Olympus Corp. (JP:7733)

:7733

7733

Olympus

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Olympus (7733) AI Stock Analysis

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Olympus

(7733)

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Neutral 65 (OpenAI - 5.2)

Rating:65Neutral

Price Target:

¥1,984.00

▲(25.29% Upside)

Action:Reiterated

Date:05/14/26

The score is driven primarily by solid underlying fundamentals (revenue growth, high gross margins, and a strengthening balance sheet) but is held back by weaker 2026 profitability and cash-flow conversion. Technicals remain supportive but look overextended (high RSI). Valuation is only moderate at ~24x earnings with a modest dividend, and the latest earnings call highlighted meaningful near-term regulatory/ship-hold and restructuring impacts despite clear remediation actions and maintained longer-term targets.

Positive Factors

Stable revenue growth & high gross margins

Consistent multi-year top-line growth combined with persistently high gross margins supports durable earnings power and pricing leverage. This underpins recurring consumables/service revenue tied to installed base and reduces vulnerability to cyclical capital spending swings over the medium term.

Negative Factors

Volatile cash generation and weak FCF conversion

Large swings in operating cash and free cash flow reduce predictability of internally generated funds for capex, R&D and working capital. Volatile cash conversion increases reliance on balance sheet buffers and heightens execution risk during remediation and restructuring over the coming quarters.

Read all positive and negative factors

Positive Factors

Negative Factors

Stable revenue growth & high gross margins

Read all positive factors

Olympus (7733) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥2.03T

Dividend Yield1.01%

Average Volume (3M)3.67M

Price to Earnings (P/E)24.3

Beta (1Y)0.81

Revenue Growth1.34%

EPS Growth-40.50%

CountryJP

Employees28,838

SectorHealthcare

Sector Strength45

IndustryMedical - Devices

Share Statistics

EPS (TTM)61.37

Shares Outstanding1,114,485,700

10 Day Avg. Volume4,971,740

30 Day Avg. Volume3,665,053

Financial Highlights & Ratios

PEG Ratio-0.60

Price to Book (P/B)2.04

Price to Sales (P/S)1.64

P/FCF Ratio36.75

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

¥2,125.00

Price Target Upside34.20% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

EPS Forecast (FY)88.7

Revenue Forecast (FY)¥1.06T

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...

How the Company Makes Money

Olympus makes money mainly by selling medical devices and systems—particularly endoscopes and endoscopic imaging platforms—used by hospitals and clinics for diagnostic and therapeutic procedures. Revenue is generated from (1) capital equipment sal...

Olympus Earnings Call Summary

Earnings Call Date:Feb 13, 2026

(Q3-2026)

% Change Since: |

Next Earnings Date:Aug 12, 2026

Earnings Call Sentiment Negative

The call presented a mix of significant near-term challenges—most notably product ship holds, FDA observations, one-off costs that reduced gross margin and a 2% revenue guidance downgrade—balanced against clear remediation plans, leadership actions, a majority of held products already released (70%), an asserted China recovery (≈5–6%), maintained midterm targets and a commitment to >100 bps margin expansion beginning FY2027. Near-term financial impact is material, but management articulated specific corrective actions and kept long-term targets unchanged.

Positive Updates

Midterm Targets and Margin Commitment Maintained

Management reaffirmed the midterm 3/4/5 plan targets: mid-single-digit revenue growth and a 20%+ operating margin long-term goal, and committed to delivering more than 100 basis points of margin expansion beginning in FY2027.

Negative Updates

Revenue Guidance Revised Down 2% (Constant Currency)

Management revised full-year revenue guidance down by approximately 2% on a constant-currency basis, citing ship holds and execution issues impacting SIS and portions of GI (U.S.).

Read all updates

Q3-2026 Updates

Positive

Negative

Midterm Targets and Margin Commitment Maintained

Read all positive updates

Company Guidance

Management revised FY26 revenue guidance down ~2% on a constant‑currency basis and attributed the cut largely to one‑off FDA‑related ship‑holds and remediation: they cited about JPY 9 billion tied to ship‑hold actions, expect roughly JPY 18 billion of lost revenue in Q4 from held products, have released ~70% of affected products with ~30% still remediating, and expect the remaining holds to be resolved in Q4. They disclosed a JPY 31 billion restructuring/headcount charge (up from an initial JPY 12 billion) related to a net reduction of ~2,000 positions (≈90% charged this year, 10% next year) while keeping expected cost savings of about JPY 24 billion intact. Management said the gross‑margin hit was one‑off (COGS increases from field corrective actions, disposals and recalls), will largely absorb remediation costs in SG&A, does not expect additional ship‑holds, will present guidance as ranges going forward, reaffirmed commitment to >100 basis‑points of annual margin expansion from FY‑27 and to mid‑single‑digit revenue growth and a 20%+ operating margin long term, and noted China is beginning to recover (+5–6% after prior double‑digit declines) while inspections affected GI‑ET, urology, respiratory and surgical portfolios.

Olympus Financial Statement Overview

Summary

Steady multi-year revenue growth and consistently high gross margins support the score, and leverage has improved to a more conservative level. Offsetting this, 2026 saw notable margin compression and weaker/volatile cash conversion (free cash flow down and well below net income), which lowers confidence in earnings quality near term.

