Nikon (NINOY) AI Stock Analysis

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Nikon

(OTC:NINOY)

Rating:73Outperform

Price Target:

$13.00

▲(12.46% Upside)

Nikon's overall stock score is driven by strong technical momentum and positive earnings guidance. However, financial performance challenges and a high P/E ratio temper the outlook. The stock's bullish technical indicators and strategic focus on growth sectors are significant positives, while profitability issues and valuation concerns are key risks.

Nikon (NINOY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.60B

Dividend Yield1.75%

Average Volume (3M)66.00

Price to Earnings (P/E)43.9

Beta (1Y)0.54

Revenue Growth-2.43%

EPS Growth-58.82%

CountryUS

Employees19,444

SectorConsumer Cyclical

Sector Strength83

IndustryLeisure

Share Statistics

EPS (TTM)0.20

Shares Outstanding333,585,700

10 Day Avg. Volume126

30 Day Avg. Volume66

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.04

Enterprise Value/Revenue<0.01

Enterprise Value/Gross Profit0.01

Enterprise Value/Ebitda0.06

Forecast

1Y Price Target

$13.00

Price Target Upside12.46% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Nikon Business Overview & Revenue Model

Company DescriptionNikon Corporation (NINOY) is a global leader in imaging and optical products, primarily known for its cameras, camera lenses, and binoculars. Established in 1917, Nikon operates in several key sectors including consumer and professional imaging, precision equipment, and healthcare. The company offers a wide range of products, including digital single-lens reflex (DSLR) cameras, mirrorless cameras, compact digital cameras, and industrial equipment, catering to both enthusiasts and professionals in photography and videography.

How the Company Makes MoneyNikon generates revenue through multiple streams, primarily from the sale of imaging products such as cameras, lenses, and accessories. The company's revenue model is heavily reliant on consumer electronics sales, with a focus on high-margin products like professional-grade cameras and lenses. Additionally, Nikon has a significant presence in the precision equipment sector, providing products for industrial and scientific applications, further diversifying its revenue base. Strategic partnerships with retailers and online platforms enhance distribution channels, while collaborations with content creators and filmmakers boost brand visibility and product adoption. Service and repair offerings also contribute to recurring revenue, alongside licensing agreements for technology and intellectual property.

Nikon Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

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 shows mixed results. Stable gross profit margins and a strong equity base are positive, but declining net profit margins and challenges in free cash flow generation highlight areas for improvement.

Income Statement

Positive

Nikon's financial performance shows mixed results. The gross profit margin has been stable, indicating consistent cost control. However, the net profit margin has declined recently due to a significant drop in net income. Revenue growth has been inconsistent, with a notable decline in the latest year, impacting overall profitability. Despite this, the company has maintained a positive EBITDA margin, reflecting core operational strength.

Balance Sheet

Positive

Nikon exhibits a strong equity base with a favorable equity ratio, indicating solid financial stability. The debt-to-equity ratio remains manageable, implying a balanced leverage strategy. However, the return on equity has seen a decline due to reduced net income, which could impact investor confidence. The company’s asset base continues to support its operations effectively.

Cash Flow

Positive

Nikon's cash flow position reveals challenges in free cash flow generation, with negative free cash flow in recent periods. However, the operating cash flow to net income ratio is robust, signifying efficient cash generation from operations. The company needs to improve its capital expenditures management to enhance free cash flow prospects.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	715.28B	715.28B	717.25B	628.11B	539.61B	451.22B
Gross Profit	311.97B	311.97B	310.05B	277.73B	225.97B	145.24B
EBITDA	60.28B	55.72B	77.73B	86.83B	71.01B	-15.08B
Net Income	6.12B	6.12B	32.57B	44.94B	42.68B	-34.50B
Balance Sheet
Total Assets	1.11T	1.11T	1.15T	1.05T	1.04T	989.74B
Cash, Cash Equivalents and Short-Term Investments	166.71B	166.71B	222.55B	211.34B	370.28B	351.80B
Total Debt	193.57B	193.57B	166.71B	158.10B	153.10B	147.63B
Total Liabilities	471.29B	471.29B	462.02B	431.92B	439.60B	451.01B
Stockholders Equity	637.98B	637.98B	683.79B	614.97B	597.68B	537.59B
Cash Flow
Free Cash Flow	-3.90B	-21.40B	-24.45B	-33.01B	7.53B	-18.13B
Operating Cash Flow	48.26B	48.26B	30.77B	15.00M	31.35B	4.97B
Investing Cash Flow	-69.99B	-69.99B	-41.41B	-112.15B	-385.00M	18.02B
Financing Cash Flow	-19.81B	-19.81B	-8.94B	-56.21B	-26.15B	-4.99B

Nikon Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.56

Price Trends

50DMA

10.05

Positive

100DMA

10.00

Positive

200DMA

10.35

Positive

Market Momentum

MACD

0.39

Negative

RSI

66.82

Neutral

STOCH

66.84

Neutral

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 11.56 is above the 20-day moving average (MA) of 10.24, above the 50-day MA of 10.05, and above the 200-day MA of 10.35, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 66.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NINOY.

Nikon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	74 Outperform	$4.49B	20.46	27.51%	1.25%	3.83%	28.57%
NINOY	73 Outperform	$3.60B	43.92	1.99%	1.75%	-2.43%	-58.82%
OSW	69 Neutral	$2.26B	32.38	13.16%	0.73%	8.51%	31.24%
JOUT	67 Neutral	$418.81M	―	-8.33%	3.23%	-3.56%	-407.47%
Sector *	61 Neutral	$17.95B	12.83	-3.20%	2.97%	1.18%	-14.28%
MODG	57 Neutral	$1.70B	―	-46.53%	―	-2.35%	-7104.57%
AOUT	45 Neutral	$107.74M	―	-2.64%	―	5.56%	56.01%

* Consumer Cyclical Sector Average

Performance Comparison

NINOY

Nikon

11.56

1.38

13.56%

MODG

Topgolf Callaway Brands

9.23

-1.05

-10.21%

GOLF

Acushnet Holdings

76.55

12.19

18.94%

JOUT

Johnson Outdoors

40.81

7.27

21.68%

OSW

OneSpaWorld Holdings

21.96

6.72

44.09%

AOUT

American Outdoor Brands

8.52

-0.03

-0.35%

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.Date of analysis: Aug 28, 2025