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Ajinomoto Co
(OTC:AJNMY)
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Rating:62Neutral
Price Target:
$33.00
â–¼(-2.86% Downside)
Action:Reiterated
Date:02/08/26
The score is held back primarily by rich valuation (high P/E with a modest yield). Financial performance is steady overall—good revenue and gross margin trends, moderate leverage, and positive free cash flow—but weaker cash conversion and some net margin pressure reduce confidence. Technically, the trend is positive, yet overbought momentum indicators suggest higher near-term downside risk.
Positive Factors
Revenue growth and improving gross margin
Sustained top-line growth with a rising gross margin indicates durable pricing power and favorable product mix. That combination supports reinvestment in R&D and manufacturing, underpins higher-margin specialty sales, and helps the company weather input cost swings over the medium term.
Negative Factors
Weaker cash conversion
FCF materially below net income signals earnings quality and working-capital variability, limiting internally generated funds for dividends, capex, or M&A. Persistent cash conversion gaps raise risk that profitable reported results won’t consistently translate to free cash for strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and improving gross margin
Sustained top-line growth with a rising gross margin indicates durable pricing power and favorable product mix. That combination supports reinvestment in R&D and manufacturing, underpins higher-margin specialty sales, and helps the company weather input cost swings over the medium term.
Read all positive factors
Ajinomoto Co (AJNMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.31B
Dividend Yield0.73%
Average Volume (3M)7.69K
Price to Earnings (P/E)56.1
Beta (1Y)0.51
Revenue Growth3.40%
EPS Growth75.11%
CountryUS
Employees34,862
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)80.76
Shares Outstanding977,735,600
10 Day Avg. Volume5,974
30 Day Avg. Volume7,690
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)3.95
Price to Sales (P/S)1.93
P/FCF Ratio25.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.92
Revenue Forecast (FY)$10.89B
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 makes money primarily by manufacturing and selling branded consumer foods and seasonings and by supplying specialty ingredients and amino-acid–based materials to business customers.
1) Branded consumer foods and seasonings (B2C revenue)...
Ajinomoto Co Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56T | 1.53T | 1.44T | 1.36T | 1.15T | 1.07T |
| Gross Profit | 579.58B | 550.76B | 511.45B | 470.39B | 425.90B | 406.22B |
| EBITDA | 207.71B | 209.22B | 219.41B | 202.42B | 188.15B | 168.89B |
| Net Income | 78.61B | 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 | 201.98B | 182.77B | 194.19B | 145.09B | 169.26B | 193.69B |
| Total Debt | 447.24B | 455.35B | 491.68B | 288.56B | 313.91B | 350.42B |
| Total Liabilities | 1.08T | 907.86B | 890.43B | 688.77B | 717.32B | 763.44B |
| Stockholders Equity | 744.06B | 746.80B | 814.69B | 768.68B | 686.91B | 620.26B |
Cash Flow | ||||||
| Free Cash Flow | 129.75B | 114.81B | 96.05B | 44.59B | 64.86B | 79.61B |
| Operating Cash Flow | 229.65B | 209.90B | 168.07B | 117.64B | 145.58B | 165.65B |
| Investing Cash Flow | -79.63B | -77.38B | -132.43B | -30.09B | -61.57B | -66.25B |
| Financing Cash Flow | -183.63B | -137.68B | -6.75B | -111.06B | -123.06B | -60.39B |
Ajinomoto Co Technical Analysis
Negative
33.97
Price Trends
33.39
Negative
33.00
Negative
29.23
Positive
Market Momentum
-0.16
Positive
42.37
Neutral
7.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AJNMY, the sentiment is Negative. The current price of 33.97 is above the 20-day moving average (MA) of 33.73, above the 50-day MA of 33.39, and above the 200-day MA of 29.23, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AJNMY.
Ajinomoto Co Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.87B | 8.52 | 25.58% | 3.68% | 9.54% | 108.44% | |
74 Outperform | $6.34B | 10.81 | 13.46% | 3.26% | -1.38% | -10.81% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $30.31B | 56.07 | 10.67% | 0.73% | 3.40% | 75.11% | |
62 Neutral | $29.17B | -8.60 | -8.44% | 6.50% | -1.62% | 36.06% | |
57 Neutral | $11.32B | 32.65 | 4.33% | 5.68% | 0.73% | -54.64% | |
53 Neutral | $19.17B | -210.88 | -0.99% | 6.81% | -5.45% | -104.44% |
* Consumer Defensive Sector Average
AJNMY
Ajinomoto Co
32.41
3.50
12.11%
GIS
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35.85
-10.29
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HRL
Hormel Foods
20.57
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MKC
McCormick & Company
51.32
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-19.67%
INGR
Ingredion
100.49
-19.50
-16.25%
KHC
Kraft Heinz
24.60
0.61
2.56%
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.