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Menicon Co (JP:7780)
:7780
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Menicon Co (7780) AI Stock Analysis

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JP:7780

Menicon Co

(Frankfurt:7780)

Rating:69Neutral
Price Target:
¥1,267.00
▲(6.74% Upside)
Menicon Co's overall stock score reflects strong financial performance and fair valuation, balanced by technical indicators suggesting potential short-term weakness. The company's robust financial health is a significant strength, though attention to cash flow management and debt levels is crucial for future stability.

Menicon Co (7780) vs. iShares MSCI Japan ETF (EWJ)

Menicon Co Business Overview & Revenue Model

Company DescriptionMenicon Co., Ltd. is a leading Japanese company specializing in the development, manufacture, and sale of contact lenses and related products. Founded in 1951 and headquartered in Nagoya, Japan, Menicon is known for its innovative approach to eye care, offering a wide range of products including soft and rigid gas permeable (RGP) contact lenses. The company also provides solutions for lens care and maintenance, catering to both domestic and international markets through its extensive distribution network.
How the Company Makes MoneyMenicon Co. primarily generates revenue through the sale of its contact lenses and lens care products. Its product portfolio includes daily, bi-weekly, and monthly disposable lenses as well as specialized RGP lenses for niche markets. A significant portion of its earnings comes from direct sales to consumers, as well as partnerships with opticians and retailers globally. Menicon also benefits from technological innovations and strategic collaborations that enhance its product offerings, allowing the company to maintain a competitive edge in the eye care industry. Additionally, Menicon's expansion into international markets contributes to its revenue growth by tapping into emerging demand for vision correction solutions worldwide.

Menicon Co Financial Statement Overview

Summary
Menicon Co exhibits strong financial performance with consistent revenue growth and solid profitability. Despite a robust balance sheet, increasing debt levels should be monitored. Cash flow management has improved, though negative free cash flow due to high capital expenditures requires attention.
Income Statement
78
Positive
Menicon Co shows consistent revenue growth with a Revenue Growth Rate of 4.56% in the latest year. The Gross Profit Margin is strong at 53.58%, indicating good cost management. The Net Profit Margin improved to 4.63%, showing enhanced profitability. However, the EBIT and EBITDA margins have shown some fluctuations, with the EBIT Margin at 8.28% and EBITDA Margin at 15.25%, suggesting room for efficiency improvements.
Balance Sheet
75
Positive
The company's Debt-to-Equity Ratio is 0.87, reflecting moderate leverage and a strong equity base. The Return on Equity (ROE) is 6.53%, indicating reasonable returns for shareholders. The Equity Ratio stands at 45.95%, showcasing a solid equity position relative to total assets. However, there is a noticeable increase in total debt over the years, which could pose a risk if not managed carefully.
Cash Flow
65
Positive
Menicon Co's Operating Cash Flow to Net Income Ratio is 2.48, demonstrating strong cash generation relative to net income. However, Free Cash Flow is negative, impacted by significant capital expenditures, resulting in a challenging Free Cash Flow to Net Income ratio. The Free Cash Flow Growth Rate has improved compared to the previous year, indicating better cash flow management but still needs attention.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue121.49B116.19B110.19B100.17B86.21B
Gross Profit65.08B61.01B58.48B52.88B45.82B
EBITDA18.52B15.74B19.51B17.25B14.13B
Net Income5.62B4.54B7.38B6.48B5.95B
Balance Sheet
Total Assets187.28B179.81B152.52B130.98B126.73B
Cash, Cash Equivalents and Short-Term Investments42.05B46.91B41.28B33.05B41.45B
Total Debt75.09B70.79B53.58B42.44B45.30B
Total Liabilities101.12B98.01B77.86B63.94B65.75B
Stockholders Equity86.10B81.75B74.61B66.99B60.93B
Cash Flow
Free Cash Flow-77.00M-9.47B-226.00M-3.23B-1.25B
Operating Cash Flow13.94B11.87B12.75B12.72B10.63B
Investing Cash Flow-19.66B-21.57B-13.78B-16.15B-15.63B
Financing Cash Flow714.00M14.55B8.90B-5.40B28.91B

Menicon Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1187.00
Price Trends
50DMA
1114.98
Positive
100DMA
1179.31
Negative
200DMA
1305.82
Negative
Market Momentum
MACD
15.88
Positive
RSI
45.83
Neutral
STOCH
58.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7780, the sentiment is Negative. The current price of 1187 is above the 20-day moving average (MA) of 1172.95, above the 50-day MA of 1114.98, and below the 200-day MA of 1305.82, indicating a neutral trend. The MACD of 15.88 indicates Positive momentum. The RSI at 45.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7780.

