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SCREEN Holdings Co Ltd (JP:7735)
:7735
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SCREEN Holdings Co (7735) AI Stock Analysis

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JP:7735

SCREEN Holdings Co

(OTC:7735)

Rating:71Outperform
Price Target:
¥12,188.00
▲(8.82%Upside)
SCREEN Holdings Co's strong financial performance and attractive valuation are key strengths. However, technical indicators and mixed earnings call results suggest caution due to short-term challenges and profitability concerns.

SCREEN Holdings Co (7735) vs. iShares MSCI Japan ETF (EWJ)

SCREEN Holdings Co Business Overview & Revenue Model

Company DescriptionSCREEN Holdings Co., Ltd. is a Japanese company primarily engaged in the development, manufacturing, and sale of semiconductor production equipment, graphic arts equipment, and display production equipment. The company has a diverse portfolio that caters to various industries, including electronics, printing, and energy, providing advanced technology solutions that enhance manufacturing processes and product quality.
How the Company Makes MoneySCREEN Holdings Co. generates revenue through the sale of its semiconductor production equipment, which is a major revenue stream given the global demand for semiconductors in various sectors like consumer electronics, automotive, and telecommunications. The company also earns from its graphic arts equipment, which serves the printing industry by offering digital printing solutions. Additionally, SCREEN Holdings provides display production equipment for the manufacturing of displays used in TVs, smartphones, and other devices. The company benefits from strategic partnerships and collaborations with industry leaders to enhance its technological capabilities and market reach. Service contracts, maintenance, and after-sales support also contribute to its earnings, providing ongoing revenue streams from existing customers.

SCREEN Holdings Co Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q1-2026)
|
% Change Since: -8.87%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with both positive and negative aspects. While there was growth in net sales and significant performance improvements in the FT segment, there were declines in operating income, SPE segment performance, and cash flow, suggesting challenges in maintaining profitability and managing cash effectively.
Q1-2026 Updates
Positive Updates
Net Sales Growth
Net sales for Q1 totaled JPY135.7 billion, marking an increase of 1.2% YoY.
FT Segment Performance
The FT segment reported a significant increase in both sales and income compared to the same period of the previous year. Net sales increased by JPY4.7 billion, and operating income increased by JPY1.3 billion.
Equity Ratio Improvement
The balance sheet has been compressed, resulting in an improved equity ratio of 64.5%.
OLED and Equipment Sales Surge
Sales of OLED and other equipment increased significantly, contributing to the positive performance of the FT segment.
R&D and Capital Investment
Continued investment in R&D and capital investment with JPY8.5 billion spent on R&D, JPY4.4 billion on capital investment, and JPY3.4 billion on depreciation and amortization in Q1.
Negative Updates
Decrease in Operating Income
Operating income decreased by JPY3.3 billion YoY, with an operating margin of 18%, down 2.7% from the same period last year.
SPE Segment Decline
Both sales and profits for the SPE segment declined YoY. Sales decreased by JPY2.6 billion, and operating income decreased by JPY3.3 billion compared to the same period last year.
Cash Flow Challenges
Operating cash flow in Q1 was only JPY6.9 billion due to large income tax payments, resulting in negative free cash flow of JPY2.7 billion.
PE Segment Struggles
The PE segment showed a decrease in sales and profit, with net sales down JPY0.8 billion YoY and operating income down JPY0.5 billion.
Company Guidance
During the Q1 financial results briefing for the fiscal year ending March 2026, SCREEN Holdings Co., Ltd. provided detailed guidance on various metrics. The company reported net sales of JPY135.7 billion, marking a 1.2% year-over-year increase. However, operating income decreased by 12.2% to JPY24.3 billion, with an operating margin of 18%, down by 2.7% from the previous year. The equity ratio stood at 64.5%. By segment, SPE accounted for 80.7% of sales, with sales of JPY109.5 billion and an operating margin of 23.5% despite a decrease in both sales and profit. FT showed a recovery with net sales of JPY9.9 billion and an operating margin of 10.5%, driven by increased OLED equipment sales. GA and PE segments also displayed mixed results, with GA's sales at JPY12.9 billion but impacted by foreign exchange rates, while PE struggled with negative operating income. The company maintained its full-year forecast with expected net sales of JPY621 billion and an operating income of JPY117 billion. The presentation highlighted regional sales contributions, with China accounting for 34% and Taiwan 29%. The management expressed optimism for future growth, particularly in AI and advanced packaging markets, while acknowledging the challenges posed by market uncertainties and geopolitical factors.

