Ajinomoto Co Inc (JP:2802)
:2802
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Ajinomoto Co
(2802)
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Rating:71Outperform
Price Target:
¥6,076.00
▲(22.30% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by solid financial performance (steady growth and improving cash generation, despite some earnings volatility) and strong technical momentum (price well above major moving averages with positive MACD). This is partially offset by a less compelling valuation (P/E ~23.6 and ~1% dividend yield).
Positive Factors
Diversified business model across consumer foods, B2B ingredients, and amino acids
Ajinomoto's mix of branded consumer foods, food-ingredient B2B sales, and amino-acid/health solutions reduces reliance on any single end market. This structural diversification supports resilient revenues across cycles and creates cross-selling and R&D synergies that sustain long-term cash generation and market reach.
Negative Factors
Earnings volatility and margin sensitivity
Significant swings in net margin reflect sensitivity to input costs, pricing timing, and one-offs. Persistent volatility undermines predictability of profits and planning, raising execution risk for long-term margin targets and complicating capital allocation decisions during weaker periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model across consumer foods, B2B ingredients, and amino acids
Ajinomoto's mix of branded consumer foods, food-ingredient B2B sales, and amino-acid/health solutions reduces reliance on any single end market. This structural diversification supports resilient revenues across cycles and creates cross-selling and R&D synergies that sustain long-term cash generation and market reach.
Read all positive factors
Ajinomoto Co (2802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.86T
Dividend Yield1.32%
Average Volume (3M)2.05M
Price to Earnings (P/E)23.6
Beta (1Y)0.92
Revenue Growth3.47%
EPS Growth99.65%
CountryJP
Employees34,862
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)138.36
Shares Outstanding977,735,600
10 Day Avg. Volume2,011,340
30 Day Avg. Volume2,054,526
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)5.55
Price to Sales (P/S)2.70
P/FCF Ratio29.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,383.33Price Target Upside8.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)146.21
Revenue Forecast (FY)¥1.71T
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 ...
How the Company Makes Money
Ajinomoto primarily makes money by manufacturing and selling branded consumer food products and by supplying ingredients to other manufacturers.
1) Branded consumer foods (retail/foodservice): The company generates revenue from sales of its own b...
Ajinomoto Co Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
Ajinomoto's earnings call showcased strong revenue and profit growth, particularly in the Seasonings & Foods segment, and projected a positive outlook for FY 2025. However, the company faced challenges in the Frozen Foods segment and experienced a decline in profit attributable to the parent company due to structural reforms. Delays in Bio-Pharma Services shipments and potential impacts from tariffs and economic uncertainties were noted. Overall, the highlights slightly outweigh the lowlights, indicating a cautiously optimistic sentiment.Positive Updates
Record-Breaking Revenue and Growth
Sales in FY 2024 reached JPY1.530 trillion, an increase of 6% year-on-year, and business profit was JPY159.3 billion, an increase of 7.9% year-on-year. Revenue and profit are projected to increase further in FY 2025.
Negative Updates
Challenges in the Frozen Foods Segment
The Frozen Foods segment struggled in Japan due to high raw material costs and the impact of currency translation, resulting in decreased profit.
Read all updates
Q4-2025 Updates
Positive
Negative
Record-Breaking Revenue and Growth
Sales in FY 2024 reached JPY1.530 trillion, an increase of 6% year-on-year, and business profit was JPY159.3 billion, an increase of 7.9% year-on-year. Revenue and profit are projected to increase further in FY 2025.
