OTCPK:AJIN.Y

Stock Analysis Report

Executive Summary

Ajinomoto Co., Inc. provides various food products worldwide.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Ajinomoto's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

AJIN.Y

-1.5%

US Food

0.07%

US Market


1 Year Return

20.1%

AJIN.Y

-0.7%

US Food

8.9%

US Market

Return vs Industry: AJIN.Y exceeded the US Food industry which returned -0.7% over the past year.

Return vs Market: AJIN.Y exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

AJIN.YIndustryMarket
7 Day0%-1.5%0.07%
30 Day4.4%-4.0%-0.3%
90 Day15.4%-3.3%-1.6%
1 Year20.1%20.1%2.2%-0.7%11.3%8.9%
3 Year-13.6%-13.6%-4.1%-12.6%46.3%36.8%
5 Year2.6%2.6%38.7%22.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is Ajinomoto's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

6.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AJIN.Y ($19.07) is trading below our estimate of fair value ($20.42)

Significantly Below Fair Value: AJIN.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AJIN.Y is poor value based on its PE Ratio (36.3x) compared to the Food industry average (25.1x).

PE vs Market: AJIN.Y is poor value based on its PE Ratio (36.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AJIN.Y is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: AJIN.Y is good value based on its PB Ratio (1.8x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJIN.Y's forecast earnings growth (9.2% per year) is above the savings rate (2.7%).

Earnings vs Market: AJIN.Y's earnings (9.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AJIN.Y's revenue (1.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AJIN.Y's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJIN.Y's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Ajinomoto performed over the past 5 years?

-5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AJIN.Y's earnings have declined by -5.3% per year over the past 5 years.

Accelerating Growth: AJIN.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AJIN.Y had negative earnings growth (-47.6%) over the past year, making it difficult to compare to the Food industry average (-24%).


Return on Equity

High ROE: AJIN.Y's Return on Equity (5.9%) is considered low.


Return on Assets

ROA vs Industry: AJIN.Y's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: AJIN.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ajinomoto's financial position?


Financial Position Analysis

Short Term Liabilities: AJIN.Y's short term assets (¥551.3B) exceeds its short term liabilities (¥263.5B)

Long Term Liabilities: AJIN.Y's short term assets (551.3B) exceeds its long term liabilities (456.5B)


Debt to Equity History and Analysis

Debt Level: AJIN.Y's debt to equity ratio (47.6%) is considered high

Reducing Debt: AJIN.Y's debt to equity ratio has increased from 21.9% to 47.6% over the past 5 years.

Debt Coverage: AJIN.Y's debt is well covered by operating cash flow (39.8%).

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


Balance Sheet

Inventory Level: AJIN.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: AJIN.Y's debt is covered by short term assets (assets are 1.699420x debt).


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AJIN.Y's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AJIN.Y's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.5%), AJIN.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Ajinomoto's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Takaaki Nishii (60yo)

4.3yrs

Tenure

JP¥118,000,000

Compensation

Mr. Takaaki Nishii has been Chief Executive Officer and President of Ajinomoto Co., Inc. since June 2015 and served as its Managing Executive Officer until June 2015 and Corporate Vice President since June ...


CEO Compensation Analysis

Compensation vs. Market: Takaaki's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Takaaki's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: AJIN.Y's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

63yo

Average Age

Experienced Board: AJIN.Y's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Etsuhiro Takato (62yo)

    Director

    • Tenure: 6.3yrs
  • Masaya Tochio (60yo)

    Corporate Senior VP & Representative Director

    • Tenure: 6.3yrs
  • Takaaki Nishii (60yo)

    President

    • Tenure: 4.3yrs
    • Compensation: JP¥118.00m
  • Hiroshi Fukushi (61yo)

    Corporate Executive Deputy President

    • Tenure: 6.3yrs
  • Chiaki Nosaka

    Corporate VP & Director

    • Tenure: 0.3yrs
  • Hiroyuki Kojima

    Corporate Senior Vice President

    • Tenure: 0.3yrs
  • Hiroshi Motoyama

    Corporate Vice President

    • Tenure: 0yrs
  • Kaoru Kurashima

    Corporate Senior VP & GM of Food Products

    • Tenure: 0.3yrs
  • Tetsuya Nakano

    Corporate Senior VP & GM of Global Corporate Division and Global Finance Dept.

    • Tenure: 0yrs
  • Takumi Matsuzawa

    Corporate Executive Officer and GM of Global Human Resources Department & Global Human Resources

    • Tenure: 0yrs

Board Members

  • Masatoshi Ito (72yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: JP¥110.00m
  • Takeshi Kimura (63yo)

    Corporate VP Management of R&D

    • Tenure: 6.3yrs
  • Sakie Fukushima (70yo)

    Outside Director

    • Tenure: 8.3yrs
  • Yasuo Saito (71yo)

    Outside Director

    • Tenure: 7.3yrs
  • Takashi Nawa (62yo)

    Outside Director

    • Tenure: 4.3yrs
  • Masaya Tochio (60yo)

    Corporate Senior VP & Representative Director

    • Tenure: 6.3yrs
  • Takaaki Nishii (60yo)

    President

    • Tenure: 4.3yrs
    • Compensation: JP¥118.00m
  • Hiroshi Fukushi (61yo)

    Corporate Executive Deputy President

    • Tenure: 6.3yrs
  • Chiaki Nosaka

    Corporate VP & Director

    • Tenure: 0.3yrs
  • Kimie Iwata (72yo)

    Outside Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Ajinomoto Co., Inc.
  • Ticker: AJIN.Y
  • Exchange: OTCPK
  • Founded: 1909
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: JP¥1.109t
  • Listing Market Cap: JP¥10.221b
  • Shares outstanding: 548.10m
  • Website: https://www.ajinomoto.com/en

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJIN.YOTCPK (Pink Sheets LLC)ADRUSUSDFeb 1979
AJIDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1979
2802TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYFeb 1979
AJIN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 1979

Biography

Ajinomoto Co., Inc. provides various food products worldwide. The company operates through four segments: Japan Food Products, International Food Products, Life Support, and Healthcare. The Japan Food Prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:43
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.