Menicon Co (7780) AI Stock Analysis

• Market Cap: €93.27B
• Dividend Yield: 2.28%
• Average Volume (3M): 317.29K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.47
• Revenue Growth: 3.13%
• EPS Growth: 2.91%
• Country: JP
• Employees: 4,221
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 13.05
• Shares Outstanding: 76,756,890
• 10 Day Avg. Volume: 331,470
• 30 Day Avg. Volume: 317,293
• PEG Ratio: 0.70
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -1.23K
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,318.00 ▲(7.24% Upside)

Menicon Co's overall stock score reflects strong financial performance and fair valuation. The company's consistent revenue growth and profitability are significant strengths. However, technical analysis indicates mixed signals, with potential bearish momentum and overbought conditions. Monitoring debt levels and improving cash flow management are crucial for future stability.

Menicon Co Business Overview & Revenue Model

Company Description

Menicon Co., Ltd. (Ticker: 7780) is a leading Japanese company specializing in the development, manufacture, and sale of contact lenses and related products. Established in 1951, Menicon operates primarily in the healthcare sector, focusing on vision care solutions. The company's product portfolio includes soft and rigid gas permeable contact lenses, lens care solutions, and various optical devices, catering to both consumer and professional markets. Menicon is recognized for its commitment to innovation and quality in the field of optometry and vision correction.

How the Company Makes Money

Menicon generates revenue primarily through the sale of contact lenses and related products, which represent the core of its business model. The company offers a range of products, including daily disposable lenses, monthly lenses, and specialized lenses for astigmatism and presbyopia. Additionally, Menicon earns revenue from lens care solutions, such as cleaning and disinfecting solutions. Key revenue streams also include partnerships with eye care professionals and distribution agreements with optical retailers and clinics. The company invests in research and development to innovate new products and improve existing ones, which helps maintain its competitive edge in the industry. Menicon's global expansion and increasing demand for vision care products further contribute to its earnings.

Menicon Co Financial Statement Overview

Summary

Menicon Co demonstrates strong financial performance with consistent revenue growth and profitability. The balance sheet is solid with a strong equity position, though increasing debt levels need monitoring. Cash flow management shows improvement, but negative free cash flow due to high capital expenditures requires strategic focus.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.59B	121.49B	116.19B	110.19B	100.17B	86.21B
Gross Profit	64.66B	65.08B	61.01B	58.48B	52.88B	45.82B
EBITDA	18.23B	18.52B	15.74B	19.33B	17.52B	14.13B
Net Income	4.85B	5.62B	4.54B	7.38B	6.48B	5.95B
Balance Sheet
Total Assets	182.63B	187.28B	179.81B	152.52B	130.98B	126.73B
Cash, Cash Equivalents and Short-Term Investments	32.29B	42.05B	46.91B	41.28B	33.05B	41.45B
Total Debt	76.26B	75.09B	70.79B	53.58B	42.44B	45.30B
Total Liabilities	97.74B	101.12B	98.01B	77.86B	63.94B	65.75B
Stockholders Equity	84.82B	86.10B	81.75B	74.61B	66.99B	60.93B
Cash Flow
Free Cash Flow	0.00	-77.00M	-9.47B	-226.00M	-3.23B	-1.25B
Operating Cash Flow	0.00	13.94B	11.87B	12.75B	12.72B	10.63B
Investing Cash Flow	0.00	-19.66B	-21.57B	-13.78B	-16.15B	-15.63B
Financing Cash Flow	0.00	714.00M	14.55B	8.90B	-5.40B	28.91B

Menicon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1229.00
• 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:7780, the sentiment is Positive. The current price of 1229 is above the 20-day moving average (MA) of 1211.65, above the 50-day MA of 1192.38, and above the 200-day MA of 1212.17, indicating a bullish trend. The MACD of 13.80 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7780.

Menicon Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5889	73 Outperform	¥48.89B	12.02	―	3.15%	12.18%	34.17%
7780	69 Neutral	€93.27B	19.20	6.01%	2.28%	3.13%	2.91%
7979	69 Neutral	¥65.98B	14.45	―	2.83%	3.69%	1.86%
3154	67 Neutral	¥17.59B	12.78	―	2.55%	11.12%	20.58%
7743	67 Neutral	¥17.61B	15.80	―	2.60%	2.38%	-48.68%
3046	64 Neutral	$173.65B	20.85	28.56%	1.62%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Menicon Co Corporate Events

Menicon Co. Completes Share Buyback Program

Menicon Co., Ltd. announced the completion of a share buyback program, purchasing 361,700 common shares for JPY 437,540,900 between September 1 and September 18, 2025. This buyback is part of a broader plan resolved in June 2025 to repurchase up to 2,300,000 shares, with the company having cumulatively bought back 2,052,900 shares by September 18, 2025, reflecting a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1323.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co., Ltd. Announces Interim Share Buyback Status

Menicon Co., Ltd. announced an interim report on its share buyback program, which was resolved at a board meeting on June 19, 2025. As of August 31, 2025, the company has repurchased 1,691,200 common shares for a total of JPY 1,962,429,600. This move is part of a larger plan to buy back up to 2,300,000 shares, representing 3.0% of total issued shares, with a maximum allocation of JPY 2,400 million. The buyback is conducted through market purchases on the Tokyo Stock Exchange and is expected to impact the company’s stock value and shareholder returns positively.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1355.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Reports Q1 FY2025 Results and Strategic Initiatives

Menicon Co., Ltd. reported a slight increase in revenue for its Vision Care business in the first quarter of FY2025, despite a decline in operating profit due to supply constraints and upfront costs for a new plant in Malaysia. The company remains optimistic about meeting its full-year forecast, driven by domestic price revisions and expanded supply capacity. In the orthokeratology-related market, Menicon plans to introduce new products and marketing strategies to maintain its leading position in China and capture growth opportunities in other regions. The impact of U.S. tariffs is expected to be limited due to the small revenue share from North America. Menicon has also initiated a share buyback program, reflecting its belief in the undervaluation of its stock and commitment to enhancing shareholder returns.

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. Reports Decline in Profits Despite Stable Sales

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

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.