OMRON (6645) AI Stock Analysis

• Market Cap: ¥775.31B
• Dividend Yield: 2.62%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.85
• Revenue Growth: 3.51%
• EPS Growth: N/A
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 11.34
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,053,160
• 30 Day Avg. Volume: 1,306,276
• PEG Ratio: 0.51
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 122.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,000.00
• Price Target Upside: 32.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 169
• Revenue Forecast (FY): ¥837.93B

• Rating: 60 Neutral
• Price Target: ¥4,307.00 ▲(14.24% Upside)

OMRON's overall stock score reflects a stable financial position with strong gross margins and moderate leverage. However, the stock faces challenges with profitability and cash flow generation. Technical indicators suggest potential short-term weakness, and the high P/E ratio indicates the stock may be overvalued. The dividend yield provides some income potential, but strategic improvements in profitability and cash flow are needed for future growth.

Positive Factors

Strong Gross Margins

A strong gross margin indicates efficient production and pricing strategies, allowing OMRON to maintain profitability despite market fluctuations.

Moderate Leverage

Moderate leverage suggests a balanced approach to financing, providing OMRON with financial flexibility to invest in growth opportunities without excessive risk.

Operational Efficiency

Stable EBIT and EBITDA margins reflect effective cost management and operational processes, supporting sustainable business operations and profitability.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests challenges in converting revenue into profit, highlighting the need for improved cost management and pricing strategies.

Decline in Free Cash Flow

A decline in free cash flow growth can limit OMRON's ability to fund new projects and return value to shareholders, necessitating a focus on cash flow optimization.

Fluctuating Revenue Growth

Inconsistent revenue growth poses a risk to long-term stability and planning, requiring strategic initiatives to stabilize and enhance revenue streams.

OMRON Business Overview & Revenue Model

Company Description

OMRON Corporation (6645) is a global leader in automation and control technology, specializing in the development and manufacturing of advanced electronic components, systems, and equipment. The company operates across several sectors, including industrial automation, healthcare, social systems, and electronic components. OMRON's core products include sensors, relays, programmable logic controllers (PLCs), and healthcare devices such as blood pressure monitors and therapeutic equipment, aimed at enhancing productivity, safety, and quality of life.

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, including manufacturing, healthcare, and infrastructure. Key revenue streams include the sale of industrial automation equipment, which accounts for a significant portion of its earnings, along with healthcare products that cater to both consumer and professional markets. Additionally, OMRON has established strategic partnerships and collaborations with other companies and organizations to enhance its technological capabilities and expand its market reach. These partnerships often lead to joint development projects and co-marketing initiatives that further drive sales and revenue growth. The company's focus on innovation and the development of IoT-enabled solutions also positions it well in the rapidly evolving technology landscape, contributing to its financial success.

OMRON Financial Statement Overview

Summary

OMRON exhibits a strong financial position with improving profitability and cash flow metrics. The company has managed to enhance its margins and cash generation despite fluctuations in revenue growth. The balance sheet remains solid, though attention to rising debt levels is necessary.

Income Statement

OMRON's income statement shows a strong gross profit margin of 44.18% TTM, indicating efficient cost management. The net profit margin improved significantly to 4.05% TTM from 2.03% in the previous year, reflecting enhanced profitability. However, revenue growth has been volatile, with a notable increase of 71.9% TTM after a decline in the previous periods. The EBIT and EBITDA margins are stable, suggesting consistent operational performance.

Balance Sheet

The balance sheet reveals a healthy debt-to-equity ratio of 0.27 TTM, indicating moderate leverage. Return on equity has improved to 4.21% TTM, showing better utilization of equity to generate profits. The equity ratio remains strong at 56.78%, reflecting a solid capital structure. However, the increase in total debt over the periods could pose a potential risk if not managed carefully.

