Olympus (7733) AI Stock Analysis

• Market Cap: ¥2.25T
• Dividend Yield: 0.98%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.75
• Revenue Growth: 0.42%
• EPS Growth: 34.76%
• Country: JP
• Employees: 28,838
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 18.03
• Shares Outstanding: 1,114,485,700
• 10 Day Avg. Volume: 4,971,740
• 30 Day Avg. Volume: 3,665,053
• PEG Ratio: -0.39
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 15.43
• 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: ¥2,051.40
• Price Target Upside: 0.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,317.00 ▲(13.33% Upside)

Olympus's strong technical indicators and stable financial performance are the primary drivers of its stock score. However, challenges in revenue growth and a high P/E ratio suggest potential risks. The stock's upward trend is a positive sign, but investors should be cautious of overvaluation.

Positive Factors

Business Model Strength

A diversified revenue model across medical, life sciences, and industrial segments provides stability and reduces reliance on a single market.

Strong Profit Margins

High gross profit margins reflect effective cost management and pricing power, supporting long-term profitability.

Stable Leverage Position

Improved debt-to-equity ratio enhances financial stability and provides flexibility for future investments or downturns.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates difficulties in expanding market share or product adoption, potentially impacting future earnings.

Decreased Free Cash Flow

A significant drop in free cash flow may limit the company's ability to invest in growth opportunities or weather financial challenges.

Reduced Net Profit Margin

A declining net profit margin suggests increased costs or pricing pressures, which could affect long-term profitability.

Olympus Business Overview & Revenue Model

Company Description

Olympus Corporation manufactures and sells precision machineries and instruments worldwide. It operates through four segments: Endoscopic Solutions Business, Therapeutic Solutions Business, Scientific Solutions Business, and Others. The Endoscopic Solutions Business segment offers gastrointestinal and surgical endoscopes, endoscopy system, and repair services. The Therapeutic Solutions Business segment provides urology, gynecology, ear, nose, and throat products; endo-therapy and energy devices; and surgical single-use devices. The Scientific Solutions Business segment offers biological and industrial microscopes, industrial endoscopes and videoscopes, non-destructive testing equipment, and X-ray fluorescence (XRF) analyzers. The Others segment offers biomedical materials and orthopedic equipment. The company also offers medical devices, such as surgical microscopes, endoscope reprocessors, electrosurgical devices, and respiratory-endotherapy devices, as well as system integration and maintenance/services. The company was formerly known as Olympus Optical Co., Ltd. and changed its name to Olympus Corporation in October 2003. Olympus Corporation was founded in 1919 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Olympus generates revenue through a diversified model that includes the sale of medical systems, life sciences, and industrial products. The medical systems segment is a significant revenue driver, with endoscopic and surgical products leading sales, supported by ongoing maintenance and service contracts. Revenue is also derived from life science products, including microscopes and imaging systems used in laboratories and research institutions. The industrial solutions segment contributes through inspection equipment and services for manufacturing and quality control. Key partnerships with hospitals, research institutions, and industrial clients enhance its market presence and revenue streams. Additionally, Olympus invests in R&D to innovate and expand its product offerings, contributing to long-term growth and profitability.

Olympus Financial Statement Overview

Summary

Olympus demonstrates strong profitability and efficient cost management, but faces challenges in revenue growth and free cash flow generation. The balance sheet is stable with improved leverage, supporting long-term financial health. Continued focus on revenue growth and cash flow management will be crucial for sustaining performance.

Income Statement

Olympus shows strong gross profit margins consistently above 68%, indicating efficient cost management. However, the net profit margin has decreased to 11.8% in the TTM, reflecting reduced profitability. The revenue growth rate is negative at -2.8% TTM, signaling a potential challenge in maintaining sales momentum.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.30, indicating a stable leverage position. Return on equity is at 15.8% TTM, showing decent profitability from shareholders' investments. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Operating cash flow remains robust, but free cash flow has decreased significantly by 29.8% TTM, which could impact future investments. The free cash flow to net income ratio is healthy at 0.76, indicating good cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	969.02B	997.33B	925.75B	881.92B	750.12B	730.54B
Gross Profit	662.62B	683.70B	583.63B	596.85B	571.70B	459.53B
EBITDA	218.79B	231.90B	112.10B	254.58B	209.97B	140.42B
Net Income	112.26B	117.86B	242.57B	143.43B	115.74B	12.92B
Balance Sheet
Total Assets	1.44T	1.43T	1.53T	1.51T	1.36T	1.18T
Cash, Cash Equivalents and Short-Term Investments	245.71B	252.53B	340.93B	169.33B	302.57B	217.48B
Total Debt	276.73B	229.10B	299.62B	340.06B	386.13B	355.26B
Total Liabilities	708.27B	681.09B	777.03B	867.07B	846.64B	785.54B
Stockholders Equity	732.65B	751.73B	757.19B	640.09B	510.17B	394.33B
Cash Flow
Free Cash Flow	101.37B	144.46B	-22.26B	27.87B	107.96B	64.89B
Operating Cash Flow	152.00B	190.46B	42.37B	98.49B	169.73B	124.12B
Investing Cash Flow	-67.82B	-65.47B	359.99B	-58.41B	-71.02B	-118.92B
Financing Cash Flow	-111.60B	-211.54B	-276.01B	-143.18B	-40.67B	40.80B

