SCREEN Holdings Co (7735) AI Stock Analysis

• Market Cap: ¥1.87T
• Dividend Yield: 2.29%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.48
• Revenue Growth: 11.29%
• EPS Growth: 11.38%
• Country: JP
• Employees: 6,415
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 95,379,990
• 10 Day Avg. Volume: 1,851,630
• 30 Day Avg. Volume: 1,736,663
• PEG Ratio: 0.25
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 18.86
• 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: ¥16,766.48
• Price Target Upside: -16.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥21,123.00 ▲(5.72% Upside)

Score is driven mainly by strong underlying financial quality (high margins, very low leverage, solid ROE). Technicals are supportive but appear overextended, and valuation is only moderately attractive. Earnings-call commentary was constructive on guidance and strategic initiatives, but near-term execution risks (timing push-outs, China delays, cost/FX pressures) temper the outlook.

Positive Factors

High margins & ROE

Sustained high gross and net margins plus a 22% ROE indicate structural operational efficiency and pricing power in capital equipment. That profitability supports long‑term R&D, dividend capacity and reinvestment, providing resilience through semiconductor capex cycles.

Very low leverage / strong balance sheet

Near‑zero financial leverage gives durability in a cyclical WFE market: it preserves liquidity to fund capex, absorb order timing swings, pursue small acquisitions, and sustain dividends through downturns without pressuring operations or forcing asset sales.

Dominant SPE franchise & strategic R&D/M&A

A large, high‑margin SPE franchise creates a stable core business and growing installed base for recurring service revenue. Strategic moves (wafer‑bonding R&D, IBM partnership) and sustained R&D/CapEx investment strengthen advanced‑packaging capabilities and competitive moat over the medium term.

Negative Factors

Revenue timing and project push-outs

Capital equipment sales are lumpy; meaningful revenue deferrals reduce near‑term visibility and can compress reported margins and cash flow in affected periods. Persistent timing variability complicates capacity planning and short‑term budgeting across the next several quarters.

Concentration & China timing risk

High customer concentration in China makes revenues sensitive to regional demand, regulatory shifts, and project timing. Delays or further postponements in that market can materially affect intake and cash conversion over the coming 2–6 months, raising execution risk.

Input cost, tariff and FX pressure

Sustained raw material inflation plus tariffs and FX headwinds compress margins if price pass‑through is limited. For capital‑goods firms, inability to fully offset higher input costs erodes operating leverage and long‑term margin sustainability absent product mix shifts or efficiency gains.

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 advanced packaging lithography equipment. It also provides coater systems, vacuum film deposition equipment, wet processors, dryers, heaters, exposures, and laminators/de-laminators. In addition, the company offers direct imaging systems, automatic optical inspection systems, and defect verification and repair systems; automatic final visual inspection systems; and setup station. Further, it provides high-speed inkjet, label, wide format, CTP, network support, Hiragino font, and other workflow solutions; offset printing, digital book, manual, direct mail, transpromo, label production, package printing, display, and signage solutions; and artificial intelligence, text mining, augmented reality, image analysis, and congestion analysis solutions. Additionally, the company offers biosciences equipment; compact inkjet printing systems for tablets, UV inkjet printing systems for aluminum rolls, and inkjet printing systems for tablets; in-vehicle components for inspection and measurement; and lithium-ion rechargeable batteries and fuel cells. It also undertakes contract manufacturing and support, and intellectual property services related operations. The company was formerly known as Dainippon Screen Mfg. Co., Ltd. and changed its name to SCREEN Holdings Co., Ltd. in October 2014. SCREEN Holdings Co., Ltd. was incorporated in 1943 and is headquartered in Kyoto, Japan.

How the Company Makes Money

SCREEN Holdings generates revenue primarily through the sale of its semiconductor and FPD production equipment. Key revenue streams include the manufacturing and servicing of photolithography equipment, which is essential for the semiconductor fabrication process, as well as cleaning and other equipment used in the manufacturing of flat panel displays. The company benefits from long-term relationships with major semiconductor manufacturers and display producers, which provide a stable customer base. Additionally, SCREEN Holdings has been involved in strategic partnerships and collaborations with leading technology firms, enhancing its product offerings and market reach. The demand for advanced technology in semiconductor manufacturing and display production, especially with the rise of 5G and IoT devices, further contributes to its revenue growth.

