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SCREEN Holdings Co Ltd (JP:7735)
:7735

SCREEN Holdings Co (7735) AI Stock Analysis

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SCREEN Holdings Co

(OTC:7735)

Rating:82Outperform
Price Target:
¥11,809.00
▼(-1.96%Downside)
SCREEN Holdings Co's overall stock score reflects its strong financial performance and positive earnings call sentiment. The company's robust financial health and strategic positioning in the semiconductor industry are key strengths. Technical analysis supports a positive trend, while the valuation remains reasonable, balancing growth and income potential.

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

SCREEN Holdings Co Business Overview & Revenue Model

Company DescriptionSCREEN Holdings Co., Ltd. is a leading Japanese company engaged in the development, manufacturing, and sale of semiconductor production equipment, graphic arts equipment, and display production equipment. The company operates through several business segments, including Semiconductor Solutions, Graphic and Precision Solutions, and Finetech Solutions. SCREEN Holdings is recognized for its innovative technologies and solutions that cater to industries such as electronics, display manufacturing, and printing.
How the Company Makes MoneySCREEN Holdings Co. primarily generates revenue through the sale of its high-tech equipment and related services. The Semiconductor Solutions segment is a major revenue driver, supplying equipment used in the production of semiconductors, which are critical components in a wide range of electronic devices. The Graphic and Precision Solutions segment contributes by providing cutting-edge printing equipment and solutions for the graphic arts industry. In addition, the Finetech Solutions segment offers display production equipment, capitalizing on the demand for advanced display technologies. The company benefits from strategic partnerships and collaborations with key players in the technology and electronics sectors, which help enhance its product offerings and expand its market reach. Service contracts, maintenance agreements, and spare parts sales also contribute to the company's revenue streams.

SCREEN Holdings Co Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q4-2025)
|
% Change Since: 22.20%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with record high sales, improved market share, and strong performance in the SPE segment. However, challenges such as decreased sales in North America, struggles in the PE segment, and the anticipated impact of U.S. tariffs were noted. The sentiment leans towards positive due to the outweighing highlights.
Q4-2025 Updates
Positive Updates
Record High Sales and Profits
The company achieved record high sales and profits for the fourth year in a row, with net sales reaching JPY 625.2 billion and operating income at JPY 135.6 billion, marking a significant increase from the previous year.
Dividend Increase
The year-end dividend payment will be raised to JPY 188 per share, higher than the January forecast of JPY 163 per share. The annual dividend payment will also reach a record high of JPY 308 per share.
Improved Market Share and Credit Rating
The company saw a significant improvement in market share for single-wafer cleaning equipment and was upgraded to an A+ credit rating by JCR.
Strong SPE Performance
The SPE segment led growth with net sales of JPY 519.5 billion and an operating margin of 26.4%.
Positive Cash Flow
The company reported a smooth cash flow with an operating cash flow of JPY 71.2 billion and a free cash flow of JPY 49.4 billion year-on-year.
Negative Updates
Decreased Sales in North America
There was a noted decrease in sales in North America, with the regional sales composition showing a drop to 10%.
Challenges in PE Segment
The PE segment struggled with a decrease in sales and profit, facing delays in investment decisions by customers and a challenging market environment for printed circuit boards.
Impact of U.S. Tariffs
The business outlook for the next fiscal year includes conservative numbers due to the anticipated impact of U.S. tariffs, especially affecting the GA and FT segments.
Company Guidance
During the fiscal year ending March 2025, SCREEN Holdings achieved record highs in sales and profits for the fourth consecutive year, with significant contributions from the SPE segment. Net sales reached JPY 625.2 billion, marking an increase of JPY 120.3 billion from the previous year, while operating income rose by JPY 41.5 billion to JPY 135.6 billion, reflecting an OP margin of 21.7%. The company also reported an ordinary income of JPY 138.2 billion and a net income of JPY 99.4 billion, with ROE hitting 25.1%. The equity ratio improved to 62.7%, and the credit rating was upgraded to A+ by JCR. Dividends were declared at JPY 188 per share, totaling an annual dividend of JPY 308 per share, both record highs. Regionally, the sales distribution was 14% in Japan, 18% in Taiwan, 42% in China, 5% in South Korea, 4% in other countries, and 10% in North America, with notable increases in Taiwan and China. The SPE segment dominated with 83.1% of sales, and the company maintained positive cash flow, with operating cash flow at JPY 71.2 billion and free cash flow at JPY 49.4 billion. Looking forward, the fiscal year 2026 targets include net sales of JPY 621 billion and operating income of JPY 117 billion, with an emphasis on strategic investments for growth.

SCREEN Holdings Co Financial Statement Overview

Summary
SCREEN Holdings Co exhibits strong financial performance with robust revenue and profit growth, efficient operations, low leverage, and healthy cash flow generation. The company's financial metrics, including a strong net profit margin of 15.9% and a low debt-to-equity ratio of 0.01, highlight its financial stability and competitive positioning in the semiconductor industry.
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
Positive
Last Price12045.00
Price Trends
50DMA
10564.60
Positive
100DMA
10341.84
Positive
200DMA
10064.89
Positive
Market Momentum
MACD
354.97
Negative
RSI
64.37
Neutral
STOCH
71.65
Neutral
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 12045 is above the 20-day moving average (MA) of 11074.75, above the 50-day MA of 10564.60, and above the 200-day MA of 10064.89, indicating a bullish trend. The MACD of 354.97 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$1.17T11.7724.78%2.71%23.84%38.09%
80
Outperform
¥7.88T48.8234.01%0.37%60.27%158.92%
77
Outperform
¥805.78B21.89
1.12%32.13%60.02%
73
Outperform
¥4.49T36.2627.22%1.21%27.88%47.09%
73
Outperform
$1.68T23.9544.53%1.85%-2.37%4.89%
71
Outperform
$3.38T20.637.22%1.48%-10.70%-47.63%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7735
SCREEN Holdings Co
12,045.00
-3,730.46
-23.65%
JP:6525
Kokusai Electric Corporation
3,384.00
-2,071.75
-37.97%
JP:6146
Disco
40,550.00
-21,910.70
-35.08%
JP:6857
Advantest
10,675.00
4,086.59
62.03%
JP:6723
Renesas Electronics
1,894.50
-1,335.24
-41.34%
JP:6920
Lasertec
18,655.00
-14,751.68
-44.16%

SCREEN Holdings Co Corporate Events

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.

SCREEN Holdings Completes Share Acquisition to Enhance Shareholder Value
Apr 9, 2025

SCREEN Holdings Co., Ltd. has completed the acquisition of 1,242,500 shares of its common stock, totaling approximately ¥11 billion, as part of a broader share buyback program authorized by its Board of Directors. This strategic move, executed on the Tokyo Stock Exchange, is part of a plan to acquire up to 4 million shares, aiming to enhance shareholder value and optimize capital structure.

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: Jun 18, 2025