Olympus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2044.50
• 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:7733, the sentiment is Positive. The current price of 2044.5 is below the 20-day moving average (MA) of 2053.20, above the 50-day MA of 1970.18, and above the 200-day MA of 1877.26, indicating a neutral trend. The MACD of 16.93 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 36.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7733.

Olympus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	74 Outperform	$8.18T	39.30	20.74%	1.00%	8.83%	8.63%
7733	72 Outperform	¥2.25T	23.54	13.13%	0.98%	0.42%	34.76%
4543	68 Neutral	¥3.42T	26.12	9.31%	1.21%	7.68%	10.08%
7747	68 Neutral	¥806.06B	53.95	10.09%	0.80%	13.53%	-7.39%
8086	62 Neutral	¥236.65B	21.73	4.38%	2.07%	6.04%	733.13%
6869	61 Neutral	$912.65B	19.55	9.80%	2.03%	1.51%	-12.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Olympus Corporate Events

Olympus Announces Global Personnel Optimization for Strategic Growth

Olympus Corporation has announced a global personnel optimization program as part of its new corporate strategy aimed at sustainable growth. The company plans to transition to a division-led structure to enhance customer-centricity and clinical needs, resulting in the reduction of approximately 2,000 positions. This restructuring is expected to yield JPY 24 billion in annual savings and improve organizational agility and accountability, with the majority of impacts anticipated by the fiscal year ending March 2027.

Olympus Announces Leadership Transition to Drive Strategic Growth

Olympus Corporation announced a leadership transition as part of its strategic growth plan. Yasuo Takeuchi, who has been instrumental in transforming Olympus into a global MedTech leader, will step down as Representative Executive Officer, passing the leadership to Keith Boettiger. Boettiger, with extensive experience in sales and regulatory affairs, will continue to drive innovation and growth in the Gastrointestinal Solutions Division, reflecting Olympus’s commitment to advancing its market position and creating new business opportunities.

Olympus Unveils New Corporate Strategy for MedTech Growth

Olympus Corporation has announced a new corporate strategy aimed at enhancing its position as a leading MedTech company. The strategy focuses on innovation-driven growth, simplicity, and accountability to set new standards in endoscopy-enabled care. By expanding access to minimally invasive procedures and standardizing advanced interventions, Olympus aims to improve healthcare outcomes globally. The strategy is expected to drive revenue growth, efficiency gains, and margin expansion, aligning the company’s purpose with performance and benefiting patients, healthcare providers, and shareholders.

Olympus Reports Decline in Semi-Annual Financial Results

Olympus Corporation reported a decline in its consolidated financial results for the six months ending September 30, 2025, with a notable decrease in revenue, operating profit, and profit attributable to owners. The company’s financial position remains stable with a slight decrease in total assets and equity. The orthopedic business has been classified as a discontinued operation, impacting the financial figures. Despite the downturn, Olympus maintains its forecast for the fiscal year ending March 31, 2026, indicating confidence in future performance.

Olympus Completes Share Repurchase and Announces Treasury Share Cancellation

Olympus Corporation has completed a share repurchase program and announced the cancellation of a portion of its treasury shares. This strategic move, involving the repurchase of over 6.8 million shares and the cancellation of 24.6 million shares, is expected to optimize the company’s capital structure and potentially enhance shareholder value.

Olympus Corporation Updates on Share Repurchase Program

Olympus Corporation announced the status of its share repurchase program, revealing that it repurchased 4,976,300 common shares for approximately JPY 9.1 billion between September 1 and September 30, 2025. This move is part of a larger plan to repurchase up to 36 million shares, aiming to enhance shareholder value and optimize capital structure.

Tokyo High Court Dismisses Appeal in Olympus Shareholder Lawsuit

Olympus Corporation announced that the Tokyo High Court dismissed an appeal in a shareholder’s derivative lawsuit involving claims against current and former directors and auditors. The lawsuit sought damages related to alleged failures in duty concerning agreements by a Chinese subsidiary. The court’s decision supports Olympus’s stance that the claims were unfounded, potentially reinforcing its internal control practices and decision-making processes.