Ajinomoto Co (2802) AI Stock Analysis

• Market Cap: ¥4.01T
• Dividend Yield: 1.98%
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 51.1
• Beta (1Y): 0.73
• Revenue Growth: 4.36%
• EPS Growth: -3.39%
• Country: JP
• Employees: 34,862
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 32.62
• Shares Outstanding: 1,005,637,630
• 10 Day Avg. Volume: 2,173,750
• 30 Day Avg. Volume: 2,299,710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,119.64
• Price Target Upside: 1.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ¥4,451.00 ▲(10.06% Upside)

Ajinomoto Co's overall stock score is driven by its strong financial performance and solid technical indicators, despite the overvaluation concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Corporate Actions

The company announced a series of shareholder-friendly corporate actions, including an increase in the FY24F dividend, a share buyback, and a 2 for 1 stock split, likely providing support to the share price.

Earnings

Ajinomoto expects continued revenue momentum from Seasonings and Foods segment with a return to volume growth supported by higher pricing.

Shareholder Returns

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

AI Capex Risk

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.

Frozen Foods Margins

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

Restructuring Impact

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. is a global leader in the food, amino acids, and specialty chemicals industries. Established in Japan, the company has expanded its operations worldwide, offering a diverse portfolio that includes seasonings, processed foods, beverages, pharmaceuticals, and nutraceuticals. Ajinomoto is particularly renowned for its pioneering work in the development and commercialization of monosodium glutamate (MSG), which has become a staple in enhancing food flavors. The company operates through several segments, focusing on food products, amino acids for pharmaceuticals and health care, and specialty chemicals, thereby catering to a wide range of consumer and industrial needs.

How the Company Makes Money

Ajinomoto Co., Inc. generates revenue through a multi-faceted business model that leverages its expertise in biotechnology and food science. The company's primary revenue streams include the sale of seasonings and processed foods, where it holds a strong market presence due to its popular products such as 'AJI-NO-MOTO' seasoning. Additionally, Ajinomoto capitalizes on its amino acids business, supplying essential amino acids to the pharmaceutical, nutraceutical, and animal nutrition industries. The specialty chemicals segment also contributes to its earnings, offering products used in electronic materials and cosmetics. Strategic partnerships and investments in research and development further enhance its ability to innovate and maintain a competitive edge across its sectors.

Ajinomoto Co Financial Statement Overview

Summary

Ajinomoto Co exhibits strong revenue growth and robust profitability metrics. The company maintains a stable balance sheet with effective debt management and strong cash flow generation, despite minor fluctuations in net income.

Income Statement

Ajinomoto Co has demonstrated strong revenue growth over the years, with a notable increase from JPY 1,471 billion in 2021 to JPY 1,531 billion in 2025. The company maintains solid gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins are robust, reflecting strong operational performance. However, a slight decline in net income from JPY 87 billion in 2024 to JPY 70 billion in 2025 suggests potential pressure on profitability.

Balance Sheet

The balance sheet of Ajinomoto Co reveals a stable equity position with stockholders' equity increasing from JPY 538 billion in 2020 to JPY 747 billion in 2025. The debt-to-equity ratio has improved, indicating effective debt management, although total debt remains significant. Return on equity has shown some fluctuations but remains healthy. The equity ratio signifies a good proportion of equity financing, providing stability.

Cash Flow

Ajinomoto Co exhibits strong operating cash flow, with a consistent upward trajectory, reaching JPY 210 billion in 2025. The free cash flow has also increased significantly, demonstrating effective capital expenditure management. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio suggests strong cash availability for reinvestment and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.53T	1.53T	1.44T	1.36T	1.15T	1.07T
Gross Profit	550.76B	550.76B	511.45B	470.39B	425.90B	406.22B
EBITDA	198.12B	202.91B	232.75B	226.85B	197.67B	168.07B
Net Income	70.27B	70.27B	87.12B	94.06B	75.72B	59.42B
Balance Sheet
Total Assets	1.72T	1.72T	1.77T	1.51T	1.46T	1.43T
Cash, Cash Equivalents and Short-Term Investments	182.77B	182.77B	194.19B	145.09B	169.26B	193.69B
Total Debt	455.35B	455.35B	442.49B	288.56B	313.91B	350.42B
Total Liabilities	907.86B	907.86B	883.92B	688.77B	717.32B	763.44B
Stockholders Equity	746.80B	746.80B	815.07B	768.68B	686.91B	620.26B
Cash Flow
Free Cash Flow	121.79B	121.79B	96.05B	44.59B	64.86B	79.61B
Operating Cash Flow	209.90B	209.90B	168.07B	117.64B	145.58B	165.65B
Investing Cash Flow	-77.38B	-77.38B	-132.43B	-30.09B	-61.57B	-66.25B
Financing Cash Flow	-137.68B	-137.68B	-6.75B	-111.06B	-123.06B	-60.39B

Ajinomoto Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4044.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2802, the sentiment is Positive. The current price of 4044 is above the 20-day moving average (MA) of 3988.95, above the 50-day MA of 3898.30, and above the 200-day MA of 3310.39, indicating a bullish trend. The MACD of 40.73 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 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
2875	78 Outperform	$1.01T	16.29	12.82%	1.92%	0.43%	-0.47%
2212	77 Outperform	$692.22B	18.10	9.20%	1.07%	3.91%	2.46%
2802	74 Outperform	¥4.01T	51.09	10.61%	1.98%	4.36%	-3.39%
2801	73 Outperform	$1.29T	21.36	11.79%	1.57%	3.80%	-7.21%
Sector *	69 Neutral	¥222.72B	21.81	8.23%	2.13%	4.96%	1.22%
2269	68 Neutral	¥847.58B	17.83	6.40%	3.20%	2.45%	-9.06%
2897	66 Neutral	$824.65B	16.43	10.68%	2.48%	2.27%	-7.76%

Ajinomoto Co Corporate Events

Ajinomoto Co. Reports Progress on Share Repurchase Program

Ajinomoto Co., Inc. announced the progress of its share repurchase program, which was initially resolved by the Board of Directors on May 8, 2025. As of July 31, 2025, the company has repurchased 17,601,800 shares for a total of JPY 58,210,814,139, with plans to cancel all shares repurchased under this program. This move is part of Ajinomoto’s strategy to optimize its capital structure and enhance shareholder value.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Co. Reports Improved Profits Amid Sales Dip

Ajinomoto Co., Inc. reported a slight decrease in sales for the three months ended June 30, 2025, but saw significant increases in business profit and profit before income taxes, indicating improved operational efficiency. The company also completed a 2-for-1 stock split and introduced ‘business profit’ as a new metric to better reflect core business results, which may enhance investor and management evaluation of its business portfolio.

The most recent analyst rating on (JP:2802) stock is a Buy with a Yen3500.00 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 initially resolved by the Board of Directors on May 8, 2025. As of June 30, 2025, the company has repurchased 14,658,600 shares for a total of JPY 46,613,688,345. This strategic move is part of a larger plan to repurchase up to 50 million shares, with a maximum budget of JPY 100 billion, to be completed by November 30, 2025. The repurchase is being conducted through the Tokyo Stock Exchange and is expected to enhance shareholder value by reducing the number of outstanding shares.

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. 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%.