SCREEN Holdings Co Financial Statement Overview

Summary
SCREEN Holdings Co demonstrates robust financial health with strong revenue and profit growth, efficient operations, low leverage, and healthy cash flow generation. The company is well-positioned in the semiconductor industry, with sound financial metrics and strategic capital management, supporting its growth trajectory and market competitiveness.
Income Statement
85
Very Positive
SCREEN Holdings Co has shown strong revenue growth, with a notable 24% increase in 2025 compared to 2024. The gross profit margin is stable at 37.6%, and the net profit margin has improved to 15.9%. The EBIT and EBITDA margins are healthy at 21.7% and 24.3%, respectively, indicating efficient operations and profitability in the competitive semiconductor industry.
Balance Sheet
80
Positive
The company maintains a robust balance sheet with a debt-to-equity ratio of 0.01, showcasing low leverage and financial stability. The return on equity is strong at 23.6%, and the equity ratio is solid at 62.7%, demonstrating effective capital management and a strong equity base.
Cash Flow
78
Positive
SCREEN Holdings Co exhibits consistent free cash flow generation, with a 11.6% growth in free cash flow in 2025. The operating cash flow to net income ratio is 0.72, reflecting efficient cash conversion from profits. The free cash flow to net income ratio is 0.50, indicating a stable cash flow position despite some fluctuations in capital expenditures.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue625.27B504.92B460.83B411.87B320.32B
Gross Profit235.30B182.52B155.05B134.37B88.01B
EBITDA151.97B105.19B87.53B66.58B30.80B
Net Income99.47B70.58B57.49B45.48B15.16B
Balance Sheet
Total Assets671.29B676.81B562.82B459.31B382.63B
Cash, Cash Equivalents and Short-Term Investments200.40B197.28B175.58B133.09B62.73B
Total Debt4.56B7.19B29.07B45.65B43.88B
Total Liabilities250.59B304.90B262.89B211.52B174.09B
Stockholders Equity420.64B371.87B299.89B247.71B208.38B
Cash Flow
Free Cash Flow49.45B55.92B53.11B71.60B50.49B
Operating Cash Flow71.23B96.25B73.91B81.75B57.20B
Investing Cash Flow-21.77B-43.46B-12.51B-9.95B-6.24B
Financing Cash Flow-46.47B-35.14B-20.96B-4.95B-27.07B

SCREEN Holdings Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11200.00
Price Trends
50DMA
11171.56
Positive
100DMA
10555.10
Positive
200DMA
10243.13
Positive
Market Momentum
MACD
139.39
Positive
RSI
42.88
Neutral
STOCH
21.27
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 11200 is below the 20-day moving average (MA) of 11876.00, above the 50-day MA of 11171.56, and above the 200-day MA of 10243.13, indicating a neutral trend. The MACD of 139.39 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$7.72T33.8244.94%0.38%72.67%196.67%
77
Outperform
¥785.78B21.35
1.13%32.13%60.02%
73
Outperform
$4.69T37.8228.07%0.88%27.88%47.09%
71
Outperform
$1.07T10.9024.92%2.53%16.20%22.07%
69
Neutral
$3.34T20.48-4.72%1.51%-12.38%-133.30%
69
Neutral
¥230.42B14.657.50%2.61%9.34%5.75%
67
Neutral
$1.46T20.7944.53%1.78%-2.37%4.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7735
SCREEN Holdings Co
11,200.00
-1,349.33
-10.75%
JP:6525
Kokusai Electric Corporation
3,266.00
-883.61
-21.29%
JP:6146
Disco
42,100.00
-6,843.38
-13.98%
JP:6857
Advantest
10,355.00
4,359.30
72.71%
JP:6723
Renesas Electronics
1,859.00
-683.37
-26.88%
JP:6920
Lasertec
14,850.00
-11,535.08
-43.72%

