.84B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
229.37B	194.19B	145.09B	169.26B	193.69B	150.65B
	Total Assets
1.86T	1.77T	1.51T	1.46T	1.43T	1.35T
	Total Debt
538.16B	442.49B	288.56B	313.91B	350.42B	356.91B
	Net Debt
308.78B	270.96B	155.79B	162.45B	168.81B	215.21B
	Total Liabilities
976.07B	890.43B	688.77B	717.32B	763.44B	761.55B
	Stockholders Equity
811.41B	814.69B	768.68B	686.91B	620.26B	538.98B
Cash Flow		Free Cash Flow
128.19B	96.05B	44.59B	64.86B	79.61B	32.81B
	Operating Cash Flow
213.92B	168.07B	117.64B	145.58B	165.65B	114.86B
	Investing Cash Flow
-57.73B	-132.43B	-30.09B	-61.57B	-66.25B	-66.65B
	Financing Cash Flow
-169.22B	-6.75B	-111.06B	-123.06B	-60.39B	-52.31B

Ajinomoto Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3661.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 3661 is above the 20-day moving average (MA) of 3474.60, above the 50-day MA of 3153.25, and above the 200-day MA of 3019.03, indicating a bullish trend. The MACD of 145.75 indicates Negative momentum. The RSI at 78.79 is Negative, neither overbought nor oversold. The STOCH value of 75.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
2802	64 Neutral	$3.61T	51.78	8.89%	1.06%	6.35%	-114.08%
KIKOF		$8.54B	20.81	12.17%	1.86%	―	―
MEJHF		$6.09B	18.24	6.71%	2.98%	―	―
NFPDF		$6.08B	17.00	11.20%	2.26%	―	―
TSUKF		$6.43B	15.42	13.14%	2.09%	―	―
YZZKF		$4.47B	17.25	8.78%	1.45%	―	―

Ajinomoto Co Corporate Events

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 on May 8, 2025. The company repurchased 12,374,900 common shares for JPY 38.27 billion between May 9 and May 31, 2025, as part of a larger plan to buy back up to 50 million shares by November 30, 2025. This strategic move is aimed at optimizing capital structure and enhancing shareholder value, with all repurchased shares set to be canceled.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen3450.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Initiates Significant Share Repurchase Program

Ajinomoto Co., Inc. announced the repurchase of 9,824,800 of its own shares, aiming to enhance shareholder returns and improve capital efficiency. This move is part of a broader plan to repurchase up to 50 million shares by November 2025, reflecting the company’s commitment to optimizing its capital structure and potentially increasing shareholder value.

Ajinomoto Co. Announces Strategic Share Repurchase Plan

Ajinomoto Co., Inc. has announced a plan to repurchase up to 10 million of its own shares, representing 1.01% of its total issued shares, through the Tokyo Stock Exchange’s off-auction trading system. This strategic move, with a maximum cost of JPY 30.15 billion, is part of a broader initiative to repurchase up to 50 million shares by November 2025, aiming to enhance shareholder value and optimize capital structure.

Ajinomoto Co. Initiates Transfer of Head Office Assets

Ajinomoto Co., Inc. has announced its decision to transfer its non-current assets, specifically the land and building of its current head office in anticipation of relocating to a new head office in fiscal year 2026. The transfer process will be conducted through a competitive bidding process, with the agreement and transfer scheduled for fiscal year 2025. This strategic move is part of Ajinomoto’s broader operational adjustments and is expected to impact its asset management and future operational efficiencies.

Ajinomoto Co. Announces Major Share Repurchase Plan

Ajinomoto Co., Inc. has announced a decision to repurchase up to 50 million of its own shares, representing 5.03% of its total issued shares, with a maximum repurchase cost of JPY 100 billion. This move aims to enhance shareholder returns and improve capital efficiency, with plans to cancel all repurchased shares to optimize the company’s capital structure.

Ajinomoto Reports Increased Sales but Decline in Profits for FY2024

Ajinomoto Co., Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 6.3% increase in sales to 1,530,556 million yen. Despite the rise in sales, the company experienced a decline in profit before income taxes and profit attributable to owners of the parent company, primarily due to changes in accounting treatments and a stock split. The company also announced a forecast for the fiscal year ending March 31, 2026, with expected sales of 1,618,000 million yen and a significant increase in profit attributable to owners of the parent company by 70.7%.

Ajinomoto Revises Earnings Forecast Following Subsidiary Sale

Ajinomoto Co., Inc. has revised its full-year consolidated performance forecast for the fiscal year ending March 31, 2025, due to an impairment loss related to its subsidiary, Ajinomoto Althea, Inc. The company has sold its shares in Althea to Packaging Coordinators Inc., leading to a downward revision of profit attributable to owners by ¥20.1 billion. This strategic move is expected to impact Ajinomoto’s financial results, with extraordinary losses recorded in its non-consolidated performance estimates due to the valuation of stocks of subsidiaries and affiliates.

Ajinomoto Co. Sells Subsidiary Althea to PCI in Strategic Realignment

Ajinomoto Co., Inc. has decided to sell its subsidiary, Ajinomoto Althea, Inc., to Packaging Coordinators Inc. (PCI) as part of its strategic realignment. This move aligns with Ajinomoto’s Medium-Term ASV Initiatives 2030 Roadmap, focusing on high-growth areas and leveraging proprietary technologies to enhance profitability in the healthcare sector.