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SCREEN Holdings Co
(7735)
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Rating:68Neutral
Price Target:
¥13,058.00
▼(-17.62% Downside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong underlying financial quality (high margins, low leverage, and positive free cash flow) and a constructive forward outlook from the earnings call (raised guidance, record orders, higher dividend). Offsetting these positives, technicals are notably weak with the stock far below major moving averages, and valuation remains relatively rich at ~29x earnings, limiting the overall rating.
Positive Factors
High and improving margins
Margins have structurally improved vs prior years, with TTM gross/operating/net margins well above industry cyclical norms. Durable margin strength supports persistent cash generation, funds R&D/dividends, and provides cushion versus cyclical equipment revenue swings over the next 2–6 months.
Negative Factors
Revenue contraction
The business has shifted from rapid scaling to slightly negative TTM revenue growth and meaningful Q1 declines, signaling cyclical or timing headwinds. Sustained top-line weakness compresses operating leverage and could pressure margins and investment returns if demand recovery is delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Margins have structurally improved vs prior years, with TTM gross/operating/net margins well above industry cyclical norms. Durable margin strength supports persistent cash generation, funds R&D/dividends, and provides cushion versus cyclical equipment revenue swings over the next 2–6 months.
Read all positive factors
SCREEN Holdings Co (7735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.35T
Dividend Yield1.16%
Average Volume (3M)1.74M
Price to Earnings (P/E)27.8
Beta (1Y)1.58
Revenue Growth-5.60%
EPS Growth-10.68%
CountryJP
Employees6,884
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)453.82
Shares Outstanding190,759,980
10 Day Avg. Volume1,851,630
30 Day Avg. Volume1,736,663
Financial Highlights & Ratios
PEG Ratio-3.74
Price to Book (P/B)3.47
Price to Sales (P/S)2.79
P/FCF Ratio25.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥17,300.00Price Target Upside9.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)618.31
Revenue Forecast (FY)¥746.40B
SCREEN Holdings Co Business Overview & Revenue Model
Company Description
SCREEN Holdings Co., Ltd. is a Japanese company primarily engaged in the development, manufacturing, sales, and maintenance of cutting-edge equipment for semiconductor production. Their extensive range of semiconductor solutions includes coat/deve...
How the Company Makes Money
SCREEN Holdings primarily makes money by selling capital equipment and related services used in semiconductor and other manufacturing workflows.
Key revenue streams:
1) Semiconductor manufacturing equipment sales: The largest earnings driver is t...
SCREEN Holdings Co Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a mixed near-term picture: Q1 showed notable declines in revenue (-10.3% YoY) and operating profit (-41.1% YoY), primarily driven by SPE softness and fixed-cost increases, and one segment (PE) remained unprofitable. Offsetting these headwinds, management reported record order intake, raised full-year guidance (net sales and operating profit upgraded), a record-high total dividend (JPY 183), robust market outlook for 2026–2027 (WFE growth ≈20% and stronger memory/DRAM forecasts), and confirmed capacity expansion and strong post-sales growth (post-sales to exceed JPY 100 billion). Given the company's conviction that Q1 weakness was mostly timing-related (delayed project to be posted in Q2), strong order visibility, and upward guidance, the positive forward-looking developments and upgraded guidance outweigh the near-term setbacks.Positive Updates
Raised Full-Year Guidance
Full-year consolidated net sales upgraded to JPY 743.0 billion (from JPY 725.0 billion in May), operating profit raised to JPY 156.5 billion (from JPY 150.0 billion), and net income raised to JPY 115.0 billion (from JPY 110.0 billion) — indicating a positive upward revision to FY2027 outlook.
Negative Updates
Significant Q1 Revenue and Profit Decline
Q1 consolidated net sales JPY 121.7 billion, down -10.3% year-on-year (approx. -JPY 14 billion). Operating profit JPY 14.3 billion, down -41.1% year-on-year (approx. -JPY 10 billion). OP margin fell to 11.8%, a decline of -6.2 percentage points year-on-year.
Read all updates
Q1-2027 Updates
Positive
Negative
Raised Full-Year Guidance
Full-year consolidated net sales upgraded to JPY 743.0 billion (from JPY 725.0 billion in May), operating profit raised to JPY 156.5 billion (from JPY 150.0 billion), and net income raised to JPY 115.0 billion (from JPY 110.0 billion) — indicating a positive upward revision to FY2027 outlook.