SCREEN Holdings Co Corporate Events

SCREEN Holdings Announces Treasury Share Cancellation
Jul 25, 2025

SCREEN Holdings Co., Ltd. announced its decision to cancel 6,209,746 treasury shares, effective August 29, 2025, as part of its strategic financial management. This move is expected to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Enhances Share Compensation System with Treasury Stock Disposal
Jul 25, 2025

SCREEN Holdings Co., Ltd. has announced an additional contribution to its performance-linked share compensation system, which involves the acquisition of its own shares for distribution to directors and executive officers. This move aims to align the interests of its leadership with company performance and share prices, thereby enhancing motivation to improve corporate value. The decision, approved at the company’s general meeting, involves the disposal of treasury stock through a third-party allotment to Sumitomo Mitsui Trust Bank, Limited, with the acquisition scheduled for August 13, 2025.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 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 Mixed Financial Results for Q1 2025
Jul 25, 2025

SCREEN Holdings Co., Ltd. reported a slight increase in net sales for the first quarter ended June 30, 2025, with a 1.2% rise compared to the previous year. However, the company experienced declines in operating income and profit attributable to owners, with decreases of 12.2% and 8.4% respectively. The financial outlook for the fiscal year ending March 31, 2026, anticipates a slight decrease in net sales and a more significant drop in operating income, reflecting challenges in maintaining profitability amidst market fluctuations.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Adjusts Conversion Price for 2025 Bonds
Jun 20, 2025

SCREEN Holdings Co., Ltd. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2025, effective April 1, 2025. The adjustment was made following a dividend payment of ¥188 per share, approved at the general meeting of shareholders, and all remaining bonds have been converted into common stock, indicating a strategic move to optimize shareholder value.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Co. Explores Smaller Investment Units to Boost Market Engagement
Jun 19, 2025

SCREEN Holdings Co., Ltd. announced its position and policies on introducing smaller investment units to attract a broader range of investors and enhance share liquidity. The company has already implemented a stock split, reducing the size of investment units, and will continue to evaluate further adjustments based on market trends and trading volumes.

The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.

SCREEN Holdings Updates Director Compensation System
May 9, 2025

SCREEN Holdings Co., Ltd. has announced an amendment to its performance-linked share compensation system for directors, aiming to better align their incentives with company performance and share price movements. This adjustment, which includes raising the upper limit of funds for share purchases and capping the total points for directors, is designed to motivate directors to enhance corporate value over the medium and long term.

SCREEN Holdings Announces Dividend Increase for Fiscal Year 2025
May 9, 2025

SCREEN Holdings Co., Ltd. announced a resolution to distribute a year-end dividend of ¥188.00 per share for the fiscal year ending March 31, 2025, which will be voted on at the upcoming general meeting of shareholders. This decision reflects the company’s commitment to maintaining a strong financial base and a dividend payout ratio of 30% or above, aiming to support growth investments and adapt to future business environment changes.

SCREEN Holdings Reports Strong Financial Growth Amid Future Challenges
May 9, 2025

SCREEN Holdings Co., Ltd. reported significant financial growth for the fiscal year ending March 31, 2025, with a 23.8% increase in net sales and a 44.1% rise in operating income compared to the previous year. The company’s strong performance is reflected in a 40.9% increase in profit attributable to owners, indicating robust operational efficiency and market demand. However, the company forecasts a slight decline in sales and income for the next fiscal year, suggesting potential challenges ahead.

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.Date of analysis: Jul 29, 2025