SCREEN Holdings Co Financial Statement Overview

Summary

Strong profitability (gross margin ~37%, net margin ~15%) and an excellent balance sheet with minimal leverage (debt-to-equity 0.009) and solid ROE (22%). Cash generation is positive but weaker on free-cash-flow growth, and revenue growth has slowed.

Income Statement

SCREEN Holdings Co has demonstrated strong profitability with a consistent gross profit margin around 37% and a net profit margin of approximately 15% in the TTM. However, the company experienced a slight decline in revenue growth, indicating potential market challenges. Despite this, EBIT and EBITDA margins remain robust, reflecting efficient operations.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.009, indicating minimal leverage. Return on equity is strong at 22%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base supported by equity.

Cash Flow

Operating cash flow remains positive, but there is a notable decline in free cash flow growth, which could impact future investments. The free cash flow to net income ratio is healthy at 0.71, indicating good cash conversion from profits. However, the operating cash flow to net income ratio suggests room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	622.17B	625.27B	504.92B	460.83B	411.87B	320.32B
Gross Profit	230.25B	235.30B	182.52B	155.05B	134.37B	88.01B
EBITDA	141.66B	151.97B	105.19B	87.53B	66.58B	30.80B
Net Income	92.48B	99.47B	70.58B	57.49B	45.48B	15.16B
Balance Sheet
Total Assets	667.24B	671.29B	676.81B	562.82B	459.31B	382.63B
Cash, Cash Equivalents and Short-Term Investments	189.07B	200.40B	197.28B	175.58B	133.09B	62.73B
Total Debt	4.01B	5.53B	7.19B	29.07B	44.24B	43.88B
Total Liabilities	237.66B	250.59B	304.90B	262.89B	211.52B	174.09B
Stockholders Equity	429.47B	420.64B	371.87B	299.89B	247.71B	208.38B
Cash Flow
Free Cash Flow	48.85B	49.45B	55.92B	53.11B	71.60B	50.49B
Operating Cash Flow	68.57B	71.23B	96.25B	73.91B	81.75B	57.20B
Investing Cash Flow	-19.53B	-21.77B	-43.46B	-12.51B	-9.95B	-6.24B
Financing Cash Flow	-61.70B	-46.47B	-35.14B	-20.96B	-4.95B	-27.07B

SCREEN Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 19980 is above the 20-day moving average (MA) of 17508.25, above the 50-day MA of 15120.80, and above the 200-day MA of 12473.95, indicating a bullish trend. The MACD of 1421.42 indicates Negative momentum. The RSI at 74.06 is Negative, neither overbought nor oversold. The STOCH value of 81.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6920	81 Outperform	¥3.54T	37.32	53.12%	1.11%	32.51%	57.19%
6857	77 Outperform	¥18.69T	64.65	47.37%	0.25%	63.36%	149.43%
6146	75 Outperform	¥7.64T	58.20	25.78%	0.79%	13.45%	20.37%
7735	72 Outperform	¥1.87T	21.31	21.73%	2.29%	11.29%	11.38%
6525	67 Neutral	¥1.67T	48.53	―	0.73%	10.98%	6.51%
6723	63 Neutral	¥4.60T	-93.09	-2.51%	1.31%	-10.97%	-118.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SCREEN Holdings Co Corporate Events

SCREEN Holdings Announces Interim Dividend of ¥123.00 Per Share

SCREEN Holdings Co., Ltd. has announced an interim dividend of ¥123.00 per share, maintaining its previous forecast for the fiscal year ending March 31, 2026. This decision aligns with the company’s policy to maintain a dividend payout ratio of 30% or above, ensuring sufficient retained earnings for growth investments and financial stability.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen14291.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Reports Decline in Q2 2025 Financial Performance

SCREEN Holdings Co., Ltd. reported a decline in its financial performance for the second quarter ending September 30, 2025, with net sales decreasing by 1.1% and operating income dropping by 20.2% compared to the previous year. Despite the downturn, the company maintains a strong equity ratio of 64.4% and plans to distribute cash dividends, indicating a commitment to shareholder returns. The company’s earnings forecast for the fiscal year ending March 31, 2026, anticipates a slight decrease in net sales and a more significant drop in operating income, reflecting ongoing challenges in the semiconductor market.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen14291.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.