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SCREEN Holdings Co Ltd (JP:7735)
:7735
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SCREEN Holdings Co
(7735)
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Rating:72Outperform
Price Target:
¥14,291.00
▲(12.48% Upside)
SCREEN Holdings Co's overall stock score is driven by strong financial performance and reasonable valuation. However, mixed technical indicators and concerns from the latest earnings call, particularly in the SPE segment, temper the outlook. The company's commitment to innovation and a stable balance sheet are positives, but challenges in cash flow and specific segments require attention.
SCREEN Holdings Co (7735) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.17T
Dividend Yield2.1%
Average Volume (3M)1.74M
Price to Earnings (P/E)13.4
Beta (1Y)1.42
Revenue Growth11.29%
EPS Growth11.38%
CountryJP
Employees6,415
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)176.52
Shares Outstanding95,379,990
10 Day Avg. Volume1,851,630
30 Day Avg. Volume1,736,663
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.22
Price to Sales (P/S)1.49
P/FCF Ratio18.86
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit4.05
Enterprise Value/Ebitda6.36
Forecast
1Y Price Target
$13,463.26Price Target Upside5.97% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SCREEN Holdings Co Business Overview & Revenue Model
Company DescriptionSCREEN Holdings Co., Ltd. (7735) is a Japan-based company primarily engaged in the semiconductor and flat panel display (FPD) manufacturing industries. The company operates through various segments, including Semiconductor Production Equipment, FPD Production Equipment, and Electronics. SCREEN Holdings is known for its innovative solutions, such as photolithography equipment, cleaning systems, and various automation technologies that support the production of advanced semiconductor devices and displays.
How the Company Makes MoneySCREEN Holdings generates revenue primarily through the sale of its semiconductor and FPD production equipment. Key revenue streams include the manufacturing and servicing of photolithography equipment, which is essential for the semiconductor fabrication process, as well as cleaning and other equipment used in the manufacturing of flat panel displays. The company benefits from long-term relationships with major semiconductor manufacturers and display producers, which provide a stable customer base. Additionally, SCREEN Holdings has been involved in strategic partnerships and collaborations with leading technology firms, enhancing its product offerings and market reach. The demand for advanced technology in semiconductor manufacturing and display production, especially with the rise of 5G and IoT devices, further contributes to its revenue growth.
SCREEN Holdings Co Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable gains in the FT segment and strong equity ratio but was marred by declines in operating income, challenges in the SPE segment, and negative cash flow. The company's commitment to innovation and cutting-edge technology is a positive, but financial struggles, particularly in the SPE and PE segments, weigh heavily.Q1-2026 Updates
Positive Updates
FT Segment Growth
The FT segment reported a significant increase in both sales and income compared to the same period of the previous year, with net sales increasing by JPY4.7 billion and operating income by JPY1.3 billion.
Strong Equity Ratio
The balance sheet has been compressed, resulting in an equity ratio of 64.5%.
OLED Investment Surge
FT's net sales are driven by increased sales of OLED equipment, contributing to the segment's recovery.
Stable Recurring GA Business
GA segment showed stability despite the US tariff impact, with efforts to improve profitability continuing.
Commitment to Cutting-Edge Technology
Continued investment in advanced semiconductor packaging and launching new equipment like Lemotia and LeVina.
Negative Updates
Decreased Operating Income
Operating income decreased by JPY3.3 billion, ordinary income decreased by JPY3.3 billion, and net income decreased by JPY1.5 billion compared to the same period last year.
Challenges in SPE Segment
SPE segment saw both sales and profit declines YoY, particularly in sales to foundries and DRAM, with operating income decreasing by JPY3.3 billion.
Negative Operating Cash Flow
Operating cash flow in Q1 was only JPY6.9 billion, with negative JPY9.7 billion for investments, resulting in negative free cash flow of JPY2.7 billion.
PE Segment Struggles
The PE segment reported a decrease in both sales and profit, with net sales down JPY0.8 billion YoY and operating income down JPY0.5 billion.
