Topcon (7732) AI Stock Analysis

• Market Cap: $346.15B
• Dividend Yield: 1.28%
• Average Volume (3M): 624.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -2.92%
• EPS Growth: -319.34%
• Country: JP
• Employees: 5,556
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -75.34
• Shares Outstanding: 108,440,040
• 10 Day Avg. Volume: 312,660
• 30 Day Avg. Volume: 624,903
• PEG Ratio: -8.97
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 1.59
• P/FCF Ratio: -20.19K
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 27.71
• 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: 58 Neutral
• Price Target: ¥3,409.00 ▲(3.81% Upside)

Topcon's overall stock score is primarily influenced by its financial performance and valuation. While the company maintains a strong equity base, profitability challenges and increasing leverage are significant concerns. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation issues. The modest dividend yield provides limited support.

Topcon Business Overview & Revenue Model

Company Description

Topcon Corporation (7732) is a leading global provider of precision measurement and positioning solutions, primarily serving the construction, civil engineering, and agricultural sectors. The company specializes in advanced optical instruments, GPS positioning systems, and software solutions that enhance productivity and efficiency in various applications. Topcon's core product offerings include surveying equipment, machine control systems, and precision agriculture technologies.

How the Company Makes Money

Topcon generates revenue through multiple streams, primarily by selling its precision measurement equipment and software solutions to construction, surveying, and agriculture businesses. The company earns money through the direct sale of products, such as total stations, GNSS receivers, and laser scanners, as well as through service contracts, support, and training for these products. Additionally, Topcon benefits from recurring revenue through software subscriptions and updates, particularly in its precision agriculture and construction management solutions. Strategic partnerships with other technology firms and integration with third-party systems further enhance its market reach and capabilities, contributing to its overall earnings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	213.09B	216.00B	216.50B	215.63B	176.42B	137.25B
Gross Profit	110.93B	111.70B	114.77B	112.40B	90.09B	67.90B
EBITDA	15.38B	19.29B	21.11B	29.30B	26.08B	14.79B
Net Income	-684.00M	418.00M	4.94B	11.81B	10.70B	2.38B
Balance Sheet
Total Assets	256.33B	249.14B	247.03B	207.89B	184.98B	168.21B
Cash, Cash Equivalents and Short-Term Investments	22.22B	20.23B	19.62B	17.66B	20.12B	20.82B
Total Debt	102.64B	91.02B	79.56B	53.48B	43.36B	52.99B
Total Liabilities	153.09B	144.30B	136.73B	110.85B	99.83B	97.52B
Stockholders Equity	101.78B	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	-15.72B	-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: 3284.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3284 is above the 20-day moving average (MA) of 3283.05, above the 50-day MA of 3283.70, and above the 200-day MA of 3166.19, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
4186	78 Outperform	$720.96B	25.82	13.68%	1.10%	21.48%	65.56%
6856	76 Outperform	$590.76B	16.30	11.91%	0.77%	7.09%	6.00%
7701	75 Outperform	$1.23T	23.58	10.54%	1.56%	3.92%	9.99%
6965	74 Outperform	$553.22B	37.95	4.46%	2.26%	3.97%	-41.79%
6645	68 Neutral	$875.30B	26.77	4.20%	2.45%	3.51%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7732	58 Neutral	$346.15B	-35.89	-9.57%	1.28%	-2.92%	-319.34%

Topcon Corporate Events

Topcon Announces Shareholder Meeting Amid MBO and Delisting Plans

Topcon Corporation has announced an Extraordinary General Shareholders’ Meeting to discuss significant changes, including share consolidation and amendments to its Articles of Incorporation. This move is part of a Management Buyout (MBO) strategy led by TK Co., Ltd., which has acquired a substantial majority of Topcon’s shares. The company’s shares will be delisted from the Tokyo Stock Exchange, impacting their tradability and potentially altering the company’s market positioning and stakeholder dynamics.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3409.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Corporation Announces Treasury Share Cancellation

