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OMRON Corporation (JP:6645)
:6645

OMRON (6645) AI Stock Analysis

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JP

OMRON

(OTC:6645)

Rating:62Neutral
Price Target:
¥4,020.00
▲(3.90%Upside)
OMRON's overall stock score is driven by its stable financial performance, albeit with challenges in revenue and profitability growth. The technical indicators portray a bearish trend with weak momentum, while the valuation indicates an overvalued stock but offers a moderate dividend yield.

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

OMRON Business Overview & Revenue Model

Company DescriptionOMRON 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, relays, automation systems, motion/drives, robotics, energy conservation support/environment measure equipment, and power supplies. Its Electronic and Mechanical Components Business provides relays, switches, connectors, sensors, and components/units for amusement equipment. The company's Social Systems, Solutions and Service Business offers terminals and systems, including PV inverters and storage batteries; railway station systems, such as automated ticket gates and ticket vending machines, traffic and road management systems, payment systems, and UPS that protect equipment from unexpected power disruption; a range of solutions comprising software development and maintenance services to support the social infrastructure; and transport management systems and infrastructure monitoring systems. Its Healthcare Business offers blood pressure monitors; nebulizers; electrotherapy TENS devices; digital thermometers; body composition monitors; and other products, such as activity monitors, AEDs, etc. OMRON Corporation has an agreement with JMDC Inc. to jointly develop personalized aggravation and nursing care prevention solutions that support prescription medication treatments and patient lifestyle changes by predicting the risk of the onset of individual patient events. The company was formerly known as OMRON Tateisi Electronics Co. and changed its name to OMRON Corporation in January 1990. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.
How the Company Makes MoneyOmron Corporation generates revenue through a diversified business model that includes several key segments: Industrial Automation, Healthcare, and Electronic Components. The Industrial Automation segment is the largest contributor, providing factory automation products and solutions like sensors, switches, and control equipment to industries worldwide. The Healthcare segment offers consumer and professional medical devices, with blood pressure monitors being particularly popular. The Electronic Components segment supplies essential electronic parts to various manufacturers, including those in the automotive industry. Omron also benefits from strategic partnerships and collaborations that enhance its market reach and product innovation capabilities, contributing to its overall revenue.

OMRON Financial Statement Overview

Summary
OMRON exhibits a stable financial foundation with solid balance sheet metrics and cash flow generation. However, income statement metrics indicate challenges in revenue and profitability growth, suggesting the need for strategic adjustments to sustain growth momentum.
Income Statement
72
Positive
The company has shown resilience with a moderate gross profit margin and a stable net profit margin. However, the revenue growth shows fluctuations, with a recent decline. EBIT and EBITDA margins have faced downward pressure, affecting overall profitability.
Balance Sheet
80
Positive
The balance sheet is strong, characterized by a sound equity ratio and a favorable debt-to-equity ratio. Return on equity remains solid, indicating effective use of shareholders' equity, despite the challenges in revenue growth.
Cash Flow
68
Positive
Operating cash flow remains robust, supporting cash flow stability. However, free cash flow has seen variability, with a recent recovery. The operating cash flow to net income ratio highlights efficient cash conversion.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
801.75B818.76B876.08B762.93B655.53B
Gross Profit
357.14B346.46B393.88B346.83B298.35B
EBIT
54.04B34.95B100.69B89.32B59.47B
EBITDA
62.45B65.77B125.00B110.08B87.84B
Net Income Common Stockholders
16.27B8.11B73.86B61.40B43.31B
Balance SheetCash, Cash Equivalents and Short-Term Investments
149.02B143.09B105.28B155.48B250.75B
Total Assets
1.36T1.35T998.16B930.63B820.38B
Total Debt
144.31B172.76B45.37B60.12B38.89B
Net Debt
-4.71B29.67B-59.91B-95.37B-211.87B
Total Liabilities
387.47B403.74B266.93B262.66B211.02B
Stockholders Equity
771.88B786.69B728.47B665.23B606.86B
Cash FlowFree Cash Flow
6.79B-503.00M8.44B34.07B67.17B
Operating Cash Flow
55.78B44.88B53.46B67.43B93.83B
Investing Cash Flow
-47.89B-107.10B-55.53B-150.16B-14.79B
Financing Cash Flow
-4.61B85.99B-58.76B-29.60B-20.35B

