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Ajinomoto Co Inc 2802

Morningstar Rating
JPY 5,775.00 +89.00 (1.57%)
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Company Report

Price vs Fair Value

2802 is trading at a 25% premium.
Price
JPY 5,628.00
Fair Value
JPY 8,372.00
Uncertainty
Medium
1-Star Price
JPY 1,123.00
5-Star Price
JPY 1,234.00
Economic Moat
Mssmgnq
Capital Allocation
Vyxtrzq

Bulls Say, Bears Say

Bulls

The restructuring plan to withdraw from or downsize the noncore businesses outside the six areas including seasonings, Asian frozen foods, and healthcare will allow Ajinomoto to lift returns on investment and stay focused on its competitive advantages.

Bears

The economic setback resulting from the coronavirus outbreak could depress consumer spending and deter the company's ambition to accelerate growth by raising value-added sales.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
JPY 5,686.00
Day Range
JPY 5,627.005,793.00
52-Week Range
JPY 4,742.006,279.00
Bid/Ask
JPY 5,768.00 / JPY 5,776.00
Market Cap
JPY 2.96 Tril
Volume/Avg
1.7 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
33.51
Price/Sales
2.16
Dividend Yield (Trailing)
1.28%
Dividend Yield (Forward)
1.28%
Total Yield
3.66%

Company Profile

Ajinomoto is Japan’s leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Growth
Total Number of Employees
43,318

Competitors

Valuation

Metric
2802
2503
MKC
Price/Earnings (Normalized)
33.5111.9727.68
Price/Book Value
3.721.633.88
Price/Sales
2.160.863.04
Price/Cash Flow
18.438.1820.42
Price/Earnings
2802
2503
MKC

Financial Strength

Metric
2802
2503
MKC
Quick Ratio
0.800.870.25
Current Ratio
1.371.420.68
Interest Coverage
11.5518.874.91
Quick Ratio
2802
2503
MKC

Profitability

Metric
2802
2503
MKC
Return on Assets (Normalized)
5.79%5.92%5.67%
Return on Equity (Normalized)
12.00%15.10%14.63%
Return on Invested Capital (Normalized)
7.93%8.24%8.97%
Return on Assets
2802
2503
MKC
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