Nikon (7731) AI Stock Analysis

• Market Cap: ¥543.27B
• Dividend Yield: 2.88%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 68.4
• Beta (1Y): 0.84
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 56 Neutral
• Price Target: ¥1,889.00 ▲(9.83% Upside)

Nikon's overall stock score reflects a stable financial position with strong gross profitability and positive technical momentum. However, challenges in operational efficiency, net profitability, and cash flow management weigh on the score. The high valuation suggests the stock may be overvalued, limiting upside potential. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Gross Profitability

A strong gross profit margin indicates efficient production and pricing strategies, providing a buffer against cost fluctuations and supporting long-term profitability.

Stable Balance Sheet

A stable balance sheet with a reasonable debt-to-equity ratio suggests financial prudence, enabling the company to manage leverage effectively and invest in growth opportunities.

Free Cash Flow Growth

Positive growth in free cash flow indicates improving cash generation capabilities, which can be reinvested in the business or used to strengthen the balance sheet.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in market demand or competitive positioning, potentially impacting long-term growth prospects and market share.

Low Net Profit Margin

A low net profit margin suggests challenges in cost management or pricing power, which can limit profitability and reduce financial flexibility over time.

Negative Free Cash Flow

Negative free cash flow indicates cash outflows exceeding inflows, which can strain liquidity and hinder the company's ability to fund operations or invest in growth.

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 Business. The Imaging Products Business segment develops, manufacture, sells, and services digital SLR cameras, compact digital cameras, and interchangeable camera lenses. The Precision Equipment Business segment provides FPD lithography systems and semiconductor lithography systems. The Healthcare Business segment offers biological microscopes, cell culture observation systems, and ultra-wide field retinal imaging devices. In addition, the company provides industrial microscopes, measuring instruments, non-contact 3D metrology systems, X-ray/CT inspection systems, and surveying instruments; and customized products, glass, encoders, and ophthalmic lenses. Further, it offers photomask substrates, camera components, sport optics products, and molded optical glasses; and develops and supports computer software. Nikon Corporation was incorporated in 1917 and is headquartered in Tokyo, Japan.

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	695.42B	715.28B	717.25B	628.11B	539.61B	451.22B
Gross Profit	291.12B	288.18B	310.05B	289.17B	236.07B	155.91B
EBITDA	35.72B	52.57B	86.17B	85.64B	82.10B	-17.85B
Net Income	8.52B	6.12B	32.57B	44.94B	42.68B	-34.50B
Balance Sheet
Total Assets	1.15T	1.11T	1.15T	1.05T	1.04T	989.74B
Cash, Cash Equivalents and Short-Term Investments	160.63B	163.59B	206.64B	212.58B	371.23B	352.98B
Total Debt	223.50B	193.57B	166.71B	134.02B	130.06B	134.07B
Total Liabilities	499.58B	471.29B	462.02B	431.92B	439.60B	451.01B
Stockholders Equity	653.36B	637.98B	683.79B	614.97B	597.68B	537.59B
Cash Flow
Free Cash Flow	-40.04B	-3.90B	-24.45B	-33.01B	7.53B	-18.13B
Operating Cash Flow	4.37B	48.26B	30.77B	15.00M	31.35B	4.97B
Investing Cash Flow	-48.84B	-69.99B	-41.41B	-112.15B	-385.00M	18.02B
Financing Cash Flow	8.35B	-19.81B	-8.94B	-56.21B	-26.15B	-4.99B

Nikon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1720.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1720 is below the 20-day moving average (MA) of 1799.80, below the 50-day MA of 1802.37, and above the 200-day MA of 1574.73, indicating a neutral trend. The MACD of -19.65 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 19.01 is Positive, 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	¥97.74B	15.15	―	3.29%	-9.58%	-14.06%
7740	74 Outperform	¥174.15B	13.72	―	3.47%	-5.65%	-16.35%
7458	72 Outperform	¥174.12B	11.89	―	3.40%	6.12%	-3.75%
7951	68 Neutral	¥535.26B	29.16	3.68%	2.35%	-4.47%	-4.52%
7309	65 Neutral	¥1.44T	29.08	5.92%	1.93%	7.64%	22.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7731	56 Neutral	¥543.27B	68.35	1.29%	2.88%	-3.24%	-65.77%

Nikon Corporate Events

Nikon Reports Mixed Financial Results with Positive Profit Outlook

Nikon Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a decline in revenue by 6% compared to the previous year. Despite the decrease in operating profit, the company experienced a significant increase in profit attributable to owners of the parent, which rose by 80.7%. The financial forecast for the fiscal year ending March 31, 2026, anticipates a revenue decline of 4.9%, but a substantial increase in operating profit and profit before tax, indicating a positive outlook for the company’s financial performance.

Nikon Revises Financial Forecast Amid Market Challenges

Nikon has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, due to changes in revenue expectations across its business segments. While the first half of the year saw some positive adjustments due to foreign exchange benefits and cost reductions, the overall annual forecast has been downgraded, primarily due to anticipated sales shortfalls in the Precision Equipment and Digital Manufacturing businesses. The company has also updated its exchange rate assumptions for the remainder of the fiscal year.

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.