Nikon (7731) AI Stock Analysis

• Market Cap: $564.37B
• Dividend Yield: 2.78%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 46.9
• Beta (1Y): 0.82
• Revenue Growth: -3.24%
• EPS Growth: -65.77%
• Country: JP
• Employees: 19,444
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -12.51
• Shares Outstanding: 333,585,700
• 10 Day Avg. Volume: 1,878,420
• 30 Day Avg. Volume: 1,937,126
• 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 Cap: 0.96
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 12.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥1,860.00 ▲(2.65% Upside)

Nikon's overall stock score is primarily influenced by its financial performance and technical analysis. The financial performance shows significant challenges with declining revenue and profitability, which is a major concern. However, the technical analysis indicates some positive momentum, providing a counterbalance. The high P/E ratio suggests potential overvaluation, which negatively impacts the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Brand Reputation

Nikon's strong brand reputation in optics and imaging provides a durable competitive advantage, supporting sustained customer loyalty and market position.

Global Distribution Network

A robust global distribution network enhances Nikon's market reach and resilience, allowing it to effectively serve diverse markets and adapt to regional demands.

Strategic Partnerships

Strategic partnerships in technology and healthcare sectors drive innovation and expand Nikon's product offerings, strengthening its competitive position.

Negative Factors

Declining Revenue

The steep decline in revenue growth indicates challenges in maintaining market share and competitiveness, potentially impacting long-term sustainability.

Profitability Pressures

Low net profit margins suggest operational inefficiencies and pricing pressures, limiting Nikon's ability to generate sustainable profits.

Cash Flow Volatility

Volatile cash flow growth from a negative base highlights financial instability, potentially constraining Nikon's capacity for investment and growth.

Nikon Business Overview & Revenue Model

Company Description

Nikon Corporation (7731) is a leading global imaging and optics company based in Japan, specializing in the development and manufacturing of cameras, imaging products, and precision equipment. The company operates primarily in three segments: Imaging Products, which includes digital cameras, interchangeable lenses, and compact digital cameras; Precision Equipment, which focuses on semiconductor lithography equipment; and Healthcare, providing various medical imaging systems. Nikon is renowned for its innovation in photography and imaging technologies, catering to both consumer and professional markets.

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 amateur enthusiasts. Additionally, the Precision Equipment segment, which includes the sale of lithography equipment for semiconductor manufacturing, represents a significant source of income, particularly as the demand for advanced technology in electronics grows. The Healthcare segment also contributes to revenue through the sale of medical imaging equipment. Nikon's strategic partnerships with key players in the tech and healthcare industries, alongside its investment in research and development, further enhance its market position and revenue potential. Seasonal promotions and the release of new products also play a critical role in driving sales throughout the year.

Nikon Financial Statement Overview

Summary

Nikon's financial statements present a mixed picture. The income statement shows declining revenue and profitability, with operational challenges evident in negative EBIT margins. The balance sheet is stable with manageable leverage, but profitability from equity is low. Cash flow statements indicate volatility and challenges in generating positive free cash flow. Overall, Nikon faces significant challenges in improving revenue growth and profitability while maintaining financial stability.

Income Statement

Nikon's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a significant decline in revenue growth rate at -80.7%, which is concerning. Gross profit margin remains healthy at approximately 42.9%, but the net profit margin is low at 1.8%. The EBIT margin is negative, indicating operational challenges. EBITDA margin is moderate at 6.1%. Overall, the income statement reflects declining revenue and profitability pressures.

Balance Sheet

The balance sheet of Nikon is relatively stable. The debt-to-equity ratio is moderate at 0.33, indicating manageable leverage. Return on equity is low at 1.96%, suggesting limited profitability from equity. The equity ratio is not explicitly calculated but appears stable given the total assets and equity figures. Overall, the balance sheet shows a reasonable balance between debt and equity, but profitability from equity is a concern.

