SCREEN Holdings Co (7735) AI Stock Analysis

• Market Cap: ¥2.09T
• Dividend Yield: 2.29%
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.39
• Revenue Growth: 11.29%
• EPS Growth: 11.38%
• Country: JP
• Employees: 6,415
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 244.25
• 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: ¥21,598.38
• Price Target Upside: -8.83% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 912.88
• Revenue Forecast (FY): ¥615.91B

• Rating: 77 Outperform
• Price Target: ¥26,888.00 ▲(13.50% Upside)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

The score is driven primarily by strong financial quality—especially the exceptionally conservative balance sheet and solid margins—partly offset by weaker cash-flow conversion and signs of cyclical cooling. Technically, the trend is strong but overbought indicators raise near-term volatility risk. Valuation and yield are only moderate, and the latest earnings call supports the outlook via maintained guidance/dividends but flags meaningful near-term timing and cost headwinds.

Positive Factors

Balance-sheet strength

SCREEN's exceptionally conservative balance sheet (very low leverage and a ~64% equity ratio) provides durable financial flexibility. This supports sustained R&D, cyclical resilience, dividend continuity and the ability to pursue M&A or capex without forcing distressed financing during industry downcycles.

High margins and dominant SPE franchise

A large, high-margin SPE business (nearly 80% of sales and ~22% operating margin) underpins durable profitability. Strong tool positioning and targeted SPE margin improvement plans provide structural earnings power that smooths returns versus lower-margin peers and supports reinvestment and shareholder returns over time.

Strategic R&D, M&A and partnerships

Targeted R&D spending, the Nikon wafer-bonding R&D acquisition and an expanded IBM collaboration strengthen SCREEN's advanced-packaging and next-gen cleaning roadmap. These structural moves deepen IP, broaden addressable markets and improve competitive positioning over the medium term.

Negative Factors

Weak cash conversion

Despite strong accounting profitability, weakened cash conversion (OCF only ~0.31x net income and FCF falling year-over-year) suggests working-capital sensitivity to order timing. That limits free cash available for investment or buybacks and raises risk if revenue timing remains volatile.

Cyclical revenue and China concentration

Heavy exposure to cyclical WFE trends and a ~40% China revenue share create structural timing and demand risk. Project push-outs and concentration mean earnings and cash flow can swing with customers' capex cycles and geopolitical/regional demand shifts over multiple quarters.

Margin pressure in non-SPE segments from tariffs/FX

Tariff and currency headwinds materially compressed GA segment margins and management notes raw material inflation. Persistent external cost pressures and limited ability to fully pass through increases threaten margin resilience outside the core SPE franchise and may constrain consolidated profit expansion.

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

High-quality fundamentals led by an exceptionally strong balance sheet (very low leverage and high equity ratio) and solid profitability (TTM gross margin ~37%, EBIT margin ~20%). Offsetting factors are cyclical cooling (TTM revenue -5.1%) and weaker cash conversion (FCF ~67% of net income; operating cash flow to net income ~0.31) with modest TTM FCF decline (-8.3%).

Income Statement

Profitability is strong for a semiconductor-related name, with TTM (Trailing-Twelve-Months) gross margin ~37%, EBIT margin ~20%, and net margin ~14%. However, momentum has softened: TTM revenue declined (-5.1%) versus solid growth in prior annual periods, and profits in TTM are below the latest annual peak, suggesting a cyclical slowdown after a strong run-up.

Balance Sheet

Balance sheet strength is a clear standout. Leverage is extremely low (TTM debt-to-equity ~0.01), while equity is sizable versus assets, giving the company meaningful financial flexibility. Returns on equity remain high (~22% TTM), though slightly down from the most recent annual level, consistent with easing earnings in the current cycle.

Cash Flow

Cash generation is positive with TTM operating cash flow (~¥67B) and free cash flow (~¥45B), but conversion has weakened: free cash flow is ~67% of net income and is down year over year (TTM free cash flow growth -8.3%). Operating cash flow also appears light relative to reported earnings (operating cash flow to net income ~0.31 TTM), pointing to working-capital or cycle-related volatility that investors should monitor.

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	133.09B	151.97B	105.19B	87.53B	66.58B	30.80B
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	5.91B	5.53B	7.19B	29.07B	44.24B	43.88B
Total Liabilities	233.82B	250.59B	304.90B	262.89B	211.52B	174.09B
Stockholders Equity	443.13B	420.64B	371.87B	299.89B	247.71B	208.38B
Cash Flow
Free Cash Flow	44.80B	49.45B	55.92B	53.11B	71.60B	50.49B
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

• Technical Analysis Sentiment: Positive
• Last Price: 23690.00
• 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 23690 is above the 20-day moving average (MA) of 21239.00, above the 50-day MA of 18358.80, and above the 200-day MA of 13660.07, indicating a bullish trend. The MACD of 1224.73 indicates Negative momentum. The RSI at 77.02 is Negative, neither overbought nor oversold. The STOCH value of 83.75 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	¥3.04T	34.81	53.12%	1.11%	32.51%	57.19%
7735	77 Outperform	¥2.09T	25.76	21.73%	2.29%	11.29%	11.38%
7729	77 Outperform	¥710.21B	32.37	12.66%	2.28%	9.53%	-11.17%
6146	75 Outperform	¥8.19T	62.35	25.78%	0.79%	13.45%	20.37%
8035	73 Outperform	¥20.16T	40.09	27.73%	1.79%	16.74%	16.03%
6525	62 Neutral	¥1.54T	45.94	―	0.73%	10.98%	6.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SCREEN Holdings Co Corporate Events

SCREEN Holdings Q3 Review Confirms Weaker Earnings but Stronger Equity Base

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 declining 21.0% to ¥54.95 billion. Despite the earnings contraction versus a strong prior-year period, total assets edged up to ¥677.08 billion and the equity ratio improved to 65.4%, and the company confirmed that its previously disclosed third-quarter financial statements have now passed an independent auditor’s interim review without changes.

Comprehensive income for the period slipped 8.0% to ¥62.33 billion, reflecting softer profitability amid weaker sales, even as net assets rose to ¥443.25 billion, underscoring a strengthened balance sheet. SCREEN will provide supplementary earnings materials and hold a results presentation for institutional investors and analysts, signaling continued engagement with the capital markets while navigating a more challenging operating environment.

The most recent analyst rating on (JP:7735) stock is a Hold with a Yen21600.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Announces 2-for-1 Stock Split to Broaden Investor Base

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 the number of issued shares to 190,759,972, prompt a revision of the Articles of Incorporation to increase authorized shares to 720 million, and leave stated capital unchanged, with dividends for the fiscal year ending March 31, 2026 still calculated on the pre-split share count, underscoring a strategic move to enhance liquidity and align its share price range with Tokyo Stock Exchange recommendations.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen21123.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Posts Lower Nine-Month Profit but Maintains Full-Year Guidance and Dividend Plan

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 profit attributable to owners of parent to ¥54.95 billion. Despite weaker earnings versus the prior year’s strong rebound, the company’s financial position remains robust, as total assets edged up to ¥677.08 billion and the equity ratio improved to 65.4%, while management left full-year earnings and dividend forecasts unchanged, signaling confidence in meeting its guidance and sustaining an annual dividend of ¥280 per share for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen21123.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.