Ezaki Glico Co., Ltd. (2206) AI Stock Analysis

• Market Cap: €333.44B
• Dividend Yield: 1.78%
• Average Volume (3M): 124.35K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.28
• Revenue Growth: 2.44%
• EPS Growth: -18.02%
• Country: JP
• Employees: 5,563
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 20.27
• Shares Outstanding: 68,468,570
• 10 Day Avg. Volume: 140,550
• 30 Day Avg. Volume: 124,353
• 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: €4,690.16
• Price Target Upside: -6.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥4,690.00 ▼(-6.35% Downside)

Ezaki Glico Co., Ltd. faces challenges with cash flow and valuation, as indicated by its high P/E ratio and negative cash flow trends. Technical analysis suggests bearish momentum, adding to the cautious outlook. The robust balance sheet is a positive factor, but the company needs to improve efficiency and profitability to enhance its financial health.

Ezaki Glico Co., Ltd. Business Overview & Revenue Model

Company Description

Ezaki Glico Co., Ltd., together with its subsidiaries, produces and sells confectionery and other food products in Japan, China, Southeast Asia, the United States, and internationally. The company operates through five segments: Confectioneries and Food Products, Ice Cream, Milk and Dairy, Food Ingredients, and Overseas. It produces and sells chocolates, cookies, curry roux, retort-packed food, and other products; milk and other dairy products, western-style fresh confectioneries, and baby formula products; snacks and ice creams; and starch, food coloring, and other products. The company also offers fruit juices and soft drinks, food and fine chemical materials, and health-related products. It sells its products in offices and stores, as well as through e-commerce. The company was founded in 1922 and is headquartered in Osaka, Japan.

How the Company Makes Money

Ezaki Glico Co., Ltd. generates revenue through the sale of its diverse portfolio of food products, with a significant portion coming from its confectionery segment, including best-selling items like Pocky and Pretz. The company also earns income from its dairy and processed food divisions, which offer products such as yogurt, cheese, and ready-to-eat meals. Ezaki Glico further expands its revenue streams through global distribution, leveraging partnerships and distribution networks to reach international markets. The company invests in marketing and product innovation to maintain and grow its market share, adapting its offerings to meet changing consumer preferences and dietary trends. Collaborations with other companies and entry into new markets also play a role in its financial success.

Ezaki Glico Co., Ltd. Financial Statement Overview

Summary

Ezaki Glico Co., Ltd. presents a mixed financial performance. The income statement shows strong gross margins but weakened net profitability and operating efficiency. The balance sheet is robust with low leverage, providing stability. However, cash flow challenges pose risks to long-term investments and growth.

Income Statement

Ezaki Glico Co., Ltd. has demonstrated fluctuating revenue performance with a decline from 2020 to 2022, followed by stabilization. The gross profit margin in 2024 is strong at 38.54%, indicating effective cost management. However, the net profit margin dropped to 2.45% in 2024 from 4.25% in 2023, suggesting reduced efficiency in converting revenue into actual profit. The EBIT margin also decreased, reflecting a potential concern in operational efficiency.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 72.00% in 2024, indicating a stable financial foundation. The debt-to-equity ratio is exceptionally low at 0.61%, demonstrating minimal reliance on debt financing. Return on equity has decreased to 2.98% in 2024, down from 5.38% in 2023, which could indicate less efficient use of equity capital.

Cash Flow

Ezaki Glico's cash flow from operations decreased significantly in 2024, leading to negative free cash flow, which poses a challenge for long-term sustainability. The free cash flow to net income ratio is negative, indicating that the company's earnings are not translating into cash flow effectively. Operating cash flow to net income also decreased, showing weakened cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	329.48B	331.13B	332.59B	303.92B	338.57B	344.05B
Gross Profit	125.82B	127.67B	123.85B	110.75B	158.03B	162.41B
EBITDA	25.34B	29.06B	34.05B	27.93B	35.09B	34.36B
Net Income	5.45B	8.11B	14.13B	8.10B	13.52B	11.84B
Balance Sheet
Total Assets	357.20B	377.77B	395.74B	369.05B	356.74B	340.08B
Cash, Cash Equivalents and Short-Term Investments	53.63B	60.24B	97.20B	91.93B	102.25B	98.64B
Total Debt	162.00M	165.00M	30.00B	30.02B	30.35B	30.64B
Total Liabilities	91.21B	105.18B	132.63B	124.30B	115.57B	117.53B
Stockholders Equity	265.43B	272.00B	262.54B	244.29B	240.79B	221.75B
Cash Flow
Free Cash Flow	0.00	-15.66B	9.69B	-8.89B	4.89B	474.00M
Operating Cash Flow	0.00	1.81B	28.06B	16.80B	28.65B	17.22B
Investing Cash Flow	0.00	-10.26B	-10.37B	-20.14B	-29.19B	-12.44B
Financing Cash Flow	0.00	-39.15B	-6.09B	-10.28B	-4.86B	-9.74B

Ezaki Glico Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5008.00
• 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:2206, the sentiment is Neutral. The current price of 5008 is below the 20-day moving average (MA) of 5132.00, above the 50-day MA of 4932.14, and above the 200-day MA of 4666.82, indicating a neutral trend. The MACD of 68.89 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 22.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2206.

Ezaki Glico Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1332	75 Outperform	¥322.13B	12.18	9.16%	2.90%	4.55%	14.94%
2296	73 Outperform	¥298.99B	19.54	4.59%	2.61%	8.96%	9.34%
2229	73 Outperform	¥365.16B	20.57	10.17%	2.05%	6.38%	-16.25%
2811	67 Neutral	¥256.71B	19.98	7.83%	1.98%	11.08%	-46.09%
2264	63 Neutral	¥303.72B	41.25	2.05%	2.63%	2.97%	-46.46%
2206	58 Neutral	€333.44B	39.94	3.19%	1.78%	2.44%	-18.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Ezaki Glico Co., Ltd. Corporate Events

Ezaki Glico Establishes SPC for Global Growth

Ezaki Glico Co., Ltd. announced the establishment of a special purpose company, Glico Europe B.V., in the Netherlands as part of its strategy to pursue global growth investments. This move aligns with the company’s mid-term management plan to expand its business into new areas and promote global growth, with a minor expected impact on the company’s earnings for the fiscal year ending December 31, 2025.