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Topcon Corp (JP:7732)
:7732

Topcon (7732) AI Stock Analysis

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JP

Topcon

(OTC:7732)

Rating:60Neutral
Price Target:
¥3,406.00
▲(4.19%Upside)
The overall stock score is primarily influenced by the financial performance, which highlights stable revenue but significant challenges in profitability and capital utilization. The technical analysis is positive, suggesting short-term bullish momentum. However, the extremely high P/E ratio indicates significant overvaluation, which weighs heavily on the overall score.

Topcon (7732) vs. iShares MSCI Japan ETF (EWJ)

Topcon Business Overview & Revenue Model

Company DescriptionTopcon Corporation, together with its subsidiaries, develops, manufactures, and sells positioning, eye care, and smart infrastructure products worldwide. It offers 3d oct, retinal camera, slit lamps, auto refractometer, auto kerato-refractometer, tonometer, specular microscope, photocoagulator, operation microscope, vision tester, lensmeter, and chart projector, as well as IMAGEnet, an ophthalmic data system; and crop analysis, data management, guidance and autosteering, weighing and measurement, mapping, implement control, and feed management products. The company also provides geopositioning products comprising optical instruments, total stations, GPS systems, laser scanning, mobile mapping, GPS networks, field controllers, software, survey solutions; and construction products, including elevation lasers, alignment lasers, GPS rovers, layout instruments, equipment automation, sonic grade control, workflow solutions, and telematics site management. The company was formerly known as Tokyo Optical Co., Ltd. and changed its name to Topcon Corporation in 1989. Topcon Corporation was incorporated in 1932 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTopcon Corporation generates revenue primarily through the sale of its products and solutions in three main business segments: Positioning, Smart Infrastructure, and Eye Care. The Positioning segment includes sales of precision measurement devices and systems, such as GPS and GNSS products, which are used in construction, agriculture, and surveying. The Smart Infrastructure segment focuses on providing innovative solutions for infrastructure development, including optical instruments and machine automation systems. The Eye Care segment involves sales of diagnostic and surgical instruments for ophthalmology, contributing significantly to the company's revenue. Additionally, Topcon collaborates with various partners and engages in strategic alliances to enhance its market presence and drive sales growth. The company's earnings are bolstered by its commitment to research and development, ensuring a steady introduction of innovative products that meet evolving customer needs.

Topcon Financial Statement Overview

Summary
Topcon exhibits stable revenue but struggles with profitability and efficient capital utilization. The balance sheet is robust with a solid equity base, but increasing leverage poses risks. Cash flow management shows improvements, yet liquidity remains a concern with negative free cash flow.
Income Statement
68
Positive
Topcon's revenue growth has been minimal, with a slight decline from 2024 to 2025. The gross profit margin has decreased slightly from previous years, currently at 51.7% in 2025, indicating stable profitability but with some pressure on costs. The net profit margin decreased significantly to 0.19% in 2025, down from 2.28% in 2024, which suggests challenges in converting revenue into net income. EBIT and EBITDA margins also reflect a declining trend, raising concerns about operational efficiency.
Balance Sheet
75
Positive
Topcon's financial leverage has increased, with a rising debt-to-equity ratio which was 0.88 in 2025, up from 0.73 in 2024. However, the equity ratio remains healthy at 41.5%, reflecting a strong equity base relative to total assets. Return on equity has deteriorated to 0.40% in 2025 from 4.56% in 2024, indicating reduced efficiency in generating profit from shareholders' equity.
Cash Flow
60
Neutral
Free cash flow has improved but remains negative, indicating potential liquidity concerns. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to reported net income. However, the negative free cash flow to net income ratio indicates challenges in sustaining capital expenditures and other investments.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue213.18B216.00B216.50B215.63B176.42B137.25B
Gross Profit111.88B111.70B114.77B112.40B90.09B67.90B
EBITDA10.11B19.29B21.11B31.51B26.08B15.87B
Net Income1.72B418.00M4.94B11.81B10.70B2.38B
Balance Sheet
Total Assets250.19B249.14B247.03B207.89B184.98B168.21B
Cash, Cash Equivalents and Short-Term Investments23.94B20.23B19.62B17.66B20.12B20.82B
Total Debt92.89B91.02B79.56B53.48B43.36B52.99B
Total Liabilities145.26B144.30B136.73B110.85B99.83B97.52B
Stockholders Equity102.96B103.41B108.36B95.37B83.56B69.42B
Cash Flow
Free Cash Flow0.00-17.00M-4.82B343.00M12.86B9.52B
Operating Cash Flow0.009.43B8.85B9.83B20.53B19.44B
Investing Cash Flow0.00-15.64B-26.62B-12.76B-9.78B-9.23B
Financing Cash Flow0.008.77B17.99B-1.94B-13.61B-6.20B

