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Nikon Corporation (NINOY)
OTHER OTC:NINOY
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Nikon
(OTC:NINOY)
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Rating:47Neutral
Price Target:
$12.50
▲(7.20% Upside)
Nikon's overall stock score reflects significant financial challenges, with declining revenue and profitability, and cash flow issues. Technical analysis indicates bearish momentum, while a high P/E ratio suggests potential overvaluation. The dividend yield provides limited compensation for these risks.
Positive Factors
Diversified revenue streams
Nikon’s mix of consumer/professional imaging, precision equipment (microscopes, lithography) and services creates multiple durable revenue channels. This diversification reduces reliance on any single market cycle, supports cross-selling and provides steadier long-term cash inflows versus pure-play consumer peers.
Manageable leverage
A low debt-to-equity ratio (0.34) signals conservative financial structure and capacity to fund operations or capex without excessive refinancing risk. This balance-sheet flexibility supports continued R&D investment and capital spending, improving resilience across industry cycles and funding strategic initiatives.
Established brand and R&D capability
A century-plus heritage and focus on innovation give Nikon durable competitive advantages in optics and imaging. Strong brand recognition among pros, combined with ongoing R&D, supports product leadership, pricing power in premium segments, and barriers to entry vs. lesser-known competitors over the medium term.
Negative Factors
Declining revenue trend
A sustained >30% TTM revenue decline signals structural demand weakness or loss of market share. Reduced top-line scale can impair cost absorption, limit reinvestment capacity, and weaken bargaining power with channels and suppliers, creating a self-reinforcing headwind for recovery over several quarters.
Weak cash generation / negative free cash flow
Negative free cash flow and poor operating cash conversion create lasting liquidity pressure, constraining capital allocation flexibility. Over time this raises reliance on external financing for R&D, capex, or dividends and increases vulnerability to rate/credit tightening, limiting strategic optionality.
Operational margin and ROE weakness
A negative EBIT margin indicates core operations are not generating sufficient operating profit, while low ROE shows poor returns on shareholder capital. These structural profitability issues can persist absent material restructuring or product mix improvement, weakening long-term competitiveness and capital returns.
Nikon (NINOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.92B
Dividend Yield2.16%
Average Volume (3M)5.00
Price to Earnings (P/E)72.1
Beta (1Y)0.57
Revenue Growth-2.80%
EPS Growth-65.04%
CountryUS
Employees19,444
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.08
Shares Outstanding333,585,700
10 Day Avg. Volume0
30 Day Avg. Volume5
Financial Highlights & Ratios
PEG Ratio-1.02
Price to Book (P/B)0.80
Price to Sales (P/S)0.71
P/FCF Ratio-23.75
Enterprise Value/Market Cap179.00
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit2.40
Enterprise Value/Ebitda14.22
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nikon Business Overview & Revenue Model
Company DescriptionNikon Corporation manufactures and sells optical instruments in Japan, North America, Europe, China, Thailand, and internationally. It operates through three segments: Imaging Products Business, Precision Equipment Business, and Healthcare Business. The Imaging Products Business segment develops, manufacture, sells, and services digital SLR cameras, compact digital cameras, and interchangeable camera lenses. The Precision Equipment Business segment provides FPD lithography systems and semiconductor lithography systems. The Healthcare Business segment offers biological microscopes, cell culture observation systems, and ultra-wide field retinal imaging devices. In addition, the company provides industrial microscopes, measuring instruments, non-contact 3D metrology systems, X-ray/CT inspection systems, and surveying instruments; and customized products, glass, encoders, and ophthalmic lenses. Further, it offers photomask substrates, camera components, sport optics products, and molded optical glasses; and develops and supports computer software. Nikon Corporation was incorporated in 1917 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNikon generates revenue through multiple key streams. The majority of its income comes from the sale of digital cameras and lenses, which includes both consumer-grade products and high-end professional equipment. Additionally, Nikon earns revenue from its precision equipment segment, which encompasses sales of industrial microscopes, semiconductor lithography systems, and other optical devices. The company also provides services related to its products, such as repairs and maintenance, further contributing to its earnings. Strategic partnerships with retailers, distributors, and online platforms enhance the company's market reach and sales volume. Moreover, Nikon invests in research and development to innovate and improve its product offerings, ensuring a competitive edge in the imaging industry.