Significant Decrease in Cash
The cash balance for April amounted to JPY11 billion due to significant outflows for taxes, dividends, and share buybacks.
Company Guidance
During the Q1 financial results briefing for the fiscal year ending March 31, 2026, SCREEN Holdings Co., Ltd. provided comprehensive guidance on their financial metrics. Net sales increased by 1.2% year-over-year to JPY135.7 billion, while operating income decreased by 12.2% to JPY24.3 billion, resulting in an operating margin of 18%. Ordinary income and net income were reported at JPY24.5 billion and JPY16.6 billion, respectively. The equity ratio stood at 64.5% due to a compressed balance sheet. The company's SPE segment experienced a year-over-year decline in both sales and profits, with sales totaling JPY109.5 billion and an operating margin of 23.5%. Conversely, the FT segment showed significant recovery, with net sales of JPY9.9 billion, up JPY4.7 billion, and an operating income of JPY1 billion. GA's net sales rose to JPY12.9 billion, but operating income decreased due to foreign exchange impacts. On a regional basis, sales were primarily driven by China (34%), Taiwan (29%), and Japan (15%). The company maintained their full-year forecast with net sales projected at JPY621 billion and operating income at JPY117 billion. Additionally, they are focused on strategic investments, particularly in R&D and advanced packaging, with a budget of JPY38 billion for R&D, JPY28 billion for capital investment, and JPY15 billion for depreciation.SCREEN Holdings Co Financial Statement Overview
Summary
SCREEN Holdings Co demonstrates robust financial health with strong revenue and profit growth, efficient operations, low leverage, and healthy cash flow generation. The company is well-positioned in the semiconductor industry, with sound financial metrics and strategic capital management, supporting its growth trajectory and market competitiveness.Income Statement
SCREEN Holdings Co has shown strong revenue growth, with a notable 24% increase in 2025 compared to 2024. The gross profit margin is stable at 37.6%, and the net profit margin has improved to 15.9%. The EBIT and EBITDA margins are healthy at 21.7% and 24.3%, respectively, indicating efficient operations and profitability in the competitive semiconductor industry.85
Very Positive
Balance Sheet
The company maintains a robust balance sheet with a debt-to-equity ratio of 0.01, showcasing low leverage and financial stability. The return on equity is strong at 23.6%, and the equity ratio is solid at 62.7%, demonstrating effective capital management and a strong equity base.78
Positive
Cash Flow
SCREEN Holdings Co exhibits consistent free cash flow generation, with a 11.6% growth in free cash flow in 2025. The operating cash flow to net income ratio is 0.72, reflecting efficient cash conversion from profits. The free cash flow to net income ratio is 0.50, indicating a stable cash flow position despite some fluctuations in capital expenditures.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 626.84B | 625.27B | 504.92B | 460.83B | 411.87B | 320.32B |
| Gross Profit | 233.88B | 235.30B | 182.52B | 155.05B | 134.37B | 88.01B |
| EBITDA | 148.77B | 151.97B | 105.19B | 87.53B | 66.58B | 30.80B |
| Net Income | 97.94B | 99.47B | 70.58B | 57.49B | 45.48B | 15.16B |
Balance Sheet | ||||||
| Total Assets | 639.03B | 671.29B | 676.81B | 562.82B | 459.31B | 382.63B |
| Cash, Cash Equivalents and Short-Term Investments | 169.55B | 200.40B | 197.28B | 175.58B | 133.09B | 62.73B |
| Total Debt | 4.50B | 4.56B | 7.19B | 29.07B | 44.24B | 43.88B |
| Total Liabilities | 226.99B | 250.59B | 304.90B | 262.89B | 211.52B | 174.09B |
| Stockholders Equity | 411.93B | 420.64B | 371.87B | 299.89B | 247.71B | 208.38B |
Cash Flow | ||||||
| Free Cash Flow | 86.94B | 49.45B | 55.92B | 53.11B | 71.60B | 50.49B |
| Operating Cash Flow | 110.35B | 71.23B | 96.25B | 73.91B | 81.75B | 57.20B |
| Investing Cash Flow | -23.55B | -21.77B | -43.46B | -12.51B | -9.95B | -6.24B |
| Financing Cash Flow | -61.74B | -46.47B | -35.14B | -20.96B | -4.95B | -27.07B |
SCREEN Holdings Co Technical Analysis
Negative
12705.00
Price Trends
12937.02
Negative
12194.82
Positive
11163.38
Positive
Market Momentum
51.29
Positive
42.99
Neutral
47.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7735, the sentiment is Negative. The current price of 12705 is below the 20-day moving average (MA) of 13763.00, below the 50-day MA of 12937.02, and above the 200-day MA of 11163.38, indicating a neutral trend. The MACD of 51.29 indicates Positive momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 47.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7735.