Read all positive updates
Company Guidance
During the Ajinomoto fiscal year 2024 results briefing, the company's leadership provided guidance for fiscal year 2025, highlighting several key metrics and strategic initiatives. Ajinomoto reported record sales of JPY1.530 trillion for FY 2024, marking a 6% year-on-year increase, and a 4% rise excluding currency translation impacts. Business profit reached JPY159.3 billion, representing a 7.9% increase year-on-year, or 4.5% without currency translation effects. Looking forward, Ajinomoto forecasts continued revenue and profit growth for FY 2025, with projected sales of JPY1.618 trillion, a 5.7% increase year-on-year, or 6.7% when excluding currency translation impacts. Business profit is expected to rise by 13% to JPY180 billion. The company is also committed to shareholder returns, planning to increase dividends and repurchase shares. Ajinomoto aims to enhance corporate value through strategic initiatives like evolving ASV (Ajinomoto Shared Value) indicators, with ROE and ROIC targets set at 19% and 12%, respectively, excluding the impact of the Forge acquisition. The company is focused on boosting its operating cash flow to over JPY220 billion and plans significant investments in intangible assets to support sustainable growth.Ajinomoto Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
71
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.58T | 1.53T | 1.44T | 1.36T | 1.15T |
| Gross Profit | 597.15B | 550.76B | 511.45B | 470.39B | 425.90B |
| EBITDA | 261.97B | 209.22B | 232.75B | 226.85B | 197.67B |
| Net Income | 134.68B | 70.27B | 87.12B | 94.06B | 75.72B |
Balance Sheet | |||||
| Total Assets | 1.81T | 1.72T | 1.77T | 1.51T | 1.46T |
| Cash, Cash Equivalents and Short-Term Investments | 106.69B | 164.78B | 171.54B | 132.78B | 151.45B |
| Total Debt | 421.36B | 496.06B | 491.68B | 336.50B | 363.96B |
| Total Liabilities | 968.07B | 907.86B | 890.43B | 688.77B | 717.32B |
| Stockholders Equity | 770.82B | 746.80B | 814.69B | 768.68B | 686.91B |
Cash Flow | |||||
| Free Cash Flow | 142.91B | 121.79B | 102.29B | 49.26B | 71.73B |
| Operating Cash Flow | 239.35B | 209.90B | 168.07B | 117.64B | 145.58B |
| Investing Cash Flow | -84.23B | -77.38B | -132.43B | -30.09B | -61.57B |
| Financing Cash Flow | -225.60B | -137.68B | -6.75B | -111.06B | -123.06B |
Ajinomoto Co Technical Analysis
Positive
4968.00
Price Trends
4696.32
Positive
4244.74
Positive
4104.41
Positive
Market Momentum
195.15
Negative
57.27
Neutral
48.82
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 4968 is below the 20-day moving average (MA) of 4985.70, above the 50-day MA of 4696.32, and above the 200-day MA of 4104.41, indicating a bullish trend. The MACD of 195.15 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 48.82 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥1.11T | 15.42 | 13.07% | 1.82% | 5.72% | 13.87% | |
71 Outperform | ¥4.86T | 23.62 | 9.46% | 1.32% | 3.47% | 99.65% | |
71 Outperform | ¥1.37T | 21.75 | 11.19% | 1.46% | 5.16% | 1.57% | |
71 Outperform | ¥556.16B | 28.74 | 9.28% | 1.30% | 5.86% | -17.47% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ¥474.92B | 18.06 | 9.86% | 2.58% | 2.00% | 12.21% | |
53 Neutral | ¥785.87B | 19.10 | 9.77% | 2.41% | 1.49% | -14.54% |
* Consumer Defensive Sector Average
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Ajinomoto Co Corporate Events
Ajinomoto Moves to Align Executive Officers’ Terms With Business Year
May 14, 2026
Ajinomoto Co., Inc. plans to amend its Articles of Incorporation to change how the term of office for Executive Officers is defined. The board has approved a proposal to be put to shareholders at the 148th Ordinary General Meeting on June 19, 2026...
Ajinomoto Reports Progress on Ongoing ¥80 Billion Share Buyback Program
May 7, 2026
Ajinomoto Co. has reported progress on its ongoing share repurchase program authorized by its board in November 2025 under Japan’s Companies Act. Between April 1 and April 30, 2026, the company bought back 1,618,700 common shares on the Toky...
Ajinomoto Posts Surge in FY2026 Profit and Cash Flow, Flags Growth in FY2027 Sales
May 7, 2026
Ajinomoto reported consolidated sales of ¥1.58 trillion for the fiscal year ended March 31, 2026, up 3.5% year on year, with business profit rising 13.7% to ¥181.2 billion and profit attributable to owners of the parent nearly doubling t...
Ajinomoto Details Progress on Ongoing Share Buyback Program
Apr 2, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by its board in November 2025, under which it can buy back up to 30 million common shares for as much as JPY 80 billion through November 2026. Between Mar...
Ajinomoto to Book ¥38 Billion Internal Dividend With No Impact on Consolidated Earnings
Mar 5, 2026
Ajinomoto Co., Inc. will receive dividends totaling 7.6 billion baht, or about 38 billion yen, from its consolidated subsidiary Ajinomoto Co., (Thailand) Ltd., following a resolution dated March 5, 2026, with payments scheduled across four dates i...
Ajinomoto Reports Steady Progress on Large-Scale Share Buyback Program
Mar 3, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by its board in November 2025, under which it may buy back up to 30 million common shares for as much as JPY 80 billion through November 2026. The company...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.