Menicon Co (7780) AI Stock Analysis

• Market Cap: ¥90.00B
• Dividend Yield: 2.37%
• Average Volume (3M): 451.71K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.52
• Revenue Growth: 4.56%
• EPS Growth: 24.10%
• Country: JP
• Employees: 4,221
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 6.68
• Shares Outstanding: 76,756,485
• 10 Day Avg. Volume: 261,860
• 30 Day Avg. Volume: 451,706
• PEG Ratio: 1.39
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,400.14
• Price Target Upside: 18.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,267.00 ▲(7.10%Upside)

The most significant factor is the company's strong financial performance with consistent revenue growth and a solid equity position. Technical analysis indicates moderate bullish momentum, while valuation is fair with a reasonable P/E ratio and attractive dividend yield. However, attention to cash flow and debt management is crucial for future stability.

Menicon Co Business Overview & Revenue Model

Company Description

Menicon Co., Ltd. is a leading Japanese company specializing in the development, manufacture, and sale of contact lenses and related products. Founded in 1951 and headquartered in Nagoya, Japan, Menicon is known for its innovative approach to eye care, offering a wide range of products including soft and rigid gas permeable (RGP) contact lenses. The company also provides solutions for lens care and maintenance, catering to both domestic and international markets through its extensive distribution network.

How the Company Makes Money

Menicon Co. primarily generates revenue through the sale of its contact lenses and lens care products. Its product portfolio includes daily, bi-weekly, and monthly disposable lenses as well as specialized RGP lenses for niche markets. A significant portion of its earnings comes from direct sales to consumers, as well as partnerships with opticians and retailers globally. Menicon also benefits from technological innovations and strategic collaborations that enhance its product offerings, allowing the company to maintain a competitive edge in the eye care industry. Additionally, Menicon's expansion into international markets contributes to its revenue growth by tapping into emerging demand for vision correction solutions worldwide.

Menicon Co Financial Statement Overview

Summary

Menicon Co exhibits strong financial performance with consistent revenue growth and solid profitability. Despite a robust balance sheet, increasing debt levels should be monitored. Cash flow management has improved, though negative free cash flow due to high capital expenditures requires attention.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	121.49B	116.19B	110.19B	100.17B	86.21B
Gross Profit	65.08B	61.01B	58.48B	52.88B	45.82B
EBITDA	18.52B	15.74B	19.51B	17.25B	14.13B
Net Income	5.62B	4.54B	7.38B	6.48B	5.95B
Balance Sheet
Total Assets	187.28B	179.81B	152.52B	130.98B	126.73B
Cash, Cash Equivalents and Short-Term Investments	42.05B	46.91B	41.28B	33.05B	41.45B
Total Debt	75.09B	70.79B	53.58B	42.44B	45.30B
Total Liabilities	101.12B	98.01B	77.86B	63.94B	65.75B
Stockholders Equity	86.10B	81.75B	74.61B	66.99B	60.93B
Cash Flow
Free Cash Flow	-77.00M	-9.47B	-226.00M	-3.23B	-1.25B
Operating Cash Flow	13.94B	11.87B	12.75B	12.72B	10.63B
Investing Cash Flow	-19.66B	-21.57B	-13.78B	-16.15B	-15.63B
Financing Cash Flow	714.00M	14.55B	8.90B	-5.40B	28.91B

Menicon Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1183.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1183 is above the 20-day moving average (MA) of 1145.55, above the 50-day MA of 1094.58, and below the 200-day MA of 1324.16, indicating a neutral trend. The MACD of 17.89 indicates Negative momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.46 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
7743	72 Outperform	¥14.38B	12.97		3.16%	2.58%	-53.08%
5889	70 Outperform	¥51.82B	12.79		2.05%	17.45%	43.39%
7780	69 Neutral	¥90.00B	15.98	6.62%	2.37%	4.56%	24.10%
3046	68 Neutral	¥182.99B	23.39	29.03%	1.16%	18.75%	179.55%
3154	62 Neutral	¥19.28B	14.17		2.19%	14.12%	56.92%
7979	61 Neutral	¥72.90B	16.62		2.40%	15.55%	42.14%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%

Menicon Co Corporate Events

Menicon Co. Announces Interim Share Buyback Results

Menicon Co., Ltd. announced an interim report on its share buyback program, which was resolved at a board meeting on June 19, 2025. The company has bought back 284,900 common shares for JPY 305,168,900 between June 20 and June 30, 2025, as part of a broader plan to repurchase up to 2.3 million shares by December 20, 2025. This move is aimed at enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Boost Performance

