Nikon (7731) AI Stock Analysis

Compare

0 Followers

JP:7731 Dividends

Top Page

Nikon

(OTC:7731)

60Neutral

Nikon's overall score reflects a company with a strong balance sheet but facing challenges in profitability and cash flow. Technical indicators suggest bearish sentiment, and the stock is relatively high-valued. The mixed performance in the earnings call, with growth in certain segments but declines in others, and a revised forecast, contribute to a cautious outlook.

Nikon (7731) vs. S&P 500 (SPY)

Market Cap

¥449.19B

Dividend Yield3.47%

Average Volume (3M)1.53M

Price to Earnings (P/E)35.9

Beta (1Y)1.04

Revenue Growth0.01%

EPS Growth-54.41%

CountryJP

Employees19,444

SectorConsumer Cyclical

Sector Strength58

IndustryLeisure

Share Statistics

EPS (TTM)40.04

Shares Outstanding333,585,700

10 Day Avg. Volume1,245,490

30 Day Avg. Volume1,534,486

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥1,694.55

Price Target Upside16.66% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Nikon Business Overview & Revenue Model

Company DescriptionNikon Corporation is a leading Japanese multinational corporation headquartered in Tokyo, Japan. It specializes in optics and imaging products, including cameras, camera lenses, microscopes, binoculars, and measurement instruments. Established in 1917, Nikon has grown to become a key player in the imaging and optics industry, serving various sectors such as consumer electronics, healthcare, industrial metrology, and precision equipment.

How the Company Makes MoneyNikon makes money through several revenue streams. The primary source of revenue is its Imaging Products Business, which includes the sale of digital cameras, interchangeable camera lenses, and accessories. The Precision Equipment Business is another significant contributor, providing equipment for semiconductor manufacturing and FPD (Flat Panel Display) production. The Healthcare Business also generates revenue through the sale of microscopes, ophthalmic lenses, and other medical-related products. Additionally, Nikon benefits from its Industrial Metrology and Others segment, offering products and services for industrial measurement solutions. Strategic partnerships, technological innovations, and global distribution networks further bolster Nikon's financial performance.

Nikon Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
701.00B	717.25B	628.11B	539.61B	451.22B	591.01B
	Gross Profit
310.09B	310.05B	289.17B	236.07B	155.91B	222.03B
	EBIT
14.51B	41.99B	54.91B	49.93B	-56.24B	6.75B
	EBITDA
58.15B	86.17B	86.83B	71.01B	-17.85B	51.21B
	Net Income Common Stockholders
13.86B	32.57B	44.94B	42.68B	-34.50B	7.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
164.92B	206.64B	212.58B	371.23B	352.98B	326.94B
	Total Assets
1.16T	1.15T	1.05T	1.04T	989.74B	1.01T
	Total Debt
158.96B	166.71B	134.02B	130.06B	134.07B	123.73B
	Net Debt
-5.96B	-39.94B	-77.32B	-240.22B	-217.72B	-200.31B
	Total Liabilities
478.84B	462.02B	431.92B	439.60B	451.01B	464.12B
	Stockholders Equity
675.76B	683.79B	614.97B	597.68B	537.59B	540.65B
Cash Flow		Free Cash Flow
-11.04B	-24.45B	-33.01B	7.53B	-18.13B	-9.01B
	Operating Cash Flow
48.51B	30.77B	15.00M	31.35B	4.97B	16.42B
	Investing Cash Flow
-68.37B	-41.41B	-112.15B	-385.00M	18.02B	-21.28B
	Financing Cash Flow
-8.46B	-8.94B	-56.21B	-26.15B	-4.99B	-72.74B

Nikon Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1452.50

Price Trends

50DMA

1510.83

Negative

100DMA

1584.08

Negative

200DMA

1598.09

Negative

Market Momentum

MACD

-23.52

Negative

RSI

47.21

Neutral

STOCH

76.88

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7731, the sentiment is Negative. The current price of 1452.5 is above the 20-day moving average (MA) of 1452.48, below the 50-day MA of 1510.83, and below the 200-day MA of 1598.09, indicating a neutral trend. The MACD of -23.52 indicates Negative momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7731.

Nikon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7735	71 Outperform	$890.87B	9.28	25.48%	2.93%	30.34%	55.11%
4901	70 Outperform	$3.23T	12.86	7.77%	2.09%	7.29%	4.85%
7733	69 Neutral	$2.01T	24.47	12.71%	1.03%	7.60%	-66.30%
7752	68 Neutral	¥811.52B	20.29	4.15%	2.57%	7.96%	-25.19%
7751	64 Neutral	¥4.01T	25.10		3.62%	7.87%	-38.59%
7731	60 Neutral	¥449.19B	35.89	2.06%	3.47%	0.01%	-54.41%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%

* Consumer Cyclical Sector Average

Performance Comparison

JP:7731

Nikon

1,452.50

-56.45

-3.74%

JP:7751

Canon Inc.

4,150.00

-151.61

-3.52%

JP:7752

RICOH CO

1,438.50

121.98

9.27%

JP:4901

FUJIFILM Holdings

2,676.00

-585.91

-17.96%

JP:7735

SCREEN Holdings Co

9,051.00

-6,661.21

-42.40%

JP:7733

Olympus

1,758.00

-394.45

-18.33%

Nikon Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -11.02% | Next Earnings Date: May 9, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance with significant growth in the Imaging Products, Healthcare, and Digital Manufacturing businesses. However, substantial declines in the Precision Equipment and Components businesses, along with negative free cash flow, led to a downward revision of the full-year forecast.

