Menicon Co (7780) AI Stock Analysis

• Market Cap: €83.82B
• Dividend Yield: 2.67%
• Average Volume (3M): 455.87K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.47
• Revenue Growth: 4.49%
• EPS Growth: -0.18%
• Country: JP
• Employees: 4,221
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 6.68
• Shares Outstanding: 76,743,990
• 10 Day Avg. Volume: 639,690
• 30 Day Avg. Volume: 455,873
• PEG Ratio: 8.28
• Price to Book (P/B): 1.30
• 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: €2,500.00
• Price Target Upside: 134.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ―

Menicon Co's strengths lie in its operational efficiency and moderate valuation, supported by a solid dividend yield. However, the lack of recent cash flow data and high debt levels pose significant risks, necessitating careful financial management. Technical indicators suggest a potential bearish trend, balanced by overbought signals that could lead to short-term fluctuations.

Menicon Co Business Overview & Revenue Model

Company Description

Menicon Co., Ltd. is a Japanese company primarily engaged in the development, manufacture, and sale of contact lenses and related products. Founded in 1951, the company has established a global presence, offering a comprehensive range of contact lenses, lens care solutions, and other optical products. Menicon is known for its innovative approach in the eye care industry, focusing on improving vision health and comfort for its customers worldwide.

How the Company Makes Money

Menicon Co. generates revenue mainly through the sale of its contact lenses and lens care products. The company's product portfolio includes daily, bi-weekly, and monthly disposable lenses, as well as specialty lenses for specific vision correction needs such as orthokeratology and multifocal lenses. Additionally, Menicon offers a variety of lens care solutions, including cleaning and disinfecting solutions, to complement its contact lens offerings. The company also leverages partnerships and collaborations with optometrists, optical retailers, and healthcare providers to expand its market reach and drive sales. Menicon's revenue model is supported by its strong research and development capabilities, which enable the continuous introduction of new and improved products to meet the evolving needs of the eye care market.

Menicon Co Financial Statement Overview

Summary

Menicon Co exhibits strong revenue growth and operational efficiency, reflected in its healthy profit margins. However, the company faces challenges in cash flow management, with no recent cash flow data available, which could impact its liquidity. The balance sheet displays a stable equity position but is overshadowed by a significant debt load that requires careful monitoring for financial stability.

Income Statement

The company shows a strong Gross Profit Margin of 53.7% for TTM, indicating effective cost control. The Net Profit Margin is modest at 4.22%, suggesting room for profitability improvement. Revenue has grown from the previous periods, but the growth rate is slowing, reflecting potential market saturation or competition pressures. The EBIT and EBITDA margins are healthy, at 8.31% and 14.91% respectively, demonstrating operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio stands at 1.12, indicating a balanced leverage position. The Return on Equity is relatively low at 5.77%, suggesting moderate profitability on equity investment. The Equity Ratio of 41.7% shows a stable capital structure, but the high total debt could pose a risk if not managed properly.

Cash Flow

The absence of operating and free cash flow data for TTM raises concerns about cash management and liquidity. Historical data shows fluctuating free cash flow, implying inconsistent cash generation ability. The Operating Cash Flow to Net Income Ratio from the previous period was robust, reflecting good cash conversion, but the lack of recent data is a risk.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
120.30B	116.19B	110.19B	100.17B	86.21B	84.52B
	Gross Profit
64.61B	61.01B	58.48B	52.88B	45.82B	45.23B
	EBIT
9.99B	8.95B	12.06B	9.96B	8.11B	7.03B
	EBITDA
17.94B	15.74B	19.51B	17.25B	14.13B	12.46B
	Net Income Common Stockholders
5.08B	4.54B	7.38B	6.48B	5.95B	4.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
63.76B	46.91B	41.28B	33.05B	41.45B	17.33B
	Total Assets
210.87B	179.81B	152.52B	130.98B	126.73B	87.29B
	Total Debt
98.15B	70.79B	53.58B	42.44B	45.30B	13.43B
	Net Debt
34.40B	24.08B	12.33B	9.39B	3.85B	-3.90B
	Total Liabilities
122.86B	98.01B	77.86B	63.94B	65.75B	33.77B
	Stockholders Equity
87.96B	81.75B	74.61B	66.99B	60.93B	53.47B
Cash Flow		Free Cash Flow
0.00	-9.47B	-226.00M	-3.23B	-1.25B	2.23B
	Operating Cash Flow
0.00	11.87B	12.75B	12.72B	10.63B	8.71B
	Investing Cash Flow
0.00	-21.57B	-13.78B	-16.15B	-15.63B	-7.66B
	Financing Cash Flow
0.00	14.55B	8.90B	-5.40B	28.91B	-3.44B