Cash Flow

Nikon's cash flow statement reveals some challenges. The free cash flow growth rate is positive at 405.7%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is low at 0.11, and the free cash flow to net income ratio is negative, highlighting cash flow issues. Overall, while there is some improvement in free cash flow, the cash flow situation remains weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	709.51B	715.28B	717.25B	628.11B	539.61B	451.22B
Gross Profit	304.32B	288.18B	310.05B	289.17B	236.07B	155.91B
EBITDA	43.12B	52.57B	86.17B	85.64B	82.10B	-17.85B
Net Income	12.84B	6.12B	32.57B	44.94B	42.68B	-34.50B
Balance Sheet
Total Assets	1.14T	1.11T	1.15T	1.05T	1.04T	989.74B
Cash, Cash Equivalents and Short-Term Investments	164.74B	163.59B	206.64B	212.58B	371.23B	352.98B
Total Debt	214.56B	193.57B	166.71B	134.02B	130.06B	134.07B
Total Liabilities	495.69B	471.29B	462.02B	431.92B	439.60B	451.01B
Stockholders Equity	641.49B	637.98B	683.79B	614.97B	597.68B	537.59B
Cash Flow
Free Cash Flow	-19.75B	-3.90B	-24.45B	-33.01B	7.53B	-18.13B
Operating Cash Flow	35.10B	48.26B	30.77B	15.00M	31.35B	4.97B
Investing Cash Flow	-58.22B	-69.99B	-41.41B	-112.15B	-385.00M	18.02B
Financing Cash Flow	1.38B	-19.81B	-8.94B	-56.21B	-26.15B	-4.99B

Nikon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1812.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1812 is above the 20-day moving average (MA) of 1790.98, above the 50-day MA of 1800.95, and above the 200-day MA of 1554.21, indicating a bullish trend. The MACD of 6.00 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7740	74 Outperform	¥172.48B	13.59	―	3.50%	-5.65%	-16.35%
7839	73 Outperform	¥90.01B	13.81	―	3.27%	-9.58%	-14.06%
7458	72 Outperform	¥164.67B	9.10	―	3.52%	6.12%	-3.75%
7951	71 Outperform	¥515.41B	28.07	3.68%	2.60%	-4.47%	-4.52%
7309	65 Neutral	$1.42T	28.28	5.92%	1.99%	7.64%	22.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7731	54 Neutral	$564.37B	46.87	1.29%	2.78%	-3.24%	-65.77%

Nikon Corporate Events

Nikon’s Major Shareholder Change: EssilorLuxottica Increases Stake

Nikon Corporation has announced a change in its major and largest shareholder, with EssilorLuxottica increasing its stake to 20% as of October 1, 2025. This development signifies a strengthening of the long-standing partnership between the two companies in the eyeglass lens market and reflects Nikon’s ongoing commitment to enhancing corporate value for stakeholders.

The most recent analyst rating on (JP:7731) stock is a Hold with a Yen2058.00 price target. To see the full list of analyst forecasts on Nikon stock, see the JP:7731 Stock Forecast page.

Nikon Corporation Reports Mixed Q2 Financial Results

Nikon Corporation, a prominent player in the imaging and precision equipment industry, is renowned for its innovative digital cameras and precision instruments. The company operates across multiple sectors including healthcare, components, and digital manufacturing.

Nikon Restructures Metrology Operations with Subsidiary Liquidation

Nikon Corporation has announced the dissolution and liquidation of its subsidiary, Nikon Metrology NV, as part of its structural reform efforts to enhance collaboration within the company and its group entities. This decision will lead to the transfer of corporate functions to Nikon Metrology Europe NV and direct oversight of business operations by Nikon, aiming to strengthen governance and sales capabilities. The company has also recognized deferred tax assets amounting to 9.3 billion yen, reflecting the financial impact of this restructuring on its consolidated financial statements.

The most recent analyst rating on (JP:7731) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Nikon stock, see the JP:7731 Stock Forecast page.

Nikon Reports Q1 Financial Decline, Projects Future Growth

Nikon Corporation reported a decline in revenue and operating profit for the three months ended June 30, 2025, with a notable decrease in profit before tax compared to the previous year. Despite these challenges, the company forecasts a significant improvement in profits for the fiscal year ending March 31, 2026, indicating potential recovery and growth in its financial performance.

The most recent analyst rating on (JP:7731) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on Nikon stock, see the JP:7731 Stock Forecast page.