Nikon (7731) AI Stock Analysis

• Market Cap: $444.65B
• Dividend Yield: 3.46%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 0.92
• Revenue Growth: -1.87%
• EPS Growth: -59.25%
• Country: JP
• Employees: 19,444
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Leisure
• EPS (TTM): 28.79
• Shares Outstanding: 333,585,700
• 10 Day Avg. Volume: 1,571,230
• 30 Day Avg. Volume: 1,369,230
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: 11.54
• 1Y Price Target: $1,665.19
• Price Target Upside: 14.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥1,488.00 ▲(2.34% Upside)

Nikon's overall score is driven by its financial resilience and positive aspects of its earnings call, such as growth in certain segments. However, challenges in profitability, technical indicators suggesting bearish momentum, and a high P/E ratio weigh on the score.

Nikon Business Overview & Revenue Model

Company Description

Nikon Corporation, headquartered in Tokyo, Japan, is a renowned multinational corporation that specializes in optics and imaging products. Established in 1917, Nikon is a leader in the design and manufacturing of cameras, camera lenses, microscopes, and precision equipment. The company operates through several business segments including Imaging Products, Precision Equipment, Healthcare, and Industrial Metrology and Others. Nikon is particularly well-known for its digital cameras, particularly the Nikon F-series of 35mm film cameras and its digital SLR models.

How the Company Makes Money

Nikon generates revenue primarily through the sale of its imaging products, such as cameras and camera-related equipment, which is a significant part of its business. The Precision Equipment business segment also contributes substantially, focusing on the production and sale of semiconductor lithography systems. Additionally, the Healthcare business segment, which includes microscopes and other scientific instruments, provides a steady revenue stream. Nikon's Industrial Metrology and Others segment, which includes industrial precision equipment and inspection systems, also plays a role in its earnings. The company benefits from strategic partnerships and collaborations within the technology and healthcare sectors, which help it expand its market reach and innovate product offerings. Furthermore, Nikon's global distribution network and brand reputation are critical factors that support its revenue generation.

Nikon Financial Statement Overview

Summary

Nikon shows financial resilience with a strong equity base and operating cash flow. However, declining revenues, volatile profitability, and issues in converting profits into free cash flow highlight areas for improvement.

Income Statement

Nikon's revenue has experienced fluctuations, with a notable decline in the most recent year. The gross profit margin remains strong, but EBIT and EBITDA margins have shown volatility, particularly with a significant dip in EBIT in 2021. Net profit margin has been positive, but shrinking net income in recent years is a concern.

Balance Sheet

Nikon maintains a solid equity base, with a high equity ratio indicating stability. The debt-to-equity ratio is moderate, suggesting manageable leverage. However, the decrease in stockholders' equity and total assets over time signals potential financial weakness.

Cash Flow

Operating cash flow is positive, but free cash flow has been negative in recent years, indicating capital expenditure challenges. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio shows a need for improvement in cash generation relative to profits.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	715.28B	717.25B	628.11B	539.61B	451.22B
Gross Profit	288.18B	310.05B	289.17B	236.07B	155.91B
EBITDA	52.57B	86.17B	86.83B	71.01B	-17.85B
Net Income	6.12B	32.57B	44.94B	42.68B	-34.50B
Balance Sheet
Total Assets	1.11T	1.15T	1.05T	1.04T	989.74B
Cash, Cash Equivalents and Short-Term Investments	163.59B	206.64B	212.58B	371.23B	352.98B
Total Debt	193.57B	166.71B	134.02B	130.06B	134.07B
Total Liabilities	471.29B	462.02B	431.92B	439.60B	451.01B
Stockholders Equity	637.98B	683.79B	614.97B	597.68B	537.59B
Cash Flow
Free Cash Flow	-3.90B	-24.45B	-33.01B	7.53B	-18.13B
Operating Cash Flow	48.26B	30.77B	15.00M	31.35B	4.97B
Investing Cash Flow	-69.99B	-41.41B	-112.15B	-385.00M	18.02B
Financing Cash Flow	-19.81B	-8.94B	-56.21B	-26.15B	-4.99B

Nikon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1454.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 1454 is above the 20-day moving average (MA) of 1447.25, above the 50-day MA of 1447.34, and below the 200-day MA of 1552.15, indicating a bearish trend. The MACD of -7.85 indicates Positive momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 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
7839	79 Outperform	¥101.18B	15.52		3.71%	-3.75%	-8.15%
7740	77 Outperform	¥163.65B	12.00		12.56%	2.17%	0.64%
7458	74 Outperform	¥180.66B	9.98		3.26%	5.69%	48.81%
Sector *	67 Neutral	¥283.86B	15.21	6.81%	2.47%	5.05%	-21.29%
7309	67 Neutral	$1.44T	40.32	4.25%	1.96%	10.17%	-32.40%
7731	63 Neutral	$444.65B	36.93	1.99%	3.46%	-1.87%	-59.25%
7951	60 Neutral	$468.83B	73.39	1.32%	2.55%	-3.20%	-79.66%

Nikon Corporate Events

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.

Nikon Completes Treasury Stock Disposal for Remuneration Plans

Nikon Corporation has completed the payment procedures for the disposal of treasury stock as part of its restricted stock and performance-based stock remuneration plans. This strategic move, resolved at the Board of Directors meeting on May 19, 2025, involves the disposal of a total of 190,908 shares of common stock, which is expected to impact the company’s financial structuring and align the interests of its directors and officers with company 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.

Nikon Announces Disposal of Treasury Stock for Remuneration

Nikon Corporation has announced its decision to dispose of treasury stock as part of its restricted and performance-based stock remuneration systems. This move is intended to align the interests of its directors and officers with the company’s medium-term management goals and enhance corporate value. The disposal involves a significant number of shares and is part of a broader strategy to replace previous stock compensation systems, aiming to promote greater value sharing with shareholders.

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.