Menicon Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1066.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7780, the sentiment is Negative. The current price of 1066 is below the 20-day moving average (MA) of 1306.20, below the 50-day MA of 1261.78, and below the 200-day MA of 1373.52, indicating a bearish trend. The MACD of -50.22 indicates Positive momentum. The RSI at 25.11 is Positive, neither overbought nor oversold. The STOCH value of 0.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7780.

Menicon Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4507	87 Outperform	$1.97T	11.16	12.99%	2.67%	1.58%	12.48%
4568	79 Outperform	¥6.90T	23.55	17.60%	1.51%	17.77%	48.97%
4543	78 Outperform	¥3.98T	34.10	8.56%	0.88%	14.23%	26.82%
4901	74 Outperform	$3.84T	14.73	7.89%	1.97%	7.29%	4.85%
7733	69 Neutral	$2.10T	18.13	15.47%	1.02%	7.60%	-66.30%
7780	60 Neutral	€83.82B	14.89	6.62%	2.67%	4.49%	-0.18%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%

Menicon Co Corporate Events

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.

Menicon Co. Expands Innovation Efforts at STATION Ai

Menicon Co., Ltd. has announced its strategic move to establish a presence at STATION Ai, Japan’s largest open innovation hub, as part of its efforts to explore new business opportunities beyond its current research and development focus. This initiative aims to foster innovation and potentially create a new pillar of business, enhancing the company’s industry positioning and offering new prospects for stakeholders.

Menicon Co. Expands Product Line with New Toric Contact Lens

Menicon Co., Ltd. has launched the ‘1DAY Menicon Rei Toric,’ a new daily disposable color contact lens designed for individuals with astigmatism. This product expansion within the ‘1DAY Menicon Rei’ series is available at MELS Plan member shops nationwide, potentially enhancing Menicon’s market position by catering to a broader customer base with specific vision correction needs.

Menicon Announces Executive Leadership Changes

Menicon Co., Ltd. has announced significant changes in its executive leadership, effective April 1, 2025. The board of directors has resolved to transition from a two-person Representative Executive Officer structure to a one-person structure, appointing Koji Kawaura as the new President and CEO. This strategic move is expected to streamline decision-making processes and potentially enhance the company’s operational efficiency.

Menicon Co. Expands Production Amid Growing Lens Demand and Strengthens Sustainability Efforts

Menicon Co., Ltd. is addressing the rising demand for silicone hydrogel 1DAY-lenses by increasing production at its Kakamigahara and Malaysia plants, aiming to lift sales restrictions and expand its partner network globally. Despite a shrinking orthokeratology market in China, Menicon remains optimistic about long-term growth. The company is also committed to sustainability and shareholder returns, with initiatives to reduce CO2 emissions and stable dividend policies.

Menicon Co. Posts Strong Nine-Month Financial Results with Positive Outlook

Menicon Co., Ltd. reports a solid financial performance for the nine months ending December 31, 2024, with net sales reaching ¥91,509 million, a 4.7% year-on-year increase. The company shows significant improvements in operating profit and ordinary profit, which rose by 13.8% and 12.8% respectively, reflecting its robust market positioning and effective business strategies. The inclusion of three new subsidiaries and the exclusion of one illustrates its dynamic operational strategy, while a forecasted increase in dividends and profits indicates positive prospects for stakeholders.

Menicon Co., Ltd. Launches Eco-Friendly Lawn Grass ‘Naruoturf®’

Menicon Co., Ltd. has announced the launch of ‘Naruoturf®’, a new low-maintenance, eco-friendly lawn grass product known as Himekorai-shiba, which will be available from early February 2025. This product aligns with Menicon’s ongoing efforts to contribute to environmental greening and sustainability, enhancing its market position in eco-friendly agricultural solutions.