Nikon (7731) AI Stock Analysis

• Market Cap: $438.56B
• Dividend Yield: 0.03%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 78.5
• Beta (1Y): 1.00
• Revenue Growth: -0.27%
• EPS Growth: -81.00%
• Country: JP
• Employees: 19,444
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): -0.25
• Shares Outstanding: 333,585,700
• 10 Day Avg. Volume: 1,518,380
• 30 Day Avg. Volume: 1,492,836
• PEG Ratio: -1.02
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -130.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,681.82
• Price Target Upside: 19.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: ¥1,473.00 ▲(4.99%Upside)

Nikon's stock is under pressure due to financial challenges and technical weaknesses. While the company maintains a strong equity base and positive guidance for FY 2026, its current high valuation and past performance issues, especially in the semiconductor segment, weigh heavily on the overall score.

Nikon Business Overview & Revenue Model

Company Description

Nikon Corporation is a leading Japanese multinational corporation headquartered in Tokyo, Japan. It specializes in optics and imaging products, including cameras, camera lenses, microscopes, binoculars, and measurement instruments. Established in 1917, Nikon has grown to become a key player in the imaging and optics industry, serving various sectors such as consumer electronics, healthcare, industrial metrology, and precision equipment.

How the Company Makes Money

Nikon makes money through several revenue streams. The primary source of revenue is its Imaging Products Business, which includes the sale of digital cameras, interchangeable camera lenses, and accessories. The Precision Equipment Business is another significant contributor, providing equipment for semiconductor manufacturing and FPD (Flat Panel Display) production. The Healthcare Business also generates revenue through the sale of microscopes, ophthalmic lenses, and other medical-related products. Additionally, Nikon benefits from its Industrial Metrology and Others segment, offering products and services for industrial measurement solutions. Strategic partnerships, technological innovations, and global distribution networks further bolster Nikon's financial performance.

Nikon Financial Statement Overview

Summary

Nikon shows strong financial resilience with a solid equity position and positive operating cash flow. However, declining revenues, volatile profitability, and challenges in converting profits into free cash flow are areas that need 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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
875.49B	715.28B	717.25B	628.11B	539.61B	451.22B
	Gross Profit
328.85B	288.18B	310.05B	289.17B	236.07B	155.91B
	EBIT
44.85B	16.81B	41.99B	54.91B	49.93B	-56.24B
	EBITDA
83.64B	52.57B	86.17B	86.83B	71.01B	-17.85B
	Net Income Common Stockholders
19.55B	6.12B	32.57B	44.94B	42.68B	-34.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
325.26B	163.59B	206.64B	212.58B	371.23B	352.98B
	Total Assets
1.04T	1.11T	1.15T	1.05T	1.04T	989.74B
	Total Debt
139.29B	193.57B	166.71B	134.02B	130.06B	134.07B
	Net Debt
-185.98B	29.98B	-39.94B	-77.32B	-240.22B	-217.72B
	Total Liabilities
510.58B	471.29B	462.02B	431.92B	439.60B	451.01B
	Stockholders Equity
528.98B	637.98B	683.79B	614.97B	597.68B	537.59B
Cash Flow		Free Cash Flow
77.14B	-3.90B	-24.45B	-33.01B	7.53B	-18.13B
	Operating Cash Flow
99.68B	48.26B	30.77B	15.00M	31.35B	4.97B
	Investing Cash Flow
-91.16B	-69.99B	-41.41B	-112.15B	-385.00M	18.02B
	Financing Cash Flow
-16.46B	-19.81B	-8.94B	-56.21B	-26.15B	-4.99B

Nikon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1403.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1403 is below the 20-day moving average (MA) of 1421.83, below the 50-day MA of 1427.68, and below the 200-day MA of 1571.59, indicating a bearish trend. The MACD of -1.69 indicates Negative momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 46.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7731.

Nikon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7740	82 Outperform	¥132.03B	10.04		6.13%	14.84%	20.61%
7309	77 Outperform	$1.78T	29.12	7.32%	1.51%	3.37%	-2.27%
7839	73 Outperform	¥85.18B	12.48		4.41%	-2.75%	-7.80%
7458	66 Neutral	¥173.28B	9.19		3.66%	4.28%	47.50%
7951	65 Neutral	$475.75B	35.63	2.69%	1.26%	-0.17%	-53.42%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
7731	60 Neutral	$438.56B	78.55	0.91%	0.03%	-0.27%	-81.00%

Nikon Corporate Events

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.

Nikon Reports Higher-than-Expected Profit Due to Tax Revisions

Nikon Corporation announced a slight difference between its consolidated financial forecast and actual results for the fiscal year ended March 31, 2025. While revenue, operating profit, and profit before tax were mostly in line with forecasts, a revision of estimated tax expenses for a subsidiary led to a significant increase in profit attributable to owners of the parent, surpassing expectations by 36.1%.

Nikon Reports Fiscal Year 2025 Results Amid Strategic Restructuring

Nikon Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight decrease in revenue by 0.3% to 715,285 million yen. The company experienced a significant drop in operating profit by 93.9% and profit before tax by 89.4%, attributed to various market challenges. Despite these declines, Nikon has made strategic moves by acquiring RED Digital Cinema, Inc. and restructuring its operations, which may impact its future positioning in the industry.

Nikon Revises Financial Forecasts Amid One-Time Costs and Market Challenges

Nikon has announced the recognition of one-time costs totaling ¥14.2 billion due to revised business plans in response to changes in customer investments and a sluggish semiconductor market. This has led to a downward revision of its consolidated financial and dividend forecasts for the fiscal year ended March 31, 2025. The company’s revenue is expected to fall slightly short of previous forecasts, with significant declines in operating profit and profit before tax attributed to underperformance in its Imaging Products and Digital Manufacturing Businesses. Consequently, the year-end dividend per share has been adjusted from ¥30 to ¥25, reflecting the anticipated decline in profit attributable to owners.

Nikon Completes Share Repurchase and Announces Treasury Stock Cancellation

Nikon Corporation has concluded its repurchase of 2,371,000 shares of common stock, valued at approximately 3.78 billion yen, as part of a plan approved by its Board of Directors. Additionally, the company plans to cancel 17,891,000 shares of treasury stock by March 31, 2025, which represents 5.4% of its outstanding shares. This strategic move aims to optimize the company’s capital structure and potentially enhance shareholder value.