SCREEN Holdings Co Ltd (JP:7735)
:7735
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SCREEN Holdings Co
(7735)
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Rating:78Outperform
Price Target:
¥11,571.00
▲(7.69% Upside)
Action:ReiteratedDate:03/01/26
The score is driven primarily by strong financial quality—especially the very strong balance sheet and solid margins—supported by a robust technical uptrend. These positives are tempered by signs of cyclical softening (revenue decline and weaker cash conversion) and a valuation that is not cheap (P/E ~25.8 with a modest ~1.36% yield).
Positive Factors
Extremely low leverage
An almost negligible debt-to-equity ratio provides durable financial flexibility: it lowers interest-cost risk, supports investment in R&D and capital machinery during downturns, enables opportunistic M&A or buybacks, and improves resilience across semiconductor cycles.
Negative Factors
End-market cyclicality exposure
Heavy reliance on semiconductor capex cycles means revenue and order timing are structurally volatile. Capital equipment purchasers delay or accelerate spending by quarters, producing lumpy bookings, underutilized factory orders, and periodic margin pressure that challenge steady growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Extremely low leverage
An almost negligible debt-to-equity ratio provides durable financial flexibility: it lowers interest-cost risk, supports investment in R&D and capital machinery during downturns, enables opportunistic M&A or buybacks, and improves resilience across semiconductor cycles.
Read all positive factors
SCREEN Holdings Co (7735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.00T
Dividend Yield2.29%
Average Volume (3M)1.74M
Price to Earnings (P/E)15.6
Beta (1Y)1.48
Revenue Growth11.29%
EPS Growth11.38%
CountryJP
Employees6,415
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)122.13
Shares Outstanding190,759,980
10 Day Avg. Volume1,851,630
30 Day Avg. Volume1,736,663
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.22
Price to Sales (P/S)1.49
P/FCF Ratio18.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥18,570.74Price Target Upside72.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)585.72
Revenue Forecast (FY)¥712.15B
SCREEN Holdings Co Business Overview & Revenue Model
Company Description
SCREEN Holdings Co., Ltd. develops, manufactures, sells, and maintains semiconductor production equipment in Japan. The company offers coat/develop trackers, wafer cleaning systems, annealing systems, measurement systems, inspection systems, and a...
How the Company Makes Money
SCREEN primarily makes money through the sale of capital equipment and the ongoing support of that installed base. Its major revenue stream is semiconductor manufacturing equipment, where it sells tools used in wafer cleaning and related processes...
SCREEN Holdings Co Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call mixed strong strategic and operational positives (stable balance sheet, maintained guidance and dividends, FT outperformance, significant SPE franchise and targeted margin improvement, strategic M&A and IBM partnership) with meaningful near-term execution and market challenges (first-half revenue/profit decline, project push-outs into the second half, GA/PE weakness, China timing risk and input cost pressures). Management maintained full-year guidance and emphasized confidence in second-half recovery and midterm plans, but several short-term headwinds temper near-term outlook.Positive Updates
Consolidated first-half results (Key metrics)
Net sales JPY 274.2 billion, operating income JPY 46.4 billion (operating margin 16.9%), ordinary income JPY 46.8 billion, net income JPY 31.8 billion. Equity ratio stable at 64.4% and operating cash flow for the first half JPY 30.8 billion.
Negative Updates
Year-on-year decline in first-half sales and profits
Management reported both sales and profits fell year-on-year in the first half. Operating income decreased from JPY 58.2 billion last year to JPY 46.4 billion this year (≈ -20.3%), driven largely by revenue recognition shifts and lower capacity utilization.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated first-half results (Key metrics)
Net sales JPY 274.2 billion, operating income JPY 46.4 billion (operating margin 16.9%), ordinary income JPY 46.8 billion, net income JPY 31.8 billion. Equity ratio stable at 64.4% and operating cash flow for the first half JPY 30.8 billion.
