OTCPK:AJIN.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet second-rate 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

Stable Share Price: AJIN.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.5%

AJIN.Y

-0.2%

US Food

1.0%

US Market


1 Year Return

11.9%

AJIN.Y

1.8%

US Food

13.6%

US Market

Return vs Industry: AJIN.Y exceeded the US Food industry which returned 1.8% over the past year.

Return vs Market: AJIN.Y underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

AJIN.YIndustryMarket
7 Day10.5%-0.2%1.0%
30 Day9.0%-2.9%-0.4%
90 Day18.4%3.4%8.9%
1 Year12.4%11.9%4.3%1.8%16.2%13.6%
3 Year7.1%6.5%8.6%-0.4%40.2%30.8%
5 Year-3.6%-4.1%17.6%1.6%89.6%68.2%

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?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AJIN.Y ($20.44) is trading below our estimate of fair value ($21.32)

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 (50.1x) compared to the US Food industry average (25x).

PE vs Market: AJIN.Y is poor value based on its PE Ratio (50.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: AJIN.Y is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AJIN.Y's PB Ratio (2.1x) is in line with the US Food industry average.


Next Steps

Future Growth

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

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJIN.Y's forecast earnings growth (21.6% per year) is above the savings rate (2.2%).

Earnings vs Market: AJIN.Y's earnings (21.6% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AJIN.Y's revenue (1.9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: AJIN.Y's revenue (1.9% 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 (9.9%).


Next Steps

Past Performance

How has Ajinomoto performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJIN.Y has a large one-off loss of ¥37.6B impacting its June 30 2020 financial results.

Growing Profit Margin: AJIN.Y's current net profit margins (2.2%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: AJIN.Y's earnings have declined by 21.3% 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 (-22%) over the past year, making it difficult to compare to the Food industry average (-4.5%).


Return on Equity

High ROE: AJIN.Y's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Ajinomoto's financial position?


Financial Position Analysis

Short Term Liabilities: AJIN.Y's short term assets (¥556.1B) exceed its short term liabilities (¥350.9B).

Long Term Liabilities: AJIN.Y's short term assets (¥556.1B) exceed its long term liabilities (¥411.2B).


Debt to Equity History and Analysis

Debt Level: AJIN.Y's debt to equity ratio (64.5%) is considered high.

Reducing Debt: AJIN.Y's debt to equity ratio has increased from 31.7% to 64.5% over the past 5 years.

Debt Coverage: AJIN.Y's debt is well covered by operating cash flow (32.9%).

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


Balance Sheet


Next Steps

Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AJIN.Y's dividend (1.48%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: AJIN.Y's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

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 (74%), 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

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

1.3yrs

Average management tenure


CEO

Takaaki Nishii (61 yo)

5.25yrs

Tenure

JP¥106,000,000

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 ($USD1.02M) is below average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Takaaki Nishii
President5.25yrsJP¥106.00m0.0076%
¥ 860.3k
Tetsuya Nakano
Corporate Senior VP & GM of Global Corporate Division and Global Finance Dept.no datano datano data
Watanabe Yumiko
Associate General Manager of IRno datano datano data
Takumi Matsuzawa
Corporate Executive Officer and GM of Global Human Resources Department & Global Human Resourcesno datano datano data
Masaya Tochio
Corporate Senior VP & Representative Director7.25yrsno data0.0047%
¥ 538.7k
Hiroshi Fukushi
Corporate Executive Deputy President7.25yrsno data0.0053%
¥ 601.2k
Chiaki Nosaka
Corporate VP & Director1.25yrsno data0.0042%
¥ 480.7k
Hiroyuki Kojima
Corporate Senior Vice President1.25yrsno datano data
Hiroshi Motoyama
Corporate Vice Presidentno datano datano data
Kaoru Kurashima
Corporate Senior VP & GM of Food Products1.25yrsno datano data
Tatsuya Sato
General Manager of North America Divisionno datano datano data
Toshiyuki Mochizuki
Corporate Executive Officer & GM of Food Production & Technology Administration Centerno datano datano data

1.3yrs

Average Tenure

61yo

Average Age

Experienced Management: AJIN.Y's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Takaaki Nishii
President5.25yrsJP¥106.00m0.0076%
¥ 860.3k
Masaya Tochio
Corporate Senior VP & Representative Director7.25yrsno data0.0047%
¥ 538.7k
Hiroshi Fukushi
Corporate Executive Deputy President7.25yrsno data0.0053%
¥ 601.2k
Chiaki Nosaka
Corporate VP & Director1.25yrsno data0.0042%
¥ 480.7k
Takeshi Kimura
Corporate VP Management of R&D7.25yrsno datano data
Masatoshi Ito
Chairman of the Board5.25yrsJP¥110.00m0.022%
¥ 2.6m
Etsuhiro Takato
Director7.25yrsno data0.0083%
¥ 937.6k
Yoichiro Togashi
Standing Audit & Supervisory Board Memberno datano data0.0062%
¥ 702.3k
Sakie Fukushima
Outside Director9.25yrsno datano data
Yasuo Saito
Independent Outside Director8.25yrsno datano data
Takashi Nawa
Independent Outside Director5.25yrsno datano data
Kimie Iwata
Independent Outside Director1.25yrsno data0.000090%
¥ 10.2k

7.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AJIN.Y's board of directors are considered experienced (7.3 years average tenure).


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 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¥1.187t
  • Listing Market Cap: JP¥11.364b
  • Shares outstanding: 548.19m
  • 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

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. 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 produc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:18
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.