Cash Flow

OMRON's cash flow statement highlights a robust free cash flow growth of 104.08% TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.28 TTM indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.22 TTM shows a healthy cash flow position, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	820.56B	801.75B	818.76B	876.08B	762.93B	655.53B
Gross Profit	359.67B	357.14B	346.46B	393.88B	346.83B	298.35B
EBITDA	77.52B	62.45B	65.77B	125.00B	110.08B	87.84B
Net Income	28.64B	16.27B	8.11B	73.86B	61.40B	43.31B
Balance Sheet
Total Assets	1.40T	1.36T	1.35T	998.16B	930.63B	820.38B
Cash, Cash Equivalents and Short-Term Investments	160.59B	149.02B	143.09B	105.28B	155.48B	250.75B
Total Debt	210.27B	157.12B	172.76B	45.37B	60.12B	38.89B
Total Liabilities	459.37B	427.36B	403.74B	266.93B	262.66B	211.02B
Stockholders Equity	777.81B	771.88B	786.69B	728.47B	665.23B	606.86B
Cash Flow
Free Cash Flow	10.08B	6.79B	-503.00M	8.44B	34.07B	67.17B
Operating Cash Flow	59.92B	55.78B	44.88B	53.46B	67.43B	93.83B
Investing Cash Flow	-45.62B	-47.89B	-107.10B	-55.53B	-150.16B	-14.79B
Financing Cash Flow	-15.44B	-4.61B	85.99B	-58.76B	-29.60B	-20.35B

OMRON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3770.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3770 is below the 20-day moving average (MA) of 3993.70, below the 50-day MA of 4106.84, and below the 200-day MA of 3989.68, indicating a bearish trend. The MACD of -24.02 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 12.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7701	75 Outperform	¥1.25T	22.34	10.84%	1.46%	3.92%	9.99%
6965	74 Outperform	¥519.85B	35.63	4.19%	2.25%	3.97%	-41.76%
4186	70 Outperform	¥725.53B	24.41	14.01%	1.08%	19.45%	41.03%
6806	68 Neutral	$564.60B	18.75	8.09%	2.85%	11.18%	-0.75%
6479	67 Neutral	¥1.29T	20.47	8.05%	1.58%	0.96%	3.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	60 Neutral	¥775.31B	27.33	3.60%	2.62%	3.51%	―

OMRON Corporate Events

OMRON Unveils Medium-Term Roadmap for Sustainable Growth

OMRON Corporation has announced the approval of its ‘Medium-Term Roadmap SF 2nd Stage,’ a strategic plan set to guide the company from FY2026 to FY2030. This roadmap follows the completion of the ‘NEXT 2025’ Structural Reform Program and aims to transition OMRON’s business portfolio towards sustainable, profit-driven growth, thereby increasing corporate value.

OMRON Corporation Reports FY2025 H1 Financial Results with Revised Forecasts

OMRON Corporation reported an increase in consolidated revenue for the first half of FY2025, although profits declined due to lower gross profit margins and growth investments. The Industrial Automation Business (IAB) saw revenue and profit growth, driven by recovery in the customer base and strong demand in key industries. The Healthcare Business (HCB) initially experienced a decline but rebounded in the second quarter. The company revised its full-year forecasts, expecting higher revenue and profit, and maintained its dividend guidance. Structural reforms continue to support sales growth, aligning with the company’s strategic plan.

OMRON Announces Interim Dividend and Year-End Forecast Revision

OMRON Corporation announced the approval of an interim dividend and a revision of the year-end dividend forecast for the fiscal year ending March 31, 2026. The interim and year-end dividends are set at 52.00 yen per share, maintaining the full-year dividend forecast at 104.00 yen. This decision aligns with OMRON’s cash allocation and shareholder return policies during its restructuring period, emphasizing investments in long-term value creation and stable shareholder returns.

OMRON Reports First Half Financial Results and Dividend Announcement

OMRON Corporation reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a 5% increase in net sales compared to the same period last year. Despite the rise in sales, operating income decreased by 7.8%, reflecting challenges in operational efficiency. The company also announced an interim dividend of 52 yen per share, maintaining its annual dividend forecast, indicating a stable return for shareholders.

OMRON Plans Spin-Off of Device & Module Solutions Business

OMRON Corporation’s Board of Directors has initiated discussions to spin off its Device & Module Solutions Business (DMB) by April 1, 2026. This move aims to establish an independent management structure for DMB to enhance agility, cost-competitiveness, and investment in new product development, amidst growing market demand and competitive pressures.