Menicon Co., Ltd. announced the issuance of share remuneration-type stock options to directors and employees of its subsidiaries, aiming to enhance motivation and contribute to the sustained improvement of the company’s business performance. This strategic move is expected to promote management efforts to increase corporate value, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Subsidiary Directors

Menicon Co., Ltd. has announced the issuance of share remuneration-type stock options to directors of its subsidiaries in Japan. This move is aimed at enhancing motivation and aligning the interests of directors with the company’s long-term goals, thereby promoting sustained improvement in business performance and corporate value.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Issues Stock Options to Boost Performance

Menicon Co., Ltd. announced the issuance of share remuneration-type stock options to its executive officers, directors, and employees to enhance motivation and contribute to the company’s sustained business performance and corporate value. This strategic move aims to align the interests of key personnel with the company’s long-term goals, potentially impacting its operational efficiency and market positioning positively.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Announces Strategic Share Buyback Amid Expansion Plans

Menicon Co., Ltd. has announced a share buyback program, resolving to repurchase up to 2.3 million shares, which is 3% of its total issued shares, at a maximum cost of JPY 2.4 billion. This decision is part of a broader strategy to enhance shareholder value while addressing the current stock price, which the company believes does not reflect its future profitability. The buyback will be funded from cash on hand and is aligned with Menicon’s medium-term management plan, which includes expanding production capacity to meet the growing demand for daily disposable contact lenses. The company’s new plant in Malaysia is expected to significantly boost supply capacity by March 2026, contributing to economies of scale and improved business performance.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. to Receive JPY 3 Billion Dividend from Subsidiary

Menicon Co., Ltd. has announced that it will receive a dividend of JPY 3,000 million from its consolidated subsidiary. This dividend will be recorded as extraordinary income in the non-consolidated financial results for the fiscal year ending March 31, 2026, but it will not affect the consolidated financial results for the same period.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Updates Medium-Term Plan Amid Shifting Market Dynamics

Menicon Co., Ltd. has updated its Medium-Term Management Plan, maintaining its overall sales targets but revising specific sales goals for its ‘1-DAY lens’ and orthokeratology-related strategies. The company anticipates strong global demand for its ‘1-DAY lens’ products and plans to increase production capacity with a new plant in Malaysia, aiming to enhance profitability and expand sales internationally. However, growth in the orthokeratology market is expected to slow in China due to economic factors and emerging technologies, prompting Menicon to focus on other Asian markets for growth.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Reports Strong Financial Growth and Strategic Changes

Menicon Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 4.6% increase in net sales to ¥121,491 million and a significant rise in profit attributable to owners of the parent by 23.8% to ¥5,621 million. The company also announced changes in its scope of consolidation, including the inclusion of three new subsidiaries and the exclusion of one, which may impact its market positioning and operational strategy.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Records Extraordinary Income from Bond Redemption

Menicon Co., Ltd. announced the recording of extraordinary income due to the gain on reversal of share acquisition rights, stemming from the redemption of ¥23 billion Zero Coupon Convertible Bonds. This financial maneuver is reflected in the company’s consolidated financial results for the fiscal year ending March 31, 2025, potentially impacting its financial standing and stakeholder interests.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Announces Agenda for 68th Annual Shareholders Meeting

Menicon Co., Ltd. has announced the agenda for its 68th Annual General Meeting of Shareholders, scheduled for June 26, 2025. Key proposals include the election of eight directors and the granting of stock options to subsidiaries’ directors and employees, both domestic and non-resident. This move aims to enhance corporate value and incentivize management to improve business performance.

The most recent analyst rating on (JP:7780) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Menicon Co stock, see the JP:7780 Stock Forecast page.

Menicon Co. Announces Structural Reforms and Revised Dividend Policy Amid Strategic Shifts

Menicon Co., Ltd. announced it will record extraordinary losses due to structural reforms, including impairment losses on lens care product manufacturing equipment and expenses related to withdrawing from certain healthcare businesses. These actions are part of a strategic review to improve capital efficiency and focus on growth areas, such as orthokeratology and global expansion. Additionally, the company is restructuring its European operations to enhance efficiency and profitability, despite incurring temporary costs. Menicon has also revised its dividend policy to ensure stability, reflecting its commitment to long-term shareholder value.