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

• Market Cap: ¥145.15B
• Dividend Yield: 9.21%
• Average Volume (3M): 631.37K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.88
• Revenue Growth: 14.84%
• EPS Growth: 20.61%
• Country: JP
• Employees: 4,820
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Leisure
• EPS (TTM): 17.43
• Shares Outstanding: 170,800,000
• 10 Day Avg. Volume: 754,140
• 30 Day Avg. Volume: 631,366
• PEG Ratio: 0.06
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.15
• 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: ¥3,600.00
• Price Target Upside: 313.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥3,881.00 ▲(345.58%Upside)

Tamron Co., Ltd.'s strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its overall score. The company's low P/E ratio and high dividend yield enhance its valuation appeal. Technical indicators reflect stable market conditions, moderately supporting the 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 Co., Ltd. makes money primarily through the sale of its optical products, particularly camera lenses. The company generates revenue by designing, manufacturing, and selling interchangeable lenses for digital single-lens reflex (DSLR) and mirrorless cameras, which are widely used by professional photographers and photography enthusiasts. Additionally, Tamron supplies lenses for video cameras and other imaging devices used in security and surveillance systems, contributing to its industrial optics segment. The company also benefits from partnerships with major camera manufacturers, providing them with branded or co-branded lens products. These strategic collaborations help Tamron expand its market reach and enhance its revenue streams. Furthermore, Tamron invests in research and development to maintain its competitive edge and meet the evolving needs of the optical industry, which supports its continuous growth and profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.47B	71.43B	63.45B	57.54B	48.38B
Gross Profit	39.39B	31.66B	27.62B	23.21B	18.37B
EBITDA	22.29B	17.00B	14.00B	10.43B	6.60B
Net Income	14.53B	10.81B	8.35B	5.17B	1.96B
Balance Sheet
Total Assets	102.18B	87.06B	75.56B	67.06B	58.19B
Cash, Cash Equivalents and Short-Term Investments	38.38B	32.64B	29.95B	25.80B	21.42B
Total Debt	2.22B	1.85B	1.91B	2.03B	2.20B
Total Liabilities	19.85B	16.33B	14.98B	14.53B	12.41B
Stockholders Equity	82.33B	70.73B	60.57B	52.54B	45.78B
Cash Flow
Free Cash Flow	12.79B	4.83B	6.03B	6.64B	4.54B
Operating Cash Flow	17.64B	10.03B	9.23B	8.66B	7.55B
Investing Cash Flow	-6.73B	-5.14B	-3.87B	-3.78B	-12.33B
Financing Cash Flow	-6.02B	-2.78B	-2.04B	-1.25B	-2.11B

Tamron Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 871.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 871 is above the 20-day moving average (MA) of 856.73, above the 50-day MA of 837.72, and below the 200-day MA of 953.40, indicating a neutral trend. The MACD of 10.03 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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	77 Outperform	¥145.15B	10.22		9.21%	14.84%	20.61%
Sector *	63 Neutral	$16.67B	10.98	-6.97%	2.95%	1.72%	-24.21%
NINOF		$3.18B	86.39	0.91%	0.03%	―	―
YAMCF		$3.27B	37.92	2.69%	1.26%	―	―
7839	83 Outperform	¥94.15B	13.80		4.02%	-2.75%	-7.80%
7944	76 Outperform	¥79.49B	12.23		5.59%	-1.74%	-11.79%
7867	75 Outperform	¥295.85B	18.11		1.74%	20.12%	69.12%

Tamron Co., Ltd. Corporate Events

Tamron Co., Ltd. Announces Director and Organizational Changes

Tamron Co., Ltd. announced significant changes in its director assignments and organizational structure, effective July and August 2025. These changes include the merging of the Marketing Planning Department with the Domestic and Overseas Sales Departments and several personnel transfers aimed at enhancing operational efficiency and strategic focus across its business units.

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.