Nikon Corp. (JP:7731)
:7731
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Nikon
(7731)
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Rating:48Neutral
Price Target:
¥1,830.00
▼(-6.44% Downside)
Action:ReiteratedDate:02/07/26
The score is held back mainly by weak financial performance, driven by TTM losses and cash burn, despite a relatively supportive balance sheet. Technicals are mixed with modest longer-term support but limited near-term momentum, while valuation is also mixed: a reasonable dividend yield is offset by a negative P/E tied to current losses.
Positive Factors
Relative Balance Sheet Strength
Nikon's moderate leverage (debt-to-equity ~0.42) and substantial equity provide durable financial flexibility. This cushion helps fund R&D, capital equipment cycles, and working-capital needs during profit recoveries, reducing short-term refinancing risk while management works to restore operating profitability.
Negative Factors
Weak Cash Generation
Recent negative operating cash flow and deep free-cash-flow deficits show Nikon is burning cash rather than generating it. Over months, persistent cash burn can deplete reserves, limit reinvestment in products and service infrastructure, and force greater reliance on debt or asset sales to fund operations.
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Positive Factors
Negative Factors
Relative Balance Sheet Strength
Nikon's moderate leverage (debt-to-equity ~0.42) and substantial equity provide durable financial flexibility. This cushion helps fund R&D, capital equipment cycles, and working-capital needs during profit recoveries, reducing short-term refinancing risk while management works to restore operating profitability.
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Nikon (7731) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥615.17B
Dividend Yield2.88%
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-3.24%
EPS Growth-65.77%
CountryJP
Employees19,444
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-281.31
Shares Outstanding333,585,700
10 Day Avg. Volume1,878,420
30 Day Avg. Volume1,937,126
Financial Highlights & Ratios
PEG Ratio-1.02
Price to Book (P/B)0.80
Price to Sales (P/S)0.71
P/FCF Ratio-130.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,791.07Price Target Upside-8.43% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-157.39
Revenue Forecast (FY)¥679.37B
Nikon Business Overview & Revenue Model
Company Description
Nikon Corporation manufactures and sells optical instruments in Japan, North America, Europe, China, Thailand, and internationally. It operates through three segments: Imaging Products Business, Precision Equipment Business, and Healthcare Busines...
How the Company Makes Money
Nikon generates revenue primarily through the sale of its imaging products, including digital cameras, lenses, and related accessories. The Imaging Products segment is the largest revenue contributor, targeting both professional photographers and ...
Nikon Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with some growth in imaging products and digital manufacturing, but significant challenges in semiconductor-related business and profitability due to one-time costs and strategic investments. The outlook anticipates improved profitability, but current performance fell short of expectations.Positive Updates
Revenue Growth in Imaging Products and Healthcare
Revenue from imaging products increased by ¥15.6 billion, reaching ¥295.3 billion, driven by strong demand in China and new wireless cameras. Healthcare also saw growth, with strong performance in eye care solutions.
Negative Updates
Decline in Semiconductor-Related Business
Sales in the semiconductor lithography system declined, leading to a ¥17.4 billion drop in overall precision equipment business revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth in Imaging Products and Healthcare
Revenue from imaging products increased by ¥15.6 billion, reaching ¥295.3 billion, driven by strong demand in China and new wireless cameras. Healthcare also saw growth, with strong performance in eye care solutions.