Nikon Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive developments in imaging products and expectations for future profitability improvements, significant challenges in semiconductor-related business and operating losses in some segments led to a notable profit shortfall. Despite a positive outlook for the upcoming fiscal year, the overall sentiment is impacted by missed targets and restructuring challenges.Q4-2025 Updates
Positive Updates
Revenue Increase in Imaging Products
The Imaging Products Business saw revenue increase by ¥15.6 billion to ¥295.3 billion, driven by strong demand for new wireless cameras, particularly in China, and the benefit of a weaker yen.
Healthcare and Digital Manufacturing Growth
Healthcare business experienced strong growth in eye care solutions and contract cell development manufacturing. Digital Manufacturing Business saw a 33% year-on-year growth in NXG series sales, with a significant portion directed to the space and defense sector.
Components Business Exceeded Expectations
The Components Business exceeded profit expectations by ¥2.1 billion due to effective cost controls and lower restructuring costs.
Positive Outlook for FY 2026
For FY 2026, Nikon expects a significant ¥33.6 billion increase in operating profit, driven by improved profitability in some businesses and the absence of last year’s ¥27.2 billion in one-time costs.
Negative Updates
Decline in Semiconductor-Related Business
Sales in the Precision Equipment Business declined by ¥17.4 billion due to a decrease in new semiconductor lithography system sales, resulting in a ¥14.1 billion fixed asset impairment loss.
Operating Losses in RED and MRMC
The cinema industry’s sluggish conditions led to operating losses at RED, and there was recognition of fixed asset impairment losses at MRMC, reducing operating profit by ¥5.2 billion.
Profit Shortfall and Dividend Reduction
Profits fell short of expectations, leading to a notable shortfall and a dividend reduction from ¥55 to ¥50 per share.
Challenges in Digital Manufacturing
Digital Manufacturing Business faced operating losses widening by ¥1.2 billion year-on-year to ¥15.2 billion due to increased costs and lower production volume.
Healthcare Business Below Forecast
Healthcare Business came in ¥1.3 billion below forecast due to mixed life sciences solutions sales and the disposal of old inventory.
Company Guidance
During the fiscal year ended March 31, 2025, Nikon reported revenue of ¥715.2 billion, with an operating profit of ¥2.4 billion and a profit attributable to owners of the parent of ¥6.1 billion. Despite growth in imaging products and healthcare sectors, overall revenue slightly declined due to reduced sales in semiconductor-related businesses and precision equipment. The company faced a ¥27.2 billion one-time cost that significantly impacted profits. For FY 2026, Nikon forecasts revenue of ¥710 billion, operating profit of ¥36 billion, and a profit attributable to owners of ¥30 billion, expecting growth in components and digital manufacturing segments. The company aims to improve profitability by eliminating last year's one-time costs and leveraging gains from the sale of idle assets. They have revised dividend projections to ¥50 per share and plan a 54.8% shareholder return ratio for the current fiscal year. Nikon is also focused on long-term growth investments, particularly in professional video cameras, next-generation lithography, and metal additive processing, targeting a revenue of ¥1 trillion and a 10% operating margin by FY 2030.Nikon Financial Statement Overview
Summary
Nikon's financial performance is challenged by declining revenue and profitability, as indicated by a low income statement score. The balance sheet is moderately stable but shows low returns on equity. Cash flow issues are significant, with negative free cash flow and weak cash generation, highlighting liquidity risks.Income Statement
