SMC (OR) (6273) AI Stock Analysis

• Market Cap: $2.79T
• Dividend Yield: 2.24%
• Average Volume (3M): 314.99K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.16
• Revenue Growth: 1.13%
• EPS Growth: -17.99%
• Country: JP
• Employees: 23,144
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 543.79
• Shares Outstanding: 63,869,358
• 10 Day Avg. Volume: 268,130
• 30 Day Avg. Volume: 314,993
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 7.44
• Enterprise Value/Ebitda: 11.95
• 1Y Price Target: $57,754.68
• Price Target Upside: 28.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: ¥58,591.00 ▲(30.35% Upside)

The stock's overall score is driven by strong financial performance, highlighted by solid revenue growth, profitability, and a robust balance sheet. Technical analysis suggests balanced market sentiment, while valuation metrics indicate a moderate valuation. The absence of earnings call and corporate events data did not impact the score.

SMC (OR) Business Overview & Revenue Model

Company Description

SMC Corporation is a leading global provider of advanced automation solutions, primarily focusing on pneumatic control engineering to improve productivity and efficiency in industrial operations. The company serves a broad range of sectors including automotive, electronics, life sciences, and food processing, offering an extensive lineup of products such as actuators, valves, sensors, and air preparation equipment.

How the Company Makes Money

SMC Corporation generates revenue through the sale of its comprehensive range of automation products and solutions to industries requiring enhanced operational efficiency. The company's key revenue streams include direct sales of pneumatic and automation components to manufacturers and distributors across various sectors. SMC also benefits from established partnerships with major industrial equipment manufacturers, leveraging these relationships to expand its market reach. Additionally, the company invests in research and development to innovate and improve its product offerings, which helps maintain competitive pricing and drive sales growth.

SMC (OR) Financial Statement Overview

Summary

The company has demonstrated solid revenue growth, strong profit margins, and operational efficiency. A robust balance sheet with low leverage risk and substantial cash reserves supports financial stability, although cash flow fluctuations warrant monitoring.

Income Statement

The company has demonstrated solid revenue growth over the years, with a notable increase from 2020 to 2025. Gross and net profit margins are strong, indicating efficient cost management and profitability. The EBIT and EBITDA margins further highlight the company's operational efficiency. However, a slight decline in net income in the latest year should be monitored for potential impacts.

Balance Sheet

The balance sheet is robust, with a high equity ratio indicating financial stability. The debt-to-equity ratio is low, suggesting minimal leverage risk. Strong stockholders' equity and a significant cash position highlight the company's solid financial foundation. However, the decreasing trend in total liabilities should be watched for future implications.

Cash Flow

The company's free cash flow has shown considerable improvement, indicating effective cash management. The operating cash flow to net income ratio is healthy, supporting operational sustainability. However, fluctuations in free cash flow over the years suggest potential volatility in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	792.11B	776.87B	824.77B	727.40B	552.18B
Gross Profit	363.04B	363.08B	421.16B	363.85B	265.85B
EBITDA	245.45B	229.58B	283.97B	248.42B	171.94B
Net Income	156.34B	178.32B	224.61B	192.99B	121.79B
Balance Sheet
Total Assets	2.10T	2.09T	1.93T	1.77T	1.54T
Cash, Cash Equivalents and Short-Term Investments	685.55B	511.29B	623.50B	697.05B	640.55B
Total Debt	5.04B	13.07B	12.19B	11.54B	10.79B
Total Liabilities	172.46B	208.69B	225.62B	210.68B	159.88B
Stockholders Equity	1.93T	1.88T	1.70T	1.56T	1.38T
Cash Flow
Free Cash Flow	89.92B	-6.10B	27.24B	75.16B	91.18B
Operating Cash Flow	196.66B	98.21B	101.62B	156.09B	120.47B
Investing Cash Flow	35.23B	-131.90B	-87.09B	-116.22B	73.44B
Financing Cash Flow	-100.20B	-87.93B	-113.30B	-88.93B	-56.01B

SMC (OR) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44950.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6273, the sentiment is Negative. The current price of 44950 is below the 20-day moving average (MA) of 45200.50, below the 50-day MA of 48829.00, and below the 200-day MA of 53636.24, indicating a bearish trend. The MACD of -1416.02 indicates Negative momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 34.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6273.

SMC (OR) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6273	76 Outperform	$2.79T	19.70	7.46%	2.24%	1.13%	-17.99%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
DAIUF	―	$11.66B	20.78	21.24%	1.48%	―	―
EBCOF	―	$9.70B	15.77	16.02%	5.00%	―	―
NNDNF	―	$20.06B	23.24	9.86%	1.87%	―	―
6845	73 Outperform	¥778.84B	18.60		1.64%	0.54%	32.45%
6954	73 Outperform	¥3.88T	24.99		2.25%	1.24%	20.57%

SMC (OR) Corporate Events

SMC Corporation Completes Share Repurchase Program

SMC Corporation announced the completion of a share repurchase program, acquiring 73,400 common shares for approximately 3.86 billion yen through market purchases on the Tokyo Stock Exchange in June 2025. This move is part of a larger board-approved plan to repurchase up to 750,000 shares, reflecting SMC’s strategic efforts to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (JP:6273) stock is a Hold with a Yen65000.00 price target. To see the full list of analyst forecasts on SMC (OR) stock, see the JP:6273 Stock Forecast page.