SMC (OR) (6273) AI Stock Analysis

• Market Cap: $3.14T
• Dividend Yield: 1.92%
• Average Volume (3M): 424.13K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.16
• Revenue Growth: 1.13%
• EPS Growth: -17.99%
• Country: JP
• Employees: 23,144
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 543.79
• Shares Outstanding: 63,869,358
• 10 Day Avg. Volume: 405,870
• 30 Day Avg. Volume: 424,133
• PEG Ratio: -1.86
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 4.28
• P/FCF Ratio: 37.75
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 7.44
• Enterprise Value/Ebitda: 11.02
• 1Y Price Target: $53,997.55
• Price Target Upside: 3.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: ¥57,098.00 ▲(9.09% 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) Business Overview & Revenue Model

Company Description

SMC 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 Money

SMC generates revenue primarily through the sale of its automation products and solutions. Key revenue streams include direct sales to manufacturers and distributors, as well as strategic partnerships with other companies in the automation and engineering sectors. Additionally, SMC benefits from recurring revenue through maintenance contracts and service agreements for their equipment. The company's strong brand reputation and focus on research and development enable it to command premium pricing for its high-quality products, further contributing to its profitability.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	789.51B	792.11B	776.87B	824.77B	727.40B	552.18B
Gross Profit	355.01B	363.04B	363.08B	421.16B	363.85B	265.85B
EBITDA	239.61B	245.45B	286.09B	283.97B	293.59B	171.94B
Net Income	142.28B	156.34B	178.32B	224.61B	192.99B	121.79B
Balance Sheet
Total Assets	2.11T	2.10T	2.09T	1.93T	1.77T	1.54T
Cash, Cash Equivalents and Short-Term Investments	711.60B	685.55B	511.29B	623.50B	697.05B	640.55B
Total Debt	5.00B	5.04B	13.07B	12.19B	11.54B	10.79B
Total Liabilities	187.82B	172.46B	208.69B	225.62B	210.68B	159.88B
Stockholders Equity	1.92T	1.93T	1.88T	1.70T	1.56T	1.38T
Cash Flow
Free Cash Flow	0.00	89.92B	-6.10B	27.24B	75.16B	91.18B
Operating Cash Flow	0.00	196.66B	98.21B	101.62B	156.09B	120.47B
Investing Cash Flow	0.00	35.23B	-131.90B	-87.09B	-116.22B	73.44B
Financing Cash Flow	0.00	-100.20B	-87.93B	-113.30B	-88.93B	-56.01B

SMC (OR) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52340.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 52340 is above the 20-day moving average (MA) of 50548.00, above the 50-day MA of 46959.67, and above the 200-day MA of 50917.32, indicating a bullish trend. The MACD of 1441.93 indicates Positive momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 66.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6273.

SMC (OR) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6383	―	$1.84T	21.86	21.24%	1.32%	―	―
6361	―	$1.77T	24.09	16.02%	1.26%	16.57%	6.63%
6954	―	¥4.12T	26.58	―	2.02%	1.24%	20.57%
6273	―	$3.14T	22.51	7.46%	1.92%	1.13%	-17.99%
6845	―	¥740.16B	17.40	―	1.85%	0.54%	32.45%
6594	―	$3.02T	18.61	―	1.93%	6.85%	31.48%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SMC (OR) Corporate Events

SMC Corporation Completes Share Repurchase Program

SMC Corporation announced the completion of a share repurchase program, acquiring 96,700 common shares for approximately 4.65 billion yen between August 1 and August 31, 2025. This initiative is part of a broader strategy authorized by the Board of Directors to repurchase up to 750,000 shares, reflecting the company’s commitment to enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:6273) stock is a Buy with a Yen60000.00 price target. To see the full list of analyst forecasts on SMC (OR) stock, see the JP:6273 Stock Forecast page.