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Ajinomoto Co
(2802)
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Rating:60Neutral
Price Target:
¥5,456.00
▲(7.06% Upside)
Action:Reiterated
Date:08/10/26
The score is anchored by solid financial performance, led by strong TTM profitability and improved ROE, with manageable leverage. Offsetting this are weaker cash-flow conversion and a recent dip in TTM free cash flow. The overall rating is further capped by mixed/soft near-term technicals and a high P/E with a low dividend yield.
Positive Factors
Improved Profitability & ROE
Sustained high gross and operating margins alongside a materially higher ROE indicate durable operating leverage and pricing power across product lines. This strengthens the firm's ability to fund reinvestment, support R&D and brand spend, and maintain shareholder returns over the medium term.
Negative Factors
Weak Cash Conversion
Earnings are not fully translating into operating cash: FCF at ~60% of net income and a notable TTM decline reduce internal funding capacity. Over months this constrains flexibility for capex, M&A or accelerated debt reduction without relying on external financing or cutting investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & ROE
Sustained high gross and operating margins alongside a materially higher ROE indicate durable operating leverage and pricing power across product lines. This strengthens the firm's ability to fund reinvestment, support R&D and brand spend, and maintain shareholder returns over the medium term.
Read all positive factors
Ajinomoto Co (2802) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.93T
Dividend Yield0.88%
Average Volume (3M)2.05M
Price to Earnings (P/E)37.9
Beta (1Y)1.04
Revenue Growth6.72%
EPS Growth83.84%
CountryJP
Employees34,787
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)143.85
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
¥6,450.00Price Target Upside26.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)142.62
Revenue Forecast (FY)¥1.72T
Ajinomoto Co Business Overview & Revenue Model
Company Description
Ajinomoto Co., Inc. is a Japanese multinational corporation with a global presence, specializing in three main business areas: seasonings and food products, frozen culinary items, and a diverse healthcare and specialty chemicals portfolio. Its Sea...
How the Company Makes Money
Ajinomoto makes money primarily by manufacturing and selling (1) consumer food products and (2) business-to-business (B2B) ingredients and solutions derived from amino-acid and fermentation technologies.
1) Consumer food products (retail and food...
Ajinomoto Co Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying operational momentum: organic sales growth, double-digit improvement in business profit excluding currency effects, strong performance in Bio & Fine Chemicals (including CDMO and Functional Materials), margin expansion, and significant increases in profit attributable to owners and EPS. Offsetting these positives are near-term headwinds: the strong yen and the Althea divestiture reduced reported sales, Japan Frozen Foods (especially home-use Gyoza) underperformed prompting a planned drastic strategy review, price-driven volume softness in certain overseas markets (Indonesia, Philippines) and coffee raw-material cost pressure in Japan. Management emphasized investments to support future growth while taking corrective actions where performance is weak.Positive Updates
Strong Profit Growth and Margin Expansion
Business profit excluding currency translation grew 12.4% year-over-year; business profit margin rose to about 13%, up ~1.2 percentage points year-over-year. Gross profit margin improved across Foods and Bio & Fine Chemicals, contributing to overall margin expansion.
Negative Updates
Reported Sales Impacted by Strong Yen and Althea Sale
Reported consolidated sales were held flat year-over-year due to the strong yen and the structural sale of Althea (Althea sales impact cited as ~JPY 19 billion per year, roughly -JPY 5 billion in Q1), masking underlying organic growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profit Growth and Margin Expansion
Business profit excluding currency translation grew 12.4% year-over-year; business profit margin rose to about 13%, up ~1.2 percentage points year-over-year. Gross profit margin improved across Foods and Bio & Fine Chemicals, contributing to overall margin expansion.
