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Nikon Corporation (NINOY)
OTHER OTC:NINOY
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Nikon
(OTC:NINOY)
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Rating:49Neutral
Price Target:
$11.50
▼(-1.37% Downside)
Action:ReiteratedDate:02/08/26
The score is held down primarily by deteriorated TTM profitability and cash burn, despite a relatively manageable leverage profile. Technicals are neutral and valuation is constrained by losses, with the dividend yield offering only modest support.
Positive Factors
Diversified Revenue Streams
Nikon earns from multiple durable sources—consumer and professional imaging, precision equipment (microscopes, lithography) and services. This mix reduces dependence on any single market cycle, smoothing revenue volatility and supporting long-term resilience across industrial and consumer end markets.
Manageable Leverage / Balance Sheet Resilience
Debt levels are moderate relative to equity, providing financial flexibility. A historically low debt-to-equity base and sizable equity cushion mean Nikon can access capital or absorb shocks without excessive refinancing risk, supporting sustained R&D and capex investment over the medium term.
Strong Historical Gross Margins
Consistently high gross margins indicate durable product-level profitability and pricing power in optics and imaging. Even with current earnings pressure, these margins imply structural cost advantages and the potential to restore operating margins as volumes recover or cost programs take effect.
Negative Factors
Material Profitability Deterioration
Trailing results moved from modest profits to a sizeable net loss, signaling structural margin stress. Persistent negative profitability reduces retained earnings, constrains reinvestment capacity and weakens return metrics, risking longer-term competitiveness if recovery is delayed.
Negative Operating and Free Cash Flow
Sustained negative operating and free cash flow represents ongoing cash burn, which can force reliance on external financing or asset sales. This undermines the company’s ability to fund R&D, capex and working capital organically, raising structural liquidity and execution risks over months ahead.
Weakened Revenue Trend
Top-line momentum slowed from prior years to flat/declining TTM revenue, eroding operating leverage. Continued revenue weakness reduces scale benefits, pressures margins and slows recovery of cash generation, making sustained profitability improvement more challenging.
Nikon (NINOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.94B
Dividend Yield2.16%
Average Volume (3M)5.00
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-2.80%
EPS Growth-65.04%
CountryUS
Employees19,444
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-1.79
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 Cap187.51
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda-15.31
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.89
Revenue Forecast (FY)$4.35B
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:Aug 06, 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
Financial performance is pressured by a sharp TTM swing to operating and net losses (net margin -12.7%) and negative operating/free cash flow. The balance sheet is comparatively steadier with moderate leverage, but profitability and cash generation are the dominant near-term risks.Income Statement
Profitability has deteriorated materially: TTM (Trailing-Twelve-Months) shows a sharp net loss (net margin -12.7%) with negative operating profit, versus modest profitability in FY2025 (net margin ~0.9%) and strong profitability in FY2022–FY2024 (net margins ~4.5%–7.9%). Revenue growth also weakened from solid growth in FY2022–FY2024 to roughly flat in FY2025, and TTM (Trailing-Twelve-Months) indicates a significant revenue decline. Positives include consistently healthy gross margins (~41%–44% historically), but the current earnings drawdown is the dominant issue.32
Negative
Balance Sheet
Leverage looks manageable with debt-to-equity generally in the ~0.22–0.30 range historically and still moderate in TTM (Trailing-Twelve-Months) (~0.42), suggesting the company is not excessively debt-funded. Equity remains sizable relative to total assets, providing balance-sheet resilience. The key weakness is returns: return on equity turned negative in TTM (Trailing-Twelve-Months) and was low in FY2025, reflecting reduced profitability rather than a highly levered capital structure.63
Positive
Cash Flow
Cash generation is under pressure: TTM (Trailing-Twelve-Months) shows negative operating cash flow and deeply negative free cash flow, indicating cash burn. While FY2024–FY2025 produced positive operating cash flow, free cash flow remained negative in most years (except FY2022), implying persistent reinvestment or working-capital drag. The cash-flow profile is also volatile (e.g., very low operating cash flow in FY2023), raising concerns about consistency and funding needs if the downturn persists.28
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.28B | 715.28B | 717.25B | 628.11B | 539.61B | 451.22B |
| Gross Profit | 283.39B | 311.97B | 310.05B | 277.73B | 225.97B | 145.24B |
| EBITDA | -48.23B | 55.72B | 77.73B | 86.83B | 71.01B | -15.08B |
| Net Income | -89.10B | 6.12B | 32.57B | 44.94B | 42.68B | -34.50B |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.11T | 1.15T | 1.05T | 1.04T | 989.74B |
| Cash, Cash Equivalents and Short-Term Investments | 158.02B | 166.71B | 222.55B | 212.58B | 370.28B | 351.80B |
| Total Debt | 244.24B | 193.57B | 166.71B | 134.02B | 130.06B | 134.07B |
| Total Liabilities | 522.56B | 471.29B | 462.02B | 431.92B | 439.60B | 451.01B |
| Stockholders Equity | 576.62B | 637.98B | 683.79B | 614.97B | 597.68B | 537.59B |
Cash Flow | ||||||
| Free Cash Flow | -46.49B | -21.40B | -24.45B | -33.01B | 7.53B | -18.13B |
| Operating Cash Flow | -7.01B | 48.26B | 30.77B | 15.00M | 31.35B | 4.97B |
| Investing Cash Flow | -33.63B | -69.99B | -41.41B | -112.15B | -385.00M | 18.02B |
| Financing Cash Flow | 31.52B | -19.81B | -8.94B | -56.21B | -26.15B | -4.99B |
Nikon Technical Analysis
Positive
11.66
Price Trends
11.98
Positive
11.88
Positive
11.14
Positive
Market Momentum
0.16
Positive
52.75
Neutral
38.36
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 11.66 is below the 20-day moving average (MA) of 12.59, below the 50-day MA of 11.98, and above the 200-day MA of 11.14, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 52.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.13B | 31.17 | 13.53% | 0.79% | 7.27% | 45.12% | |
69 Neutral | $509.00M | -22.31 | -7.78% | 3.22% | -0.07% | -31.45% | |
63 Neutral | $5.93B | 32.87 | 24.35% | 1.15% | 4.20% | 24.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $3.94B | -7.33 | 1.29% | 2.16% | -2.80% | -65.04% | |
49 Neutral | $113.28M | -20.41 | -3.19% | ― | 2.85% | 24.82% |
* Consumer Cyclical Sector Average
NINOY
Nikon
12.56
2.28
22.18%
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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.