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2201

Morinaga&Co TSE:2201 Stock Report

Last Price

JP¥3.84k

Market Cap

JP¥186.0b

7D

0.1%

1Y

-10.4%

Updated

25 Sep, 2022

Data

Company Financials +
2201 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

2201 Stock Overview

Morinaga&Co., Ltd. manufactures, purchases, and sells confectionaries, food stuffs, frozen desserts, and health products in Japan and internationally.

Morinaga&Co Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Morinaga&Co
Historical stock prices
Current Share PriceJP¥3,835.00
52 Week HighJP¥4,450.00
52 Week LowJP¥3,500.00
Beta-0.0065
1 Month Change-5.19%
3 Month Change-8.14%
1 Year Change-10.40%
3 Year Change-27.51%
5 Year Change-38.74%
Change since IPO6.53%

Recent News & Updates

Shareholder Returns

2201JP FoodJP Market
7D0.1%-0.4%-1.1%
1Y-10.4%-4.6%-9.1%

Return vs Industry: 2201 underperformed the JP Food industry which returned -4.6% over the past year.

Return vs Market: 2201 underperformed the JP Market which returned -9.1% over the past year.

Price Volatility

Is 2201's price volatile compared to industry and market?
2201 volatility
2201 Average Weekly Movement2.3%
Food Industry Average Movement2.3%
Market Average Movement3.5%
10% most volatile stocks in JP Market7.4%
10% least volatile stocks in JP Market1.8%

Stable Share Price: 2201 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 2201's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18992,937Eijiro Otahttps://www.morinaga.co.jp

Morinaga&Co., Ltd. manufactures, purchases, and sells confectionaries, food stuffs, frozen desserts, and health products in Japan and internationally. It offers confectionary products, including caramels, biscuits, chocolates, etc.; food products comprising cocoa, cake mix, etc.; frozen desserts, such as ice cream, etc.; and health products, including jelly drinks, etc. The company also provides health foods and beverages through mail services. It offers its products under the Morinaga Milk Caramel, Morinaga Milk Cocoa, Morinaga Ramune, Ottotto, Morinaga Biscuits, Chocoball, Amazake, Carré de chocolat, DARS, HI-CHEW, Morinaga Cocoa, Choco Monaka Jumbo, Vanilla Monaka Jumbo, Pari Pari Bar, Ita Choco Ice, ICEBOX, Morinaga Aojiru, Morinaga Collagen Drink, in BAR, and in Jelly brands.

Morinaga&Co Fundamentals Summary

How do Morinaga&Co's earnings and revenue compare to its market cap?
2201 fundamental statistics
Market CapJP¥185.98b
Earnings (TTM)JP¥26.35b
Revenue (TTM)JP¥183.49b

7.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2201 income statement (TTM)
RevenueJP¥183.49b
Cost of RevenueJP¥107.78b
Gross ProfitJP¥75.71b
Other ExpensesJP¥49.36b
EarningsJP¥26.35b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 10, 2022

Earnings per share (EPS)543.37
Gross Margin41.26%
Net Profit Margin14.36%
Debt/Equity Ratio7.9%

How did 2201 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2201 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2201?

Other financial metrics that can be useful for relative valuation.

2201 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA5.9x
PEG Ratio-3.4x

Price to Earnings Ratio vs Peers

How does 2201's PE Ratio compare to its peers?

2201 PE Ratio vs Peers
The above table shows the PE ratio for 2201 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.2x
2264 Morinaga Milk Industry
6.8x-8.2%JP¥186.5b
2296 Itoham Yonekyu Holdings
10.5x2.2%JP¥191.8b
1332 Nippon Suisan Kaisha
10.4x5.1%JP¥169.3b
2206 Ezaki Glico
21.1x6.6%JP¥218.4b
2201 Morinaga&Co
7.1x-2.1%JP¥186.0b

Price-To-Earnings vs Peers: 2201 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does 2201's PE Ratio compare vs other companies in the JP Food Industry?

Price-To-Earnings vs Industry: 2201 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the JP Food industry average (16.4x)


Price to Earnings Ratio vs Fair Ratio

What is 2201's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2201 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.1x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: 2201 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).


Share Price vs Fair Value

What is the Fair Price of 2201 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2201 (¥3835) is trading above our estimate of fair value (¥3002.15)

Significantly Below Fair Value: 2201 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Morinaga&Co forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2201's earnings are forecast to decline over the next 3 years (-2.1% per year).

Earnings vs Market: 2201's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: 2201's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2201's revenue (4.2% per year) is forecast to grow faster than the JP market (4.2% per year).

High Growth Revenue: 2201's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2201's Return on Equity is forecast to be low in 3 years time (8.7%).


