Menicon Co (7780) AI Stock Analysis

• Market Cap: ¥144.55B
• Dividend Yield: 1.78%
• Average Volume (3M): 317.29K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.61
• 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: ¥2,128.00 ▲(33.25% 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 margin

A 53.6% gross margin signals durable product-level profitability and likely pricing power in contact lenses and care solutions. High gross margins create a structural buffer against input cost inflation, support R&D and capex funding, and underpin long-term margin sustainability.

Recurring consumables revenue

A business built on contact lenses plus recurring consumables and care solutions provides predictable, repeat revenue and higher customer lifetime value. This structural mix supports steady demand, easier forecasting, and durable cash flow from repeat purchases over months and years.

Solid equity base & OCF generation

A moderate leverage profile and ~46% equity ratio indicate financial resilience, while OCF well above net income (2.48x) shows real cash generation from operations. Together these fundamentals support reinvestment, working capital needs and strategic initiatives over the medium term.

Negative Factors

Rising total debt

An upward trend in total debt raises structural financing risk: higher interest and principal obligations can reduce flexibility for M&A, R&D or dividends. If growth slows, servicing rising debt could pressure cash flow and require deleveraging actions.

Negative free cash flow

Sustained negative free cash flow from heavy capex can force reliance on debt or equity to fund investments, limiting ability to return cash to shareholders. Structural capex intensity reduces near-term financial flexibility until FCF turns sustainably positive.

Modest/volatile operating margins

Relatively modest net and operating margins with historical fluctuation suggest limited buffer against demand shocks or cost increases. Margin variability points to operational efficiency risks and indicates management must improve cost structure to secure durable profitability.

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 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	41.28B	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: 1597.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1597 is below the 20-day moving average (MA) of 1775.35, below the 50-day MA of 1667.66, and above the 200-day MA of 1326.02, indicating a bullish trend. The MACD of 71.95 indicates Negative momentum. The RSI at 73.60 is Negative, neither overbought nor oversold. The STOCH value of 73.31 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
7741	80 Outperform	¥9.54T	38.55	20.74%	1.01%	8.83%	8.63%
5889	79 Outperform	¥48.22B	11.41	―	3.22%	12.92%	29.48%
7780	74 Outperform	¥144.55B	20.75	5.97%	1.78%	3.17%	7.07%
7730	71 Outperform	¥165.12B	33.41	―	2.73%	5.10%	-26.13%
3046	65 Neutral	¥124.17B	14.65	28.56%	1.97%	17.13%	78.33%
7743	52 Neutral	¥17.16B	14.63	―	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 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.