Topcon Corporation announced the cancellation of 3,005,002 treasury shares, representing 2.77% of its total issued shares, following a board resolution. This move is contingent upon shareholder approval of a proposed share consolidation at an extraordinary meeting scheduled for November 11, 2025, with the cancellation set for December 3, 2025. The cancellation aims to streamline the company’s share structure and enhance shareholder value.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3409.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

TK Co., Ltd. Acquires Majority Stake in Topcon Corporation

TK Co., Ltd. successfully completed a tender offer for all common shares and securities of Topcon Corporation, resulting in a significant change in Topcon’s ownership structure. As of September 18, 2025, TK Co., Ltd. will become the new parent company and largest shareholder, while ValueAct Capital Management, L.P. will cease to be a major shareholder, marking a strategic shift in Topcon’s corporate governance.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3406.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Sets Record Date for Strategic Shareholders Meeting

Topcon Corporation has announced the setting of a record date for an upcoming Extraordinary General Shareholders Meeting, scheduled for early November 2025. This meeting is part of a strategic move involving a tender offer by TK Co., Ltd., which aims to acquire a controlling interest in Topcon. The outcome of this tender offer could lead to significant changes in the company’s shareholder structure, potentially impacting its governance and strategic direction.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3406.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Announces Amendment to Tender Offer with KKR and JIC Participation

Topcon Corporation announced an amendment to the tender offer for its shares by TK Co., Ltd., involving capital participation from KKR Japan and JIC Capital, Ltd. The amendment clarifies that clearance procedures under competition laws in several countries are not required, allowing the tender offer to proceed as planned, which could impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3406.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

TK Co., Ltd. Amends Tender Offer for Topcon Corporation Shares Amid MBO

TK Co., Ltd. has announced an amendment to its previous notice regarding the tender offer for Topcon Corporation’s shares as part of a management buyout (MBO) plan. This amendment follows the acquisition of necessary regulatory clearances from various countries, allowing the tender offer to proceed with an extended deadline, potentially impacting Topcon’s market presence and shareholder dynamics.

The most recent analyst rating on (JP:7732) stock is a Hold with a Yen3406.00 price target. To see the full list of analyst forecasts on Topcon stock, see the JP:7732 Stock Forecast page.

Topcon Corp Reports Q1 Loss Amid Strategic Changes

Topcon Corporation is a Japanese company specializing in the development and production of precision instruments for the positioning and eye care industries. It operates globally, providing innovative solutions in these sectors.

Topcon Supports Tender Offer in MBO with KKR and JIC

Topcon Corporation has announced its support for a tender offer initiated by TK Co., Ltd. as part of a Management Buyout (MBO) involving capital participation from KKR Japan and JIC Capital, Ltd. The board of directors has recommended shareholders tender their shares, with the expectation that the company’s shares will be delisted following the transaction, potentially impacting its market presence and shareholder value.

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 Supports Tender Offer Leading to Potential Delisting

Topcon Corporation announced its support for a tender offer initiated by TK Co., Ltd. as part of a Management Buyout (MBO) involving capital participation from KKR Japan and JIC Capital, Ltd. The board of directors has resolved to recommend shareholders and holders of share options to tender their shares, with the expectation that all company share certificates will be acquired, leading to the delisting of Topcon’s shares.

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.

TK Co., Ltd. Initiates Tender Offer for Topcon Corporation Shares

TK Co., Ltd. has announced the commencement of a tender offer for the shares of Topcon Corporation as part of a management buyout (MBO) implementation. This strategic move involves acquiring common shares, share options, and ADRs of Topcon Corporation, with the process requiring compliance with various international competition and investment regulations. The tender offer aims to enhance Topcon’s operational flexibility and strategic positioning in the market, with implications for stakeholders including potential changes in corporate governance and ownership structure.

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.