Menicon Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥53.56B13.22
2.87%17.45%43.39%
74
Outperform
$191.86B24.6529.03%1.10%18.75%179.55%
69
Neutral
¥88.09B18.136.01%2.42%3.13%2.91%
67
Neutral
¥15.56B13.96
2.88%2.38%-48.68%
65
Neutral
¥341.84B11.04-0.17%2.40%9.73%-9.93%
63
Neutral
¥19.15B13.91
2.32%11.12%20.54%
61
Neutral
¥69.97B17.21
2.46%6.82%-1.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7780
Menicon Co
1,158.00
-176.02
-13.19%
JP:3154
Medius Holdings Co., Ltd.
861.00
79.30
10.14%
JP:5889
Japan Eyewear Holdings Co.,Ltd.
2,220.00
-838.94
-27.43%
JP:7743
Seed Co., Ltd.
521.00
16.74
3.32%
JP:7979
Shofu Inc.
1,961.00
-650.55
-24.91%
JP:3046
JINS HOLDINGS
8,220.00
3,469.36
73.03%

Menicon Co Corporate Events

Menicon Co. Reports Decline in Profits Despite Stable Sales
Aug 8, 2025

Menicon Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.3% compared to the previous year. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 26.9%, 35.6%, and 43.8% respectively. The company’s comprehensive income also dropped by 76.7%. Despite these challenges, Menicon maintained its financial forecast for the fiscal year ending March 31, 2026, with expectations of a 2.9% increase in net sales and a 1.9% rise in operating profit. The company’s capital adequacy ratio improved slightly from 45.4% to 46.1%, indicating a stable financial position.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Align Stakeholder Interests
Aug 1, 2025

Menicon Co., Ltd. has announced the issuance of share remuneration-type stock options to its executive officers, directors, employees, and subsidiaries’ directors. This move, decided in a board meeting on June 26, 2025, involves the allocation of share acquisition rights across various groups within the company, aiming to align the interests of its stakeholders with the company’s performance. The stock options are structured such that recipients can offset the cash payment obligation with their remuneration claims, thus enhancing the company’s incentive structure.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1400.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Announces Interim Share Buyback Results
Jul 2, 2025

Menicon Co., Ltd. announced an interim report on its share buyback program, which was resolved at a board meeting on June 19, 2025. The company has bought back 284,900 common shares for JPY 305,168,900 between June 20 and June 30, 2025, as part of a broader plan to repurchase up to 2.3 million shares by December 20, 2025. This move is aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Boost Performance
Jun 26, 2025

Menicon Co., Ltd. announced the issuance of share remuneration-type stock options to directors and employees of its subsidiaries, aiming to enhance motivation and contribute to the sustained improvement of the company’s business performance. This strategic move is expected to promote management efforts to increase corporate value, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Subsidiary Directors
Jun 26, 2025

Menicon Co., Ltd. has announced the issuance of share remuneration-type stock options to directors of its subsidiaries in Japan. This move is aimed at enhancing motivation and aligning the interests of directors with the company’s long-term goals, thereby promoting sustained improvement in business performance and corporate value.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Boost Performance
Jun 26, 2025

Menicon Co., Ltd. announced the issuance of share remuneration-type stock options to its executive officers, directors, and employees to enhance motivation and contribute to the company’s sustained business performance and corporate value. This strategic move aims to align the interests of key personnel with the company’s long-term goals, potentially impacting its operational efficiency and market positioning positively.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Announces Strategic Share Buyback Amid Expansion Plans
Jun 19, 2025

Menicon Co., Ltd. has announced a share buyback program, resolving to repurchase up to 2.3 million shares, which is 3% of its total issued shares, at a maximum cost of JPY 2.4 billion. This decision is part of a broader strategy to enhance shareholder value while addressing the current stock price, which the company believes does not reflect its future profitability. The buyback will be funded from cash on hand and is aligned with Menicon’s medium-term management plan, which includes expanding production capacity to meet the growing demand for daily disposable contact lenses. The company’s new plant in Malaysia is expected to significantly boost supply capacity by March 2026, contributing to economies of scale and improved business performance.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. to Receive JPY 3 Billion Dividend from Subsidiary
May 20, 2025

Menicon Co., Ltd. has announced that it will receive a dividend of JPY 3,000 million from its consolidated subsidiary. This dividend will be recorded as extraordinary income in the non-consolidated financial results for the fiscal year ending March 31, 2026, but it will not affect the consolidated financial results for the same period.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Updates Medium-Term Plan Amid Shifting Market Dynamics
May 20, 2025

Menicon Co., Ltd. has updated its Medium-Term Management Plan, maintaining its overall sales targets but revising specific sales goals for its ‘1-DAY lens’ and orthokeratology-related strategies. The company anticipates strong global demand for its ‘1-DAY lens’ products and plans to increase production capacity with a new plant in Malaysia, aiming to enhance profitability and expand sales internationally. However, growth in the orthokeratology market is expected to slow in China due to economic factors and emerging technologies, prompting Menicon to focus on other Asian markets for growth.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

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: Aug 15, 2025