HOYA (7741) AI Stock Analysis

• Market Cap: ¥8.73T
• Dividend Yield: 1.01%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.89
• Revenue Growth: 8.83%
• EPS Growth: 8.63%
• Country: JP
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 338,414,300
• 10 Day Avg. Volume: 1,057,600
• 30 Day Avg. Volume: 1,072,613
• PEG Ratio: 2.25
• Price to Book (P/B): 5.99
• Price to Sales (P/S): 6.73
• P/FCF Ratio: 31.16
• 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: ¥23,399.88
• Price Target Upside: -9.55% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥28,974.00 ▲(12.00% Upside)

HOYA's strong financial performance is the most significant factor, supported by robust profitability and financial stability. Technical analysis indicates a positive trend, though valuation concerns due to a high P/E ratio slightly offset the overall score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

High profit margins

Sustained very high gross and strong net margins indicate durable pricing power and an efficient cost base across HOYA's product mix. High margins support reinvestment in R&D, medical device development and premium lens innovation, underpinning long-term profitability and competitive positioning.

Very conservative balance sheet

Extremely low leverage and a high equity ratio provide financial flexibility to fund capex, acquisitions or downturns without straining cash flow. Strong ROE indicates efficient capital use, allowing HOYA to pursue strategic investments while maintaining resilience in stressed market conditions.

Strong free cash flow generation

Robust FCF growth and operating cash conversion above parity signal high-quality earnings and internal funding capacity. Reliable cash generation supports sustained investment in medical technologies, product development, shareholder returns, and balance-sheet strength over the medium term.

Negative Factors

Recent revenue growth softness

Single-digit revenue growth in the latest TTM suggests near-term top-line momentum is limited, reflecting market maturity or mix headwinds. Without stronger organic growth or inorganic initiatives, this can cap long-term upside and place greater emphasis on margin expansion to drive earnings.

Cyclicality in technology segment

Exposure to downstream electronics and industrial demand cycles creates structural revenue and margin volatility in the precision components business. This cyclical dependence can pressure cash flow and utilization during downturns, requiring diversification or counter-cyclical strategies to stabilize earnings.

Limited public disclosure/management visibility

Absence of earnings call and corporate-event disclosures in the provided data reduces visibility into management's strategic priorities, guidance and execution. For investors this increases governance and informational risk, making it harder to assess execution of long-term initiatives and operational risks.

HOYA Business Overview & Revenue Model

Company Description

HOYA Corporation operates as a med-tech company, and a supplier of high-tech and medical products worldwide. The company offers life care products, including eyeglass and contact lenses; medical endoscopes; intraocular lenses; laparoscopic surgical instruments; automatic endoscope cleaning equipment; and medical related products, such as prosthetic ceramic fillers and metallic implants. It also operates Eyecity, a specialty retailer of contact lenses. In addition, the company provides information technology products, such as mask blanks and photomasks for manufacturing semiconductor chips; photomasks for liquid crystal display panels; glass disks for hard disk drives; and imaging products that include optical glasses/optical lenses, colored glass filters, and laser equipment/UV light resources. Further, it offers ReadSpeaker, a speech synthesis software; and cloud services comprising Kinnosuke that is a time and attendance management service, and Yonosuke, an electronic payslip service. HOYA Corporation was founded in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HOYA generates revenue through multiple key streams. The Healthcare segment contributes significantly by selling intraocular lenses and surgical instruments for cataract surgery, as well as a variety of eyeglass lenses and contact lenses. Revenue in this sector is bolstered by ongoing demand for vision correction products and an aging population. The Electronics segment generates income by supplying photomasks and other critical materials used in semiconductor fabrication, catering to major tech companies in the electronics industry. Strategic partnerships with leading semiconductor manufacturers and healthcare providers enhance HOYA's market presence and revenue opportunities. Additionally, the company invests in research and development to innovate and expand its product offerings, further driving growth and profitability.

