HOYA (HOCPY) AI Stock Analysis

• Market Cap: $63.07B
• Dividend Yield: 0.84%
• Average Volume (3M): 507.00
• Price to Earnings (P/E): 38.2
• Beta (1Y): 0.72
• Revenue Growth: 9.79%
• EPS Growth: 9.53%
• Country: US
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 338,414,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 507
• PEG Ratio: 2.28
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 6.66
• P/FCF Ratio: 31.53
• Enterprise Value/Market Cap: 146.72
• Enterprise Value/Revenue: 9.98
• Enterprise Value/Gross Profit: 12.09
• Enterprise Value/Ebitda: 20.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $211.00 ▲(37.85% Upside)
• Action: Upgraded Date: 02/02/26
• Date: Action: Upgraded 02/02/26

Score is driven primarily by strong financial performance (exceptional margins, very low leverage, and strong ROE). Technicals are supportive but somewhat overextended, while the overall rating is held back by a relatively high P/E and low dividend yield.

Positive Factors

High Profitability & Margins

Sustained, very-high margins indicate durable pricing power and a differentiated product mix across optics and medical devices. Such margin structure supports reinvestment, R&D, and resilience to input cost swings, underpinning long-term cash generation and competitive advantage.

Very Low Leverage & Strong ROE

Extremely low net leverage combined with high ROE gives financial flexibility to fund capex, acquisitions, or return capital without pressuring liquidity. This balance-sheet strength reduces insolvency risk in downturns and enables strategic moves without reliance on expensive debt.

Recurring Healthcare Sales Mix

Recurring demand from contact lenses and medical/ophthalmic products provides predictable revenue streams and repeat purchases. That durability supports stable cash flows, easier forecasting, and long-term customer relationships that bolster margins and reduce revenue volatility versus one-off sales.

Negative Factors

Modest Recent Revenue Growth

Slowing top-line expansion suggests HOYA is in a more mature phase where incremental earnings gains must come from margin expansion, share gains, or M&A. This constrains organic upside and raises the importance of sustaining innovation and premium product adoption to drive durable growth.

Free Cash Flow Below Net Income

Less-than-one-for-one conversion of accounting earnings into free cash flow implies meaningful cash absorbed by capex, working capital, or other uses. Persistently lower conversion can limit flexibility for buybacks, dividends, or aggressive reinvestment despite strong reported profits.

Cyclicality in Photomask / IT Segment

Exposure to semiconductor and display capital cycles introduces structural revenue volatility: demand depends on customer capex and node transitions. Even with a strong healthcare base, cyclical IT exposure can cause multi-quarter swings and makes long-term forecasting and growth smoothing harder.

HOYA Business Overview & Revenue Model

Company Description

HOYA Corporation is a Japanese multinational company that specializes in the manufacturing of optical products, including lenses for eyeglasses and cameras, as well as healthcare products and semiconductor-related materials. Established in 1941, HOYA operates in various sectors, primarily categorized into two main segments: the Eye Care segment, which focuses on ophthalmic lenses and optical products, and the Healthcare segment, which provides medical endoscopes, surgical instruments, and other healthcare solutions. The company is also involved in the production of advanced materials for the semiconductor industry, contributing to its diverse portfolio.

How the Company Makes Money

HOYA generates revenue through multiple key streams. The Eye Care segment contributes a significant portion of its income through the sale of prescription lenses, which are marketed to both consumers and optical retailers worldwide. This segment benefits from a growing demand for corrective eyewear due to increasing vision-related issues globally. In the Healthcare segment, revenue is derived from the sale of medical devices such as endoscopes and surgical instruments, which are utilized in various medical procedures. Additionally, HOYA earns revenue from the production of semiconductor materials, which are essential for the electronics industry. The company has established partnerships with major optical retailers and healthcare providers, enhancing its market reach and contributing to its consistent earnings. Overall, HOYA's diverse product offerings and strategic collaborations play a crucial role in its financial performance.