Read all positive updates
Company Guidance
The company reiterated its commitment to achieving the FY2025 forecast and the FY2030 roadmap, citing Q1 metrics as evidence of momentum: organic sales up around 3% (mid‑single‑digit organic growth) and, excluding currency translation and the Althea divestiture, sales were reported up 103% year‑over‑year, while business profit excluding FX rose 12.4% with the overall business profit margin improving ~1.2 percentage points to just over 13%; profit attributable to owners jumped 34.4% and EPS rose 38.8%. Management flagged the Althea sale impact at roughly JPY 19.0 billion annually (about JPY 5.0 billion in Q1), noted a JPY 2.9 billion Q1 uplift in CDMO profit (contributing to a JPY 10.8 billion full‑year uplift across Bio‑Pharma Services & Ingredients/related areas), and highlighted segment moves including Japan B2C Seasonings & Foods sales +9% (domestic unit price ~102%, volume ~100% ex‑coffee), Overseas B2C unit price +3%/volume +1% (overall Overseas volume down ~1% due to Nigeria), Functional Materials Q1 sales ~+11% and profit ~+24%, and Frozen Foods North America mid‑single‑digit sales and profit gains (ex‑FX); management cautioned on FX and tariff risks, said it will pursue price flexibility and structural actions (including a “drastic” Japan frozen‑foods strategy to be announced in H1), and affirmed plans to hit full‑year targets.Ajinomoto Co Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.63T | 1.58T | 1.53T | 1.44T | 1.36T | 1.15T |
| Gross Profit | 622.77B | 597.15B | 550.76B | 511.45B | 470.39B | 425.90B |
| EBITDA | 302.13B | 297.35B | 209.22B | 232.75B | 226.85B | 197.67B |
| Net Income | 138.91B | 134.68B | 70.27B | 87.12B | 94.06B | 75.72B |
Balance Sheet | ||||||
| Total Assets | 1.94T | 1.81T | 1.72T | 1.77T | 1.51T | 1.46T |
| Cash, Cash Equivalents and Short-Term Investments | 196.98B | 106.69B | 164.78B | 171.54B | 132.78B | 151.45B |
| Total Debt | 561.92B | 421.36B | 496.06B | 491.68B | 336.50B | 363.96B |
| Total Liabilities | 1.09T | 968.07B | 907.86B | 890.43B | 688.77B | 717.32B |
| Stockholders Equity | 774.55B | 770.82B | 746.80B | 814.69B | 768.68B | 686.91B |
Cash Flow | ||||||
| Free Cash Flow | 127.88B | 142.91B | 121.79B | 102.29B | 49.26B | 71.73B |
| Operating Cash Flow | 227.34B | 239.35B | 209.90B | 168.07B | 117.64B | 145.58B |
| Investing Cash Flow | -77.79B | -84.23B | -77.38B | -132.43B | -30.09B | -61.57B |
| Financing Cash Flow | -165.97B | -225.60B | -137.68B | -6.75B | -111.06B | -123.06B |
Ajinomoto Co Technical Analysis
Positive
5096.00
Price Trends
5383.10
Positive
5114.97
Positive
4486.89
Positive
Market Momentum
-62.33
Negative
56.41
Neutral
83.11
Negative
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 5096 is below the 20-day moving average (MA) of 5171.50, below the 50-day MA of 5383.10, and above the 200-day MA of 4486.89, indicating a bullish trend. The MACD of -62.33 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.11 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥1.08T | 14.05 | 13.98% | 2.06% | 7.85% | 23.20% | |
72 Outperform | ¥1.71T | 25.17 | 11.56% | 1.55% | 9.27% | 12.89% | |
69 Neutral | ¥878.92B | 17.81 | 9.25% | 2.42% | 4.84% | -2.91% | |
68 Neutral | ¥637.89B | 25.65 | 7.76% | 1.30% | 4.85% | -9.29% | |
63 Neutral | ¥551.97B | 19.03 | 10.08% | 2.58% | 10.36% | 20.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ¥4.93T | 37.93 | 18.38% | 0.94% | 6.72% | 83.84% |
* Consumer Defensive Sector Average
JP:2802
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5,456.00
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Ajinomoto Co Corporate Events
Ajinomoto to Absorb Specialty Chemicals Unit in Functional Materials Push
Aug 6, 2026
Ajinomoto Co. has approved a basic policy to merge its wholly owned subsidiary Ajinomoto Fine-Techno Co. into the parent via an absorption-type merger effective April 1, 2027, with no new shares or cash to be issued. The move is aimed at consolida...
Ajinomoto lifts full-year outlook on AI-driven electronic materials demand
Aug 6, 2026
Ajinomoto raised its full-year consolidated forecast for the fiscal year ending March 2027, lifting projected sales to ¥1.732 trillion and business profit to ¥202 billion while nudging profit attributable to owners to ¥123.5 billion...
Ajinomoto Delivers Double-Digit Profit Growth and Lifts Full-Year Outlook
Aug 6, 2026
Ajinomoto Co. reported strong results for the quarter ended June 30, 2026, with sales rising 13.2% year on year to ¥412.1 billion and business profit jumping 27.3% to ¥60.1 billion. Profit attributable to owners of the parent grew 13.1% ...
Ajinomoto Advances Major Share Buyback Ahead of Planned Cancellation
Aug 4, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by the board in November 2025, executed under provisions of the Companies Act and conducted via market purchases through the Tokyo Stock Exchange. From Ju...
Ajinomoto to Dispose Treasury Shares for Executive Stock Incentive Plan
Jul 30, 2026
Ajinomoto has approved the disposal of 751,000 treasury shares, worth about 4.16 billion yen at 5,536 yen per share, to The Master Trust Bank of Japan for use in its Board Incentive Plan Trust. The shares are earmarked for medium-term stock-based ...
Ajinomoto Advances Share Buyback, Nears JPY 50 Billion in Repurchases
Jul 2, 2026
Ajinomoto Co., Inc. has reported progress on its share repurchase program authorized by the board in November 2025, under which the company is buying back common shares through market purchases on the Tokyo Stock Exchange. The initiative is part o...
Ajinomoto Moves to Fully Acquire and Delist Malaysian Subsidiary
Jun 22, 2026
Ajinomoto Co., Inc. has proposed a selective capital reduction and repayment exercise to privatize its Malaysian subsidiary Ajinomoto (Malaysia) Berhad, in which it currently holds 50.38%. The plan would see shares held by other investors cancelle...
Ajinomoto Reports Progress on ¥80 Billion Share Buyback Program
Jun 2, 2026
Ajinomoto Co., Inc. has reported progress on its ongoing share repurchase program authorized by its board in November 2025 under Japan’s Companies Act framework. From May 1 to May 31, 2026, the company bought back 1,087,000 common shares on ...
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...
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.