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HOYA CORPORATION (JP:7741)
:7741
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HOYA (7741) AI Stock Analysis

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JP:7741

HOYA

(OTC:7741)

Rating:75Outperform
Price Target:
¥19,127.00
▼(-1.94%Downside)
HOYA's strong financial performance is the most significant factor, showcasing impressive revenue growth and a robust balance sheet. While technical analysis shows bullish trends, overbought indicators suggest caution. The valuation component indicates a higher P/E ratio, reflecting potential overvaluation. The absence of earnings call and corporate events data did not affect the score.
Positive Factors
Capacity Expansion
Hoya is operating at full capacity and is building more capacity to meet future demand.
IT Sector Growth
IT revenue grew 33% and operating profit grew 42% year-over-year, exceeding estimates by 16%.
Operating Performance
Operating profit of ¥66bn grew 24% year-over-year, with an operating margin of 30% that is 40 basis points ahead of consensus.
Negative Factors
Missed Profit Estimates
Operating profit of ¥24.7bn fell short of estimates by 15%, attributed to ongoing investments.
Net Income Decline
Net income of ¥51.5bn was 10% lower year-over-year, aligning with consensus due to a foreign exchange loss of ¥0.4bn.
One-off Write Down
Net income of ¥50.5bn increased 32% year-over-year, but was 7% below consensus due to a one-off write down of 4.8bn yen in the life care segment.

HOYA (7741) vs. iShares MSCI Japan ETF (EWJ)

HOYA Business Overview & Revenue Model

Company DescriptionHOYA Corporation, headquartered in Tokyo, Japan, is a diversified technology and healthcare company. It operates primarily in two sectors: Life Care and Information Technology. In the Life Care segment, HOYA provides products such as eyeglass lenses, contact lenses, and endoscopic imaging devices. The Information Technology segment focuses on manufacturing electronic components, including photomasks and hard disk drive (HDD) substrates. HOYA is recognized for its innovative technologies and solutions that enhance optical performance and contribute to healthcare advancements.
How the Company Makes MoneyHOYA Corporation generates revenue through the sale of products and services across its two main business segments: Life Care and Information Technology. In the Life Care segment, the company earns money through the production and sale of optical health products, such as eyeglass lenses and contact lenses, which are distributed globally. Additionally, HOYA's medical division provides endoscopic imaging devices and other health-related technologies, contributing significantly to its income. In the Information Technology segment, HOYA supplies electronic components such as photomasks, which are essential in semiconductor manufacturing, and HDD substrates used in data storage. These products are pivotal in the technology supply chain, facilitating stable and recurring revenue streams. The company's strategic partnerships with leading global manufacturers and its investment in research and development bolster its market position and provide competitive advantages, enabling sustained revenue growth.

HOYA Financial Statement Overview

Summary
HOYA exhibits strong financial performance, with impressive revenue growth and profitability. The balance sheet is robust, with low leverage and a high equity ratio, mitigating financial risks. Cash flow metrics are positive, although there is some potential to enhance cash conversion efficiency. Overall, the company is financially sound and well-positioned for future growth.
Income Statement
85
Very Positive
HOYA has demonstrated strong revenue growth with a 13.6% increase from 2024 to 2025. The gross profit margin remains robust at 80.1%, indicating effective cost management. The net profit margin at 23.3% reflects solid profitability. However, the EBIT margin decreased significantly from 46.4% in 2024 to 28.8% in 2025, suggesting rising operating expenses or other challenges impacting operations.
Balance Sheet
88
Very Positive
The balance sheet is strong with a low debt-to-equity ratio of 0.04, indicating minimal leverage. The equity ratio of 78.9% showcases financial stability and a solid equity base. Return on equity stands at 20.7%, reflecting efficient use of shareholder funds. The company's financial health is well-managed with low potential risks related to debt.
Cash Flow
82
Very Positive
HOYA's free cash flow grew by 3% from 2024 to 2025, showcasing consistent cash generation. The operating cash flow to net income ratio is 1.16, indicating strong cash generation relative to reported profits. However, the free cash flow to net income ratio of 0.93 suggests some room for improvement in cash conversion efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue866.03B762.61B734.10B670.33B558.26B
Gross Profit693.58B421.69B631.86B567.28B474.98B
EBITDA309.61B284.45B259.78B243.96B200.27B
Net Income202.10B181.38B168.64B164.51B125.45B
Balance Sheet
Total Assets1.23T1.20T1.03T992.84B853.29B
Cash, Cash Equivalents and Short-Term Investments533.97B525.16B426.27B426.63B338.79B
Total Debt37.28B29.24B24.58B21.60B20.75B
Total Liabilities262.65B241.36B213.72B203.78B180.88B
Stockholders Equity974.02B967.76B818.32B803.85B688.00B
Cash Flow
Free Cash Flow187.19B181.73B168.36B161.18B120.57B
Operating Cash Flow235.11B222.80B201.83B190.06B151.81B
Investing Cash Flow-33.19B-35.81B-47.50B-29.30B-29.79B
Financing Cash Flow-190.35B-110.89B-194.59B-106.72B-115.67B

HOYA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19505.00
Price Trends
50DMA
17407.20
Positive
100DMA
17098.31
Positive
200DMA
18530.65
Positive
Market Momentum
MACD
572.95
Negative
RSI
73.25
Negative
STOCH
92.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7741, the sentiment is Positive. The current price of 19505 is above the 20-day moving average (MA) of 17817.50, above the 50-day MA of 17407.20, and above the 200-day MA of 18530.65, indicating a bullish trend. The MACD of 572.95 indicates Negative momentum. The RSI at 73.25 is Negative, neither overbought nor oversold. The STOCH value of 92.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7741.