Topcon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3269.00
Price Trends
50DMA
3250.12
Positive
100DMA
3117.26
Positive
200DMA
2576.08
Positive
Market Momentum
MACD
6.56
Positive
RSI
61.78
Neutral
STOCH
58.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7732, the sentiment is Positive. The current price of 3269 is above the 20-day moving average (MA) of 3264.65, above the 50-day MA of 3250.12, and above the 200-day MA of 2576.08, indicating a bullish trend. The MACD of 6.56 indicates Positive momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7732.

Topcon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$457.94B13.2211.49%1.46%8.15%3.41%
75
Outperform
¥537.31B28.975.58%2.19%-3.32%-48.13%
73
Outperform
$512.40B18.7813.63%1.69%24.52%88.51%
69
Neutral
$1.01T18.7510.72%0.23%5.30%-4.94%
63
Neutral
$34.04B6.14-11.52%1.82%5.53%-18.79%
63
Neutral
¥716.46B44.052.10%2.86%-2.08%100.89%
60
Neutral
¥344.60B826.210.43%1.34%-0.23%-91.56%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7732
Topcon
3,269.00
1,462.64
80.97%
JP:6645
OMRON
3,640.00
-1,956.38
-34.96%
JP:7701
Shimadzu
3,442.00
-695.51
-16.81%
JP:6856
Horiba
10,930.00
-2,118.63
-16.24%
JP:6965
Hamamatsu Photonics KK
1,739.00
-339.77
-16.34%
JP:4186
Tokyo Ohka Kogyo Co
4,140.00
-77.46
-1.84%

Topcon Corporate Events

Topcon Announces New Share Issuance for Restricted Stock Compensation
Jun 26, 2025

Topcon Corporation has announced the issuance of new shares as part of a restricted stock compensation plan aimed at enhancing corporate value and aligning the interests of directors and executive officers with shareholders. This strategic move involves issuing 57,400 shares of common stock to eligible directors and executive officers, with the goal of incentivizing sustainable growth and shared value creation.

The most recent analyst rating on (JP:7732) stock is a Buy with a Yen2725.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Announces Changes in Board of Directors
May 23, 2025

Topcon Corporation has announced changes in its Board of Directors, aiming to strengthen its management structure for sustainable growth and enhanced corporate value. The changes include the appointment of Yoshikuni Ito as a new director, while Takayuki Yamazaki will retire from his position. These changes are set to be confirmed at the upcoming General Meeting of Shareholders on June 26, 2025.

The most recent analyst rating on (JP:7732) stock is a Buy with a Yen2725.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Corporation Reports FY2024 Financial Results and Strategic Growth Initiatives
May 12, 2025

Topcon Corporation’s FY2024 financial results revealed stable net sales but a decline in profits, attributed to market downturns affecting its positioning business and accelerated sales growth in its eye care segment outside China. The company is pursuing structural reforms and strategic partnerships to enhance profitability and growth, including a tender offer with TK Co., Ltd., and strengthening its foundation through collaborations with KKR and JICC.

Topcon Corporation Exceeds Financial Forecasts for FY 2025
May 12, 2025

Topcon Corporation announced a positive variance between its financial forecast and actual results for the fiscal year ending March 31, 2025. The company reported higher-than-expected net sales and profits, attributed to controlled expenses and a favorable exchange rate due to the yen’s depreciation in the fourth quarter, indicating a strong operational performance and potential positive implications for stakeholders.

Topcon Amends Tender Offer Notice, Reaffirms Support
Apr 16, 2025

Topcon Corporation has announced amendments to its previous notice regarding a tender offer for its shares by TK Co., Ltd., which involves a management buyout and capital participation by KKR Japan and JIC Capital. The company’s board of directors has resolved to support the tender offer, recommending shareholders and holders of share options to tender their shares. The tender offer is expected to commence around the end of July 2025, pending necessary clearances, and involves significant reinvestment by ValueAct Japan Master Fund and ValueAct Strategic Master Fund II.

TK Co., Ltd. Amends Tender Offer for Topcon Shares Amid MBO and KKR Participation
Apr 16, 2025

TK Co., Ltd. announced amendments to its planned tender offer for Topcon Corporation shares as part of a management buyout (MBO) and capital participation by KKR and JICC. The agreement involves ValueAct Capital tendering its shares, with the board of Topcon supporting the offer, potentially impacting shareholder decisions and market positioning.

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.Date of analysis: May 27, 2025