Read all positive updates
Company Guidance
Management largely maintained and in many cases raised FY2027 guidance while explaining Q1 results: Q1 consolidated sales were JPY 121.7bn (‑10.3% y/y), operating income JPY 14.3bn (‑41.1% y/y) and OP margin 11.8% (‑6.2pp), ordinary income JPY 15.4bn and net income JPY 10.4bn; SPE Q1 sales were JPY 93bn (‑16% y/y) with SPE OP margin ~15.4%, GA sales JPY 13.8bn (OP JPY 1.4bn, 10.3% margin), FT sales JPY 10.8bn (OP JPY 1.2bn, 11.8% margin) and PE sales JPY 3.1bn (OP ‑JPY 0.2bn). Balance sheet and cash flow highlights: net assets JPY 497.3bn, equity ratio 4.6%; Q1 operating cash flow +JPY 9.0bn, investing ‑JPY 10.0bn, free cash flow ‑JPY 0.9bn, financing ‑JPY 16.2bn (dividends); R&D JPY 10.1bn, CapEx JPY 17.8bn and depreciation JPY 4.0bn. Full‑year guidance was raised to net sales JPY 743bn (from JPY 725bn), operating income JPY 156.5bn (from JPY 150bn), ordinary income JPY 156.5bn and net income JPY 115bn (from JPY 110bn); H1 remains at sales JPY 317bn and OP JPY 56bn (OP margin 17.7%). Segment moves include SPE to JPY 620bn (up JPY 20bn) with SPE OP guidance lifted (OP margin ~25.6%), FT trimmed to JPY 43bn (from JPY 47bn) and GA/PE each up ~JPY 1bn; management cited record‑high orders and “almost fixed” visibility for FY sales, average equipment lead time ~4–5 months, expects WFE calendar‑year growth ~20% in 2026–27 (logic >20%, DRAM >25%, NAND ~20%), anticipates post‑sales to exceed JPY 100bn this year, and raised the annual dividend to JPY 183 (interim JPY 60, year‑end JPY 123).SCREEN Holdings Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 591.74B | 605.75B | 625.27B | 504.92B | 460.83B | 411.87B |
| Gross Profit | 225.34B | 233.18B | 235.30B | 182.52B | 155.05B | 134.37B |
| EBITDA | 131.77B | 141.40B | 151.97B | 105.19B | 87.53B | 66.58B |
| Net Income | 85.81B | 92.00B | 99.47B | 70.58B | 57.49B | 45.48B |
Balance Sheet | ||||||
| Total Assets | 769.20B | 722.42B | 671.29B | 676.81B | 562.82B | 459.31B |
| Cash, Cash Equivalents and Short-Term Investments | 212.25B | 227.37B | 200.40B | 197.28B | 175.58B | 133.09B |
| Total Debt | 6.04B | 6.09B | 4.56B | 7.18B | 28.85B | 44.23B |
| Total Liabilities | 271.86B | 235.73B | 250.59B | 304.89B | 262.88B | 211.51B |
| Stockholders Equity | 497.23B | 486.57B | 420.64B | 371.87B | 299.89B | 247.72B |
Cash Flow | ||||||
| Free Cash Flow | 67.88B | 67.20B | 49.45B | 58.15B | 55.09B | 72.94B |
| Operating Cash Flow | 94.73B | 92.71B | 71.23B | 96.25B | 73.91B | 81.75B |
| Investing Cash Flow | -29.98B | -29.71B | -21.77B | -43.46B | -12.51B | -9.95B |
| Financing Cash Flow | -27.49B | -40.20B | -46.47B | -35.14B | -20.96B | -4.95B |
SCREEN Holdings Co Technical Analysis
Neutral
15850.00
Price Trends
15225.30
Negative
12760.03
Positive
10383.22
Positive
Market Momentum
-920.01
Positive
42.86
Neutral
28.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7735, the sentiment is Neutral. The current price of 15850 is above the 20-day moving average (MA) of 15719.25, above the 50-day MA of 15225.30, and above the 200-day MA of 10383.22, indicating a neutral trend. The MACD of -920.01 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥704.63B | 28.13 | 13.70% | 1.50% | 10.83% | -3.77% | |
70 Outperform | ¥3.42T | 38.43 | 40.97% | 0.76% | 12.01% | 26.66% | |
70 Outperform | ¥25.23T | 40.84 | 28.89% | 1.79% | 8.25% | 16.50% | |
68 Neutral | ¥2.35T | 27.76 | 20.78% | 0.92% | -5.60% | -10.68% | |
67 Neutral | ¥6.34T | 43.44 | 26.19% | 0.83% | 15.20% | 17.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥1.77T | 57.54 | ― | 0.43% | -1.61% | -16.57% |
* Technology Sector Average
JP:7735
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SCREEN Holdings Co Corporate Events
SCREEN Holdings Raises Dividend Forecast for FY2027 to Align with 30% Payout Policy
Jul 28, 2026
SCREEN Holdings has revised its dividend forecast for the fiscal year ending March 31, 2027, as part of a capital allocation policy targeting a consolidated payout ratio of at least 30%. The company aims to balance growth investments with maintain...
SCREEN Holdings Sees Profit Slump in Q1 but Lifts Full-Year Outlook and Dividends
Jul 28, 2026
SCREEN Holdings reported a 10.3% year-on-year decline in first-quarter net sales to ¥121.8 billion, with operating income falling 41.1% and profit attributable to owners of parent dropping 37.1%, reflecting weaker short-term performance despi...
SCREEN Holdings Pushes Smaller Investment Units to Broaden Investor Base
Jun 25, 2026
SCREEN Holdings has outlined its stance on smaller investment units, highlighting that such measures can help attract a broader base of non-institutional investors and enhance share liquidity. The company frames this approach as part of its broade...
SCREEN Holdings Raises Year-End Dividend Above Forecast While Trimming Annual Payout
May 13, 2026
SCREEN Holdings has approved a year-end dividend of ¥170 per share for the fiscal year ended March 31, 2026, exceeding its earlier forecast of ¥157 per share, with total dividends of ¥16.2 billion to be paid from retained earnings o...
SCREEN Holdings Posts Profit Decline but Projects Strong Rebound in Fiscal 2027
May 13, 2026
SCREEN Holdings reported a 3.1% decline in net sales to ¥605.7 billion for the year ended March 31, 2026, with operating income down 9.7% and profit attributable to owners of the parent falling 7.5%, reflecting a softer performance after stro...
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.