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Ajinomoto Co Inc (ADR) (AJINY)
OTHER OTC:AJINY
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Ajinomoto Co
(OTC:AJINY)
77Outperform
Ajinomoto Co (AJINY) vs. S&P 500 (SPY)
Market Cap
$19.77B
Dividend Yield0.89%
Average Volume (3M)3.27K
Price to Earnings (P/E)64.5
Beta (1Y)0.61
Revenue Growth0.99%
EPS Growth-7.28%
CountryUS
Employees34,862
SectorConsumer Defensive
Sector Strength93
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.60
Shares Outstanding508,314,760
10 Day Avg. Volume8,082
30 Day Avg. Volume3,265
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.99
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ajinomoto Co Business Overview & Revenue Model
Company DescriptionAjinomoto Co., Inc. (AJINY) is a global leader in the food and biotechnology industries, headquartered in Tokyo, Japan. The company is renowned for its innovative products across food, amino acids, and specialty chemicals. Ajinomoto's primary offerings include seasonings, frozen foods, beverages, amino acids for pharmaceuticals, and specialty chemicals for industrial use. With a strong emphasis on health and wellness, the company continually advances its product lines to enhance human health and nutrition worldwide.
How the Company Makes MoneyAjinomoto makes money primarily through its diverse portfolio of food products, amino acids, and specialty chemicals. The food segment, which includes seasonings, processed foods, and frozen meals, is a significant revenue driver, leveraging the company's strong brand recognition and global distribution network. Ajinomoto's amino acids segment caters to various industries, including pharmaceuticals and animal nutrition, by providing essential amino acids and related products. The specialty chemicals segment offers high-performance materials for applications in industries like electronics and personal care. Key partnerships, such as joint ventures and strategic alliances, also contribute to its revenue streams by expanding market reach and technological capabilities.
Ajinomoto Co Financial Statement Overview
Summary
Ajinomoto Co's financial health is robust, driven by consistent revenue growth and strong cash flow generation. While the company maintains a solid balance sheet with prudent leverage, there is scope to enhance operational efficiency reflected in EBIT margins. Overall, the company is well-positioned financially with a stable growth trajectory and effective cash management.Income Statement
Ajinomoto Co has demonstrated strong revenue growth with consistent increases over the past years and a healthy Gross Profit Margin of 35.54% for 2024. The Net Profit Margin is also robust at 6.05%. However, there is a slight decline in EBIT Margin from 10.96% to 10.19%, indicating some pressure on operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects solid equity with an increasing Stockholders' Equity base. The Debt-to-Equity Ratio stands at 0.60, indicating a balanced approach to leverage. Return on Equity is healthy at 10.70%, although the Equity Ratio at 45.91% suggests room for improvement in asset efficiency.79
Positive
Cash Flow
Ajinomoto Co exhibits strong cash flow performance with significant Free Cash Flow growth. The Operating Cash Flow to Net Income Ratio of 1.93 demonstrates effective conversion of earnings into cash. The Free Cash Flow to Net Income Ratio is also substantial at 1.10, showcasing the company's ability to generate cash beyond operational needs.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.47T | 1.44T | 1.36T | 1.15T | 1.07T | 1.10T | Gross Profit |
| 520.76B | 511.45B | 470.39B | 425.90B | 406.22B | 403.87B | EBIT |
| 138.90B | 146.68B | 148.93B | 124.57B | 101.12B | 48.77B | EBITDA |
| 220.99B | 219.41B | 202.42B | 188.15B | 168.89B | 157.50B | Net Income Common Stockholders |
| 83.87B | 87.12B | 94.06B | 75.72B | 59.42B | 18.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 120.68B | 194.19B | 145.09B | 169.26B | 193.69B | 150.65B | Total Assets |
| 1.07T | 1.77T | 1.51T | 1.46T | 1.43T | 1.35T | Total Debt |
| 133.60B | 491.68B | 288.56B | 313.91B | 350.42B | 356.91B | Net Debt |
| 13.39B | 320.14B | 155.79B | 162.45B | 168.81B | 215.21B | Total Liabilities |
| 427.46B | 890.43B | 688.77B | 717.32B | 763.44B | 761.55B | Stockholders Equity |
| 599.48B | 814.69B | 768.68B | 686.91B | 620.26B | 538.98B |
| Cash Flow | Free Cash Flow | ||||
| 115.36B | 96.05B | 44.59B | 64.86B | 79.61B | 32.81B | Operating Cash Flow |
