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

• Market Cap: ¥182.31B
• Dividend Yield: 3.31%
• Average Volume (3M): 371.93K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.91
• Revenue Growth: 2.17%
• EPS Growth: 0.64%
• Country: JP
• Employees: 4,820
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 25.05
• Shares Outstanding: 170,800,000
• 10 Day Avg. Volume: 398,910
• 30 Day Avg. Volume: 371,930
• 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

• Rating: 79 Outperform
• Price Target: ¥1,211.00 ▲(13.92% Upside)

Tamron Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and low leverage. The technical analysis supports a stable outlook with positive price trends. The valuation is reasonable, offering 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., together with its subsidiaries, manufactures and sells precision optical products. It operates through three segments: Photo-Related Business; Monitoring & FA Related Business; and Mobility & Healthcare, Other Business. The Photo-Related Business segment offers interchangeable lenses for mirrorless cameras and Interchangeable lenses for single-lens reflex cameras. The Monitoring & FA-related business segment provides Surveillance camera lenses, FA/machine vision lenses, video conference lenses, camera modules, etc. The Mobility & Healthcare, Other Business segment offers in-vehicle cameras, video cameras, digital cameras, drones, and medical lenses, as well as various optical device parts, etc. The company also provides lenses for IP/CCTV cameras; lenses for long wavelength infrared cameras; optical device units; and high-precision injection mold of engineering plastic. It has operations in Japan, the rest of Asia, North America, Europe, and internationally. The company was formerly known as Taisei Optical Equipment Manufacturing Inc. and changed its name to Tamron Co.,Ltd. in April 1970. Tamron Co.,Ltd. was incorporated in 1948 and is headquartered in Saitama, Japan.

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. shows strong financial performance with significant revenue growth, high profit margins, low leverage, and robust cash flow generation. The company's efficient operations and solid balance sheet position it well for future growth.

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: Positive
• Last Price: 1063.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1063 is below the 20-day moving average (MA) of 1065.85, above the 50-day MA of 1041.64, and above the 200-day MA of 932.03, indicating a bullish trend. The MACD of 17.16 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 76.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	¥182.31B	13.37	―	3.31%	2.17%	0.64%
7839	―	¥90.39B	13.79	―	3.62%	-3.75%	-8.15%
7867	―	¥292.08B	16.41	―	1.90%	17.05%	66.00%
7944	―	¥86.16B	14.39	―	5.13%	-4.39%	-27.30%
7951	―	¥481.13B	75.31	1.32%	2.55%	-3.20%	-79.66%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7731	―	$562.81B	46.74	1.99%	2.65%	-1.87%	-59.25%

Tamron Co., Ltd. Corporate Events

Tamron Co., Ltd. Announces FY2025 First Half Financial Results and Strategic Plan

Tamron Co., Ltd. released its financial results for the first half of FY2025, highlighting variability in operating income across its segments. The company also outlined its medium-term management plan, ‘Value Creation 26 ver.2.0,’ focusing on financial strategy, capital costs, stock prices, and ESG/sustainability strategies.

The most recent analyst rating on (JP:7740) stock is a Hold with a Yen3600.00 price target. To see the full list of analyst forecasts on Tamron Co., Ltd. stock, see the JP:7740 Stock Forecast page.