SCREEN Holdings Co Ltd (JP:7735)
:7735
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SCREEN Holdings Co
(7735)
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Rating:82Outperform
Price Target:
¥14,158.00
▲(34.71% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial quality—improving profitability, an exceptionally conservative balance sheet, and consistently positive free cash flow—supported by a clear upward technical trend. Valuation is reasonable with a moderate P/E, though the dividend yield is modest and revenue cyclicality plus uneven cash conversion temper the overall score.
Positive Factors
Balance Sheet Strength
SCREEN Holdings' exceptionally low leverage and rising equity provide durable financial flexibility. Very low debt-to-equity reduces refinancing and interest risks, enabling sustained investment in R&D, capacity or share returns through cycles and supporting resilience during semiconductor downturns.
Negative Factors
Revenue Cyclicality
SCREEN operates in semiconductor capital equipment, where durable demand is tied to capex cycles and technology transitions. Cyclical revenue exposes multi-quarter variability in top-line, making growth lumpy and dependent on macro and customer timing across 2–6 month horizons and longer.
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Positive Factors
Negative Factors
Balance Sheet Strength
SCREEN Holdings' exceptionally low leverage and rising equity provide durable financial flexibility. Very low debt-to-equity reduces refinancing and interest risks, enabling sustained investment in R&D, capacity or share returns through cycles and supporting resilience during semiconductor downturns.
Read all positive factors
SCREEN Holdings Co (7735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.06T
Dividend Yield2.29%
Average Volume (3M)1.74M
Price to Earnings (P/E)22.9
Beta (1Y)1.49
Revenue Growth-3.12%
EPS Growth-4.90%
CountryJP
Employees6,415
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)486.62
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
¥13,338.46Price Target Upside26.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)597.75
Revenue Forecast (FY)¥723.93B
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 a...
How the Company Makes Money
SCREEN Holdings makes money primarily through the sale of capital equipment and the ongoing support of that installed base. Its main revenue stream comes from semiconductor manufacturing equipment (for processes such as wafer cleaning and related ...
SCREEN Holdings Co Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The call mixed strong strategic and operational positives (stable balance sheet, maintained guidance and dividends, FT outperformance, significant SPE franchise and targeted margin improvement, strategic M&A and IBM partnership) with meaningful near-term execution and market challenges (first-half revenue/profit decline, project push-outs into the second half, GA/PE weakness, China timing risk and input cost pressures). Management maintained full-year guidance and emphasized confidence in second-half recovery and midterm plans, but several short-term headwinds temper near-term outlook.Positive Updates
Consolidated first-half results (Key metrics)
Net sales JPY 274.2 billion, operating income JPY 46.4 billion (operating margin 16.9%), ordinary income JPY 46.8 billion, net income JPY 31.8 billion. Equity ratio stable at 64.4% and operating cash flow for the first half JPY 30.8 billion.
Negative Updates
Year-on-year decline in first-half sales and profits
Management reported both sales and profits fell year-on-year in the first half. Operating income decreased from JPY 58.2 billion last year to JPY 46.4 billion this year (≈ -20.3%), driven largely by revenue recognition shifts and lower capacity utilization.
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Q2-2026 Updates
Positive
Negative
Consolidated first-half results (Key metrics)
Net sales JPY 274.2 billion, operating income JPY 46.4 billion (operating margin 16.9%), ordinary income JPY 46.8 billion, net income JPY 31.8 billion. Equity ratio stable at 64.4% and operating cash flow for the first half JPY 30.8 billion.
Read all positive updates
Company Guidance
Management maintained full‑year guidance while giving first‑half detail: H1 net sales JPY 274.2 billion, operating income JPY 46.4 billion (OP margin 16.9%), ordinary income JPY 46.8 billion and net income JPY 31.8 billion, with an equity ratio of 64.4%; H1 SPE sales were JPY 218.5 billion with OP JPY 48.6 billion (22.3% margin). The full‑year outlook was kept at net sales JPY 621 billion and operating income JPY 170 billion (OP margin ~18.8%), ordinary income JPY 170 billion and net income JPY 88 billion (unchanged), with dividends of JPY 123 interim + JPY 157 year‑end = JPY 280 total. Segment guidance includes FT net‑sales revised to JPY 40 billion, GA sales JPY 53 billion with OP JPY 2.5 billion (4.7% margin), PE sales JPY 50 billion with OP +JPY 1 billion; corporate spend guidance: R&D JPY 38 billion, CapEx JPY 28 billion, depreciation/amortization JPY 15 billion; cash flow to date: Q2 operating cash flow JPY 23.8 billion and H1 operating cash flow JPY 30.8 billion. Management expects WFE market growth of low single‑digits in CY2025 and continued recovery into 2026 led by AI‑related foundry and memory investment.SCREEN Holdings Co Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 605.75B | 625.27B | 504.92B | 460.83B | 411.87B |
| Gross Profit | 233.18B | 235.30B | 182.52B | 155.05B | 134.37B |
| EBITDA | 137.10B | 148.51B | 105.00B | 85.25B | 70.77B |
| Net Income | 92.00B | 99.47B | 70.58B | 57.49B | 45.48B |
Balance Sheet | |||||
| Total Assets | 722.42B | 671.29B | 676.81B | 562.82B | 459.31B |
| Cash, Cash Equivalents and Short-Term Investments | 227.37B | 200.40B | 197.28B | 175.58B | 133.09B |
| Total Debt | 6.09B | 4.56B | 7.18B | 28.85B | 44.23B |
| Total Liabilities | 235.73B | 250.59B | 304.89B | 262.88B | 211.51B |
| Stockholders Equity | 486.57B | 420.64B | 371.87B | 299.89B | 247.72B |
Cash Flow | |||||
| Free Cash Flow | 67.20B | 49.45B | 58.15B | 55.09B | 72.94B |
| Operating Cash Flow | 92.71B | 71.23B | 96.25B | 73.91B | 81.75B |
| Investing Cash Flow | -29.71B | -21.77B | -43.46B | -12.51B | -9.95B |
| Financing Cash Flow | -40.20B | -46.47B | -35.14B | -20.96B | -4.95B |
SCREEN Holdings Co Technical Analysis
Positive
10510.00
Price Trends
10355.51
Positive
9965.23
Positive
8141.20
Positive
Market Momentum
132.73
Positive
52.74
Neutral
38.39
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 10510 is below the 20-day moving average (MA) of 10979.50, above the 50-day MA of 10355.51, and above the 200-day MA of 8141.20, indicating a bullish trend. The MACD of 132.73 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 38.39 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥2.06T | 22.85 | 21.73% | 2.29% | -3.12% | -4.90% | |
82 Outperform | ¥3.62T | 40.51 | 53.12% | 1.11% | 12.01% | 26.66% | |
80 Outperform | ¥7.20T | 52.09 | 25.78% | 0.79% | 11.08% | 9.32% | |
79 Outperform | ¥23.78T | 41.72 | 26.01% | 1.79% | 0.49% | 6.10% | |
73 Outperform | ¥721.43B | 28.51 | 12.66% | 2.28% | 10.83% | -3.75% | |
67 Neutral | ¥1.93T | 63.71 | ― | 0.73% | -1.61% | -16.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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SCREEN Holdings Co Corporate Events
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.