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Past Performance

How has Morinaga&Co performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2201 has a large one-off gain of ¥21.2B impacting its June 30 2022 financial results.

Growing Profit Margin: 2201's current net profit margins (14.4%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 2201's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: 2201's earnings growth over the past year (84.9%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: 2201 earnings growth over the past year (84.9%) exceeded the Food industry -0.8%.


Return on Equity

High ROE: 2201's Return on Equity (21%) is considered high.


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Financial Health

How is Morinaga&Co's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2201's short term assets (¥100.1B) exceed its short term liabilities (¥61.7B).

Long Term Liabilities: 2201's short term assets (¥100.1B) exceed its long term liabilities (¥13.6B).


Debt to Equity History and Analysis

Debt Level: 2201 has more cash than its total debt.

Reducing Debt: 2201's debt to equity ratio has reduced from 27.4% to 7.9% over the past 5 years.

Debt Coverage: 2201's debt is well covered by operating cash flow (248.3%).

Interest Coverage: 2201 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Morinaga&Co current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2201's dividend (2.35%) is higher than the bottom 25% of dividend payers in the JP market (1.65%).

High Dividend: 2201's dividend (2.35%) is low compared to the top 25% of dividend payers in the JP market (3.67%).


Stability and Growth of Payments

Stable Dividend: 2201's dividends per share have been stable in the past 10 years.

Growing Dividend: 2201's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.1%), 2201's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.9%), 2201's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Eijiro Ota (63 yo)

3.67yrs

Tenure

Mr. Eijiro Ota serves as President and Representative Director at Morinaga & Co., Ltd. since 2019. Mr. Ota had been Senior Managing Executive Officer and General Manager of Sales Division at Morinaga & Co....


Leadership Team

Experienced Management: 2201's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2201's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 44.71% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.74%
Morinaga & Co., Ltd, Partner Stock Ownership Association
3,268,000¥12.5b0%no data
5.62%
Silchester International Investors LLP
2,723,400¥10.4b0%0.38%
3.51%
MUFG Bank, Ltd.,Investment Banking Arm
1,704,000¥6.5b0%0.21%
3.46%
AllianceBernstein L.P.
1,676,947¥6.4b0%0.02%
3.04%
Nomura Asset Management Co., Ltd.
1,475,800¥5.7b-0.4%0.02%
2.83%
The Vanguard Group, Inc.
1,372,047¥5.3b2.1%no data
2.66%
Mizuho Financial Group, Inc., Asset Management Arm
1,289,156¥4.9b0.01%0.14%
2.57%
Meiji Yasuda Life Insurance Company, Asset Management Arm
1,246,000¥4.8b0%0.11%
1.88%
Massachusetts Financial Services Company
911,245¥3.5b0.02%0.01%
1.48%
Daiwa Asset Management Co. Ltd.
718,400¥2.8b0.14%0.02%
1.44%
Tokio Marine Asset Management Co., Ltd.
696,000¥2.7b0%0.14%
1.42%
BlackRock, Inc.
688,200¥2.6b4.91%no data
1.37%
Nikko Asset Management Co., Ltd.
666,700¥2.6b-1.1%0.01%
1.23%
Norges Bank Investment Management
595,194¥2.3b0%no data
1.06%
Dimensional Fund Advisors LP
515,548¥2.0b1.66%no data
1.01%
Grantham Mayo Van Otterloo & Co. LLC
489,800¥1.9b5.33%0.05%
0.95%
AXA Investment Managers S.A.
458,700¥1.8b0%0.03%
0.69%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
334,800¥1.3b0.42%0.01%
0.38%
CPP Investments
185,000¥709.5m0%no data
0.33%
GAM Holding AG
159,200¥610.5m0%0.06%
0.3%
Charles Schwab Investment Management, Inc.
146,138¥560.4m2.29%no data
0.29%
Marathon Asset Management Limited
140,500¥538.8m0%0.02%
0.18%
Driehaus Capital Management LLC
88,200¥338.2m17.91%0.02%
0.15%
Franklin Resources, Inc.
74,484¥285.6m9.4%no data
0.12%
WisdomTree Asset Management, Inc.
57,587¥220.8m0.17%0.01%

Company Information

Morinaga&Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Morinaga&Co., Ltd.
  • Ticker: 2201
  • Exchange: TSE
  • Founded: 1899
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: JP¥185.980b
  • Shares outstanding: 48.50m
  • Website: https://www.morinaga.co.jp

Number of Employees


Location

  • Morinaga&Co., Ltd.
  • 5-33-1 Shiba
  • Minato-ku
  • Tokyo
  • 108-8403
  • Japan


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2201TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
MGAA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/22 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.