HOYA (7741) AI Stock Analysis

• Market Cap: ¥8.22T
• Dividend Yield: 1%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.93
• Revenue Growth: 8.83%
• EPS Growth: 8.63%
• Country: JP
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 161.95
• Shares Outstanding: 343,122,620
• 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: ¥26,999.54
• Price Target Upside: 13.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥26,561.00 ▲(11.65% 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

Revenue Growth

Consistent revenue growth in both healthcare and electronics segments indicates strong market demand and effective business strategy.

Cash Generation

Strong cash generation capabilities provide HOYA with the flexibility to invest in growth opportunities and maintain financial stability.

Balance Sheet Health

Low leverage and a strong equity ratio reflect prudent financial management, reducing risk and enhancing long-term stability.

Negative Factors

Cash Conversion Efficiency

While cash generation is strong, improving cash conversion efficiency could enhance liquidity and operational flexibility.

Valuation Concerns

High valuation may limit investor interest and pose challenges in maintaining stock price stability if growth expectations are not met.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially impacting shareholder base diversity and stock attractiveness.

HOYA Business Overview & Revenue Model

Company Description

HOYA Corporation (7741) is a Japanese multinational company known for its diverse portfolio in the fields of healthcare, optics, and electronics. The company primarily operates through two segments: the Healthcare segment, which includes the production of medical devices, eye care products, and pharmaceuticals, and the Electronics segment, which focuses on the manufacturing of advanced semiconductor and display materials. HOYA's core products include intraocular lenses, contact lenses, and optical glass, as well as photomasks and other materials used in semiconductor manufacturing.

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's financial performance is robust, characterized by strong profitability, a solid balance sheet, and healthy cash flows. The company exhibits impressive revenue growth and efficient operations, with minimal financial leverage. While the slight decline in gross profit margin and slowing cash flow growth warrant monitoring, the overall financial health remains strong, positioning HOYA well for future growth and stability.

Income Statement

HOYA demonstrates strong profitability with a high gross profit margin of 73.91% and a solid net profit margin of 23.34% in the TTM. The company has shown impressive revenue growth, particularly in the TTM with a 76.6% increase, indicating robust demand for its products. EBIT and EBITDA margins are also healthy, reflecting efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

HOYA maintains a strong balance sheet with a low debt-to-equity ratio of 0.038, indicating minimal leverage and financial risk. The return on equity is robust at 20.39%, showcasing effective use of shareholder funds to generate profits. The equity ratio is healthy, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

The cash flow statement reveals strong cash generation capabilities, with a free cash flow to net income ratio of 79.62% and a consistent operating cash flow coverage ratio. The free cash flow growth rate of 3.02% in the TTM indicates steady cash flow improvements. However, the growth rate has slowed compared to previous periods, which could be a point of concern if it continues.

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: 23790.00
• 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 23790 is above the 20-day moving average (MA) of 23554.00, above the 50-day MA of 23522.80, and above the 200-day MA of 19286.31, indicating a bullish trend. The MACD of 112.13 indicates Negative momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 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	¥8.22T	39.47	20.74%	1.00%	8.83%	8.63%
7733	72 Outperform	¥2.21T	23.15	13.13%	1.00%	0.42%	34.76%
4543	68 Neutral	¥3.42T	26.17	9.31%	1.21%	7.68%	10.08%
7747	68 Neutral	¥790.80B	52.93	10.09%	0.81%	13.53%	-7.39%
8086	62 Neutral	¥239.51B	22.00	4.38%	2.05%	6.04%	733.13%
6869	61 Neutral	¥951.00B	20.37	9.80%	1.95%	1.51%	-12.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HOYA Corporate Events

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.

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.

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.

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.

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.