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2802

Ajinomoto TSE:2802 Stock Report

Last Price

JP¥3.15k

Market Cap

JP¥1.7t

7D

-1.5%

1Y

29.6%

Updated

21 May, 2022

Data

Company Financials +
2802 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

2802 Stock Overview

Ajinomoto Co., Inc. engages in the seasonings and foods, frozen foods, and healthcare and other businesses in Japan and internationally.

Ajinomoto Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ajinomoto
Historical stock prices
Current Share PriceJP¥3,145.00
52 Week HighJP¥3,656.00
52 Week LowJP¥2,427.00
Beta-0.035
1 Month Change-7.53%
3 Month Change-5.27%
1 Year Change29.58%
3 Year Change61.24%
5 Year Change31.84%
Change since IPO124.64%

Recent News & Updates

Shareholder Returns

2802JP FoodJP Market
7D-1.5%-2.1%0.7%
1Y29.6%-1.2%-2.9%

Return vs Industry: 2802 exceeded the JP Food industry which returned -1.2% over the past year.

Return vs Market: 2802 exceeded the JP Market which returned -2.9% over the past year.

Price Volatility

Is 2802's price volatile compared to industry and market?
2802 volatility
2802 Average Weekly Movement4.6%
Food Industry Average Movement3.1%
Market Average Movement4.6%
10% most volatile stocks in JP Market9.1%
10% least volatile stocks in JP Market2.5%

Stable Share Price: 2802 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2802's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190933,461Taro Fujiehttps://www.ajinomoto.co.jp

Ajinomoto Co., Inc. engages in the seasonings and foods, frozen foods, and healthcare and other businesses in Japan and internationally. Its Seasonings and Foods segment offers sauces and seasonings products under the AJI-NO-MOTO, HON-DASHI, Cook Do, Ajinomoto KK Consommé, Pure Select Mayonnaise, Ros Dee, Masako, Aji-ngon, Sazón, Sajiku, and CRISPY FRY names; and solutions and ingredients to consumer foods and food service industries. This segment also provides instant noodles under the Knorr Cup Soup, and YumYum names; coffee under the Birdy and Blendy brands; powdered drink under the Birdy 3in1 name; MAXIM products; Chyotto Zeitakuna Kohiten products; and gift sets and office supplies comprising coffee vending machines, tea server, etc. The Frozen Foods segment offers Chinese dumplings, cooked rice, noodles, desserts, shumai, processed chicken, and other products.

Ajinomoto Fundamentals Summary

How do Ajinomoto's earnings and revenue compare to its market cap?
2802 fundamental statistics
Market CapJP¥1.69t
Earnings (TTM)JP¥75.73b
Revenue (TTM)JP¥1.15t

22.3x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2802 income statement (TTM)
RevenueJP¥1.15t
Cost of RevenueJP¥723.47b
Gross ProfitJP¥425.90b
Other ExpensesJP¥350.17b
EarningsJP¥75.73b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)141.16
Gross Margin37.05%
Net Profit Margin6.59%
Debt/Equity Ratio42.4%

How did 2802 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

37%

Payout Ratio

Valuation

Is Ajinomoto undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


32.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 2802 (¥3145) is trading below our estimate of fair value (¥4634.5)

Significantly Below Fair Value: 2802 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2802 is poor value based on its PE Ratio (22.3x) compared to the JP Food industry average (14.9x).

PE vs Market: 2802 is poor value based on its PE Ratio (22.3x) compared to the JP market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: 2802 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 2802 is overvalued based on its PB Ratio (2.5x) compared to the JP Food industry average (1x).


Future Growth

How is Ajinomoto forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2802's forecast earnings growth (7.9% per year) is above the savings rate (0.02%).

Earnings vs Market: 2802's earnings (7.9% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 2802's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2802's revenue (4.7% per year) is forecast to grow faster than the JP market (4% per year).

High Growth Revenue: 2802's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2802's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has Ajinomoto 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


5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2802 has high quality earnings.

Growing Profit Margin: 2802's current net profit margins (6.6%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 2802's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 2802's earnings growth over the past year (27.4%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: 2802 earnings growth over the past year (27.4%) exceeded the Food industry 6.6%.


Return on Equity

High ROE: 2802's Return on Equity (10.8%) is considered low.


Financial Health

How is Ajinomoto'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: 2802's short term assets (¥581.4B) exceed its short term liabilities (¥324.6B).

Long Term Liabilities: 2802's short term assets (¥581.4B) exceed its long term liabilities (¥392.7B).


Debt to Equity History and Analysis

Debt Level: 2802's net debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: 2802's debt to equity ratio has reduced from 48.4% to 42.4% over the past 5 years.

Debt Coverage: 2802's debt is well covered by operating cash flow (46.4%).

Interest Coverage: 2802's interest payments on its debt are well covered by EBIT (58.9x coverage).


Balance Sheet


Dividend

What is Ajinomoto current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2802's dividend (1.84%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 2802's dividend (1.84%) is low compared to the top 25% of dividend payers in the JP market (3.69%).


Stability and Growth of Payments

Stable Dividend: 2802's dividends per share have been stable in the past 10 years.

Growing Dividend: 2802's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.3%), 2802's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48%), 2802'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?

2.9yrs

Average management tenure


CEO

Taro Fujie (60 yo)

0.083

Tenure

Mr. Taro Fujie serves as Representative Executive Officer, President & Chief Executive Officer at Ajinomoto Co., Inc. since April 2022. He served as a Corporate Vice President at Ajinomoto Co., Inc. since...


Leadership Team

Experienced Management: 2802's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: 2802's board of directors are not considered experienced ( 2.9 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

Company Information

Ajinomoto Co., Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ajinomoto Co., Inc.
  • Ticker: 2802
  • Exchange: TSE
  • Founded: 1909
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: JP¥1.687t
  • Shares outstanding: 536.44m
  • Website: https://www.ajinomoto.co.jp

Number of Employees


Location

  • Ajinomoto Co., Inc.
  • 15-1, Kyobashi 1-chome
  • Chuo-ku
  • Tokyo
  • 104-8315
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
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.