Nikon (NINOY) AI Stock Analysis

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Nikon

(OTC:NINOY)

Rating:66Neutral

Price Target:

$10.50

▲(10.99%Upside)

Nikon's stock score is primarily influenced by its earnings call, which indicates improved future profitability and strategic focus on growth areas. However, the high P/E ratio and recent financial performance challenges, including declining net income and free cash flow issues, contribute to a cautious outlook. Technical indicators point to a neutral to bearish trend, further supporting a moderate stock score.

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

Market Cap

$2.95B

Dividend Yield2.03%

Average Volume (3M)20.00

Price to Earnings (P/E)80.7

Beta (1Y)0.63

Revenue Growth-5.23%

EPS Growth-82.09%

CountryUS

Employees19,444

SectorConsumer Cyclical

Sector Strength69

IndustryLeisure

Share Statistics

EPS (TTM)>-0.01

Shares Outstanding333,585,700

10 Day Avg. Volume0

30 Day Avg. Volume20

Financial Highlights & Ratios

PEG Ratio-1.40

Price to Book (P/B)0.75

Price to Sales (P/S)0.00

P/FCF Ratio-120.88

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

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 primarily through the sale of its imaging products, including digital cameras, interchangeable camera lenses, and other optical products. The Imaging Products Business is a significant contributor to Nikon's earnings, driven by the demand for high-performance cameras and lenses among both amateur and professional photographers. Additionally, Nikon's Precision Equipment Business, which provides semiconductor lithography systems and FPD lithography equipment, plays a crucial role in its revenue generation. The company also benefits from its partnerships and collaborations with other technology firms, expanding its reach in various sectors and enhancing product offerings. Nikon's industrial metrology and healthcare sectors further diversify its income sources, selling products like microscopes and industrial measurement instruments.

Nikon Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q4-2025)

% Change Since: -2.47%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

While Nikon experienced growth in imaging products, healthcare, and digital manufacturing, significant challenges were faced in semiconductor lithography and industrial areas. The completion of a share buyback and a positive outlook for FY 2026 are counterbalanced by major one-time costs and dividend reductions.

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 due to strong demand in China and new wireless cameras.

Healthcare Business Growth

Despite challenges in life sciences, the Healthcare Business saw growth in eye care solutions and contract cell development manufacturing, leading to higher revenue year-on-year.

Digital Manufacturing Expansion

The Digital Manufacturing Business saw a 33% year-on-year growth in sales of NXG series, largely in the aerospace and defense sectors.

Share Buyback Completion

A ¥30 billion share buyback was completed, contributing to a total shareholder return ratio of 765.8%.

Positive Outlook for FY 2026

For FY 2026, Nikon expects operating profit of ¥36 billion, a significant ¥33.6 billion increase from the previous year due to the absence of one-time costs and improved profitability.

Negative Updates

Decline in Semiconductor Lithography

Sales of new semiconductor lithography systems declined, leading to an overall revenue drop of ¥17.4 billion in the Precision Equipment Business.

Significant One-Time Costs

Nikon recorded a ¥27.2 billion in one-time costs, which significantly reduced overall profit for FY 2025.

Profit Decline in Components Business

Revenue dropped by ¥11.8 billion and operating profit fell by ¥8 billion in the Components Business due to declines in EUV-related components and other parts.

Dividend Reduction

Nikon revised its annual dividend downward by ¥5 to ¥50 per share due to the financial shortfall.

Underperformance in Industrial Areas

The semiconductor market downturn and upfront investment burdens led to underperformance in industrial areas, impacting overall profitability.

Company Guidance

During the call, Nikon provided guidance for FY 2026, projecting revenue of ¥710 billion, operating profit of ¥36 billion, and profit attributable to owners of the parent at ¥30 billion. These figures indicate an anticipated significant increase in operating profit by ¥33.6 billion, driven mainly by improved profitability across businesses and the absence of prior one-time costs totaling ¥27.2 billion. However, despite expectations of growth in the components and digital manufacturing segments, overall revenue is expected to remain flat due to a stronger yen and weaker sales in semiconductor lithography within the precision equipment sector. The company also revised its dividend projection, maintaining it at ¥50 per share for FY 2026, and highlighted a projected shareholder return ratio of 54.8% for the current fiscal year. Additionally, Nikon aims to achieve a cumulative shareholder return ratio of approximately 111.3% over the four-year mid-term plan. The call outlined strategic focuses for each business segment, including expanding user bases in imaging products, leveraging synergies in healthcare, and emphasizing next-generation lithography in precision equipment. The company remains committed to long-term growth, targeting ¥1 trillion in revenue and a 10% operating margin by FY 2030.

Nikon Financial Statement Overview

Summary

Nikon shows solid operational strength with stable gross margins and a strong equity base. However, declining net income, inconsistent revenue growth, and challenges in free cash flow generation suggest the need for strategic adjustments to sustain growth.

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

Nikon Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.46

Price Trends

50DMA

9.89

Negative

100DMA

10.11

Negative

200DMA

10.65

Negative

Market Momentum

MACD

-0.10

Positive

RSI

39.83

Neutral

STOCH

0.13

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NINOY, the sentiment is Negative. The current price of 9.46 is below the 20-day moving average (MA) of 9.92, below the 50-day MA of 9.89, and below the 200-day MA of 10.65, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 0.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NINOY.

Nikon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	79 Outperform	$4.75B	22.44	27.15%	1.16%	2.07%	24.87%
OSW	77 Outperform	$2.20B	33.82	12.80%	0.74%	9.80%	89.42%
NINOY	66 Neutral	$2.95B	80.73	0.91%	2.03%	-5.23%	-82.09%
Sector *	63 Neutral	kr10.72B	19.19	4.75%	3.02%	1.65%	-11.04%
JOUT	62 Neutral	$316.32M	―	-9.70%	4.27%	-7.28%	-924.86%
AOUT	58 Neutral	$118.65M	―	-0.04%	―	10.55%	99.28%
MODG	53 Neutral	$1.70B	―	-46.00%	―	-1.74%	-2020.38%

* Consumer Cyclical Sector Average

Performance Comparison

NINOY

Nikon

9.46

-1.28

-11.92%

MODG

Topgolf Callaway Brands

9.24

-6.28

-40.46%

GOLF

Acushnet Holdings

80.83

12.40

18.12%

JOUT

Johnson Outdoors

30.94

-5.68

-15.51%

OSW

OneSpaWorld Holdings

21.47

4.98

30.20%

AOUT

American Outdoor Brands

9.30

0.21

2.31%

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: Jul 11, 2025