HOYA (7741) AI Stock Analysis

• Market Cap: $7.87T
• Dividend Yield: 0.9%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 38.5
• Beta (1Y): 0.96
• Revenue Growth: 9.89%
• EPS Growth: 10.30%
• Country: JP
• Employees: 35,702
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): N/A
• Shares Outstanding: 343,122,620
• 10 Day Avg. Volume: 1,095,180
• 30 Day Avg. Volume: 1,094,146
• PEG Ratio: 2.25
• Price to Book (P/B): 5.99
• Price to Sales (P/S): 6.73
• P/FCF Ratio: 31.16
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 17.15
• 1Y Price Target: $24,012.85
• Price Target Upside: 0.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: ¥25,911.00 ▲(8.62% Upside)

HOYA's strong financial performance is the most significant factor, supported by robust profitability and a solid balance sheet. Technical analysis indicates strong momentum, although caution is advised due to potential overbought conditions. The high P/E ratio suggests the stock may be overvalued, which could limit further gains. Overall, HOYA is well-positioned but faces valuation challenges.

Positive Factors

Revenue Growth

HOYA's strong revenue and EPS growth indicate robust demand for its products and effective market strategies, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage and high ROE suggests financial stability and efficient use of capital, enhancing resilience.

Cash Generation

Strong cash generation supports reinvestment in growth initiatives and provides a buffer against economic fluctuations, ensuring sustainability.

Negative Factors

Gross Profit Margin Decline

A decline in gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

Slowing Cash Flow Growth

Slowing cash flow growth could limit the company's ability to fund new projects and return capital to shareholders if the trend continues.

Valuation Concerns

A high valuation may limit stock price appreciation and could lead to corrections if growth expectations are not met.

HOYA Business Overview & Revenue Model

Company Description

HOYA Corporation operates as a med-tech company, and a supplier of high-tech and medical products worldwide. The company offers life care products, including eyeglass and contact lenses; medical endoscopes; intraocular lenses; laparoscopic surgical instruments; automatic endoscope cleaning equipment; and medical related products, such as prosthetic ceramic fillers and metallic implants. It also operates Eyecity, a specialty retailer of contact lenses. In addition, the company provides information technology products, such as mask blanks and photomasks for manufacturing semiconductor chips; photomasks for liquid crystal display panels; glass disks for hard disk drives; and imaging products that include optical glasses/optical lenses, colored glass filters, and laser equipment/UV light resources. Further, it offers ReadSpeaker, a speech synthesis software; and cloud services comprising Kinnosuke that is a time and attendance management service, and Yonosuke, an electronic payslip service. HOYA Corporation was founded in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HOYA generates revenue through multiple key streams. The Healthcare segment contributes significantly by selling intraocular lenses and surgical instruments for cataract surgery, as well as a variety of eyeglass lenses and contact lenses. Revenue in this sector is bolstered by ongoing demand for vision correction products and an aging population. The Electronics segment generates income by supplying photomasks and other critical materials used in semiconductor fabrication, catering to major tech companies in the electronics industry. Strategic partnerships with leading semiconductor manufacturers and healthcare providers enhance HOYA's market presence and revenue opportunities. Additionally, the company invests in research and development to innovate and expand its product offerings, further driving growth and profitability.

HOYA Financial Statement Overview

Summary

HOYA's financial performance is robust, characterized by strong profitability, a solid balance sheet, and healthy cash flows. The company exhibits impressive revenue growth and efficient operations, with minimal financial leverage. While the slight decline in gross profit margin and slowing cash flow growth warrant monitoring, the overall financial health remains strong, positioning HOYA well for future growth and stability.

Income Statement

HOYA demonstrates strong profitability with a high gross profit margin of 73.91% and a solid net profit margin of 23.34% in the TTM. The company has shown impressive revenue growth, particularly in the TTM with a 76.6% increase, indicating robust demand for its products. EBIT and EBITDA margins are also healthy, reflecting efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

HOYA maintains a strong balance sheet with a low debt-to-equity ratio of 0.038, indicating minimal leverage and financial risk. The return on equity is robust at 20.39%, showcasing effective use of shareholder funds to generate profits. The equity ratio is healthy, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

The cash flow statement reveals strong cash generation capabilities, with a free cash flow to net income ratio of 79.62% and a consistent operating cash flow coverage ratio. The free cash flow growth rate of 3.02% in the TTM indicates steady cash flow improvements. However, the growth rate has slowed compared to previous periods, which could be a point of concern if it continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	872.66B	866.03B	762.61B	723.58B	661.47B	547.92B
Gross Profit	700.53B	693.58B	606.30B	567.05B	511.05B	424.21B
EBITDA	313.89B	309.48B	284.45B	266.20B	254.48B	196.57B
Net Income	206.78B	202.10B	181.38B	168.64B	164.51B	125.45B
Balance Sheet
Total Assets	1.23T	1.23T	1.20T	1.03T	992.84B	853.29B
Cash, Cash Equivalents and Short-Term Investments	533.64B	533.97B	525.16B	405.89B	419.40B	334.90B
Total Debt	39.24B	37.28B	29.24B	24.58B	21.60B	20.75B
Total Liabilities	258.76B	262.65B	241.36B	213.72B	203.78B	180.88B
Stockholders Equity	976.83B	974.02B	967.76B	818.32B	803.85B	688.00B
Cash Flow
Free Cash Flow	192.85B	187.19B	181.73B	168.36B	161.18B	120.57B
Operating Cash Flow	242.94B	235.11B	222.80B	201.83B	190.06B	151.81B
Investing Cash Flow	-45.98B	-35.82B	-35.81B	-39.93B	-29.13B	-29.79B
Financing Cash Flow	-178.78B	-187.72B	-110.89B	-202.16B	-106.89B	-115.67B

