Ajinomoto Co (2802) AI Stock Analysis

• Market Cap: ¥4.51T
• Dividend Yield: 1.32%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 58.3
• Beta (1Y): 0.85
• Revenue Growth: 1.99%
• EPS Growth: -18.79%
• Country: JP
• Employees: 34,862
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 39.64
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,154.72
• Price Target Upside: -9.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥4,855.00 ▲(5.50% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 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 and core profitability

Ajinomoto's large revenue base (TTM ¥1.54T) combined with ~37% gross and ~14% EBITDA margins indicate durable core profitability and operational scale. This supports steady cash generation potential and competitive cost absorption across cycles, underpinning multi-month strategic resilience.

Manageable leverage and capital base

A ~0.60 debt-to-equity with a ¥744B equity base and ~9.6% ROE provides financial flexibility to fund operating needs and strategic investments. Moderate leverage reduces refinancing stress risk over the next few quarters, supporting durable investment-grade style stability for operations.

Proprietary fermentation & diversified business model

Ajinomoto's specialized amino-acid and fermentation capabilities create product differentiation across consumer, B2B ingredients and health segments. This diversified, IP-linked model reduces reliance on any single channel and supports lasting revenue resilience and cross-market application of core technology.

Negative Factors

Sharp free cash flow decline

A steep -79% decline in FCF growth despite positive OCF signals weaker cash conversion drivers (working capital or capex pressure). Over a 2–6 month horizon this reduces buffer for reinvestment or cushioning against operational shocks and constrains strategic optionality.

Modest and slipping net margins

While gross and EBITDA margins are solid, a ~5% net margin that has declined from prior peaks suggests pressure from mix, cost inflation or non-operating items. Persistently compressed net margins limit retained earnings and long-term reinvestment capacity versus peers.

Rising debt reduces balance sheet flexibility

Debt has risen relative to FY2023, narrowing headroom. If operating performance weakens or cash flow stays depressed, higher indebtedness could pressure liquidity and limit capital allocation choices over the next several quarters, raising execution risk on strategic initiatives.

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

Solid scale and profitability (TTM revenue ¥1.54T; ~37% gross margin; ~14% EBITDA margin) with manageable leverage (debt-to-equity ~0.60). Offsetting this, net margin is modest (~5%) and below recent peaks, and cash flow quality weakened as TTM free cash flow fell sharply (-79%) with only moderate cash conversion (~56% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is ¥1.54T with strong reported growth (121%), and profitability remains solid with ~37% gross margin and ~14% EBITDA margin. However, net margin is modest (~5%), and profitability appears below prior peaks (FY2023–FY2024 net margins were higher), suggesting either mix/price pressure, higher costs, or non-operating headwinds. Overall: good core profitability and scale, but margins and earnings quality look less robust than a year or two ago.

Balance Sheet

Leverage is moderate: TTM debt-to-equity is ~0.60, in line with recent history and not excessive for a large packaged foods business. Equity base is sizable (¥744B) and returns are steady (ROE ~9.6% TTM), though down from earlier highs (low double-digits in FY2022–FY2024). The main watch item is balance sheet flexibility: debt increased versus FY2023 levels, which reduces room for error if profitability softens.

Cash Flow

Cash generation is positive (TTM operating cash flow ¥225B; free cash flow ¥126B), but momentum is a concern: TTM free cash flow growth is sharply negative (-79%). Cash conversion is also only moderate, with free cash flow running at ~56% of net income TTM, implying working-capital or capital spending pressure. While cash flow covered debt at a reasonable level, the recent decline in free cash flow lowers financial flexibility versus prior years.

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

• Technical Analysis Sentiment: Positive
• Last Price: 4602.00
• 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 4602 is above the 20-day moving average (MA) of 4025.55, above the 50-day MA of 3650.30, and above the 200-day MA of 3810.60, indicating a bullish trend. The MACD of 301.36 indicates Negative momentum. The RSI at 79.37 is Negative, neither overbought nor oversold. The STOCH value of 76.17 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	76 Outperform	¥1.23T	18.58	13.26%	1.82%	3.64%	5.31%
2801	72 Outperform	¥1.43T	23.34	11.19%	1.46%	2.65%	-5.76%
2871	72 Outperform	€520.29B	19.78	9.86%	2.58%	1.08%	2.71%
2809	71 Outperform	¥630.11B	20.55	9.28%	1.30%	5.50%	27.32%
2897	66 Neutral	¥958.55B	18.66	9.77%	2.41%	1.46%	-2.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2802	61 Neutral	¥4.51T	58.30	9.46%	1.32%	1.99%	-18.79%

Ajinomoto Co Corporate Events

Ajinomoto to Sell Tokyo Head Office Property, Booking Large Capital Gain

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 assets, with an IFRS book value of approximately ¥4.5 billion and a sale price of about ¥45.1 billion, are expected to generate an estimated capital gain of roughly ¥40.6 billion on a consolidated basis, which will be recognized as other operating income in the fourth quarter of the fiscal year ending March 31, 2026. The transferees are domestic corporations selected through competitive bidding at fair market prices, and the transaction is set to close on February 27, 2026, underscoring Ajinomoto’s ongoing efforts to optimize its balance sheet and redeploy capital while maintaining normal business relationships with counterparties.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Cuts Sales Outlook but Lifts Profit Forecast for FY2025

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 and sharply raising profit attributable to owners of the parent to ¥130 billion. The downgrade in revenue reflects weaker-than-expected sales in the Seasonings and Foods and Frozen Foods segments, partially offset by stronger performance in Healthcare and Others, while the profit upgrade is driven by improved margins, segment-level profit gains in core and healthcare businesses, and an anticipated gain on the sale of non-current assets. These revisions suggest that despite a softer top line, Ajinomoto is managing costs and portfolio profitability effectively, bolstering earnings per share and underscoring resilience in its profit structure amid changing economic conditions and input costs.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Lifts Full-Year Outlook as Profit Climbs on Modest Sales Growth

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 the parent climbed 8.9% to ¥89.75 billion, reflecting improved profitability and higher earnings per share despite only marginal sales expansion. Total assets expanded to ¥1.90 trillion and operating cash flow strengthened to ¥164.36 billion, even as investing and financing outflows increased, and the company confirmed an annual dividend forecast equivalent to ¥48 per share post–stock split; Ajinomoto also upgraded its full-year outlook, projecting 4.5% sales growth and a 13.6% rise in business profit, alongside a sharp 85% jump in profit attributable to owners of the parent, signaling confidence in earnings momentum and shareholder returns.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Reports Progress on Ongoing Share Buyback and Planned Share Cancellation

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 repurchases under the program, which runs from December 1, 2025 to November 30, 2026 and is capped at 30 million shares and JPY 80 billion, to 5,457,000 shares for about JPY 18.57 billion; the company plans to cancel all shares acquired, a move that could enhance capital efficiency and shareholder value by reducing the total number of shares outstanding.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

Ajinomoto Revamps Top Executive Lineup to Bolster Global Food Business

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 Executive Officer & Senior Vice President and General Manager of the Food Products Division. The reshuffle, which also includes the retirement of Executive Vice President and Chief Innovation Officer Hiroshi Shiragami, signals a strategic strengthening of the company’s global management structure by elevating leaders with extensive international and regional experience in North America, Europe, Africa, and ASEAN markets, potentially sharpening its focus on human capital, core food products, and overseas expansion.

The most recent analyst rating on (JP:2802) stock is a Hold with a Yen3498.00 price target. To see the full list of analyst forecasts on Ajinomoto Co stock, see the JP:2802 Stock Forecast page.

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.