Nikon Corp. (JP:7731)
:7731
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Nikon
(7731)
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Rating:52Neutral
Price Target:
¥1,942.00
▲(1.38% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weakened financial performance—loss-making results and negative free cash flow in the latest year—despite a balance sheet that is not heavily levered. Technicals are a positive offset with strong momentum and price strength vs. moving averages, though overbought signals add risk. Valuation is mixed, with a negative P/E driven by losses and only a modest dividend yield.
Positive Factors
Diversified business model
Nikon generates revenue from consumer imaging and industrial/precision businesses plus after‑sales services and bundled software. This diversification spreads demand risk across end markets, supports recurring service revenue, and helps stabilize top‑line exposure over multiple quarters.
Negative Factors
Profitability deterioration
The shift from prior profitable years to an operating loss and large net loss signals structural margin pressure from weaker mix, cost increases or one‑offs. Sustained negative profitability erodes retained earnings and undermines the company's ability to fund strategic initiatives without external support.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Nikon generates revenue from consumer imaging and industrial/precision businesses plus after‑sales services and bundled software. This diversification spreads demand risk across end markets, supports recurring service revenue, and helps stabilize top‑line exposure over multiple quarters.
Read all positive factors
Nikon (7731) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥601.10B
Dividend Yield2.88%
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-5.33%
EPS Growth-1578.42%
CountryJP
Employees19,444
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-261.48
Shares Outstanding333,585,700
10 Day Avg. Volume1,878,420
30 Day Avg. Volume1,937,126
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.06
Price to Sales (P/S)0.92
P/FCF Ratio-15.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,800.00Price Target Upside-6.03% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)51.93
Revenue Forecast (FY)¥711.95B
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 primarily makes money by manufacturing and selling hardware, along with related accessories and services, across consumer imaging and industrial/precision domains. A major revenue stream comes from its Imaging business, where it sells interc...
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
62
Positive
Cash Flow
29
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 677.16B | 715.28B | 717.25B | 628.11B | 539.61B |
| Gross Profit | 255.30B | 293.77B | 296.23B | 277.73B | 225.97B |
| EBITDA | 31.10B | 61.00B | 77.66B | 87.00B | 71.46B |
| Net Income | -86.09B | 6.12B | 32.57B | 44.94B | 42.68B |
Balance Sheet | |||||
| Total Assets | 1.08T | 1.11T | 1.15T | 1.05T | 1.04T |
| Cash, Cash Equivalents and Short-Term Investments | 158.04B | 163.59B | 206.64B | 211.34B | 370.28B |
| Total Debt | 219.96B | 206.54B | 184.10B | 158.10B | 153.10B |
| Total Liabilities | 486.81B | 471.29B | 462.02B | 431.92B | 439.60B |
| Stockholders Equity | 586.78B | 637.98B | 683.79B | 614.97B | 597.68B |
Cash Flow | |||||
| Free Cash Flow | -40.98B | -3.90B | -8.45B | -23.12B | 13.37B |
| Operating Cash Flow | -4.44B | 48.26B | 30.77B | 15.00M | 31.35B |
| Investing Cash Flow | -12.60B | -69.99B | -49.28B | -112.15B | -385.00M |
| Financing Cash Flow | 858.00M | -19.81B | -1.07B | -56.21B | -26.15B |
Nikon Technical Analysis
Positive
1915.50
Price Trends
1933.88
Positive
1894.02
Positive
1784.35
Positive
Market Momentum
63.66
Negative
52.65
Neutral
59.25
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 1915.5 is below the 20-day moving average (MA) of 1932.88, below the 50-day MA of 1933.88, and above the 200-day MA of 1784.35, indicating a bullish trend. The MACD of 63.66 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 59.25 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 | ¥168.81B | 14.71 | ― | 3.47% | -4.54% | -15.36% | |
70 Neutral | ¥119.37B | 17.64 | ― | 4.78% | 4.15% | -73.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥493.71B | 20.93 | 3.68% | 2.35% | 0.70% | 95.26% | |
52 Neutral | ¥601.10B | -7.22 | 1.29% | 2.88% | -5.33% | -1578.42% |
* Consumer Cyclical Sector Average
JP:7731
Nikon
1,923.00
581.19
43.31%
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12.55%
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Nikon Corporate Events
Nikon Overhauls Director Stock Compensation to Align With New Strategy
May 18, 2026
Nikon has approved a proposal to revise its stock compensation system for directors who are not Audit and Supervisory Committee members, aligning incentives with a new medium-term management plan. The move adjusts restricted stock and performance ...
Nikon to Dispose of Treasury Stock for Performance-Based Executive Remuneration
May 18, 2026
Nikon has approved the disposal of 7,686 shares of its treasury stock, valued at approximately ¥17.4 million, to be used as performance-based stock remuneration for one director and 15 officers. The transaction, scheduled for June 17, 2026, i...
Nikon’s Profit Slumps as It Reshapes Portfolio and Cuts Dividend
May 8, 2026
Nikon reported consolidated revenue of ¥677.1 billion for the fiscal year ended March 31, 2026, down from ¥715.2 billion a year earlier, with operating profit slipping to ¥2.4 billion from ¥5.8 billion, reflecting pressure on o...
Nikon Swings to Loss but Targets Profit Recovery in FY2027
May 8, 2026
Nikon reported a sharp swing to a consolidated operating loss of ¥112.4 billion on revenue of ¥677.2 billion for the year to March 31, 2026, with profit attributable to owners turning to a ¥86.1 billion loss and basic earnings per s...
Nikon Books ¥11.3 Billion One-Off Charge on Weak Semiconductor Lithography Demand
Apr 30, 2026
Nikon said it will book one-time costs of ¥11.3 billion in its Precision Equipment Business for the March 2026 quarter, reflecting impairment losses on non-current assets and write-downs of long-held inventories after a downturn in its semico...
Nikon to Unlock Pension Surplus With Partial Termination of Retirement Benefit Trust
Feb 25, 2026
Nikon has decided to partially terminate its retirement benefit trust after determining that total pension assets, including the trust, exceed its retirement benefit obligations and are expected to remain sufficient. The move reflects a solid fund...
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.