Read all positive updates
Company Guidance
Management maintained full‑year guidance while giving first‑half detail: H1 net sales JPY 274.2 billion, operating income JPY 46.4 billion (OP margin 16.9%), ordinary income JPY 46.8 billion and net income JPY 31.8 billion, with an equity ratio of 64.4%; H1 SPE sales were JPY 218.5 billion with OP JPY 48.6 billion (22.3% margin). The full‑year outlook was kept at net sales JPY 621 billion and operating income JPY 170 billion (OP margin ~18.8%), ordinary income JPY 170 billion and net income JPY 88 billion (unchanged), with dividends of JPY 123 interim + JPY 157 year‑end = JPY 280 total. Segment guidance includes FT net‑sales revised to JPY 40 billion, GA sales JPY 53 billion with OP JPY 2.5 billion (4.7% margin), PE sales JPY 50 billion with OP +JPY 1 billion; corporate spend guidance: R&D JPY 38 billion, CapEx JPY 28 billion, depreciation/amortization JPY 15 billion; cash flow to date: Q2 operating cash flow JPY 23.8 billion and H1 operating cash flow JPY 30.8 billion. Management expects WFE market growth of low single‑digits in CY2025 and continued recovery into 2026 led by AI‑related foundry and memory investment.SCREEN Holdings Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 590.66B | 625.27B | 504.92B | 460.83B | 411.87B | 320.32B |
| Gross Profit | 221.36B | 235.30B | 182.52B | 155.05B | 134.37B | 88.01B |
| EBITDA | 126.69B | 148.51B | 105.00B | 85.25B | 70.77B | 34.12B |
| Net Income | 84.90B | 99.47B | 70.58B | 57.49B | 45.48B | 15.16B |
Balance Sheet | ||||||
| Total Assets | 677.08B | 671.29B | 676.81B | 562.82B | 459.31B | 382.63B |
| Cash, Cash Equivalents and Short-Term Investments | 184.25B | 200.40B | 197.28B | 175.58B | 133.09B | 62.73B |
| Total Debt | 4.06B | 4.56B | 7.18B | 28.85B | 44.23B | 44.45B |
| Total Liabilities | 233.82B | 250.59B | 304.89B | 262.88B | 211.51B | 174.08B |
| Stockholders Equity | 443.13B | 420.64B | 371.87B | 299.89B | 247.72B | 208.38B |
Cash Flow | ||||||
| Free Cash Flow | 44.80B | 49.45B | 58.15B | 55.09B | 72.94B | 51.81B |
| Operating Cash Flow | 67.32B | 71.23B | 96.25B | 73.91B | 81.75B | 57.20B |
| Investing Cash Flow | -21.85B | -21.77B | -43.46B | -12.51B | -9.95B | -6.24B |
| Financing Cash Flow | -61.68B | -46.47B | -35.14B | -20.96B | -4.95B | -27.07B |
SCREEN Holdings Co Technical Analysis
Positive
10745.00
Price Trends
10032.25
Positive
8645.34
Positive
7364.52
Positive
Market Momentum
19.57
Negative
62.80
Neutral
96.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7735, the sentiment is Positive. The current price of 10745 is above the 20-day moving average (MA) of 9545.77, above the 50-day MA of 10032.25, and above the 200-day MA of 7364.52, indicating a bullish trend. The MACD of 19.57 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 96.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7735.
SCREEN Holdings Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥3.75T | 25.03 | 53.12% | 1.11% | 32.51% | 57.19% | |
78 Outperform | ¥2.00T | 15.60 | 21.73% | 2.29% | 11.29% | 11.38% | |
78 Outperform | ¥20.18T | 33.18 | 26.01% | 1.79% | 16.74% | 16.03% | |
77 Outperform | ¥652.44B | 24.84 | 12.66% | 2.28% | 9.53% | -11.17% | |
75 Outperform | ¥7.26T | 35.55 | 25.78% | 0.79% | 13.45% | 20.37% | |
66 Neutral | ¥1.63T | 44.15 | ― | 0.73% | 10.98% | 6.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:7735
SCREEN Holdings Co
10,745.00
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SCREEN Holdings Co Corporate Events
SCREEN Holdings Q3 Review Confirms Weaker Earnings but Stronger Equity Base
Feb 13, 2026
SCREEN Holdings reported consolidated net sales of ¥425.35 billion for the nine months to December 31, 2025, down 7.5% year on year, with operating income falling 23.0% to ¥77.44 billion and profit attributable to owners of parent declin...
SCREEN Holdings Announces 2-for-1 Stock Split to Broaden Investor Base
Jan 30, 2026
SCREEN Holdings will conduct a 2-for-1 split of its common stock, effective April 1, 2026, halving the minimum investment unit in an effort to make its shares more affordable and attract a wider base of individual investors. The split will double ...
SCREEN Holdings Posts Lower Nine-Month Profit but Maintains Full-Year Guidance and Dividend Plan
Jan 30, 2026
SCREEN Holdings reported a year-on-year decline in performance for the nine months ended December 31, 2025, with net sales down 7.5% to ¥425.35 billion and operating income falling 23.0% to ¥77.44 billion, resulting in a 21.0% drop in pr...
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.