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

Simply Wall St · 2d ago

SCREEN Holdings (TSE:7735) has quietly extended its multiyear run, with shares up roughly 48% over the past year and more than tripling over five years, outpacing many semiconductor peers.

See our latest analysis for SCREEN Holdings.

That momentum has not really cooled, with a 1 month share price return of 9.3 percent and a year to date share price gain of just over 41 percent. The 5 year total shareholder return of about 305 percent underlines how sustained the rerating has been as investors price in SCREEN Holdings role in the semiconductor equipment cycle.

If SCREEN Holdings rise has you thinking about what else could benefit from similar themes, it is a good time to explore high growth tech and AI stocks as potential next candidates.

With earnings still growing and the share price sitting modestly below analyst targets, is SCREEN Holdings a rare chance to buy into the semiconductor cycle at a reasonable valuation, or are markets already pricing in years of future growth?

Most Popular Narrative: 9.8% Undervalued

SCREEN Holdings last closed at ¥13,560, while the most followed narrative pegs fair value closer to ¥15,040, implying upside if its growth path plays 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.

Want to see what kind of steady revenue growth, margin uplift, and future earnings multiple are baked into that valuation story? The full narrative unpacks the exact assumptions behind this target, and how they connect to AI driven demand, advanced packaging, and a shrinking share count.

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

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

However, that upside depends on smooth execution, and elevated China exposure, alongside structurally higher costs, could quickly pressure margins and derail those earnings assumptions.

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

Build Your Own SCREEN Holdings Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a personalized view in just 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.