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SCREEN Holdings (TSE:7735): Assessing Valuation After a Strong Multi‑Year Share Price Rally

Simply Wall St · 2d ago

SCREEN Holdings (TSE:7735) has quietly kept its rally going, with the stock up about 8% over the past week and nearly 30% in the past 3 months, outpacing many semiconductor peers.

See our latest analysis for SCREEN Holdings.

Zooming out, that recent strength builds on a powerful run, with the share price delivering strong double digit returns over the year and multi bagger total shareholder returns over the past five years. This suggests investors are steadily pricing in more growth.

If SCREEN’s momentum has caught your eye, it is a good time to see what else is moving in semis and adjacent tech via high growth tech and AI stocks.

With earnings still growing and the share price trading only slightly below analyst estimates and our intrinsic value, the key question now is whether SCREEN remains mispriced or if the market has already factored in the next phase of growth.

Most Popular Narrative: 6.7% Undervalued

With SCREEN Holdings closing at ¥14,025 against a narrative fair value of ¥15,040, the current share price implies modest upside if its forecasts play out.

Strategic expansion into advanced packaging (PLP, Lemotia coater, LeVina imaging system), with expected sales growth in this area starting in the current fiscal year and accelerating into next year, introduces a higher value, higher margin revenue stream and reduces reliance on traditional wafer cleaning, supporting margin expansion and greater earnings resilience.

Read the complete narrative.

Curious how much growth, margin uplift, and future earnings power this shift assumes? Wondering what profit multiple it needs to sustain? See how the numbers stack up.

Result: Fair Value of ¥15,040 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on China and rising local competition could squeeze SCREEN’s margins and derail the profit and valuation trajectory implied by this narrative.

Find out about the key risks to this SCREEN Holdings narrative.

Build Your Own SCREEN Holdings Narrative

If you see the story differently or want to stress test your own assumptions using the same data set, build a custom narrative in minutes, Do it your way.

A great starting point for your SCREEN Holdings research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.