Read all positive updates
Company Guidance
During the call, Nikon provided guidance for the fiscal year 2026, projecting revenue of ¥710 billion, operating profit of ¥36 billion, and profit attributable to owners of the parent of ¥30 billion. The company anticipates a significant ¥33.6 billion increase in operating profit due to improved profitability, the absence of ¥27.2 billion in one-time costs from the previous year, and gains from sales of idle assets. However, a projected ¥10 billion negative impact on operating profit due to U.S. tariffs is not included in the forecast. Nikon plans to maintain the dividend at ¥50 per share, the same as last year, and anticipates a shareholder return ratio of 54.8% for the current fiscal year. The company aims to increase its market presence in areas like digital manufacturing, with expectations of a revenue increase in the segment by ¥9.7 billion to ¥33 billion, driven by growth in large format metal 3D printers. Additionally, Nikon plans to streamline operations in the semiconductor lithography business to achieve stable profits in future years.Nikon Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
64
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 686.52B | 715.28B | 717.25B | 628.11B | 539.61B | 451.22B |
| Gross Profit | 281.05B | 293.77B | 296.23B | 277.73B | 225.97B | 145.24B |
| EBITDA | 37.35B | 61.00B | 77.66B | 87.00B | 71.46B | 2.59B |
| Net Income | -87.36B | 6.12B | 32.57B | 44.94B | 42.68B | -34.50B |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.11T | 1.15T | 1.05T | 1.04T | 989.74B |
| Cash, Cash Equivalents and Short-Term Investments | 157.92B | 163.59B | 206.64B | 211.34B | 370.28B | 351.80B |
| Total Debt | 244.07B | 206.54B | 184.10B | 158.10B | 153.10B | 147.63B |
| Total Liabilities | 522.20B | 471.29B | 462.02B | 431.92B | 439.60B | 451.01B |
| Stockholders Equity | 576.22B | 637.98B | 683.79B | 614.97B | 597.68B | 537.59B |
Cash Flow | ||||||
| Free Cash Flow | -45.40B | -3.90B | -8.45B | -23.12B | 13.37B | -12.00B |
| Operating Cash Flow | -6.17B | 48.26B | 30.77B | 15.00M | 31.35B | 4.97B |
| Investing Cash Flow | -46.94B | -69.99B | -49.28B | -112.15B | -385.00M | 18.02B |
| Financing Cash Flow | 41.81B | -19.81B | -1.07B | -56.21B | -26.15B | -4.99B |
Nikon Technical Analysis
Positive
1956.00
Price Trends
1936.81
Positive
1861.26
Positive
1721.78
Positive
Market Momentum
4.33
Negative
52.95
Neutral
67.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7731, the sentiment is Positive. The current price of 1956 is above the 20-day moving average (MA) of 1945.03, above the 50-day MA of 1936.81, and above the 200-day MA of 1721.78, indicating a bullish trend. The MACD of 4.33 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7731.
Nikon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥169.65B | 14.21 | ― | 3.47% | -5.65% | -16.35% | |
67 Neutral | ¥551.24B | 11.82 | 3.68% | 2.35% | -4.47% | -4.52% | |
63 Neutral | ¥104.07B | 43.70 | ― | 4.78% | -1.25% | 9.33% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | ¥615.17B | -1.55 | 1.29% | 2.88% | -3.24% | -65.77% |
* Consumer Cyclical Sector Average
JP:7731
Nikon
1,968.00
441.38
28.91%
JP:7951
Yamaha
1,138.50
-50.95
-4.28%
JP:7740
Tamron Co., Ltd.
1,018.00
156.56
18.17%
JP:7944
Roland Corporation
3,980.00
329.41
9.02%
Nikon Corporate Events
Nikon Takes Major Impairment Hit on Digital Manufacturing and Metal 3D Printing Assets
Feb 5, 2026
Nikon has booked substantial impairment losses in its digital manufacturing business, recognizing a total of ¥90.6 billion in impairment charges on goodwill and other non-financial assets in its consolidated accounts for the third quarter of ...
Nikon Slashes Earnings and Dividend Outlook, Executives Forfeit Performance Pay
Feb 5, 2026
Nikon has sharply revised its consolidated forecast for the fiscal year ending March 31, 2026, now projecting a substantial operating loss and net loss instead of the modest profit previously expected, driven by weaker sales in its Imaging Product...
Nikon Cuts Full‑Year Outlook as Profitability Deteriorates Across Core Businesses
Feb 5, 2026
Nikon reported consolidated financial data for the nine months ended December 31, 2025, showing group revenue of ¥512.6 billion and operating profit of ¥8.1 billion, both down sharply year on year, with the company revising its full̴...
Nikon Swings to Heavy Loss and Cuts Forecasts While Trimming Group Structure
Feb 5, 2026
Nikon reported a sharp downturn for the nine months to December 31, 2025, with revenue falling 5.6% year-on-year to ¥483.9 billion and swinging to an operating loss of ¥103.6 billion, compared with a profit a year earlier, resulting in a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.