OMRON Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3869.00
Price Trends
50DMA
3993.96
Negative
100DMA
4325.83
Negative
200DMA
4952.03
Negative
Market Momentum
MACD
-87.26
Negative
RSI
50.15
Neutral
STOCH
70.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6645, the sentiment is Neutral. The current price of 3869 is above the 20-day moving average (MA) of 3789.75, below the 50-day MA of 3993.96, and below the 200-day MA of 4952.03, indicating a neutral trend. The MACD of -87.26 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 70.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6645.

OMRON Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
62
Neutral
¥746.58B45.902.10%2.74%-2.08%100.89%
$3.25B25.935.58%2.48%
$3.85B18.238.88%0.02%
$5.51B14.108.10%0.02%
$7.22B20.3010.72%0.01%
$3.27B17.1013.63%1.65%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6645
OMRON
3,869.00
-1,179.21
-23.36%
HPHTF
Hamamatsu Photonics KK
11.53
-2.73
-19.14%
HRSEF
HIROSE ELECTRIC CO
117.97
6.00
5.36%
MNBEF
MinebeaMitsumi
14.15
-6.51
-31.51%
SHMZF
Shimadzu
24.46
-0.41
-1.65%
TOKCF
Tokyo Ohka Kogyo Co
24.76
-3.17
-11.35%

OMRON Corporate Events

OMRON Revises Incentive Plan to Boost Director Engagement
May 8, 2025

OMRON Corporation announced the continuation and partial revision of its performance-linked and share-based incentive plan for directors and executive officers. The revised plan aims to enhance motivation by linking compensation to stock value and performance targets, with changes including increased contribution limits and the inclusion of outside directors. This move is expected to align directors’ interests with shareholders and drive sustainable corporate value growth.

OMRON Proposes Amendments for Virtual Shareholder Meetings
May 8, 2025

OMRON Corporation’s Board of Directors has proposed amendments to its Articles of Incorporation to allow for Virtual Only Shareholder Meetings, aligning with the recent legal changes in Japan that support digitalization. This move is intended to enhance shareholder engagement by providing flexible meeting options, considering factors like digital advancement and potential disruptions from disasters or diseases.

OMRON Reports Financial Losses on Affiliate Stocks and Goodwill Impairment
May 8, 2025

OMRON Corporation has reported a non-consolidated loss on the valuation of stocks of affiliates amounting to JPY110.321 billion due to a decline in the market value of shares of its subsidiary, JMDC Inc. Additionally, the company recorded an impairment loss on goodwill of JPY11.725 billion related to its Data Solutions Business, impacting its consolidated financial results for the fiscal year ending March 31, 2025.

OMRON Corporation Reports FY2024 Profit Growth Amidst Sales Decline
May 8, 2025

OMRON Corporation reported significant profit growth in FY2024 despite lower sales, attributed to improved margins and cost efficiency. The IAB segment showed moderate sales recovery and strong profit growth due to structural reforms, while SSB capitalized on growth opportunities. However, HCB and DMB faced challenges with declining sales and profits, particularly in China. The company remains optimistic about FY2025, aiming for higher sales and profits through structural reforms and increased R&D investment in IAB, despite uncertainties in U.S. tariff policies.

OMRON Reports Fiscal Year 2025 Financial Results
May 8, 2025

OMRON Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in net sales by 2.1% to 801,753 million yen, but a significant increase in net income attributable to shareholders by 100.7% to 16,271 million yen. The company faced a one-time expense related to its Structural Reform Program NEXT2025, impacting its income before taxes. Despite these challenges, OMRON’s strategic initiatives and cost optimization efforts have positioned it for potential growth in the upcoming fiscal year.

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.