Topcon (7732) AI Stock Analysis

• Market Cap: $339.85B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 196.9
• Beta (1Y): 0.84
• Revenue Growth: -1.17%
• EPS Growth: -59.91%
• Country: JP
• Employees: 5,556
• Sector: Technology
• Sector Strength: 65
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 31.14
• Shares Outstanding: 108,382,645
• 10 Day Avg. Volume: 1,104,700
• 30 Day Avg. Volume: 1,386,523
• PEG Ratio: -2.90
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $3,288.25
• Price Target Upside: 1.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Topcon's stock score reflects a mixed financial performance with stable profitability and leverage but concerning cash flow issues. Technical analysis shows positive price momentum, although the high P/E ratio raises valuation concerns. The absence of detailed earnings call information and corporate events limits further insights.

Topcon Business Overview & Revenue Model

Company Description

Topcon Corporation is a Japanese company that specializes in the manufacturing and distribution of optical equipment and instruments. The company operates in key sectors including healthcare, positioning, and smart infrastructure. Its core products and services include ophthalmic diagnostic equipment, precision GPS systems, and solutions for infrastructure development. Topcon is known for integrating advanced technology into its products, serving a broad range of industries including construction, agriculture, and healthcare.

How the Company Makes Money

Topcon 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
213.18B	216.50B	215.63B	176.42B	137.25B	138.92B
	Gross Profit
111.47B	114.77B	112.40B	90.09B	67.90B	72.63B
	EBIT
5.50B	11.20B	19.54B	15.91B	6.59B	5.38B
	EBITDA
14.42B	21.11B	31.51B	26.08B	15.87B	13.58B
	Net Income Common Stockholders
1.73B	4.94B	11.81B	10.70B	2.38B	935.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.94B	19.62B	17.66B	20.12B	20.82B	16.13B
	Total Assets
250.19B	247.03B	207.89B	184.98B	168.21B	161.72B
	Total Debt
92.89B	79.56B	53.48B	43.36B	52.99B	57.37B
	Net Debt
68.95B	59.94B	35.82B	23.24B	32.17B	41.24B
	Total Liabilities
145.26B	136.73B	110.85B	99.83B	97.52B	97.06B
	Stockholders Equity
102.95B	108.36B	95.37B	83.56B	69.42B	63.16B
Cash Flow		Free Cash Flow
0.00	-4.82B	343.00M	12.86B	9.52B	-381.00M
	Operating Cash Flow
0.00	8.85B	9.83B	20.53B	19.44B	7.94B
	Investing Cash Flow
0.00	-26.62B	-12.76B	-9.78B	-9.23B	-6.81B
	Financing Cash Flow
0.00	17.99B	-1.94B	-13.61B	-6.20B	2.00B

Topcon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3224.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3224 is above the 20-day moving average (MA) of 3205.40, above the 50-day MA of 3064.15, and above the 200-day MA of 2236.64, indicating a bullish trend. The MACD of 41.63 indicates Positive momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6501	77 Outperform	$17.77T	29.06	10.50%	1.06%	0.56%	5.32%
7013	69 Neutral	$1.89T	16.78	25.94%	0.92%	26.13%	―
7752	68 Neutral	¥906.30B	22.66	4.15%	2.44%	7.96%	-25.19%
6645	66 Neutral	¥791.26B	48.65	2.10%	2.49%	-6.57%	-76.15%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
7732	59 Neutral	$339.85B	196.94	1.83%	0.62%	-1.17%	-59.91%
7731	57 Neutral	$449.66B	80.54	0.91%	3.24%	0.01%	-54.41%

Topcon Corporate Events

Topcon Amends Tender Offer Notice, Reaffirms Support

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

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.

Topcon Revises Dividend Forecast Amid Tender Offer Plans

Topcon Corporation announced a revision to its year-end dividend forecast for the fiscal year ending March 2025, deciding to suspend dividend payments. This decision is linked to a tender offer by TK Co., Ltd., which includes a plan for Topcon’s shares to be delisted as part of a management buyout and capital participation by KKR Japan and JIC Capital, Ltd. The board supports the tender offer, recommending shareholders tender their shares, as the offer price was determined with the nonpayment of dividends in mind.

Topcon Supports Tender Offer in MBO with KKR and JIC Involvement

Topcon Corporation announced its support for a tender offer by TK Co., Ltd. as part of a Management Buyout (MBO) with capital participation from KKR Japan and JIC Capital, Ltd. The board of directors recommends shareholders and option holders to tender their shares, with an expected delisting of the company shares. The tender offer is contingent on regulatory clearances across multiple jurisdictions, with a planned commencement around July 2025.

TK Co., Ltd. Announces Tender Offer for Topcon Corporation

TK Co., Ltd. announced a planned tender offer for Topcon Corporation’s shares as part of a management buyout and capital participation by KKR and JICC. This move, subject to regulatory clearances across multiple jurisdictions, aims to enhance Topcon’s strategic positioning and operational capabilities, potentially impacting stakeholders by aligning with national security interests.