Topcon (7732) AI Stock Analysis

• Market Cap: ¥344.60B
• Dividend Yield: 1.34%
• Average Volume (3M): 403.28K
• Price to Earnings (P/E): 826.2
• Beta (1Y): 0.87
• Revenue Growth: -0.23%
• EPS Growth: -91.56%
• Country: JP
• Employees: 5,556
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 31.14
• Shares Outstanding: 108,382,645
• 10 Day Avg. Volume: 387,590
• 30 Day Avg. Volume: 403,283
• PEG Ratio: 1.55
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 546.90
• 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: ¥3,299.62
• Price Target Upside: 0.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• 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 Business Overview & Revenue Model

Company Description

Topcon 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 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

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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	213.18B	216.00B	216.50B	215.63B	176.42B	137.25B
Gross Profit	111.88B	111.70B	114.77B	112.40B	90.09B	67.90B
EBITDA	10.11B	19.29B	21.11B	31.51B	26.08B	15.87B
Net Income	1.72B	418.00M	4.94B	11.81B	10.70B	2.38B
Balance Sheet
Total Assets	250.19B	249.14B	247.03B	207.89B	184.98B	168.21B
Cash, Cash Equivalents and Short-Term Investments	23.94B	20.23B	19.62B	17.66B	20.12B	20.82B
Total Debt	92.89B	91.02B	79.56B	53.48B	43.36B	52.99B
Total Liabilities	145.26B	144.30B	136.73B	110.85B	99.83B	97.52B
Stockholders Equity	102.96B	103.41B	108.36B	95.37B	83.56B	69.42B
Cash Flow
Free Cash Flow	0.00	-17.00M	-4.82B	343.00M	12.86B	9.52B
Operating Cash Flow	0.00	9.43B	8.85B	9.83B	20.53B	19.44B
Investing Cash Flow	0.00	-15.64B	-26.62B	-12.76B	-9.78B	-9.23B
Financing Cash Flow	0.00	8.77B	17.99B	-1.94B	-13.61B	-6.20B

Topcon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3269.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6856	81 Outperform	$457.94B	13.22	11.49%	1.46%	8.15%	3.41%
6965	75 Outperform	¥537.31B	28.97	5.58%	2.19%	-3.32%	-48.13%
4186	73 Outperform	$512.40B	18.78	13.63%	1.69%	24.52%	88.51%
7701	69 Neutral	$1.01T	18.75	10.72%	0.23%	5.30%	-4.94%
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
6645	63 Neutral	¥716.46B	44.05	2.10%	2.86%	-2.08%	100.89%
7732	60 Neutral	¥344.60B	826.21	0.43%	1.34%	-0.23%	-91.56%

Topcon Corporate Events

Topcon Announces New Share Issuance for Restricted Stock Compensation

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

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

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

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

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.