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

• Market Cap: ¥168.15B
• Dividend Yield: 12.34%
• Average Volume (3M): 555.90K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.85
• Revenue Growth: 2.17%
• EPS Growth: 0.64%
• Country: JP
• Employees: 4,820
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Leisure
• EPS (TTM): 25.05
• Shares Outstanding: 170,800,000
• 10 Day Avg. Volume: 622,640
• 30 Day Avg. Volume: 555,903
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,881.00
• Price Target Upside: 284.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥3,881.00 ▲(284.64% 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. is a leading Japanese manufacturer specializing in optical products, particularly known for its high-quality camera lenses. The company operates within the consumer electronics sector and offers a wide range of products including interchangeable lenses for DSLR and mirrorless cameras, optical components, and surveillance equipment. Established in 1950, Tamron has built a reputation for innovation in optical technology, serving both amateur photographers and professional markets across the globe.

How the Company Makes Money

Tamron Co., Ltd. generates revenue primarily through the sale of its optical products, with a significant portion coming from its consumer segment, which includes lenses for digital cameras. The company also earns income from its industrial optics division, which provides optical solutions for industries such as surveillance, automotive, and medical equipment. Tamron's revenue model is heavily reliant on its ability to innovate and produce high-quality lenses that meet the evolving demands of both consumer and industrial users. Key partnerships with major camera manufacturers and distribution networks further bolster its sales and market reach. Additionally, the company invests in research and development to maintain a competitive edge in the optical technology industry.

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	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: 1009.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1009 is above the 20-day moving average (MA) of 962.90, above the 50-day MA of 910.46, and above the 200-day MA of 929.95, indicating a bullish trend. The MACD of 30.85 indicates Negative momentum. The RSI at 80.58 is Negative, neither overbought nor oversold. The STOCH value of 78.13 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	¥168.15B	12.38		12.34%	2.17%	0.64%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
NINOF	―	$3.06B	36.93	1.99%	3.36%	―	―
YAMCF	―	$3.24B	77.78	1.32%	5.27%	―	―
7944	81 Outperform	¥88.12B	14.78		5.04%	-4.39%	-27.30%
7839	79 Outperform	¥98.87B	15.55		3.80%	-3.75%	-8.15%
7867	70 Neutral	¥308.49B	18.24		1.65%	17.05%	66.00%

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.

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.