Menicon Co (7780) AI Stock Analysis

• Market Cap: €119.36B
• Dividend Yield: 1.78%
• Average Volume (3M): 317.29K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.49
• Revenue Growth: 3.17%
• EPS Growth: 7.07%
• Country: JP
• Employees: 4,221
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 28.76
• 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: 74 Outperform
• Price Target: ¥1,706.00 ▲(8.32% Upside)

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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Cash Generation Ability

Strong cash generation relative to net income ensures liquidity and supports reinvestment and debt servicing, enhancing financial stability.

Product Innovation

Continuous investment in R&D fosters innovation, maintaining competitive edge and adapting to market needs, crucial for long-term growth.

Negative Factors

Increasing Debt Levels

Rising debt levels may strain financial resources and limit strategic flexibility, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow limits ability to fund operations and growth internally, necessitating external financing, which can increase risk.

Margin Fluctuations

Fluctuating margins suggest potential inefficiencies or cost pressures, which could affect profitability and competitiveness over time.

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 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: 1575.00
• 50DMA: Positive
• 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 Positive. The current price of 1575 is above the 20-day moving average (MA) of 1551.55, above the 50-day MA of 1375.36, and above the 200-day MA of 1233.29, indicating a bullish trend. The MACD of 56.55 indicates Positive momentum. The RSI at 67.10 is Neutral, neither overbought nor oversold. The STOCH value of 46.19 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	79 Outperform	¥46.72B	11.38	―	3.21%	12.92%	29.48%
7780	74 Outperform	€119.36B	23.11	5.97%	1.78%	3.17%	7.07%
7979	69 Neutral	¥64.52B	14.34	―	2.88%	3.69%	1.86%
3154	67 Neutral	¥18.19B	12.80	―	2.44%	8.52%	25.85%
7743	67 Neutral	¥17.07B	12.46	―	2.65%	0.81%	-26.76%
3046	65 Neutral	¥129.30B	16.17	28.56%	1.97%	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. Reports Mixed Financial Results Amid Business Adjustments

Menicon Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 1.5% to ¥61,480 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 5.8%, 10.7%, and 12.9% respectively. The company also finalized its provisional accounting treatment for a business combination, impacting its financial results retrospectively. Despite these challenges, Menicon forecasts a 2.9% increase in net sales for the full fiscal year ending March 31, 2026.

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.