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Ajinomoto Co Inc (ADR) (AJINY)
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Ajinomoto Co (AJINY) AI Stock Analysis

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AJINY

Ajinomoto Co

(OTC:AJINY)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
$29.00
▲(0.24% Upside)
Ajinomoto Co's overall stock score is driven by mixed financial performance and technical indicators suggesting weak momentum. The high P/E ratio indicates potential overvaluation, while the low dividend yield offers limited income potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Ajinomoto Co (AJINY) vs. SPDR S&P 500 ETF (SPY)

Ajinomoto Co Business Overview & Revenue Model

Company DescriptionAjinomoto 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 MoneyAjinomoto generates revenue through multiple key streams. The Food Products segment contributes significantly by selling seasonings, frozen foods, and processed foods to consumers and the food service industry. The Amino Acids segment provides raw materials and ingredients for pharmaceuticals, dietary supplements, and animal feed, which are sold to various industries globally. The company also engages in partnerships with food manufacturers and healthcare providers to enhance product offerings and expand market reach. Additionally, Ajinomoto invests in research and development to innovate and improve product quality, which helps maintain its competitive edge and drives sales. Overall, its diverse product portfolio and strategic partnerships play a critical role in sustaining its revenue growth.

Ajinomoto Co Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q4-2025)
|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted record sales and profits, strong performance in overseas markets, and positive shareholder returns. However, these positives were offset by challenges in the Japan Frozen Foods segment, impacts from structural reforms, and shipment delays in the Bio-Pharma Services. Despite the lowlights, the overall outlook for FY 2025 remains optimistic, with significant growth expected in key business areas.
Q4-2025 Updates
Positive Updates
Record Sales and Business Profit
Ajinomoto achieved new records in both sales and business profits for FY 2024, with sales reaching JPY 1.530 trillion, a 6% increase year-on-year, and business profit hitting JPY 159.3 billion, a 7.9% increase year-on-year.
Strong Overseas Performance
The Seasonings & Foods segment overseas continued to perform well, contributing significantly to the overall revenue increase.
Bio-Pharma Services & Ingredients Growth
Ajinomoto projects significant profit growth in the Bio-Pharma Services & Ingredients segment for FY 2025, driven by strong demand in Europe and AJICAP royalty income.
Positive Shareholder Returns
Ajinomoto announced a JPY 100 billion share repurchase program and plans to increase annual dividends by JPY 8 to JPY 48 in FY 2025.
Functional Materials Outlook
The Functional Materials business expects double-digit growth in FY 2025 due to favorable market conditions, particularly in semiconductors and AI-related demand.
Negative Updates
Profit Decrease in Certain Segments
Profit attributable to owners of the parent company decreased significantly due to structural reform expenses and impairment losses related to the sale of subsidiaries and plants.
Challenges in Japan's Frozen Foods Segment
The Frozen Foods segment struggled in Japan due to high raw material costs and adverse foreign exchange impacts, resulting in decreased profit.
Impacts of Structural Reforms
The sale of Althea and structural reform expenses negatively impacted the Healthcare and Others segment, causing a decrease in ROE and ROIC.
Delays in Bio-Pharma Services Shipments
There was a delay in shipments within the Bio-Pharma Services, affecting business profit projections.
Company Guidance
The Ajinomoto earnings call provided comprehensive guidance for the fiscal year 2025, highlighting significant metrics and strategic initiatives. Sales and business profit for FY 2024 reached unprecedented levels, with sales at JPY 1.530 trillion, a 6% increase year-on-year, and business profit at JPY 159.3 billion, a 7.9% rise. Despite structural reform expenses impacting profit attributable to owners, the FY 2025 forecast projects further growth, with sales expected to reach JPY 1.618 trillion, a 5.7% increase, and business profit anticipated to hit JPY 180 billion, a 13% rise. The company plans to enhance shareholder returns by increasing dividends and repurchasing shares. Additionally, Ajinomoto aims to achieve a 19% ROE, excluding the Forge acquisition impact, surpassing its initial target. The call also outlined strategic focus areas, including premium product launches and operational improvements in frozen foods, along with a significant increase in profit from Bio-Pharma Services and Ingredients.

