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Nikon
(7731)
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Rating:44Neutral
Price Target:
¥1,687.00
▼(-13.80% Downside)
Action:Reiterated
Date:08/09/26
The score is held down primarily by weak financial performance: the business has swung to operating and net losses and free cash flow remains negative/volatile, despite a strong TTM revenue rebound. Technical indicators also lean bearish with price below key short-to-medium moving averages and a negative MACD. Valuation is mixed—dividend yield offers some support, but the negative P/E underscores the current loss-making risk.
Positive Factors
Diversified optical technology platform
Nikon’s presence across consumer imaging and industrial precision technologies provides multiple avenues for revenue generation. The combination of cameras, lenses, optical instruments, and manufacturing inspection solutions can reduce reliance on any single end market and supports a broader installed base for services and replacement demand.
Negative Factors
Operating and net losses
The shift from solid operating and net margins in 2022–2024 to current losses is a significant deterioration in earnings quality. It indicates that revenue growth is not yet converting into sustainable profits, leaving Nikon more exposed to weak mix, elevated operating costs, or charges over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified optical technology platform
Nikon’s presence across consumer imaging and industrial precision technologies provides multiple avenues for revenue generation. The combination of cameras, lenses, optical instruments, and manufacturing inspection solutions can reduce reliance on any single end market and supports a broader installed base for services and replacement demand.
Read all positive factors
Nikon (7731) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥538.74B
Dividend Yield1.43%
Average Volume (3M)1.44M
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth-3.70%
EPS Growth-843.45%
CountryJP
Employees19,928
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-286.36
Shares Outstanding333,585,700
10 Day Avg. Volume1,163,420
30 Day Avg. Volume1,441,010
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.06
Price to Sales (P/S)0.92
P/FCF Ratio-15.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,800.00Price Target Upside-8.02% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)33.91
Revenue Forecast (FY)¥716.07B
Nikon Business Overview & Revenue Model
Company Description
Nikon Corporation, a prominent international enterprise established in Tokyo, Japan, in 1917, specializes in the production and distribution of optical instruments. The company maintains a significant global footprint, with operations extending ac...
How the Company Makes Money
Nikon makes money primarily by selling hardware products and related solutions across its major business lines, with additional revenue from after-sales services and recurring support tied to its installed base. In its imaging-related businesses, ...
Nikon Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with some growth in imaging products and digital manufacturing, but significant challenges in semiconductor-related business and profitability due to one-time costs and strategic investments. The outlook anticipates improved profitability, but current performance fell short of expectations.Positive Updates
Revenue Growth in Imaging Products and Healthcare
Revenue from imaging products increased by ¥15.6 billion, reaching ¥295.3 billion, driven by strong demand in China and new wireless cameras. Healthcare also saw growth, with strong performance in eye care solutions.
Negative Updates
Decline in Semiconductor-Related Business
Sales in the semiconductor lithography system declined, leading to a ¥17.4 billion drop in overall precision equipment business revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth in Imaging Products and Healthcare
Revenue from imaging products increased by ¥15.6 billion, reaching ¥295.3 billion, driven by strong demand in China and new wireless cameras. Healthcare also saw growth, with strong performance in eye care solutions.
Read all positive updates
Company Guidance
During the call, Nikon provided guidance for the fiscal year 2026, projecting revenue of ¥710 billion, operating profit of ¥36 billion, and profit attributable to owners of the parent of ¥30 billion. The company anticipates a significant ¥33.6 billion increase in operating profit due to improved profitability, the absence of ¥27.2 billion in one-time costs from the previous year, and gains from sales of idle assets. However, a projected ¥10 billion negative impact on operating profit due to U.S. tariffs is not included in the forecast. Nikon plans to maintain the dividend at ¥50 per share, the same as last year, and anticipates a shareholder return ratio of 54.8% for the current fiscal year. The company aims to increase its market presence in areas like digital manufacturing, with expectations of a revenue increase in the segment by ¥9.7 billion to ¥33 billion, driven by growth in large format metal 3D printers. Additionally, Nikon plans to streamline operations in the semiconductor lithography business to achieve stable profits in future years.Nikon Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 683.22B | 677.16B | 715.28B | 717.25B | 628.11B | 539.61B |
| Gross Profit | 274.61B | 255.30B | 293.77B | 296.23B | 277.73B | 225.97B |
| EBITDA | -58.94B | -55.91B | 51.67B | 81.76B | 88.19B | 83.31B |
| Net Income | -94.27B | -86.09B | 6.12B | 32.57B | 44.94B | 42.68B |
Balance Sheet | ||||||
| Total Assets | 1.10T | 1.08T | 1.11T | 1.15T | 1.05T | 1.04T |
| Cash, Cash Equivalents and Short-Term Investments | 157.06B | 158.04B | 163.59B | 206.64B | 211.34B | 370.28B |
| Total Debt | 219.42B | 219.96B | 206.54B | 184.10B | 158.10B | 153.10B |
| Total Liabilities | 502.37B | 486.81B | 471.29B | 462.02B | 431.92B | 439.60B |
| Stockholders Equity | 593.36B | 586.78B | 637.98B | 683.79B | 614.97B | 597.68B |
Cash Flow | ||||||
| Free Cash Flow | -24.36B | -40.98B | -3.90B | -8.45B | -23.12B | 13.37B |
| Operating Cash Flow | 11.69B | -4.44B | 48.26B | 30.77B | 15.00M | 31.35B |
| Investing Cash Flow | -14.78B | -12.60B | -69.99B | -49.28B | -112.15B | -385.00M |
| Financing Cash Flow | -17.53B | 858.00M | -19.81B | -1.07B | -56.21B | -26.15B |
Nikon Technical Analysis
Negative
1957.00
Price Trends
1872.80
Negative
1972.48
Negative
1935.47
Negative
Market Momentum
-32.13
Positive
37.88
Neutral
12.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7731, the sentiment is Negative. The current price of 1957 is above the 20-day moving average (MA) of 1851.55, above the 50-day MA of 1872.80, and above the 200-day MA of 1935.47, indicating a bearish trend. The MACD of -32.13 indicates Positive momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7731.
Nikon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥235.81B | 20.93 | ― | 3.27% | 1.53% | -16.08% | |
80 Outperform | ¥547.67B | 17.21 | 6.72% | 2.11% | 5.28% | 442.85% | |
64 Neutral | ¥98.58B | 68.38 | ― | 4.51% | 8.43% | -75.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
44 Neutral | ¥538.74B | -6.13 | -15.65% | 1.43% | -3.70% | -843.45% |
* Consumer Cyclical Sector Average
JP:7731
Nikon
1,739.50
-120.64
-6.49%
JP:7951
Yamaha
1,224.50
236.41
23.93%
JP:7740
Tamron Co., Ltd.
1,423.00
360.58
33.94%
JP:7944
Roland Corporation
3,755.00
537.99
16.72%
Nikon Corporate Events
Nikon Lifts Profit Outlook as Mixed Segment Performance Tempers Revenue Guidance
Aug 6, 2026
Nikon reported first-quarter consolidated results under IFRS showing modest revenue growth to ¥164.1 billion and a small operating loss, while slightly lifting its full-year operating profit forecast to ¥11 billion despite trimming reven...
Nikon Posts Higher Revenue but Weak Profit as It Cuts Dividend Outlook
Aug 6, 2026
Nikon reported a 3.8% year-on-year rise in revenue to ¥164.2 billion for the quarter ended June 30, 2026, but remained in an operating loss of ¥997 million amid sharply lower profit attributable to owners of the parent at ¥1.3 billi...
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.