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Market Cap

JP¥169.0b

Last Updated

2021/05/16 10:27 UTC

Data Sources

Company Financials +

Executive Summary

Topcon Corporation, together with its subsidiaries, develops, manufactures, and sells positioning, eye care, and smart infrastructure products worldwide. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Topcon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 7732 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 7732's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of JP stocks.


Market Performance


7 Day Return

4.1%

7732

-3.6%

JP Electronic

-2.5%

JP Market


1 Year Return

97.9%

7732

31.5%

JP Electronic

28.6%

JP Market

Return vs Industry: 7732 exceeded the JP Electronic industry which returned 31.5% over the past year.

Return vs Market: 7732 exceeded the JP Market which returned 28.6% over the past year.


Shareholder returns

7732IndustryMarket
7 Day4.1%-3.6%-2.5%
30 Day7.3%-4.4%-3.9%
90 Day17.2%-9.9%-3.1%
1 Year99.3%97.9%33.1%31.5%31.4%28.6%
3 Year-18.4%-21.9%28.8%23.4%11.1%3.4%
5 Year71.6%61.0%111.0%96.2%54.9%37.9%

Long-Term Price Volatility Vs. Market

How volatile is Topcon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Topcon undervalued compared to its fair value and its price relative to the market?

71.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7732 (¥1607) is trading above our estimate of fair value (¥805.97)

Significantly Below Fair Value: 7732 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7732 is poor value based on its PE Ratio (71.1x) compared to the JP Electronic industry average (15.9x).

PE vs Market: 7732 is poor value based on its PE Ratio (71.1x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 7732 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 7732 is overvalued based on its PB Ratio (2.4x) compared to the JP Electronic industry average (0.9x).


Future Growth

How is Topcon forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7732's forecast earnings growth (28.8% per year) is above the savings rate (0%).

Earnings vs Market: 7732's earnings (28.8% per year) are forecast to grow faster than the JP market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 7732's revenue (5.4% per year) is forecast to grow faster than the JP market (5.3% per year).

High Growth Revenue: 7732's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7732's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Topcon performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 7732 has high quality earnings.

Growing Profit Margin: 7732's current net profit margins (1.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 7732's earnings have declined by 18.9% per year over the past 5 years.

Accelerating Growth: 7732's earnings growth over the past year (154.1%) exceeds its 5-year average (-18.9% per year).

Earnings vs Industry: 7732 earnings growth over the past year (154.1%) exceeded the Electronic industry 9.4%.


Return on Equity

High ROE: 7732's Return on Equity (3.5%) is considered low.


Financial Health

How is Topcon's financial position?


Financial Position Analysis

Short Term Liabilities: 7732's short term assets (¥101.9B) exceed its short term liabilities (¥49.1B).

Long Term Liabilities: 7732's short term assets (¥101.9B) exceed its long term liabilities (¥48.5B).


Debt to Equity History and Analysis

Debt Level: 7732's debt to equity ratio (67.5%) is considered high.

Reducing Debt: 7732's debt to equity ratio has reduced from 105% to 67.5% over the past 5 years.

Debt Coverage: 7732's debt is well covered by operating cash flow (40.8%).

Interest Coverage: 7732's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet


Dividend

What is Topcon current dividend yield, its reliability and sustainability?

0.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 7732's dividend (0.31%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.29%).

High Dividend: 7732's dividend (0.31%) is low compared to the top 25% of dividend payers in the JP market (2.94%).


Stability and Growth of Payments

Stable Dividend: 7732 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 7732 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 7732 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 7732's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Satoshi Hirano (63 yo)

7.92yrs

Tenure

Mr. Satoshi Hirano has been Chief Executive Officer and President of Topcon Corporation since June 2013. Mr. Hirano served as Senior Manager of General Sales Department and Executive Officer of Topcon Corp...


Leadership Team

Experienced Management: 7732's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 7732's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Topcon Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Topcon Corporation
  • Ticker: 7732
  • Exchange: TSE
  • Founded: 1932
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥169.037b
  • Shares outstanding: 105.19m
  • Website: https://www.topcon.co.jp

Number of Employees


Location

  • Topcon Corporation
  • 75-1, Hasunuma-cho
  • Itabashi-ku
  • Tokyo
  • 174-8580
  • Japan

Listings


Biography

Topcon Corporation, together with its subsidiaries, develops, manufactures, and sells positioning, eye care, and smart infrastructure products worldwide. Its positioning products include GNSS receivers, GP...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 10:27
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.