HOYA (7741) AI Stock Analysis

• Market Cap: ¥5.86T
• Dividend Yield: 1.34%
• Average Volume (3M): 958.25K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.01
• Revenue Growth: 13.56%
• EPS Growth: 12.78%
• Country: JP
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 149.46
• Shares Outstanding: 343,122,620
• 10 Day Avg. Volume: 1,159,110
• 30 Day Avg. Volume: 958,246
• PEG Ratio: 5.94
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.05
• 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: ¥21,375.61
• Price Target Upside: 25.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: ¥18,877.00 ▲(10.94%Upside)

HOYA's strong financial performance significantly boosts its overall score, reflecting robust revenue growth and financial stability. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation, which limits the overall attractiveness of the stock.

Positive Factors

Earnings Beat

Operating profit of ¥66bn grew 24% YoY, and the implied operating margin of 30% is 40bps ahead of consensus.

Market Dominance

Hoya is dominant in the EUV mask blanks business and benefits greatly from its partnership with TSMC, having effectively 100% share at TSMC.

Strategic Growth

Hoya is at full capacity now and is building more capacity for future demand.

Negative Factors

Consensus Shortfall

Net income of ¥50.5bn grew 32% year on year, 7% short of consensus due to a one-off write down of 4.8bn yen in life care.

Net Income Decline

Net income of ¥51.5bn was 10% lower YoY, in line with consensus due to FX loss of ¥0.4 bn in the current term.

Operating Profit Miss

Operating profit of ¥24.7bn missed our estimate by 15%, due to continued investments.

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 Corporation generates revenue through a diversified portfolio of products and services across its two main business segments. In the Life Care segment, the company earns revenue from the sale of eyeglass lenses, contact lenses, and other optical healthcare products, as well as medical endoscopes used in the medical field. This segment benefits from partnerships with healthcare providers and opticians, contributing to steady income streams. In the Information Technology segment, HOYA generates income by supplying critical components, such as photomasks and mask blanks, to semiconductor manufacturers, as well as producing glass substrates for hard disk drives. The company's revenue model is supported by strong customer relationships in both the healthcare and technology sectors, allowing it to maintain a stable financial performance.

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.

Income Statement

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

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

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.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
866.03B	762.61B	734.10B	670.33B	558.26B
	Gross Profit
693.58B	421.69B	631.86B	567.28B	474.98B
	EBIT
249.38B	353.80B	210.17B	200.94B	163.93B
	EBITDA
309.61B	284.45B	259.78B	243.96B	200.27B
	Net Income Common Stockholders
202.10B	181.38B	168.64B	164.51B	125.45B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
533.97B	525.16B	426.27B	426.63B	338.79B
	Total Assets
1.23T	1.20T	1.03T	992.84B	853.29B
	Total Debt
37.28B	29.24B	24.58B	21.60B	20.75B
	Net Debt
-496.68B	-495.92B	-381.31B	-397.80B	-314.15B
	Total Liabilities
262.65B	241.36B	213.72B	203.78B	180.88B
	Stockholders Equity
974.02B	967.76B	818.32B	803.85B	688.00B
Cash Flow		Free Cash Flow
187.19B	181.73B	168.36B	161.18B	120.57B
	Operating Cash Flow
235.11B	222.80B	201.83B	190.06B	151.81B
	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: Negative
• Last Price: 17015.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 17015 is below the 20-day moving average (MA) of 17234.50, above the 50-day MA of 16732.80, and below the 200-day MA of 18858.20, indicating a bearish trend. The MACD of -120.75 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7741.

HOYA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	70 Outperform	¥5.86T	29.46	20.56%	1.34%	13.56%	12.78%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
TRUMF		$27.36B	35.07	8.56%	0.95%	―	―
AHICF		$4.48B	63.35	7.09%	0.66%	―	―
5FA		€1.27B	39.69	2.07%	2.03%	―	―
OCPNF		$15.23B	19.98	15.47%	0.99%	―	―
SSMXF		$10.55B	26.09	11.84%	1.34%	―	―

HOYA Corporate Events

HOYA Wins Partial Court Ruling on Tax Reassessment

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

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

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

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

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

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.

HOYA Corporation Concludes Share Repurchase Plan

HOYA Corporation announced the termination of its share repurchase plan, initially resolved by the Board of Directors on February 3, 2025. The company repurchased 1,226,100 shares amounting to 21.5 billion yen between March 1 and March 18, 2025, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy to manage capital and enhance shareholder value, with a total of 2,736,600 shares repurchased under the plan.