Morinaga Milk Industry Co., Ltd. (2264) AI Stock Analysis

• Market Cap: ¥297.87B
• Dividend Yield: 2.71%
• Average Volume (3M): 247.79K
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.30
• Revenue Growth: 2.97%
• EPS Growth: -46.46%
• Country: JP
• Employees: 7,415
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 82.90
• Shares Outstanding: 89,045,090
• 10 Day Avg. Volume: 265,070
• 30 Day Avg. Volume: 247,786
• PEG Ratio: -0.53
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -5.89
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥3,378.00 ▲(1.69% Upside)

The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The dividend yield offers some compensation, but strategic improvements are needed to enhance the stock's attractiveness.

Morinaga Milk Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Morinaga Milk Industry Co., Ltd., together with its subsidiaries, produces and sells various dairy products in Japan and internationally. The company offers milk, yogurt, cheese, and butter products, as well as chilled desserts, ice creams, infant formulas and baby foods, health foods, and liquid diet and nursing care foods; milk-based drinks, coffee drinks, chilled tea beverages, and various other products; and other products, such as creaming powders, condensed milks, and TOFU products. It also provides infant and toddler milk ingredients, including whey protein concentrate and lactose, as well as lactoferrin. In addition, the company is involved in the processing and packaging products, such as tofu and other soy-based products. Further, it engages in the mail-order sale of health food products; and offers hygiene management equipment. The company was formerly known as Nippon Rennyu Co., Ltd. and changed its name to Morinaga Milk Industry Co., Ltd. in 1949. Morinaga Milk Industry Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Morinaga Milk Industry generates revenue primarily through the sale of its dairy products, including liquid milk, yogurt, and cheese. The company leverages a diversified product portfolio to reach various consumer segments, contributing to a steady revenue stream. Key revenue streams include retail sales through supermarkets and convenience stores, as well as partnerships with food service providers and export markets. Additionally, Morinaga invests in research and development to enhance product offerings, which helps maintain competitiveness and address consumer trends. Strategic collaborations with health and wellness organizations further bolster its market presence, supporting long-term growth and profitability.

Morinaga Milk Industry Co., Ltd. Financial Statement Overview

Summary

Morinaga Milk Industry shows stable revenue growth but faces challenges in profitability, with declining net profit margins and ROE. The balance sheet is strong with low leverage, but negative free cash flow poses a significant risk.

Income Statement

Morinaga Milk Industry's revenue showed a moderate growth trend with a recent increase to ¥561.173 billion in 2025. The gross profit margin for 2025 stood at 24.06%, indicating efficient cost management. However, the net profit margin declined significantly to 0.97% in 2025 from a higher margin in previous years, highlighting challenges in maintaining profitability. The EBIT margin of 5.29% and EBITDA margin of 7.39% suggest moderate operational efficiency, although they have room for improvement.

Balance Sheet

The balance sheet indicates a strong equity base with a debt-to-equity ratio of 0.39 in 2025, suggesting a conservative leverage position. Return on equity (ROE) has decreased to 2.05% in 2025, showing a decline in shareholder returns. The equity ratio of 51.17% highlights a solid financial foundation, although the decrease in equity from previous years signals potential risks.

Cash Flow

The cash flow statement reveals a concerning trend with negative operating cash flow of ¥12.456 billion and free cash flow of ¥-44.68 billion in 2025. The free cash flow to net income ratio is negative, reflecting challenges in converting earnings to cash. The operating cash flow to net income ratio is also negative, indicating inefficiencies in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	564.21B	561.17B	547.06B	525.60B	503.35B	583.55B
Gross Profit	135.81B	135.05B	131.96B	118.30B	122.28B	190.07B
EBITDA	42.78B	41.46B	113.53B	45.92B	70.39B	47.20B
Net Income	7.06B	5.46B	61.31B	16.88B	33.78B	18.74B
Balance Sheet
Total Assets	547.97B	520.42B	566.00B	485.12B	458.79B	452.76B
Cash, Cash Equivalents and Short-Term Investments	43.57B	28.56B	64.53B	21.10B	23.61B	19.26B
Total Debt	123.92B	104.73B	86.82B	101.33B	89.26B	104.29B
Total Liabilities	279.73B	249.32B	283.87B	257.99B	250.76B	250.85B
Stockholders Equity	263.57B	266.33B	277.18B	223.03B	206.07B	199.56B
Cash Flow
Free Cash Flow	0.00	-44.68B	23.44B	-205.00M	21.39B	10.36B
Operating Cash Flow	0.00	-12.46B	56.58B	19.38B	40.27B	38.54B
Investing Cash Flow	0.00	-18.79B	25.22B	-25.46B	8.37B	-25.30B
Financing Cash Flow	0.00	-5.03B	-38.62B	2.92B	-44.52B	-2.63B