| 189.54B | 168.07B | 117.64B | 145.58B | 165.65B | 114.86B | Investing Cash Flow |
| -127.76B | -132.43B | -30.09B | -61.57B | -66.25B | -66.65B | Financing Cash Flow |
| -72.75B | -6.75B | -111.06B | -123.06B | -60.39B | -52.31B |
Ajinomoto Co Technical Analysis
Negative
39.23
Price Trends
40.64
Negative
40.82
Negative
39.37
Negative
Market Momentum
-0.13
Positive
38.73
Neutral
27.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AJINY, the sentiment is Negative. The current price of 39.23 is below the 20-day moving average (MA) of 40.60, below the 50-day MA of 40.64, and below the 200-day MA of 39.37, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $19.77B | 64.45 | 11.13% | 0.89% | 0.99% | -7.28% | |
74 Outperform | $20.51B | 26.25 | 14.73% | 2.24% | 0.40% | 10.89% | |
71 Outperform | $17.29B | 22.82 | 9.54% | 3.70% | -1.84% | -5.14% | |
70 Outperform | $12.74B | 39.04 | 3.67% | 5.25% | -3.15% | -65.38% | |
67 Neutral | $35.47B | 13.14 | 5.56% | 5.39% | -2.98% | -2.22% | |
66 Neutral | $32.64B | 13.09 | 27.37% | 4.01% | -2.62% | 4.27% | |
62 Neutral | $20.22B | 14.00 | -15.99% | 3.22% | 1.17% | 3.32% |
* Consumer Defensive Sector Average
Performance Comparison
AJINY
Ajinomoto Co
39.23
2.27
6.14%
CAG
Conagra Brands
26.68
-3.12
-10.47%
GIS
General Mills
59.61
-7.89
-11.69%
HRL
Hormel Foods
30.74
-3.13
-9.24%
MKC
McCormick & Company
76.46
2.11
2.84%
KHC
Kraft Heinz
29.68
-5.62
-15.92%
Ajinomoto Co Earnings Call Summary
Earnings Call Date: Feb 3, 2025 | % Change Since: -2.73% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of record-breaking profits and growth in key areas such as seasonings, foods, and frozen foods, contrasted with declines in health care segments and challenges in the U.S. market and biopharma services. Despite several positive highlights, the challenges and impacts from high interest rates and acquisition costs have created a cautious outlook.Highlights
Record-Breaking Sales and Business Income
Q3 sales and business income reached record highs for both the 9-month period and the quarter, with sales at JPY 1.676 billion, 104% of the previous year's level.
Growth in Seasonings and Foods
Significant increase in profit from unit price growth in the seasonings and foods and frozen food segment, offsetting costs.
Successful Launch of New Products
New product initiatives like the Cooked Tofu Kiwami premium Mala Mapo Tofu have been successful, attracting new customer bases.
Expansion in Data-Driven Marketing
Shift from traditional mass communication to personalized interactive communication strategy, generating positive results.
Frozen Foods Segment Achieving Targets
Frozen foods business achieved more than JPY 10 billion business profit target within the 9-month period, with ROIC at 5%.
Lowlights
Decline in Health Care and Other Segments
Revenue and profit decreased in health care and other segments, although the degree of profit decline is contracting.
Challenges in U.S. Market
Profit decline in U.S. due to multiple factors including inventory visibility issues and reduced orders from start-ups.
Impact of High Interest Rates
High interest rates have led to reduced orders from biopharmaceutical companies, impacting revenue and profit.
Acquisition Costs of Forge Biologics
Expenses related to the acquisition of Forge Biologics recorded in Q3, with expected further impact in Q4.
Underperformance in Althea
Althea recorded sales and profit decreases due to a decline in orders from its customers.
Company Guidance
During the Q3 2024 earnings call for 2802.T, executives reported record-high sales and business profits for the nine-month period, driven primarily by increased sales and improved gross profit ratios in the seasonings, foods, and frozen foods segments. Sales figures reached JPY 1.676 billion, representing 104% of the previous year's level, while business profit stood at JPY 124.4 billion, an increase of 104.4% compared to the prior year. The company also highlighted a slight decline in the healthcare segment but noted expectations for recovery in electronic materials starting Q4. Despite acquisition-related expenses for Forge Biologics, the full-year forecast for fiscal 2023 remains unchanged, with continued efforts to achieve a company-wide business profit target of JPY 150 billion by fiscal 2024. Looking forward, executives emphasized strategic investments and operational efficiency improvements to support sustainable growth and achieve their 2030 roadmap objectives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.