Income Statement

Positive

Balance Sheet

Positive

Cash Flow

Neutral

Breakdown	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.01T	997.33B	925.75B	881.92B	750.12B
Gross Profit	654.09B	649.29B	583.63B	562.70B	475.99B
EBITDA	214.23B	252.49B	215.28B	243.21B	213.97B
Net Income	68.17B	117.86B	242.57B	143.43B	115.74B
Balance Sheet
Total Assets	1.54T	1.43T	1.53T	1.51T	1.36T
Cash, Cash Equivalents and Short-Term Investments	188.04B	252.53B	340.93B	169.33B	302.57B
Total Debt	239.58B	291.57B	360.56B	397.22B	451.14B
Total Liabilities	725.12B	679.89B	775.56B	865.71B	844.60B
Stockholders Equity	812.04B	751.73B	757.19B	640.09B	510.17B
Cash Flow
Free Cash Flow	45.03B	144.46B	-4.06B	50.92B	128.04B
Operating Cash Flow	100.58B	190.46B	42.37B	98.49B	169.73B
Investing Cash Flow	-87.41B	-65.47B	357.07B	-58.41B	-71.02B
Financing Cash Flow	-87.63B	-211.54B	-273.09B	-143.18B	-40.67B

Olympus Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1583.50

Price Trends

50DMA

1545.16

Positive

100DMA

1664.85

Positive

200DMA

1761.69

Positive

Market Momentum

MACD

86.88

Negative

RSI

68.44

Neutral

STOCH

90.66

Negative

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 1583.5 is below the 20-day moving average (MA) of 1661.35, above the 50-day MA of 1545.16, and below the 200-day MA of 1761.69, indicating a bullish trend. The MACD of 86.88 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 90.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7733.

Olympus Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4543	71 Outperform	¥3.45T	29.48	8.98%	1.22%	9.24%	16.68%
7730	71 Outperform	¥166.99B	20.62	―	2.73%	6.29%	-7.19%
7747	68 Neutral	¥974.01B	23.45	11.64%	0.82%	15.13%	196.11%
7733	65 Neutral	¥2.03T	24.28	11.34%	1.01%	1.34%	-40.50%
6869	57 Neutral	¥856.21B	120.28	9.38%	1.88%	-1.70%	-33.90%
8086	54 Neutral	¥279.47B	18.74	4.38%	2.03%	2.47%	164.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

JP:7733

Olympus

1,888.00

122.80

6.96%

JP:4543

Terumo

2,393.50

-283.90

-10.60%

JP:7747

Asahi Intecc Co

3,680.00

1,474.21

66.83%

JP:8086

Nipro

1,713.00

487.64

39.80%

JP:6869

Sysmex

1,409.00

-964.57

-40.64%

JP:7730

Mani, Inc.

1,758.00

590.09

50.53%

Olympus Corporate Events

Olympus Completes ¥60 Billion Share Buyback and Sets 2027 Cancellation

May 13, 2026

Olympus has completed a major share repurchase via the Tokyo Stock Exchange’s ToSTNeT-3 system, buying back 38,948,300 common shares for roughly JPY 60 billion, effectively reaching the full monetary limit authorized by its board. This move ...

Olympus Launches ¥60 Billion Share Buyback via ToSTNeT-3

May 12, 2026

Olympus Corporation’s board has approved a share repurchase program and set the specific terms for an initial transaction using the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system. The company plans to buy back up to 38,948,300 com...

Olympus Launches ¥60 Billion Share Buyback and Plans Treasury Share Cancellation

May 12, 2026

Olympus Corporation’s board has approved a share repurchase program of up to 46 million common shares, representing about 4.18% of its outstanding stock, for a maximum total of ¥60 billion. The buyback, to be executed between May 13, 20...

Olympus Nears Target in Global Workforce Optimization Drive

May 12, 2026

Olympus is advancing a global personnel optimization program under its new corporate strategy, targeting workforce reductions across the parent company and group entities. The initiative applies to employees meeting set criteria and is scheduled f...

Olympus Beats FY2026 Guidance on Strong GI Solutions and Asset Gains

May 12, 2026

Olympus reported that its fiscal 2026 results modestly exceeded prior guidance, with revenue rising to ¥1.01 trillion and all major profit indicators coming in above earlier forecasts. The company noted that these figures reflect continuing o...

Olympus Restructures Medical Segments as Profit Slips Despite Steady Revenue

May 12, 2026

Olympus reported consolidated results for the fiscal year ended March 31, 2026, showing revenue of about ¥1.01 trillion from continuing operations and a sharp year-on-year decline in operating profit and net income, as margins compressed desp...

Olympus Issues FY2026 Results and FY2027 Outlook with Cautionary Guidance

May 12, 2026

Olympus released its consolidated financial results for fiscal year 2026 and issued full-year guidance for fiscal 2027, outlining management’s current views and expectations for the business. The company emphasized that these results and pro...

Olympus Profit Slumps Despite Higher Revenue as Portfolio Shift Continues

May 12, 2026

Olympus reported fiscal 2026 revenue of ¥1.01 trillion, up 1.3% year on year, but operating profit from continuing operations fell 40.2% to ¥97.1 billion, with adjusted operating profit down 24%. Profit attributable to owners of the pare...

Olympus Revamps Board With Veteran Global Healthcare Executives

Mar 27, 2026

Olympus has announced proposed changes to its Board of Directors, adding two seasoned healthcare executives as outside director candidates, subject to shareholder approval at the June 2026 general meeting. The company has nominated Jean-Luc Butel,...

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 14, 2026