HOYA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23855.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7741, the sentiment is Positive. The current price of 23855 is above the 20-day moving average (MA) of 22404.25, above the 50-day MA of 20989.87, and above the 200-day MA of 18587.75, indicating a bullish trend. The MACD of 814.27 indicates Negative momentum. The RSI at 69.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7741.

HOYA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	―	$7.87T	38.46	21.19%	0.90%	9.89%	10.30%
7733	―	$2.07T	18.64	14.88%	1.04%	0.59%	557.87%
4543	―	¥3.67T	30.27	9.17%	1.13%	7.58%	6.74%
6869	―	$1.14T	23.83	10.48%	1.71%	5.09%	-9.10%
7747	―	$628.13B	49.29	8.67%	1.02%	11.60%	-19.38%
8086	―	¥244.24B	43.51	2.49%	2.00%	8.83%	-40.24%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

HOYA Corporate Events

HOYA Corporation Transfers Voice Synthetic Software Business to Subsidiary

HOYA Corporation announced the transfer of its voice synthetic software business to its subsidiary, ReadSpeaker Japan Co., Ltd., through a simplified absorption-type company split. This strategic move aims to optimize the allocation of HOYA’s management resources and involves transferring shares to a special purpose company operated by Marunouchi Capital Inc., potentially impacting HOYA’s focus and resource distribution in its core business areas.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22000.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Updates on Share Repurchase Plan

HOYA Corporation announced the status of its share repurchase plan, initially resolved at the Board of Directors meeting on August 21, 2025. The company repurchased 459,600 shares for approximately 8.8 billion yen between August 22 and August 31, 2025, as part of a broader plan to repurchase up to 6.2 million shares by January 2026. This move is likely aimed at enhancing shareholder value and optimizing capital structure, reflecting a strategic approach to maintaining its market position.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen23300.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Completes Treasury Stock Disposal for Compensation Plans

HOYA Corporation has completed the payment procedures for the disposal of 8,700 shares of treasury stock as part of its Performance Based Stock Compensation (PSU) and Stock Compensation (RSU) plans. This move, resolved by the Board of Directors, reflects the company’s commitment to aligning executive and director compensation with performance, potentially impacting stakeholder perceptions and company operations positively.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen23300.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA CORPORATION Announces Share Repurchase Plan

HOYA CORPORATION has announced a decision to repurchase up to 6.2 million of its own shares, representing 1.81% of its total outstanding shares, as part of a strategy to enhance shareholder value, improve capital efficiency, and maintain a flexible capital policy. The repurchase, which will occur on the Tokyo Stock Exchange between August 22, 2025, and January 21, 2026, is intended to benefit shareholders and the purchased shares are planned to be cancelled.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen23300.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.

HOYA Corporation Reports Strong Q1 2025 Earnings

HOYA Corporation is a Japanese multinational company specializing in optical products, including healthcare and information technology solutions. In its latest earnings report for the first quarter of 2025, HOYA Corporation reported a steady increase in revenue and profits, signaling a positive start to the fiscal year. The company’s revenue grew by 3.1% to 220,406 million yen, while profit before tax rose by 4.9% to 67,363 million yen. The Life Care segment saw a notable increase in segment profit before tax by 37.9%, driven by strong sales of eyeglass and contact lenses, despite sluggish sales in China. The Information Technology segment also experienced growth, with a 5.6% increase in revenue, supported by stable demand for electronics and imaging products. Looking ahead, HOYA Corporation remains cautiously optimistic, projecting continued growth in revenue and profit for the first half of the fiscal year, with expectations of a 3.6% increase in revenue and a 6.3% rise in profit before tax.

HOYA Corporation Announces Disposal of Treasury Stock for Executive Compensation

HOYA Corporation has announced the disposal of 8,700 shares of treasury stock as part of its Performance Based Stock Compensation Plan (PSU) and Stock Compensation Plan (RSU). This move aims to enhance the company’s long-term business performance and corporate value by offering competitive compensation to its executive officers and external directors, thereby retaining and attracting top talent.

The most recent analyst rating on (JP:7741) stock is a Buy with a Yen22575.00 price target. To see the full list of analyst forecasts on HOYA stock, see the JP:7741 Stock Forecast page.