SCREEN Holdings Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.62T | 44.49 | 25.78% | 0.79% | 13.45% | 20.37% | |
72 Outperform | $1.17T | 13.38 | 21.73% | 2.10% | 11.29% | 11.38% | |
67 Neutral | $2.77T | 29.28 | 53.12% | 1.15% | 32.51% | 57.19% | |
67 Neutral | $15.94T | 61.02 | 47.37% | 0.24% | 63.36% | 149.43% | |
65 Neutral | ¥1.35T | 44.75 | ― | 0.67% | 5.69% | -10.53% | |
64 Neutral | ¥3.44T | -68.58 | -2.51% | 1.47% | -10.97% | -118.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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SCREEN Holdings Co Corporate Events
SCREEN Holdings Reports Decline in Q2 Earnings
Nov 3, 2025
SCREEN Holdings Co., Ltd., a prominent player in the semiconductor and display production equipment industry, is listed on the Tokyo Stock Exchange and is known for its innovative solutions in semiconductor production, graphic arts, and display technologies.
SCREEN Holdings Announces Interim Dividend of ¥123.00 Per Share
Oct 31, 2025
SCREEN Holdings Co., Ltd. has announced an interim dividend of ¥123.00 per share, maintaining its previous forecast for the fiscal year ending March 31, 2026. This decision aligns with the company’s policy to maintain a dividend payout ratio of 30% or above, ensuring sufficient retained earnings for growth investments and financial stability.
The most recent analyst rating on (JP:7735) stock is a Buy with a Yen14291.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.
SCREEN Holdings Reports Decline in Q2 2025 Financial Performance
Oct 31, 2025
SCREEN Holdings Co., Ltd. reported a decline in its financial performance for the second quarter ending September 30, 2025, with net sales decreasing by 1.1% and operating income dropping by 20.2% compared to the previous year. Despite the downturn, the company maintains a strong equity ratio of 64.4% and plans to distribute cash dividends, indicating a commitment to shareholder returns. The company’s earnings forecast for the fiscal year ending March 31, 2026, anticipates a slight decrease in net sales and a more significant drop in operating income, reflecting ongoing challenges in the semiconductor market.
The most recent analyst rating on (JP:7735) stock is a Buy with a Yen14291.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.
SCREEN Holdings Announces Completion of Q1 Financial Review with Declining Profits
Aug 13, 2025
SCREEN Holdings Co., Ltd. announced the completion of an independent auditor’s review of its consolidated financial statements for the first quarter ended June 30, 2025, with no changes to the previously disclosed figures. The company reported a slight increase in net sales by 1.2% compared to the previous year, but experienced a decline in operating income and profit attributable to owners of the parent by 12.2% and 8.4%, respectively, indicating challenges in maintaining profitability despite stable sales.
The most recent analyst rating on (JP:7735) stock is a Buy with a Yen24350.00 price target. To see the full list of analyst forecasts on SCREEN Holdings Co stock, see the JP:7735 Stock Forecast page.
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.