HOYA (7741) AI Stock Analysis

• Market Cap: $6.15T
• Dividend Yield: 0.82%
• Average Volume (3M): 885.22K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.01
• Revenue Growth: 13.56%
• EPS Growth: 12.76%
• Country: JP
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 149.46
• Shares Outstanding: 343,122,620
• 10 Day Avg. Volume: 755,020
• 30 Day Avg. Volume: 885,220
• PEG Ratio: 4.51
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.48
• 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: $21,859.90
• Price Target Upside: 21.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: ―

HOYA's stock is supported by its strong financial performance, with robust revenue and profit growth and a solid balance sheet. While technical indicators show positive momentum, caution is advised due to potential overbought conditions. The higher P/E ratio suggests potential overvaluation, which could present risks if future growth does not meet expectations.

Positive Factors

Market Position

Hoya is the sole supplier in glass substrate, which will be adopted by all HDD makers, with market share expected to surpass 50% due to HAMR technology adoption.

Partnerships

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

Shareholder Returns

Hoya has a solid management team and offers attractive shareholder returns, with aims to return 100% of its free cash flow minus M&A.

Negative Factors

Earnings

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

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

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

HOYA Business Overview & Revenue Model

Company Description

HOYA Corporation is a diversified technology and med-tech company headquartered in Japan. The company operates in two primary segments: Life Care and Information Technology. In the Life Care segment, HOYA provides healthcare products, including eyeglass lenses, contact lenses, and medical endoscopes. The Information Technology segment focuses on the development and sale of optical products such as photomasks and mask blanks for the semiconductor industry, as well as glass disks for hard disk drives.

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

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
839.32B	762.61B	734.10B	670.33B	558.26B	582.47B
	Gross Profit
574.81B	421.69B	631.86B	567.28B	474.98B	488.09B
	EBIT
368.33B	353.80B	210.17B	200.94B	163.93B	147.72B
	EBITDA
282.99B	284.45B	259.78B	243.96B	200.27B	182.21B
	Net Income Common Stockholders
192.95B	181.38B	168.64B	164.51B	125.45B	114.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
173.31B	525.16B	426.27B	426.63B	338.79B	319.29B
	Total Assets
549.74B	1.20T	1.03T	992.84B	853.29B	811.01B
	Total Debt
105.42B	29.24B	24.58B	21.60B	20.75B	21.97B
	Net Debt
-67.89B	-495.92B	-381.31B	-397.80B	-314.15B	-296.02B
	Total Liabilities
198.26B	241.36B	213.72B	203.78B	180.88B	181.74B
	Stockholders Equity
350.28B	967.76B	818.32B	803.85B	688.00B	645.04B
Cash Flow		Free Cash Flow
199.48B	181.73B	168.36B	161.18B	120.57B	118.19B
	Operating Cash Flow
248.22B	222.80B	201.83B	190.06B	151.81B	163.37B
	Investing Cash Flow
-25.74B	-35.81B	-47.50B	-29.30B	-29.79B	-47.38B
	Financing Cash Flow
-137.07B	-110.89B	-194.59B	-106.72B	-115.67B	-85.47B

HOYA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17960.00
• 50DMA: Positive
• 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 Positive. The current price of 17960 is above the 20-day moving average (MA) of 17495.50, above the 50-day MA of 16810.50, and below the 200-day MA of 18987.62, indicating a neutral trend. The MACD of 352.34 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 35.35 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
6861	81 Outperform	$14.87T	37.31	13.30%	0.56%	9.50%	7.85%
7741	78 Outperform	$6.15T	30.89	20.56%	0.82%	13.56%	12.76%
4543	78 Outperform	¥3.98T	34.09	8.56%	0.97%	14.23%	26.82%
7751	70 Outperform	¥4.22T	24.44		3.54%	9.08%	-33.61%
7733	69 Neutral	$2.04T	17.59	15.47%	1.02%	7.60%	-66.30%
7731	57 Neutral	$437.62B	78.38	0.91%	3.39%	0.01%	-54.41%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%

HOYA Corporate Events

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.