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SMC Corp (OR) (JP:6273)
:6273
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SMC (OR) (6273) AI Stock Analysis

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JP:6273

SMC (OR)

(OTC:6273)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
¥57,098.00
▲(11.00% Upside)
The company's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is a key strength. However, technical indicators suggest potential overbought conditions, and the stock is trading below its 200-day moving average, indicating caution. The valuation is reasonable, with a moderate P/E ratio and a modest dividend yield.
Positive Factors
Strong Financial Performance
SMC's strong financial performance, characterized by robust revenue growth and high profit margins, indicates efficient cost management and profitability, which are crucial for long-term sustainability and competitiveness in the industrial machinery sector.
Robust Balance Sheet
A robust balance sheet with high equity and low debt levels provides SMC with financial stability and flexibility, enabling it to invest in growth opportunities and weather economic downturns, thereby supporting long-term strategic objectives.
Effective Cash Management
Improved free cash flow indicates effective cash management, allowing SMC to fund operations, invest in R&D, and pursue strategic initiatives without relying heavily on external financing, which is vital for sustaining growth and innovation.
Negative Factors
Fluctuations in Free Cash Flow
Volatility in free cash flow can impact SMC's ability to consistently fund operations and investments, potentially leading to financial constraints during periods of lower cash generation, which could affect long-term growth and stability.
Decline in Net Income
A decline in net income could signal challenges in maintaining profitability, potentially affecting SMC's ability to reinvest in business operations and innovation, which is critical for sustaining competitive advantage in the long term.
Decreasing Trend in Total Liabilities
While a decrease in liabilities can be positive, it may also indicate reduced leverage for growth investments. Monitoring this trend is important to ensure it aligns with strategic goals and does not hinder SMC's ability to capitalize on market opportunities.

SMC (OR) (6273) vs. iShares MSCI Japan ETF (EWJ)

SMC (OR) Business Overview & Revenue Model

Company DescriptionSMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers directional control valves, air cylinders, rotary actuators/air grippers, electric actuators/cylinders, vacuum equipment, air preparation equipment, modular F.R.L./pressure control equipment, lubrication equipment, fittings and tubings, flow control equipment, speed controllers, silencers/exhaust cleaners/blow guns/pressure gauges, switches/sensors/controllers, and static neutralization equipment. It also provides process valves, chemical liquid valves/fittings and needle valves/tubings, process pumps, temperature control equipment, process gas equipment, high vacuum equipment, industrial filters/sintered metal elements, pneumatic instrumentation equipment, and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySMC 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
85
Very Positive
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
90
Very Positive
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
80
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue789.51B792.11B776.87B824.77B727.40B552.18B
Gross Profit355.01B363.04B363.08B421.16B363.85B265.85B
EBITDA239.61B245.45B286.09B283.97B293.59B171.94B
Net Income142.28B156.34B178.32B224.61B192.99B121.79B
Balance Sheet
Total Assets2.11T2.10T2.09T1.93T1.77T1.54T
Cash, Cash Equivalents and Short-Term Investments711.60B685.55B511.29B623.50B697.05B640.55B
Total Debt5.00B5.04B13.07B12.19B11.54B10.79B
Total Liabilities187.82B172.46B208.69B225.62B210.68B159.88B
Stockholders Equity1.92T1.93T1.88T1.70T1.56T1.38T
Cash Flow
Free Cash Flow0.0089.92B-6.10B27.24B75.16B91.18B
Operating Cash Flow0.00196.66B98.21B101.62B156.09B120.47B
Investing Cash Flow0.0035.23B-131.90B-87.09B-116.22B73.44B
Financing Cash Flow0.00-100.20B-87.93B-113.30B-88.93B-56.01B

SMC (OR) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51440.00
Price Trends
50DMA
46923.99
Positive
100DMA
49228.58
Positive
200DMA
51633.60
Negative
Market Momentum
MACD
520.26
Negative
RSI
74.34
Negative
STOCH
92.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6273, the sentiment is Positive. The current price of 51440 is above the 20-day moving average (MA) of 44973.75, above the 50-day MA of 46923.99, and below the 200-day MA of 51633.60, indicating a neutral trend. The MACD of 520.26 indicates Negative momentum. The RSI at 74.34 is Negative, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6273.

SMC (OR) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.75T22.5916.02%1.35%16.57%6.63%
78
Outperform
$1.84T20.9821.24%1.37%
78
Outperform
¥4.19T25.512.15%1.24%20.57%
73
Outperform
¥745.76B17.741.86%0.54%32.45%
72
Outperform
$3.02T21.687.46%2.07%1.13%-17.99%
64
Neutral
¥3.10T19.509.86%1.53%6.85%31.48%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6273
SMC (OR)
51,440.00
-12,062.42
-19.00%
JP:6383
Daifuku Co
4,880.00
2,126.54
77.23%
JP:6361
Ebara
3,784.00
1,482.09
64.39%
JP:6594
Nidec
2,623.50
-378.71
-12.61%
JP:6845
Azbil Corporation
1,443.00
250.44
21.00%
JP:6954
Fanuc Corporation
4,534.00
506.40
12.57%

SMC (OR) Corporate Events

SMC Corporation Completes Share Repurchase Program
Jul 2, 2025

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.

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.Date of analysis: Oct 07, 2025