HOYA Financial Statement Overview

Summary

High-quality fundamentals: very strong profitability (TTM gross margin ~79.8%, operating margin ~34.8%, net margin ~27.3%), excellent balance sheet with very low leverage (debt-to-equity ~0.04) and strong ROE (~25.1% TTM). Cash generation is healthy (operating cash flow ~1.30x net income), but free cash flow conversion is somewhat below net income (~78%) and recent revenue growth is modest (TTM ~3.1%).

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability, with very high gross margin (~79.8%) and solid operating and net margins (~34.8% and ~27.3%). Revenue growth is positive but modest in the most recent period (TTM ~3.1%), and growth was also relatively light in the latest annual period (~0.2%), indicating a more mature growth profile. Overall, earnings power and margin structure are clear strengths, while the main watch item is the slower top-line growth trajectory recently.

Balance Sheet

Balance sheet quality is a standout: leverage is very low (debt-to-equity ~0.04 in TTM and ~0.038 in the latest annual), supported by a large equity base. Profitability on equity is strong (ROE ~25.1% TTM; ~20.7% latest annual), indicating efficient capital use without relying on heavy borrowing. The key weakness is limited in the provided data, but the low leverage can also imply less balance-sheet-driven acceleration if growth opportunities require sizable investment.

Cash Flow

Cash generation is healthy, with operating cash flow exceeding net income (about 1.30x in TTM and the latest annual), which supports earnings quality. Free cash flow is strong and growing (TTM free cash flow growth ~2.5%), though free cash flow runs below net income (TTM ~78%), suggesting working capital, capex, or other cash uses are absorbing a meaningful portion of profits. Overall cash flow profile is solid, with the main drawback being less-than-one-for-one conversion of accounting earnings into free cash flow.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	927.15B	885.82B	762.61B	734.10B	670.33B	558.26B
Gross Profit	765.40B	766.25B	421.69B	631.86B	567.28B	474.98B
EBITDA	451.54B	310.00B	285.70B	259.78B	243.96B	200.27B
Net Income	253.01B	202.10B	181.38B	168.64B	164.51B	125.45B
Balance Sheet
Total Assets	1.31T	1.23T	1.20T	1.03T	992.84B	853.29B
Cash, Cash Equivalents and Short-Term Investments	580.98B	538.53B	525.16B	426.27B	426.63B	338.79B
Total Debt	41.46B	37.28B	29.24B	24.58B	21.60B	20.75B
Total Liabilities	264.40B	262.65B	241.36B	213.72B	203.78B	180.88B
Stockholders Equity	1.03T	974.02B	967.76B	818.32B	803.85B	688.00B
Cash Flow
Free Cash Flow	153.05B	187.19B	181.73B	168.36B	161.18B	120.57B
Operating Cash Flow	194.99B	235.11B	222.80B	201.83B	190.06B	151.81B
Investing Cash Flow	8.07B	-33.19B	-35.81B	-47.50B	-29.30B	-29.79B
Financing Cash Flow	-214.81B	-190.35B	-110.89B	-194.59B	-106.72B	-115.67B

HOYA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 153.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOCPY, the sentiment is Positive. The current price of 153.06 is below the 20-day moving average (MA) of 175.29, below the 50-day MA of 163.48, and above the 200-day MA of 142.12, indicating a bullish trend. The MACD of 5.42 indicates Positive momentum. The RSI at 68.09 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOCPY.

HOYA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOCPY	78 Outperform	$63.07B	38.23	20.74%	0.84%	9.79%	9.53%
RMD	78 Outperform	$36.66B	24.87	25.68%	0.92%	9.36%	29.56%
ISRG	76 Outperform	$175.44B	64.27	16.67%	―	22.18%	21.37%
WST	72 Outperform	$17.67B	36.13	16.85%	0.32%	4.90%	-0.26%
BDX	68 Neutral	$51.96B	29.81	6.96%	2.13%	8.23%	-2.04%
HOLX	66 Neutral	$16.82B	31.26	10.86%	―	1.74%	-25.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%