Menicon Co Ltd (JP:7780)
:7780
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Menicon Co
(7780)
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Rating:54Neutral
Price Target:
¥1,547.00
▼(-3.13% Downside)
Action:Downgraded
Date:05/15/26
The score is held back primarily by weak cash generation (recurring negative free cash flow and uneven cash conversion) and bearish technical momentum (below key moving averages with negative MACD). Steady revenue growth and strong gross margins support fundamentals, while valuation is moderate with a modest dividend yield.
Positive Factors
Steady Revenue Growth
Consistent multi-year top-line expansion indicates durable demand for Menicon's contact lenses and related products. A rising revenue base supports scale benefits, long-term customer relationships, and provides resources to invest in R&D and channel development over the next 2–6 months and beyond.
Negative Factors
Recurring Negative Free Cash Flow
Persistent negative FCF implies the business consumes more cash than it generates, forcing reliance on financing or asset sales. This constrains capacity to fund capex, dividends or strategic initiatives and raises execution risk if cash conversion doesn't improve over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Consistent multi-year top-line expansion indicates durable demand for Menicon's contact lenses and related products. A rising revenue base supports scale benefits, long-term customer relationships, and provides resources to invest in R&D and channel development over the next 2–6 months and beyond.
Read all positive factors
Menicon Co (7780) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥124.56B
Dividend Yield1.78%
Average Volume (3M)317.29K
Price to Earnings (P/E)21.4
Beta (1Y)0.67
Revenue Growth3.39%
EPS Growth7.21%
CountryJP
Employees4,221
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)63.88
Shares Outstanding76,771,484
10 Day Avg. Volume331,470
30 Day Avg. Volume317,293
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)1.34
Price to Sales (P/S)1.01
P/FCF Ratio-37.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,100.00Price Target Upside31.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)90.01
Revenue Forecast (FY)¥131.38B
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 makes money primarily by selling contact lenses and related vision-care products through domestic and international distribution. Key revenue streams typically include (1) contact lenses (including specialty lenses) sold to customers via e...
Menicon Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.59B | 125.61B | 121.49B | 116.19B | 110.19B | 100.17B |
| Gross Profit | 64.66B | 67.60B | 65.08B | 61.01B | 58.48B | 52.88B |
| EBITDA | 18.23B | 21.05B | 18.52B | 15.74B | 19.33B | 17.52B |
| Net Income | 4.85B | 5.92B | 5.62B | 4.54B | 7.38B | 6.48B |
Balance Sheet | ||||||
| Total Assets | 182.63B | 194.64B | 187.28B | 179.81B | 152.52B | 130.98B |
| Cash, Cash Equivalents and Short-Term Investments | 32.29B | 32.61B | 42.05B | 46.91B | 41.30B | 33.05B |
| Total Debt | 74.14B | 74.18B | 75.09B | 70.79B | 53.58B | 42.44B |
| Total Liabilities | 97.74B | 99.53B | 101.13B | 98.01B | 77.86B | 63.93B |
| Stockholders Equity | 84.82B | 95.05B | 86.10B | 81.75B | 74.61B | 67.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.37B | -77.00M | -8.24B | 1.31B | -2.00B |
| Operating Cash Flow | 0.00 | 11.84B | 13.94B | 11.87B | 12.75B | 12.72B |
| Investing Cash Flow | 0.00 | -16.49B | -19.66B | -21.57B | -13.78B | -16.15B |
| Financing Cash Flow | 0.00 | -6.04B | 714.00M | 14.55B | 8.90B | -5.40B |
Menicon Co Technical Analysis
Neutral
1597.00
Price Trends
1666.99
Negative
1666.81
Negative
1468.37
Positive
Market Momentum
-5.25
Negative
48.81
Neutral
58.26
Neutral
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 1604.30, below the 50-day MA of 1666.99, and above the 200-day MA of 1468.37, indicating a neutral trend. The MACD of -5.25 indicates Negative momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, 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 | ¥9.01T | 36.02 | 25.14% | 1.01% | 9.44% | 28.08% | |
78 Outperform | ¥186.49B | 24.29 | 27.95% | 1.97% | 14.57% | 15.03% | |
78 Outperform | ¥51.14B | 13.34 | ― | 3.22% | 11.84% | -5.68% | |
71 Outperform | ¥170.73B | 27.28 | ― | 2.73% | 6.29% | -7.19% | |
54 Neutral | ¥124.56B | 21.36 | 7.81% | 1.78% | 3.39% | 7.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥15.28B | 13.32 | ― | 2.65% | 2.14% | 3.96% |
* Healthcare Sector Average
JP:7780
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Menicon Co Corporate Events
Menicon Books Earn‑Out Costs Tied to Itabashi Trading Acquisition
May 13, 2026
Menicon has recognized additional earn-out consideration linked to its earlier acquisition of Itabashi Trading, reflecting contingent payments agreed when the trading company was turned into a subsidiary. The company has now estimated this additio...
Menicon Sets Director Slate and Group-Wide Stock Option Plan for 69th AGM
May 13, 2026
Menicon’s board has approved agenda items for its 69th annual general meeting of shareholders on June 26, 2026, including the election of eight directors. Six incumbents, among them President and CEO Koji Kawaura and three outside directors,...
Menicon posts higher FY2026 earnings and maintains dividend, eyes further sales growth
May 13, 2026
Menicon reported consolidated net sales of ¥125.6 billion for the fiscal year ended March 31, 2026, up 3.4% year on year, with operating profit rising 2.2% to ¥10.2 billion and ordinary profit jumping 15.2% to ¥11.0 billion. Profit ...
Menicon outlines FY2025 results, FY2026 outlook and progress toward 2027 goals
May 13, 2026
Menicon Co., Ltd. released an outline of its consolidated financial results for the year ended March 31, 2026, along with a forecast for fiscal 2026. The materials also describe progress toward its Milestone 2027 targets under the current medium-t...
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...
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.