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Menicon Co
(7780)
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Rating:62Neutral
Price Target:
¥1,978.00
▲(23.86% Upside)
Action:Reiterated
Date:08/09/26
The score is held back primarily by weak cash generation (recurring negative free cash flow and low cash conversion), despite solid revenue growth and strong gross margins. Technicals are a positive (strong uptrend), but overbought signals add near-term risk. Valuation is reasonable but not compelling, with a moderate P/E and modest yield.
Positive Factors
Steady Revenue Growth
The multi-year increase in revenue shows that Menicon has continued expanding its vision-care business and converting demand into sales. Although recent growth has slowed, the established upward trajectory supports a durable operating base and provides scope for future earnings development.
Negative Factors
Weak Free Cash Flow
Recurring negative free cash flow indicates that Menicon’s investment requirements and/or working-capital movements are consuming more cash than the business generates after operating needs. Continued weak cash conversion could reduce financial flexibility and constrain internally funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
The multi-year increase in revenue shows that Menicon has continued expanding its vision-care business and converting demand into sales. Although recent growth has slowed, the established upward trajectory supports a durable operating base and provides scope for future earnings development.
Read all positive factors
Menicon Co (7780) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥145.10B
Dividend Yield1.47%
Average Volume (3M)228.49K
Price to Earnings (P/E)19.8
Beta (1Y)0.75
Revenue Growth5.05%
EPS Growth50.43%
CountryJP
Employees4,493
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)96.34
Shares Outstanding76,771,484
10 Day Avg. Volume210,250
30 Day Avg. Volume228,486
Financial Highlights & Ratios
PEG Ratio3.13
Price to Book (P/B)1.34
Price to Sales (P/S)1.01
P/FCF Ratio-37.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,400.00Price Target Upside50.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)94.04
Revenue Forecast (FY)¥132.79B
Menicon Co Business Overview & Revenue Model
Company Description
Menicon Co., Ltd. is a company dedicated to the manufacturing and global distribution of contact lenses and their essential care solutions. The firm supplies its range of eye care products to a diverse network of outlets, including medical facilit...
How the Company Makes Money
Menicon makes money mainly by selling vision-care products, with revenue centered on (1) contact lenses (including the sale of various lens types supplied to consumers through eye-care professionals, optical retailers, and other distribution chann...
Menicon Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.73B | 125.61B | 121.49B | 116.19B | 110.19B | 100.17B |
| Gross Profit | 69.06B | 67.60B | 65.08B | 61.01B | 58.48B | 52.88B |
| EBITDA | 22.94B | 20.49B | 18.52B | 15.74B | 19.33B | 17.52B |
| Net Income | 7.16B | 5.92B | 5.62B | 4.54B | 7.38B | 6.48B |
Balance Sheet | ||||||
| Total Assets | 203.36B | 194.64B | 187.28B | 179.81B | 152.52B | 130.98B |
| Cash, Cash Equivalents and Short-Term Investments | 34.07B | 32.61B | 42.05B | 46.91B | 41.30B | 33.05B |
| Total Debt | 81.55B | 74.18B | 75.09B | 70.79B | 53.58B | 42.44B |
| Total Liabilities | 107.11B | 99.53B | 101.13B | 98.01B | 77.86B | 63.93B |
| Stockholders Equity | 96.18B | 95.05B | 86.10B | 81.75B | 74.61B | 67.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -3.37B | -77.00M | -8.24B | 1.31B | -2.00B |
| Operating Cash Flow | 0.00 | 11.84B | 13.94B | 11.87B | 12.75B | 12.72B |
| Investing Cash Flow | 0.00 | -16.49B | -19.66B | -21.57B | -13.78B | -16.15B |
| Financing Cash Flow | 0.00 | -6.04B | 714.00M | 14.55B | 8.90B | -5.40B |
Menicon Co Technical Analysis
Positive
1597.00
Price Trends
1852.08
Positive
1762.41
Positive
1713.34
Positive
Market Momentum
26.07
Negative
65.15
Neutral
84.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7780, the sentiment is Positive. The current price of 1597 is below the 20-day moving average (MA) of 1817.80, below the 50-day MA of 1852.08, and below the 200-day MA of 1713.34, indicating a bullish trend. The MACD of 26.07 indicates Negative momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7780.
Menicon Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥52.91B | 12.43 | ― | 4.09% | 15.36% | 5.16% | |
73 Outperform | ¥149.26B | 21.07 | ― | 2.74% | 10.18% | 55.86% | |
71 Outperform | ¥8.68T | 34.17 | 26.25% | 1.13% | 12.65% | 32.11% | |
67 Neutral | ¥142.84B | 18.06 | 22.48% | 1.54% | 14.41% | -6.42% | |
62 Neutral | ¥145.10B | 19.82 | 7.70% | 1.48% | 5.05% | 50.43% | |
54 Neutral | ¥23.79B | 21.83 | ― | 1.91% | 2.22% | -2.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
JP:7780
Menicon Co
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Menicon Co Corporate Events
Menicon Finalizes Terms for 38th Series of Employee Stock Options
Aug 17, 2026
Menicon Co., Ltd. has finalized the terms for issuing its 38th series of share remuneration-type stock options, allocating five share acquisition rights to one employee as part of an incentive scheme. Each right is priced at 136,000 yen, but the c...
Menicon posts sharp profit recovery in Q1 and keeps full-year outlook intact
Aug 7, 2026
Menicon Co., Ltd. reported a strong rebound in earnings for the three months ended June 30, 2026, with net sales rising 7.0% year on year to ¥32.38 billion and profit attributable to owners of the parent more than doubling. Operating profit s...
Menicon outlines Q1 2026 results and progress toward Milestone 2027
Aug 7, 2026
Menicon Co., Ltd. has released its consolidated financial results for the three months ended June 30, 2026, alongside a forecast for the full fiscal year 2026. The disclosure also highlights progress and outlook for its Milestone 2027 targets unde...
Menicon Finalizes Details of New Stock Option Grants for Group Executives and Staff
Aug 3, 2026
Menicon has finalized the details for issuing share remuneration-type stock options to its executive officers, directors, employees, and directors of subsidiaries, following board and shareholder approvals in June 2026. The 34th and 35th share acq...
Menicon Adjusts Employee Stock Option Grant Under 38th Share Acquisition Rights
Jul 30, 2026
Menicon Co., Ltd. has approved the issuance of share remuneration-type stock options as share acquisition rights for an employee, following a recalculation triggered by a correction in the payroll amount under its previous 34th Share Acquisition R...
Menicon to Record ¥2.8 Billion Dividend from Subsidiary with No Consolidated Impact
Jul 24, 2026
Menicon Co., Ltd. announced that it will receive a dividend of JPY 2,773 million from a consolidated subsidiary, following a board resolution on July 24, 2026, with receipt scheduled during July. The transaction meets thresholds requiring an extra...
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.