Menicon Co Ltd (JP:7780)
:7780
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Menicon Co
(7780)
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Rating:74Outperform
Price Target:
¥1,856.00
▲(16.22% Upside)
Action:ReiteratedDate: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 margin
A 53.6% gross margin indicates persistent product-level pricing power and efficient manufacturing in contact lenses. High gross margins support durable profitability, fund R&D and marketing, and provide a buffer against input cost shocks over the next several quarters.
Negative Factors
Negative free cash flow
Persistent negative free cash flow from high capex reduces internal funding for dividends, buybacks, or debt reduction. Unless operating cash conversion improves, the company may need to restrict investment or raise financing, limiting long-term capital allocation optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A 53.6% gross margin indicates persistent product-level pricing power and efficient manufacturing in contact lenses. High gross margins support durable profitability, fund R&D and marketing, and provide a buffer against input cost shocks over the next several quarters.
Read all positive factors
Menicon Co (7780) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥123.25B
Dividend Yield1.78%
Average Volume (3M)317.29K
Price to Earnings (P/E)9.3
Beta (1Y)0.68
Revenue Growth3.00%
EPS Growth36.97%
CountryJP
Employees4,221
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)63.88
Shares Outstanding76,761,890
10 Day Avg. Volume331,470
30 Day Avg. Volume317,293
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)1.10
Price to Sales (P/S)0.78
P/FCF Ratio-1.23K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,283.33Price Target Upside42.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)96.51
Revenue Forecast (FY)¥130.82B
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, in...
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 profession...
Menicon Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
75
Positive
Cash Flow
65
Positive
| 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
Neutral
1597.00
Price Trends
1735.16
Negative
1638.56
Positive
1404.46
Positive
Market Momentum
-0.59
Positive
42.46
Neutral
18.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7780, the sentiment is Neutral. The current price of 1597 is below the 20-day moving average (MA) of 1723.67, below the 50-day MA of 1735.16, and above the 200-day MA of 1404.46, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7780.
Menicon Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥9.40T | 41.21 | 25.14% | 1.01% | 9.44% | 28.08% | |
78 Outperform | ¥54.37B | 10.70 | ― | 3.22% | 11.84% | -5.68% | |
74 Outperform | ¥123.25B | 9.26 | 7.81% | 1.78% | 3.00% | 36.97% | |
71 Outperform | ¥168.07B | 20.62 | ― | 2.73% | 6.29% | -7.19% | |
65 Neutral | ¥154.28B | 16.09 | 27.95% | 1.97% | 14.57% | 15.03% | |
58 Neutral | ¥16.25B | 58.26 | ― | 2.65% | 0.33% | -29.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:7780
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Menicon Co Corporate Events
Menicon Reclassifies Earn-Out Goodwill Costs, Keeps Forecast Unchanged
Mar 16, 2026
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...
Menicon Renames Chinese Subsidiary to Strengthen Brand in Key Market
Mar 9, 2026
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...
Menicon Posts Higher Nine-Month Profit and Confirms Full-Year Outlook
Feb 13, 2026
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, sup...
Menicon Releases 3Q FY2025 Results and Updates Milestone 2027 Progress
Feb 13, 2026
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...
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.