Tamron Co., Ltd. (7740) AI Stock Analysis

• Market Cap: ¥171.48B
• Dividend Yield: 3.52%
• Average Volume (3M): 417.90K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.91
• Revenue Growth: -5.65%
• EPS Growth: -16.35%
• Country: JP
• Employees: 4,820
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 19.72
• Shares Outstanding: 170,800,000
• 10 Day Avg. Volume: 447,440
• 30 Day Avg. Volume: 417,896
• PEG Ratio: 0.09
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 3.63
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 81.22
• Revenue Forecast (FY): ¥86.52B

• Rating: 74 Outperform
• Price Target: ¥1,146.00 ▲(7.81% Upside)

Tamron Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and low leverage. The technical analysis presents mixed signals, with the stock trading below key moving averages but nearing oversold conditions. Valuation metrics are favorable, with a reasonable P/E ratio and an attractive dividend yield. These factors collectively contribute to a solid overall stock score.

Tamron Co., Ltd. Business Overview & Revenue Model

Company Description

Tamron Co., Ltd. (7740) is a Japanese manufacturer specializing in optical products, particularly known for its high-quality camera lenses. The company operates primarily in the imaging sector, providing a wide range of lenses for digital SLRs, mirrorless cameras, and other optical devices. In addition to camera lenses, Tamron also develops and sells industrial optics and optical components for various applications, contributing to its reputation as a leader in the optical industry.

How the Company Makes Money

Tamron generates revenue primarily through the sale of its optical products, particularly camera lenses, which are marketed to both amateur and professional photographers. The company earns income from retail sales as well as through partnerships with camera manufacturers, often supplying lenses for their camera kits. Key revenue streams include the direct sale of lenses, aftermarket products, and accessories. Tamron also benefits from collaborations with various photography and imaging companies, which can enhance their market reach and product offerings. Additionally, the company invests in research and development to innovate and expand its product line, ensuring a competitive edge in the optical market.

Tamron Co., Ltd. Financial Statement Overview

Summary

Tamron Co., Ltd. exhibits a strong financial position with robust growth in revenue and profits, efficient operations, and low leverage. The company's impressive margins, solid ROE, and strong cash flow generation indicate a healthy financial condition. These strengths are complemented by a well-managed balance sheet and effective cash utilization, positioning the company well for future growth and stability.

Income Statement

Tamron Co., Ltd. has demonstrated strong revenue growth of 23.88% in the most recent year, with consistent increases over the past several years. The gross profit margin stands at 44.52%, while the net profit margin is a healthy 16.42%. EBIT and EBITDA margins are robust at 21.70% and 25.20% respectively, indicating efficient operations and solid profitability. The company has maintained a steady trajectory of improving profitability and revenue growth, which reflects positively on its financial health.

Balance Sheet

The balance sheet of Tamron Co., Ltd. is strong, with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on Equity (ROE) is high at 17.65%, showcasing effective use of equity to generate profits. The equity ratio is 80.55%, underscoring financial stability and a strong asset base. These metrics indicate a well-capitalized company with a strong balance sheet and low financial risk.

Cash Flow

The company's cash flow position is favorable, with a free cash flow growth rate of 165.22% in the most recent year. The operating cash flow to net income ratio is 1.21, suggesting strong cash generation relative to reported earnings. The free cash flow to net income ratio is 0.88, indicating that a significant portion of earnings is converted into free cash flow. These metrics highlight efficient cash management and the ability to sustain operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.34B	88.47B	71.43B	63.45B	57.54B	48.38B
Gross Profit	38.10B	39.39B	31.66B	27.62B	23.21B	18.37B
EBITDA	20.55B	22.29B	17.00B	14.49B	10.43B	5.94B
Net Income	13.37B	14.53B	10.81B	8.35B	5.17B	1.96B
Balance Sheet
Total Assets	96.53B	102.18B	87.06B	75.56B	67.06B	58.19B
Cash, Cash Equivalents and Short-Term Investments	33.16B	38.38B	32.64B	29.95B	25.80B	21.42B
Total Debt	1.57B	2.22B	1.85B	1.91B	2.03B	2.20B
Total Liabilities	17.73B	19.85B	16.33B	14.98B	14.53B	12.41B
Stockholders Equity	78.81B	82.33B	70.73B	60.57B	52.54B	45.78B
Cash Flow
Free Cash Flow	0.00	12.79B	4.83B	6.03B	6.64B	4.54B
Operating Cash Flow	0.00	17.64B	10.03B	9.23B	8.66B	7.55B
Investing Cash Flow	0.00	-6.73B	-5.14B	-3.87B	-3.78B	-12.33B
Financing Cash Flow	0.00	-6.02B	-2.78B	-2.04B	-1.25B	-2.11B

Tamron Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1063.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7740, the sentiment is Negative. The current price of 1063 is above the 20-day moving average (MA) of 1061.25, above the 50-day MA of 1056.14, and above the 200-day MA of 931.88, indicating a neutral trend. The MACD of -9.01 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7740.

Tamron Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7740	74 Outperform	¥171.48B	13.51	―	3.52%	-5.65%	-16.35%
7839	73 Outperform	¥90.01B	13.81	―	3.28%	-9.58%	-14.06%
7944	73 Outperform	¥85.64B	14.30	―	4.93%	-1.25%	9.33%
7951	64 Neutral	¥515.17B	28.06	3.68%	2.60%	-4.47%	-4.52%
7867	63 Neutral	¥291.45B	16.90	―	2.01%	10.50%	27.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7731	54 Neutral	$564.37B	46.87	1.29%	2.78%	-3.24%	-65.77%