Morinaga Milk Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3322.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2264, the sentiment is Negative. The current price of 3322 is below the 20-day moving average (MA) of 3369.55, below the 50-day MA of 3400.52, and above the 200-day MA of 3184.08, indicating a neutral trend. The MACD of -12.96 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2264.

Morinaga Milk Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2212	―	$637.52B	16.67	9.18%	1.26%	3.53%	4.88%
2229	―	¥370.06B	20.64	8.89%	2.02%	6.38%	-16.25%
2270	―	¥190.72B	10.65	―	2.83%	1.33%	-15.17%
2269	―	¥813.80B	17.12	6.40%	3.46%	2.45%	-9.06%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2206	―	¥319.10B	38.22	3.19%	1.83%	2.44%	-18.02%
2264	―	¥297.87B	39.99	―	2.71%	2.97%	-46.46%

Morinaga Milk Industry Co., Ltd. Corporate Events

Morinaga Milk Industry Announces Treasury Stock Acquisition

Morinaga Milk Industry Co., Ltd. has announced the acquisition of 166,100 of its own shares, with a total acquisition cost of 584,637,500 yen, during the period from September 1 to September 30, 2025. This move is part of a broader strategy approved by the board of directors to acquire up to 3,800,000 shares by March 31, 2026, with a total budget of 10,000 million yen, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3507.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Industry’s Strategic Relocation and Complex Development

Morinaga Milk Industry Co., Ltd. announced its plans to construct a large-scale complex on the site of the former Morinaga Plaza Building, which will include offices and retail spaces. The project, involving joint development partners Mitsui Fudosan Co., Ltd. and East Japan Railway Company, is set to begin construction in October 2025 and complete by 2033. This strategic move aims to relocate Morinaga’s head office by 2029, enhancing its operational capabilities without impacting its earnings for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3507.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Announces Share Buyback Strategy

Morinaga Milk Industry Co., Ltd. has announced the acquisition of its own shares, with a total of 478,100 common shares acquired at a cost of 1,565,515,000 yen during August 2025. This move is part of a broader strategy approved by the board to acquire up to 3,800,000 shares at a maximum cost of 10,000 million yen by March 2026, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3507.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Completes Treasury Stock Disposal for Compensation

Morinaga Milk Industry Co., Ltd. announced the completion of payment for the disposal of treasury stock as restricted stock compensation. This move involves the disposal of 23,900 shares at a price of 3,340 yen per share, totaling 79,826,000 yen, allocated to directors and managing officers, which may impact the company’s financial strategies and stakeholder interests.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Reports Strong Q1 Financial Performance with Increased Profits

Morinaga Milk Industry Co., Ltd. reported a 2.2% increase in net sales for the first quarter of the fiscal year ending March 31, 2026, reaching ¥143,678 million. Despite a slight decline in ordinary profit, the company saw a significant 30.1% rise in profit attributable to owners of the parent, indicating strong operational performance. The company’s financial forecast for the full fiscal year anticipates continued growth in net sales and profits, suggesting positive momentum in its market positioning.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3300.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.

Morinaga Milk Announces Treasury Stock Acquisition

Morinaga Milk Industry Co., Ltd. has announced the acquisition of its own shares, with a total of 630,100 common shares acquired at a cost of 2,072,028,200 yen during July 2025. This move is part of a larger resolution to acquire up to 3,800,000 shares by March 2026, reflecting the company’s strategic focus on enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:2264) stock is a Hold with a Yen3000.00 price target. To see the full list of analyst forecasts on Morinaga Milk Industry Co., Ltd. stock, see the JP:2264 Stock Forecast page.