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OMRON Corporation (JP:6645)
:6645

OMRON (6645) AI Stock Analysis

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JP:6645

OMRON

(6645)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
¥5,650.00
▲(21.27% Upside)
Action:ReiteratedDate:02/07/26
The score is primarily held back by weak cash conversion and still-subdued profitability despite strong recent revenue momentum. Technicals are supportive due to a clear uptrend, but overbought readings raise near-term risk. Valuation is a drag given the high P/E, with only moderate offset from the dividend yield.
Positive Factors
Revenue Momentum
Sustained TTM revenue growth signals durable demand and expanding commercial traction across OMRON's product lines. Strong top-line momentum helps absorb fixed costs, supports continued investment in R&D and automation solutions, and increases the potential to scale higher-margin offerings over time.
Negative Factors
Subdued Profitability
Margins are materially below prior-cycle peaks, indicating limited current ability to convert sales into sustainable profits. Persistently low operating and net margins constrain retained earnings, reduce funds available for reinvestment, and weaken the firm's capacity to improve returns without structural margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Momentum
Sustained TTM revenue growth signals durable demand and expanding commercial traction across OMRON's product lines. Strong top-line momentum helps absorb fixed costs, supports continued investment in R&D and automation solutions, and increases the potential to scale higher-margin offerings over time.
Read all positive factors

OMRON (6645) vs. iShares MSCI Japan ETF (EWJ)

OMRON Business Overview & Revenue Model

Company Description
OMRON Corporation engages in industrial automation, electronic and mechanical components, social systems, and healthcare businesses worldwide. The company's Industrial Automation Business offers sensors, switches, safety and control components, re...
How the Company Makes Money
OMRON generates revenue primarily through its diverse product offerings in industrial automation, healthcare, and other sectors. The company's revenue model is anchored in the sale of its products and solutions, which serve various industries, inc...

OMRON Financial Statement Overview

Summary
Revenue is up strongly in the TTM period, but profitability remains subdued (net margin ~2.8%, operating margin ~4.4%) and still well below prior-cycle peaks. The balance sheet is generally sound with moderate leverage (~0.33x debt/equity), but leverage is higher than 2021–2023 and ROE is low (~3%). Cash flow is the main weak spot: free cash flow is positive but small and down sharply, with weak cash conversion (~11% of net income).
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
44
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue836.34B801.75B818.76B876.08B762.93B655.53B
Gross Profit364.92B357.14B346.46B393.88B346.83B298.35B
EBITDA85.52B87.49B65.16B127.27B112.68B85.24B
Net Income23.43B16.27B8.11B73.86B61.40B43.31B
Balance Sheet
Total Assets1.45T1.36T1.35T998.16B930.63B820.38B
Cash, Cash Equivalents and Short-Term Investments155.20B149.02B143.09B105.28B155.48B250.75B
Total Debt228.95B184.20B172.76B45.37B60.12B38.89B
Total Liabilities475.68B427.36B403.74B266.93B262.66B211.02B
Stockholders Equity808.25B771.88B786.69B728.47B665.23B606.86B
Cash Flow
Free Cash Flow5.93B6.79B-503.00M8.44B34.07B67.17B
Operating Cash Flow56.13B55.78B44.88B53.46B67.43B93.83B
Investing Cash Flow-54.51B-47.89B-107.10B-55.53B-150.16B-14.79B
Financing Cash Flow12.60B-4.61B85.99B-58.76B-29.60B-20.35B

OMRON Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4659.00
Price Trends
50DMA
4561.70
Negative
100DMA
4276.42
Positive
200DMA
4098.85
Positive
Market Momentum
MACD
-83.19
Positive
RSI
40.57
Neutral
STOCH
19.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6645, the sentiment is Negative. The current price of 4659 is below the 20-day moving average (MA) of 4821.85, above the 50-day MA of 4561.70, and above the 200-day MA of 4098.85, indicating a neutral trend. The MACD of -83.19 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 19.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6645.

OMRON Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥13.71T30.9012.80%0.78%7.09%7.51%
78
Outperform
¥411.76B9.2111.96%3.04%2.70%
74
Outperform
¥6.47T59.168.95%1.88%2.88%28.76%
67
Neutral
¥3.88T15.031.41%7.73%-1.93%
64
Neutral
¥1.03T15.168.05%1.58%0.96%3.22%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥863.10B36.792.99%2.62%3.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6645
OMRON
4,385.00
79.99
1.86%
JP:6770
Alps Alpine Co
2,145.50
579.98
37.05%
JP:6861
Keyence
56,540.00
-3,981.32
-6.58%
JP:6479
MinebeaMitsumi
2,639.50
388.43
17.26%
JP:6981
Murata Manufacturing Co
3,543.00
1,115.52
45.95%
JP:6762
TDK Corporation
2,037.50
435.36
27.17%

OMRON Corporate Events

OMRON Raises FY2025 Revenue Outlook as Automation Demand Lifts Sales but Margins Tighten
Feb 5, 2026
OMRON reported higher consolidated revenue for the third quarter of fiscal 2025, driven largely by strong growth in its Industrial Automation Business (IAB), which significantly increased sales by capturing AI-related and recovering factory automa...
Omron Lifts Full-Year Profit Outlook as Nine-Month Net Income Nearly Doubles
Feb 5, 2026
Omron reported consolidated net sales of ¥614.3 billion for the nine months ended December 31, 2025, a 6.0% year-on-year increase, while operating income declined 5.7% to ¥33.9 billion. Despite the lower operating profit, income before i...
OMRON HEALTHCARE Announces Tender Offer for Matsuya R&D
Dec 15, 2025
OMRON HEALTHCARE Co., Ltd. has announced its decision to initiate a tender offer to acquire shares of Matsuya RD Co., Ltd., a company listed on the Growth Market of the Tokyo Stock Exchange. This strategic move is part of OMRON HEALTHCARE’s ...
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: Feb 07, 2026