HOYA Financial Statement Overview

Summary

HOYA demonstrates strong financial performance with high profitability, robust revenue growth, and efficient operations. The balance sheet shows low leverage and high return on equity, indicating financial stability. Cash flow metrics highlight strong cash generation, though there is room for improvement in cash conversion efficiency.

Income Statement

HOYA's income statement reflects strong profitability with a high gross profit margin of 80.12% and a solid net profit margin of 23.45% in the TTM period. The company has demonstrated consistent revenue growth, with a 2.27% increase in the latest TTM period. EBIT and EBITDA margins are robust at 30.65% and 36.45%, respectively, indicating efficient operational performance. The steady growth and high margins suggest a well-managed cost structure and strong market position.

Balance Sheet

HOYA's balance sheet is characterized by low leverage, with a debt-to-equity ratio of 0.041, indicating prudent financial management. The return on equity is strong at 21.07%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 78.38%, showcasing a solid capital structure with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

The cash flow statement shows a healthy free cash flow growth rate of 82% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.28, suggesting efficient conversion of income into cash. The free cash flow to net income ratio of 0.79 further supports the company's ability to generate cash relative to its net income. These metrics highlight strong cash flow management, although there is room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	892.50B	866.03B	762.61B	723.58B	661.47B	547.92B
Gross Profit	715.03B	693.58B	606.30B	567.05B	511.05B	424.21B
EBITDA	325.28B	309.48B	284.45B	266.20B	254.48B	196.57B
Net Income	209.28B	202.10B	181.38B	168.64B	164.51B	125.45B
Balance Sheet
Total Assets	1.28T	1.23T	1.20T	1.03T	992.84B	853.29B
Cash, Cash Equivalents and Short-Term Investments	596.39B	533.97B	525.16B	405.89B	419.40B	334.90B
Total Debt	41.54B	37.28B	29.24B	24.58B	21.60B	20.75B
Total Liabilities	280.48B	262.65B	241.36B	213.72B	203.78B	180.88B
Stockholders Equity	1.01T	974.02B	967.76B	818.32B	803.85B	688.00B
Cash Flow
Free Cash Flow	194.43B	187.19B	181.73B	168.36B	161.18B	120.57B
Operating Cash Flow	247.05B	235.11B	222.80B	201.83B	190.06B	151.81B
Investing Cash Flow	-15.10B	-35.82B	-35.81B	-39.93B	-29.13B	-29.79B
Financing Cash Flow	-202.51B	-187.72B	-110.89B	-202.16B	-106.89B	-115.67B

HOYA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25870.00
• 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:7741, the sentiment is Positive. The current price of 25870 is above the 20-day moving average (MA) of 25129.25, above the 50-day MA of 24234.80, and above the 200-day MA of 20475.44, indicating a bullish trend. The MACD of 364.56 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7741.

HOYA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	74 Outperform	¥8.73T	35.28	20.74%	1.01%	8.83%	8.63%
4543	68 Neutral	¥2.98T	22.79	9.31%	1.22%	7.68%	10.08%
7747	68 Neutral	¥681.88B	45.64	10.09%	0.82%	13.53%	-7.39%
7733	68 Neutral	¥2.03T	21.20	13.13%	1.01%	0.42%	34.76%
8086	62 Neutral	¥231.60B	21.27	4.38%	2.03%	6.04%	733.13%
6869	61 Neutral	¥914.83B	19.59	9.80%	1.88%	1.51%	-12.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HOYA Corporate Events

HOYA Delivers Strong Q3 Earnings and Lifts Full-Year Profit Outlook

HOYA reported a strong performance for the three months ended December 31, 2025, with revenue rising 10.8% year-on-year to ¥244.7 billion and profit before tax surging 69.9% to ¥110.8 billion, lifting the profit margin to 45.3%. Quarterly profit attributable to owners of the company jumped 81.4% to ¥91.6 billion, driving basic earnings per share up to ¥270.54, while total assets and equity both increased and the equity ratio edged up to 78.7%, underscoring a solid financial position. Operating cash flow improved to ¥64.3 billion and free cash flow expanded to ¥59.5 billion despite higher capital expenditure and R&D spending, indicating robust cash generation alongside continued investment. Reflecting this momentum, HOYA raised its full-year outlook for the year ending March 31, 2026, projecting revenue of ¥940 billion and a 25%-plus increase in profit attributable to owners, signaling confidence in sustained earnings growth and reinforcing its competitive standing for investors and other stakeholders.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen26000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Highlights Assumptions and Risks Underpinning FY25 Q3 Outlook