HOYA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥1.57T29.3011.84%1.19%10.21%8.55%
76
Outperform
$2.01T17.3615.47%1.10%6.53%-46.94%
75
Outperform
¥6.68T33.5520.56%0.82%13.56%12.78%
73
Outperform
$3.83T32.788.56%1.00%12.40%10.46%
72
Outperform
¥651.36B61.857.09%1.01%17.38%-30.54%
65
Neutral
¥355.15B11.37-2.99%2.48%11.78%-10.17%
57
Neutral
€225.40B44.082.07%2.32%9.85%-53.97%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7741
HOYA
19,505.00
825.46
4.42%
JP:8086
Nipro
1,382.00
79.96
6.14%
JP:6869
Sysmex
2,522.00
89.02
3.66%
JP:7747
Asahi Intecc Co
2,398.00
50.73
2.16%
JP:4543
Terumo
2,590.00
-118.87
-4.39%
JP:7733
Olympus
1,809.50
-775.13
-29.99%

HOYA Corporate Events

HOYA Corporation Announces Strategic Restructuring of Endoscope Business
Jul 10, 2025

HOYA Corporation announced a strategic move to transfer its endoscope business in Japan to a newly established wholly owned subsidiary, PENTAX Medical Corporation, through a simplified absorption-type company split effective May 1, 2026. This restructuring aims to enhance the business’s growth by allowing PENTAX Medical to make more focused decisions on product development, sales, and compliance, aligning with the industry’s specific needs and potentially strengthening HOYA’s market position.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Extends Performance-Based Stock Compensation Plan
Jun 26, 2025

HOYA Corporation has announced the continuation of its Performance Share Unit plan, a stock compensation initiative aimed at motivating executive officers to achieve long-term business goals and enhance corporate value. This plan, which involves granting shares based on performance targets, is designed to retain top talent and align executive interests with company growth, impacting the company’s strategic positioning and stakeholder interests.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Wins Partial Court Ruling on Tax Reassessment
Jun 11, 2025

HOYA Corporation has received a favorable ruling from the Tokyo District Court, which cancels approximately ¥1.3 billion in taxes related to a reassessment based on transfer pricing taxation. Despite this partial victory, HOYA plans to appeal the remaining portions of the court’s decision, though the outcome is not expected to significantly impact the company’s consolidated financial performance.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Introduces New Executive Stock Compensation Plan
May 22, 2025

HOYA Corporation has introduced a new stock compensation plan called ‘Restricted Stock Units’ for its Executive Officers, aiming to enhance motivation and align their interests with the company’s long-term value. This plan, which includes specific provisions for share allocation and monetary payouts, is designed to secure top talent by making compensation competitive with global standards, potentially impacting the company’s operational efficiency and market positioning.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Increases Year-End Dividend to Enhance Shareholder Returns
May 22, 2025

HOYA Corporation announced a significant increase in its year-end dividend for the fiscal year ended March 31, 2025, reflecting its commitment to maximizing corporate value and shareholder returns. The company aims to balance growth investments with stable dividends, highlighting a progressive dividend policy with a target payout ratio of 40%, while the dividend forecast for the next fiscal year remains undetermined.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Revises Dividend Policy to Boost Shareholder Returns
May 1, 2025

HOYA Corporation announced a revision of its dividend policy, introducing a progressive dividend policy with a target payout ratio of 40% to enhance capital efficiency and shareholder returns. This change reflects the company’s strategy to balance growth investments with shareholder returns, resulting in a significant increase in the year-end dividend forecast by 45% compared to the previous fiscal year.

HOYA Corporation Reports Significant Financial Growth in FY2025
May 1, 2025

HOYA Corporation reported a significant increase in its non-consolidated full-year financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced an 8.5% rise in net sales and a substantial increase in ordinary and net income, attributed to strong performance in its Information Technology business and increased dividend income from affiliated companies.

HOYA CORPORATION Announces Treasury Stock Cancellation to Boost Capital Efficiency
May 1, 2025

HOYA CORPORATION has announced the cancellation of 2,736,600 shares of its treasury stock, representing 0.79% of its total outstanding shares, to increase capital efficiency and enhance shareholder benefits. This strategic move, scheduled for completion on May 14, 2025, aims to reduce the total number of outstanding shares, potentially impacting the company’s market value and shareholder returns positively.

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.Date of analysis: Jul 25, 2025