Menicon Co (7780) AI Stock Analysis

• Market Cap: ¥125.99B
• Dividend Yield: 1.78%
• Average Volume (3M): 317.29K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.66
• Revenue Growth: 3.17%
• EPS Growth: 7.07%
• Country: JP
• Employees: 4,221
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 42.86
• Shares Outstanding: 76,761,890
• 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: ¥2,087.50
• Price Target Upside: 30.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 86.21
• Revenue Forecast (FY): ¥125.24B

• Rating: 74 Outperform
• Price Target: ¥1,893.00 ▲(18.53% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

Menicon Co's strong financial performance and bullish technical indicators are the primary drivers of its stock score. Despite a high P/E ratio suggesting overvaluation, the company's robust revenue growth and profitability, along with strong market momentum, support a favorable outlook. However, investors should be cautious of potential pullbacks due to overbought conditions and monitor the company's debt levels and cash flow management.

Positive Factors

High gross profit margin

A 53.58% gross margin indicates durable product-level profitability and likely cost control or pricing power in core contact lens sales. High gross margins provide a cushion to fund R&D, distribution and marketing, supporting sustainable earnings even with modest top-line swings over months.

Consistent revenue growth

Steady revenue growth reflects recurring demand for contact lenses and consumables, and supports predictable cash flows. Given the nature of consumable lens care products and established distribution, this trend is a durable driver of top-line stability over a multi-month horizon.

Strong operating cash generation

An OCF-to-net-income ratio of 2.48 shows the company converts reported earnings into cash effectively, giving it the ability to fund operations, service debt and invest. Robust operating cash generation is a durable financial strength even while headline free cash flow is pressured by capex.

Negative Factors

Rising leverage

A Debt-to-Equity near 0.87 and rising total debt reduce financial flexibility and increase interest obligations. Higher leverage can constrain capital allocation, elevate refinancing risk and limit ability to absorb shocks, which matters over the coming quarters if cash generation weakens.

Negative free cash flow

Sustained negative free cash flow driven by heavy capex pressures the balance sheet and may necessitate external financing or reduced shareholder returns. If capex fails to translate into faster growth, the company could face funding strain or slower deleveraging over the medium term.

Margin volatility / efficiency headroom

Fluctuating EBIT/EBITDA margins imply operational sensitivity to costs, pricing or mix. This variability reduces earnings predictability and signals room for efficiency gains; persistent volatility could pressure returns and cash flow consistency across upcoming reporting periods.

Menicon Co Business Overview & Revenue Model

Company Description

Menicon Co., Ltd. manufactures and sells contact lenses and lens care products. The company offers its products to hospitals, ophthalmology clinics, contact lens stores, eyeglass stores, and drug stores. It exports its products in 80 countries, including the United States, Europe, Oceania, and Asia. Menicon Co., Ltd. was incorporated in 1943 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Menicon primarily makes money by selling contact lenses and associated eye care products. Its core revenue stream comes from the manufacture and sale of contact lenses to customers through distribution channels that can include eye-care professionals and retailers, depending on the product and market. A second key revenue stream is the sale of contact lens care solutions and other related consumables used for lens cleaning, disinfection, and maintenance, which can generate repeat purchasing behavior. The company may also generate revenue from related eye care services and ancillary products tied to contact lens use. Specific details such as segment-level revenue breakdowns, major named partnerships, or the relative contribution of each revenue stream are null.

Menicon Co Financial Statement Overview

Summary

Menicon Co demonstrates strong revenue growth and profitability with a solid equity position. However, increasing debt levels and negative free cash flow due to high capital expenditures are areas of concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	41.30B	33.05B	41.45B
Total Debt	74.14B	75.09B	70.79B	53.58B	42.44B	45.30B
Total Liabilities	97.74B	101.13B	98.01B	77.86B	63.93B	65.74B
Stockholders Equity	84.82B	86.10B	81.75B	74.61B	67.00B	60.94B
Cash Flow
Free Cash Flow	0.00	-77.00M	-8.24B	1.31B	-2.00B	437.00M
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: Negative
• Last Price: 1597.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 1597 is below the 20-day moving average (MA) of 1777.45, below the 50-day MA of 1709.54, and above the 200-day MA of 1370.85, indicating a neutral trend. The MACD of -9.42 indicates Positive momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	80 Outperform	¥9.21T	21.89	25.14%	1.01%	8.83%	8.63%
5889	78 Outperform	¥48.99B	12.81	―	3.22%	12.92%	29.48%
7780	74 Outperform	¥125.99B	9.26	7.81%	1.78%	3.17%	7.07%
7730	71 Outperform	¥144.13B	18.72	―	2.73%	5.10%	-26.13%
3046	65 Neutral	¥119.97B	23.93	27.95%	1.97%	17.13%	78.33%
7743	58 Neutral	¥18.80B	58.26	―	2.65%	0.81%	-26.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Menicon Co Corporate Events

Menicon Reclassifies Earn-Out Goodwill Costs, Keeps Forecast Unchanged

Menicon has revised the accounting treatment of additional earn-out consideration tied to its acquisition of Itabashi Trading, following a renewed review by its auditing firm. Rather than recognizing up to JPY 3.52 billion in goodwill amortization as an extraordinary loss in the year ending March 2027, the company will book related expenses as selling, general and administrative costs, with up to JPY 500 million recorded in the year ending March 2026.

This reclassification will affect operating profit and profit levels in the current fiscal year by shifting costs into operating expenses, but Menicon maintains that consolidated results should remain in line with the financial forecast announced at the start of the year. The company does not plan to revise its earnings outlook at this time and will provide further disclosure if additional material developments arise.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1863.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Renames Chinese Subsidiary to Strengthen Brand in Key Market

Menicon Co., Ltd. has decided to change the name of its consolidated Chinese subsidiary, Itabashi Medical (Dalian) Co., Ltd., to Menicon (Dalian) Co., Ltd. The subsidiary, located in Dalian, China, engages in the import and sale of medical devices and food products and has capital of CNY 2,000 thousand.

The renaming, planned to take effect in early April 2026, is intended to reinforce Menicon’s brand strategy in the Chinese market and unify the group’s identity. By placing the Menicon name at the forefront, the company aims to enhance brand consistency, improve recognition and credibility among customers and partners, and support integrated management and sales expansion in China.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1967.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Posts Higher Nine-Month Profit and Confirms Full-Year Outlook

Menicon reported consolidated net sales of ¥93.9 billion for the nine months ended December 31, 2025, up 2.6% year on year, with operating profit rising 5.0% and profit attributable to owners of parent jumping 24.1% to ¥6.35 billion, supported by higher comprehensive income and an improved equity-to-asset ratio of 48.1%. The company maintained its full-year forecast, projecting modest sales and profit growth for the fiscal year ending March 31, 2026, kept its dividend outlook unchanged at ¥28 per share, and noted a completed business combination accounting adjustment and the exclusion of one subsidiary from consolidation, signaling stable operations and capital policy despite portfolio and accounting changes.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1929.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Releases 3Q FY2025 Results and Updates Milestone 2027 Progress

Menicon Co., Ltd. has released its consolidated financial results for the nine months ended December 31, 2025, providing investors with an update on its performance through the third quarter of fiscal 2025. The company also presented its full-year fiscal 2025 earnings forecast and detailed progress toward its Milestone 2027 targets under its medium-term management plan, outlining how current results align with its longer-term strategic and financial objectives.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen1929.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.