Highlights

Imaging Products Business Revenue Growth

Revenue increased by ¥13.7 million year-on-year to ¥235.6 billion and operating profit increased by ¥900 million to ¥43.8 billion. Sales of Digital Camera-Interchangeable Lens type increased by 30,000 units year-on-year to 670,000 units and Interchangeable Lenses increased by 40,000 units to 1.02 million units.

Healthcare Business Revenue Increase

Revenue increased ¥4.7 billion year-on-year to ¥81.5 billion due to strong performance in Eye Care Solutions mainly in Europe and the United States.

Digital Manufacturing Business Revenue Increase

Revenue increased by ¥4.3 billion year-on-year to ¥18.2 billion, driven by strong sales of SLM Solution’s large format metal 3D printer, the NXG series.

SLM Solutions Performance

SLM Solutions orders in the third quarter reached an all-time high on a quarterly basis, with expectations for further sales expansion in the fourth quarter and the next fiscal year.

Lowlights

Precision Equipment Business Revenue Decline

Revenue decreased by ¥29.6 billion year-on-year to ¥124.9 billion and operating profit was down by ¥11.7 billion to a loss of ¥600 million. The unit of sales of new Semiconductor Lithography Systems was down by 16 units from the previous year.

Components Business Revenue Decline

Revenue was down by ¥10.3 billion to ¥49 billion due to a decline in sales of EUV related components and market recovery delays. Operating profit was down by ¥7.1 billion year-on-year to ¥3.6 billion.

Negative Free Cash Flow

Operating cash flow for the third quarter was nearly ¥40 billion, but there were large expenditures in the investment cash flow, leading to negative free cash flow.

Full-Year Forecast Revision

Full-year revenue forecast was revised down by ¥5 billion and operating profit by ¥3 billion due to delayed market recovery in the Components Business.

Company Guidance

During the call, the guidance highlighted several key metrics for the fiscal year ending March 31, 2025. Yasuhiro Ohmura, Deputy CFO, noted a decrease in both revenue and operating profit from Q1 to Q3, largely attributed to reduced sales in the semiconductor-related sectors of the Precision Equipment and Components businesses, and one-time costs totaling ¥5 billion due to headquarters relocation. The Imaging Products Business showed resilience, with revenue growing by ¥13.7 million to ¥235.6 billion and operating profit increasing by ¥900 million to ¥43.8 billion. However, the Precision Equipment Business experienced a downturn with revenue falling by ¥29.6 billion to ¥124.9 billion and operating profit dropping by ¥11.7 billion to a loss of ¥600 million. The Healthcare Business saw revenue rise by ¥4.7 billion to ¥81.5 billion, though operating profit decreased by ¥800 million to ¥2.1 billion. The Components Business faced declines in both revenue and operating profit, down by ¥10.3 billion to ¥49 billion and by ¥7.1 billion to ¥3.6 billion, respectively. Additionally, the Digital Manufacturing Business reported a revenue increase of ¥4.3 billion to ¥18.2 billion, but operating profit experienced a reduction and a deficit of ¥1.7 billion. The full-year forecast was revised down with revenue reduced by ¥5 billion and operating profit by ¥3 billion, while maintaining a profit attributable to owners of parents at ¥16 billion and an annual dividend of ¥55. Share buybacks worth ¥30 billion are in progress, with ¥19.3 billion already acquired by the end of January.

Nikon Corporate Events

Nikon Completes Share Repurchase and Announces Treasury Stock Cancellation

Mar 17, 2025

Nikon Corporation has concluded its repurchase of 2,371,000 shares of common stock, valued at approximately 3.78 billion yen, as part of a plan approved by its Board of Directors. Additionally, the company plans to cancel 17,891,000 shares of treasury stock by March 31, 2025, which represents 5.4% of its outstanding shares. This strategic move aims to optimize the company’s capital structure and potentially enhance shareholder value.

Nikon Corporation Advances Share Repurchase Program

Mar 3, 2025

Nikon Corporation has repurchased over 4.3 million shares of its common stock, amounting to approximately 6.8 billion yen, as part of a broader initiative approved by its Board of Directors. This move is part of a strategic plan to repurchase up to 30 million shares by March 2025, which could enhance shareholder value and optimize the company’s capital structure.

Nikon Records Decline in Profits but Expands Portfolio

Feb 6, 2025

Nikon Corporation reported a significant decline in its financial performance for the nine months ending December 31, 2024, with operating profit dropping by 76.4% compared to the previous year. Despite this downturn, the company continues to strategically expand its portfolio by acquiring RED Digital Cinema, Inc., aiming to strengthen its position in the digital imaging market.

Nikon Executes Share Repurchase to Strengthen Market Position

Feb 3, 2025

Nikon Corporation has repurchased 4,295,800 shares of its common stock for a total of 7,218,570,750 yen between January 1 and January 31, 2025, through open market purchases on the Tokyo Stock Exchange. This share repurchase is part of a broader initiative approved by Nikon’s Board of Directors to buy back up to 30 million shares, representing 8.7% of the company’s issued shares, with a total repurchase limit of 30 billion yen. This move may strengthen Nikon’s stock value and position in the market by optimizing its capital structure.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.