Ajinomoto Co Financial Statement Overview

Summary
Ajinomoto Co presents a mixed financial picture. Strong profitability margins and effective equity utilization are offset by declining revenue growth and increasing leverage. Cash flow generation is moderate, with potential risks in sustaining free cash flow growth.
Income Statement
65
Positive
Ajinomoto Co has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 9.8%, which is concerning. However, the company maintains a stable gross profit margin of approximately 36.4% and a net profit margin of 5.1%. The EBIT and EBITDA margins are also healthy at 7.8% and 13.4%, respectively. Despite the revenue decline, profitability margins remain robust, indicating efficient cost management.
Balance Sheet
70
Positive
The balance sheet of Ajinomoto Co reflects a moderate level of financial stability. The debt-to-equity ratio has increased to 0.80 in the TTM, indicating higher leverage compared to previous periods. However, the return on equity remains satisfactory at 10.4%, suggesting effective use of equity capital. The equity ratio stands at 40.2%, showing a balanced capital structure with a reasonable proportion of equity financing.
Cash Flow
60
Neutral
Ajinomoto Co's cash flow statement reveals some challenges. The free cash flow growth rate has declined by 12.4% in the TTM, which could impact future investments. The operating cash flow to net income ratio is 0.44, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.53, reflecting a decent conversion of net income into free cash flow, but there is room for improvement.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.53T1.53T1.44T1.36T1.15T1.07T
Gross Profit556.37B550.76B511.45B470.39B425.90B406.22B
EBITDA201.48B209.22B219.41B202.42B188.15B168.89B
Net Income78.52B70.27B87.12B94.06B75.72B59.42B
Balance Sheet
Total Assets1.75T1.72T1.77T1.51T1.46T1.43T
Cash, Cash Equivalents and Short-Term Investments197.92B182.77B194.19B145.09B169.26B193.69B
Total Debt558.42B455.35B491.68B288.56B313.91B350.42B
Total Liabilities979.01B907.86B890.43B688.77B717.32B763.44B
Stockholders Equity702.12B746.80B814.69B768.68B686.91B620.26B
Cash Flow
Free Cash Flow106.67B114.81B96.05B44.59B64.86B79.61B
Operating Cash Flow202.21B209.90B168.07B117.64B145.58B165.65B
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
Positive
Last Price28.93
Price Trends
50DMA
28.21
Positive
100DMA
27.45
Positive
200DMA
24.31
Positive
Market Momentum
MACD
0.05
Negative
RSI
60.57
Neutral
STOCH
99.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AJINY, the sentiment is Positive. The current price of 28.93 is above the 20-day moving average (MA) of 27.87, above the 50-day MA of 28.21, and above the 200-day MA of 24.31, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 99.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AJINY.

Ajinomoto Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$17.18B22.1513.92%2.81%1.64%-1.83%
67
Neutral
$24.74B8.7830.98%5.22%-3.26%25.58%
63
Neutral
$11.87B15.739.46%5.38%0.65%-3.76%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
57
Neutral
$29.00B54.5910.61%0.82%3.98%-2.48%
53
Neutral
$28.61B-6.50-9.73%6.56%-3.70%-431.05%
49
Neutral
$11.06B-21.32%4.25%2.54%-293.39%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AJINY
Ajinomoto Co
28.93
9.94
52.34%
GIS
General Mills
46.38
-18.94
-29.00%
HRL
Hormel Foods
21.58
-8.26
-27.68%
SJM
JM Smucker
103.64
-8.22
-7.35%
MKC
McCormick & Company
64.02
-12.89
-16.76%
KHC
Kraft Heinz
24.17
-7.55
-23.80%

Ajinomoto Co Corporate Events

Ajinomoto Co., Inc. Reports Q1 2025 Earnings
Aug 5, 2025

Ajinomoto Co., Inc. is a Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the production of seasonings, frozen foods, and healthcare products, with a focus on leveraging its expertise in amino acids for various applications.

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.Date of analysis: Oct 28, 2025