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Menicon Co
(7780)
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Rating:54Neutral
Price Target:
¥1,792.00
▲(12.21% Upside)
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 revenue expansion indicates durable demand for Menicon’s contact lenses and eye-care products and supports long-term scale. Steady top-line growth underpins investment capacity, distribution leverage, and product development that sustain competitive positioning over 2–6 months and beyond.
Negative Factors
Recurring negative free cash flow
Persistent negative free cash flow signals that reported earnings are not consistently converting to shareholder cash, limiting the company's ability to self-fund growth or dividends. Ongoing negative FCF raises dependence on external financing and constrains strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent multi-year revenue expansion indicates durable demand for Menicon’s contact lenses and eye-care products and supports long-term scale. Steady top-line growth underpins investment capacity, distribution leverage, and product development that sustain competitive positioning over 2–6 months and beyond.
Read all positive factors
Menicon Co (7780) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥132.02B
Dividend Yield1.61%
Average Volume (3M)317.29K
Price to Earnings (P/E)21.9
Beta (1Y)0.64
Revenue Growth3.39%
EPS Growth6.84%
CountryJP
Employees4,493
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)79.34
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)89.52
Revenue Forecast (FY)¥132.29B
Menicon Co Business Overview & Revenue Model
Company Description
Menicon Co., Ltd. (7780) is a Japan-based medical device company focused on vision care. It develops, manufactures, and sells contact lenses and related eye-care products, and is also involved in ophthalmic solutions and associated services suppor...
How the Company Makes Money
Menicon makes money mainly by selling vision-care products, with revenue centered on (1) contact lenses (including the sale of various lens types supplied to consumers through eye-care professionals, optical retailers, and other distribution chann...
Menicon Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 125.61B | 121.49B | 116.19B | 110.19B | 100.17B |
| Gross Profit | 67.60B | 65.08B | 61.01B | 58.48B | 52.88B |
| EBITDA | 20.49B | 18.52B | 15.74B | 19.33B | 17.52B |
| Net Income | 5.92B | 5.62B | 4.54B | 7.38B | 6.48B |
Balance Sheet | |||||
| Total Assets | 194.64B | 187.28B | 179.81B | 152.52B | 130.98B |
| Cash, Cash Equivalents and Short-Term Investments | 32.61B | 42.05B | 46.91B | 41.30B | 33.05B |
| Total Debt | 74.18B | 75.09B | 70.79B | 53.58B | 42.44B |
| Total Liabilities | 99.53B | 101.13B | 98.01B | 77.86B | 63.93B |
| Stockholders Equity | 95.05B | 86.10B | 81.75B | 74.61B | 67.00B |
Cash Flow | |||||
| Free Cash Flow | -3.37B | -77.00M | -8.24B | 1.31B | -2.00B |
| Operating Cash Flow | 11.84B | 13.94B | 11.87B | 12.75B | 12.72B |
| Investing Cash Flow | -16.49B | -19.66B | -21.57B | -13.78B | -16.15B |
| Financing Cash Flow | -6.04B | 714.00M | 14.55B | 8.90B | -5.40B |
Menicon Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥61.12B | 14.96 | ― | 3.22% | 13.57% | 0.34% | |
71 Outperform | ¥8.24T | 31.23 | 25.12% | 1.19% | 12.65% | 32.11% | |
70 Outperform | ¥148.96B | 22.05 | ― | 2.73% | 9.94% | 10.50% | |
67 Neutral | ¥148.91B | 17.97 | 24.90% | 1.53% | 15.46% | 6.44% | |
54 Neutral | ¥132.02B | 21.87 | 6.57% | 1.78% | 3.39% | 6.84% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥16.19B | 14.27 | ― | 2.65% | 2.14% | 3.96% |
* Healthcare Sector Average
JP:7780
Menicon Co
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Menicon Co Corporate Events
Menicon Finalizes Details of New Stock Option Grants for Group Executives and Staff
Aug 3, 2026
Menicon has finalized the details for issuing share remuneration-type stock options to its executive officers, directors, employees, and directors of subsidiaries, following board and shareholder approvals in June 2026. The 34th and 35th share acq...
Menicon Adjusts Employee Stock Option Grant Under 38th Share Acquisition Rights
Jul 30, 2026
Menicon Co., Ltd. has approved the issuance of share remuneration-type stock options as share acquisition rights for an employee, following a recalculation triggered by a correction in the payroll amount under its previous 34th Share Acquisition R...
Menicon to Record ¥2.8 Billion Dividend from Subsidiary with No Consolidated Impact
Jul 24, 2026
Menicon Co., Ltd. announced that it will receive a dividend of JPY 2,773 million from a consolidated subsidiary, following a board resolution on July 24, 2026, with receipt scheduled during July. The transaction meets thresholds requiring an extra...
Menicon Grants Long-Term Stock Options to Nonresident Subsidiary Executives
Jun 26, 2026
Menicon has approved the issuance of its 37th series of share remuneration-type stock options to 16 nonresident directors and employees of its subsidiaries, excluding those who also serve at the parent company. The program covers 544 stock acquisi...
Menicon grants stock-based remuneration options to subsidiary directors
Jun 26, 2026
Menicon has approved the issuance of its 36th series of share remuneration-type stock options to seven domestically based directors of its subsidiaries, excluding those who also serve as executive officers or employees of the parent company. The p...
Menicon Launches Long-Term Stock Option Plan for Executives and Staff
Jun 26, 2026
Menicon’s board has approved the issuance of share remuneration-type stock options, structured as share acquisition rights, for executive officers, internal directors, and employees to strengthen motivation and align compensation with the co...
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...
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.