Olympus Corp. (JP:7733)
:7733
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Olympus
(7733)
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Rating:59Neutral
Price Target:
¥1,639.00
▲(4.49% Upside)
Action:ReiteratedDate:03/26/26
The score is supported by solid underlying profitability and a healthier balance sheet, but pressured by weak technical momentum and an expensive valuation. The latest earnings call adds near-term risk from ship-holds/FDA-related disruption and restructuring costs, partially offset by remediation progress and unchanged long-term targets.
Positive Factors
High Gross and Operating Margins
Sustained high gross (~67%) and operating (~15%) margins indicate durable pricing power and efficient manufacturing for endoscopy systems. These margins support reinvestment in R&D, absorb cyclical volume shocks, and underpin long‑term return on capital even during remediation cycles.
Negative Factors
Regulatory Inspections and Ongoing Ship‑Holds
Open FDA observations and remaining product holds create structural market access and compliance risk. Prolonged remediation can restrict sales, raise recurring QA/regulatory costs, and erode hospital trust, potentially lengthening the revenue recovery timeline beyond a single quarter.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross and Operating Margins
Sustained high gross (~67%) and operating (~15%) margins indicate durable pricing power and efficient manufacturing for endoscopy systems. These margins support reinvestment in R&D, absorb cyclical volume shocks, and underpin long‑term return on capital even during remediation cycles.
Read all positive factors
Olympus (7733) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.73T
Dividend Yield1.01%
Average Volume (3M)3.67M
Price to Earnings (P/E)38.6
Beta (1Y)0.80
Revenue Growth0.42%
EPS Growth34.76%
CountryJP
Employees28,838
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)12.87
Shares Outstanding1,114,485,700
10 Day Avg. Volume4,971,740
30 Day Avg. Volume3,665,053
Financial Highlights & Ratios
PEG Ratio-0.39
Price to Book (P/B)2.96
Price to Sales (P/S)2.23
P/FCF Ratio15.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,700.00Price Target Upside8.38% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)88.59
Revenue Forecast (FY)¥1.05T
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 primarily by selling medical devices and related accessories to healthcare providers and distributors, with its core revenue coming from its endoscopy business. Key revenue streams include: (1) capital equipment sales, such as ...
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
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.
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
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 987.51B | 997.33B | 925.75B | 881.92B | 750.12B | 730.54B |
| Gross Profit | 654.09B | 649.29B | 583.63B | 562.70B | 475.99B | 427.99B |
| EBITDA | 221.58B | 252.49B | 215.28B | 243.21B | 213.97B | 164.77B |
| Net Income | 84.83B | 117.86B | 242.57B | 143.43B | 115.74B | 57.71B |
Balance Sheet | ||||||
| Total Assets | 1.46T | 1.43T | 1.53T | 1.51T | 1.36T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 196.74B | 252.53B | 340.93B | 169.33B | 302.57B | 217.48B |
| Total Debt | 237.82B | 291.57B | 360.56B | 397.22B | 451.14B | 421.67B |
| Total Liabilities | 684.57B | 679.89B | 775.56B | 865.71B | 844.60B | 787.97B |
| Stockholders Equity | 773.35B | 751.73B | 757.19B | 640.09B | 510.17B | 394.33B |
Cash Flow | ||||||
| Free Cash Flow | 63.99B | 144.46B | -4.06B | 50.92B | 128.04B | 85.46B |
| Operating Cash Flow | 123.50B | 190.46B | 42.37B | 98.49B | 169.73B | 124.12B |
| Investing Cash Flow | -90.63B | -65.47B | 357.07B | -58.41B | -71.02B | -119.38B |
| Financing Cash Flow | -87.29B | -211.54B | -273.09B | -143.18B | -40.67B | 41.26B |
Olympus Technical Analysis
Neutral
1568.50
Price Trends
1537.24
Positive
1760.30
Negative
1769.31
Negative
Market Momentum
27.19
Negative
58.75
Neutral
76.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7733, the sentiment is Neutral. The current price of 1568.5 is above the 20-day moving average (MA) of 1459.13, above the 50-day MA of 1537.24, and below the 200-day MA of 1769.31, indicating a neutral trend. The MACD of 27.19 indicates Negative momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7733.
Olympus Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥3.16T | 25.64 | 8.98% | 1.22% | 7.68% | 10.08% | |
71 Outperform | ¥865.57B | 16.38 | 9.38% | 1.88% | 1.51% | -12.59% | |
71 Outperform | ¥151.03B | 18.72 | ― | 2.73% | 5.10% | -26.13% | |
68 Neutral | ¥937.39B | 24.33 | 11.64% | 0.82% | 13.53% | -7.39% | |
62 Neutral | ¥266.58B | 5.59 | 4.38% | 2.03% | 6.04% | 733.13% | |
59 Neutral | ¥1.73T | 38.56 | 11.34% | 1.01% | 0.42% | 34.76% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:7733
Olympus
1,568.50
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-10.27%
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Olympus Corporate Events
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,...
Olympus Taps Global MedTech Veteran Michael Parenti as Next CFO
Feb 13, 2026
Olympus has announced a planned change in its top finance leadership, with Michael Parenti set to become Executive Officer and Chief Financial Officer effective April 1, 2026, pending formal board approval in March. The move is part of a successio...
Olympus Slashes FY2026 Profit Outlook on Surgical Shipment Disruptions
Feb 13, 2026
Olympus has sharply revised down its earnings forecast for the fiscal year ending March 31, 2026, while keeping revenue guidance unchanged at ¥998 billion, underscoring mounting pressure on profitability despite stable top-line expectations. ...
Olympus Reshapes Segment Structure as Q3 FY2026 Profitability Softens
Feb 13, 2026
Olympus reported consolidated financial data for the third quarter of the fiscal year ending March 31, 2026, showing revenue of ¥261.0 billion and operating profit of ¥24.1 billion from continuing operations, with margins pressured versu...
Olympus Cuts Full-Year Guidance as Profit Slides Despite Stable Revenue
Feb 13, 2026
Olympus reported nine-month revenue to December 31, 2025 of ¥715.4 billion, down 1.4% year on year, with operating profit dropping 35.4% and profit attributable to owners of the parent falling 43.2%, reflecting weaker profitability in its con...
Olympus Refreshes HR and Operations Leadership to Drive Next Phase of Global MedTech Transformation
Jan 28, 2026
Olympus announced upcoming leadership changes in its executive ranks, naming Simone Berger as Executive Officer and Chief Human Resources Officer and David Shan as Executive Officer and Chief Manufacturing and Supply Officer, effective April 1, 20...
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.