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Topcon Corp. (JP:7732)
:7732
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Topcon (7732) AI Stock Analysis

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JP:7732

Topcon

(OTC:7732)

Rating:60Neutral
Price Target:
¥3,406.00
▲(4.67%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 (7732) is a Japanese multinational company specializing in the development and manufacturing of precision equipment and instruments. The company operates primarily in three sectors: positioning, eye care, and smart infrastructure. Topcon is well-known for its advanced technology solutions in the fields of surveying, construction, ophthalmology, and agriculture. Its core products include GPS-based positioning systems, ophthalmic diagnostic equipment, and automated construction machinery.
How the Company Makes MoneyTopcon makes money through the sale of its precision equipment and technology solutions across its three main business segments. In the positioning segment, it generates revenue by providing GPS and GNSS-based systems for surveying, construction, and agriculture, catering to industries that require precise measurement and automation solutions. In the eye care sector, Topcon earns income from its ophthalmic diagnostic equipment and software, which are essential for eye examinations and treatments, serving optometrists and ophthalmologists globally. The smart infrastructure segment contributes to revenue through the provision of technology for automated construction and infrastructure development. Additionally, the company forms strategic partnerships and collaborations with other technology firms and research institutions, enhancing its product offerings and expanding its market reach.

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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue216.00B216.50B215.63B176.42B137.25B
Gross Profit111.70B114.77B112.40B90.09B67.90B
EBITDA19.29B21.11B31.51B26.08B15.87B
Net Income418.00M4.94B11.81B10.70B2.38B
Balance Sheet
Total Assets249.14B247.03B207.89B184.98B168.21B
Cash, Cash Equivalents and Short-Term Investments20.23B19.62B17.66B20.12B20.82B
Total Debt91.02B79.56B53.48B43.36B52.99B
Total Liabilities144.30B136.73B110.85B99.83B97.52B
Stockholders Equity103.41B108.36B95.37B83.56B69.42B
Cash Flow
Free Cash Flow-17.00M-4.82B343.00M12.86B9.52B
Operating Cash Flow9.43B8.85B9.83B20.53B19.44B
Investing Cash Flow-15.64B-26.62B-12.76B-9.78B-9.23B
Financing Cash Flow8.77B17.99B-1.94B-13.61B-6.20B

Topcon Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3254.00
Price Trends
50DMA
3259.14
Negative
100DMA
3177.91
Positive
200DMA
2700.74
Positive
Market Momentum
MACD
-0.46
Positive
RSI
45.74
Neutral
STOCH
48.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7732, the sentiment is Neutral. The current price of 3254 is below the 20-day moving average (MA) of 3261.05, below the 50-day MA of 3259.14, and above the 200-day MA of 2700.74, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7732.

Topcon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥466.74B13.4811.49%0.94%8.15%3.41%
75
Outperform
$567.59B30.605.58%2.07%-3.32%-48.13%
73
Outperform
$501.14B18.3713.63%1.58%24.52%88.51%
69
Neutral
$1.01T18.6410.72%0.89%5.30%-4.94%
68
Neutral
¥232.71B14.907.50%2.60%9.27%5.76%
65
Neutral
$788.30B48.472.10%2.69%-2.08%100.89%
60
Neutral
$343.23B822.930.43%1.29%-0.23%-91.56%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7732
Topcon
3,254.00
1,562.18
92.34%
JP:6645
OMRON
3,859.00
-1,465.75
-27.53%
JP:7701
Shimadzu
3,368.00
-996.19
-22.83%
JP:6856
Horiba
11,140.00
-304.29
-2.66%
JP:6965
Hamamatsu Photonics KK
1,837.00
-229.06
-11.09%
JP:4186
Tokyo Ohka Kogyo Co
4,049.00
213.52
5.57%

Topcon Corporate Events

Topcon Completes Payment for New Share Issuance as Restricted Stock Compensation
Jul 25, 2025

Topcon Corporation has completed the payment for the issuance of new shares as restricted stock compensation, which was approved by the Board of Directors. This issuance involves 57,400 shares of common stock, allocated to directors and executive officers, and is valued at 187,353,600 yen, potentially impacting the company’s executive compensation strategy 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 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.

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