In its FY25 third-quarter earnings presentation dated January 30, 2026, HOYA Corporation provided commentary that included forward-looking statements regarding its future plans and performance. These statements, based on management’s assumptions about macroeconomic conditions, market trends, competition, production capacity, financial metrics, regulatory and clinical outcomes, and broader risk factors such as pandemics, underscore the inherent uncertainty around HOYA’s outlook and highlight the range of external variables that could influence its operations and results.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen26000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Launches ¥100 Billion Share Buyback Targeting 1.48% of Outstanding Stock

HOYA CORPORATION’s board has approved a share repurchase program aimed at enhancing shareholder returns, improving capital efficiency and maintaining a flexible capital policy. The company will buy back up to 5 million shares, representing about 1.48% of its outstanding shares (excluding treasury stock), for a maximum total of 100 billion yen through market purchases on the Tokyo Stock Exchange between February 2 and July 17, 2026, with the repurchased shares slated for cancellation, a move that is expected to reduce share count and potentially support earnings per share and shareholder value.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen26000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA to Cancel 4.7 Million Treasury Shares to Boost Capital Efficiency

HOYA CORPORATION’s Board of Directors has approved the cancellation of 4,708,300 shares of its common stock, equivalent to 1.37% of shares outstanding, as part of a strategy to improve capital efficiency and enhance returns to shareholders by reducing the total number of shares in circulation. Following the cancellation, scheduled for January 9, 2026, the company will have 338,414,320 issued and outstanding shares, a move that is expected to support shareholder value by potentially increasing earnings per share and reinforcing HOYA’s shareholder-friendly capital allocation policy.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen26561.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Concludes Share Repurchase Plan

HOYA Corporation announced the completion and termination of its share repurchase plan, which was initially resolved by the Board of Directors on August 21, 2025. The company repurchased a total of 4,708,300 shares, amounting to approximately 99.999 billion yen, through market purchases on the Tokyo Stock Exchange, reflecting a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:7741) stock is a Hold with a Yen24852.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Updates on Share Repurchase Program

HOYA Corporation announced the status of its ongoing share repurchase program, which was initially resolved by the Board of Directors in August 2025. As of November 30, 2025, the company has repurchased 4,650,000 shares, spending a total of 98,658,475,500 yen, with a maximum target of 6.2 million shares by January 2026. This strategic move is part of HOYA’s efforts to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:7741) stock is a Hold with a Yen24852.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation to Restructure Contact Lens Business

HOYA Corporation announced a strategic move to transfer its contact lens retail business to a newly formed subsidiary, HOYA Eye Care Retailing Corporation, effective April 1, 2026. This decision aims to enhance business operations by allowing for more focused sales, marketing, and store management strategies tailored to the contact lens industry, potentially improving market positioning and operational efficiency.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen30000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Updates on Share Repurchase Progress

HOYA Corporation announced the status of its ongoing share repurchase plan, which was resolved by the Board of Directors in August 2025. As of October 31, 2025, the company repurchased 2,022,600 shares for approximately 44.56 billion yen, as part of a larger plan to buy back up to 6.2 million shares. This strategic move is likely to impact the company’s stock value and shareholder returns, reflecting HOYA’s commitment to enhancing shareholder value.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen30000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Announces Significant Interim Dividend Increase

HOYA Corporation announced an interim dividend of 125 yen per share for the fiscal year ending March 31, 2026, marking a significant increase from the previous year’s interim dividend. This decision reflects HOYA’s strategy to enhance corporate value by balancing growth investments with shareholder returns, while maintaining financial soundness and capital efficiency.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen25911.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.