Nikon's income statement shows a challenging period with declining revenue and profitability. The TTM data reveals a significant revenue drop of over 30%, and negative EBIT margin, indicating operational inefficiencies. However, the company maintains a positive net profit margin, albeit low, suggesting some level of cost control. Historical data shows fluctuating revenue growth and margins, reflecting instability in performance.45
Neutral
Balance Sheet
The balance sheet indicates a moderate financial position with a manageable debt-to-equity ratio of 0.34 in the TTM. The equity ratio is stable, suggesting a balanced asset structure. However, the return on equity is low, indicating limited profitability from shareholder investments. The company has maintained a relatively stable equity base over the years, but the low ROE highlights potential inefficiencies in generating returns.60
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with negative free cash flow in the TTM and a high negative free cash flow to net income ratio, indicating cash flow issues. The operating cash flow to net income ratio is low, suggesting weak cash generation relative to net income. Despite some growth in free cash flow, the overall cash flow position remains a concern, highlighting potential liquidity risks.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.09B | 715.28B | 717.25B | 628.11B | 539.61B | 451.22B |
| Gross Profit | 292.24B | 311.97B | 310.05B | 277.73B | 225.97B | 145.24B |
| EBITDA | 49.33B | 55.72B | 77.73B | 86.83B | 71.01B | -15.08B |
| Net Income | 8.45B | 6.12B | 32.57B | 44.94B | 42.68B | -34.50B |
Balance Sheet | ||||||
| Total Assets | 1.17T | 1.11T | 1.15T | 1.05T | 1.04T | 989.74B |
| Cash, Cash Equivalents and Short-Term Investments | 163.20B | 166.71B | 222.55B | 212.58B | 370.28B | 351.80B |
| Total Debt | 227.07B | 193.57B | 166.71B | 134.02B | 130.06B | 134.07B |
| Total Liabilities | 507.56B | 471.29B | 462.02B | 431.92B | 439.60B | 451.01B |
| Stockholders Equity | 663.79B | 637.98B | 683.79B | 614.97B | 597.68B | 537.59B |
Cash Flow | ||||||
| Free Cash Flow | -40.64B | -21.40B | -24.45B | -33.01B | 7.53B | -18.13B |
| Operating Cash Flow | 4.02B | 48.26B | 30.77B | 15.00M | 31.35B | 4.97B |
| Investing Cash Flow | -35.21B | -69.99B | -41.41B | -112.15B | -385.00M | 18.02B |
| Financing Cash Flow | -2.23B | -19.81B | -8.94B | -56.21B | -26.15B | -4.99B |
Nikon Technical Analysis
Positive
11.66
Price Trends
11.58
Positive
11.75
Positive
10.88
Positive
Market Momentum
0.32
Negative
68.64
Neutral
87.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NINOY, the sentiment is Positive. The current price of 11.66 is below the 20-day moving average (MA) of 11.83, above the 50-day MA of 11.58, and above the 200-day MA of 10.88, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 68.64 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NINOY.
Nikon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.69B | 26.51 | 25.91% | 1.15% | 4.20% | 24.12% | |
70 Outperform | $2.00B | 27.71 | 13.53% | 0.79% | 7.27% | 45.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $469.49M | -13.54 | -7.78% | 3.22% | -0.07% | -31.45% | |
49 Neutral | $114.04M | -20.54 | -3.19% | ― | 2.85% | 24.82% | |
47 Neutral | $3.92B | 72.13 | 1.29% | 2.16% | -2.80% | -65.04% |
* Consumer Cyclical Sector Average
NINOY
Nikon
12.58
2.03
19.23%
GOLF
Acushnet Holdings
96.94
33.48
52.76%
JOUT
Johnson Outdoors
45.39
17.04
60.12%
OSW
OneSpaWorld Holdings
19.65
-1.37
-6.52%
AOUT
American Outdoor Brands
9.06
-7.46
-45.16%
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.