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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
▲(10.14%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 demonstrates a solid balance sheet with low leverage and strong equity, but faces challenges in income generation and cash flow. The declining profitability and negative free cash flow are concerning, although the company maintains operational resilience in cash generation. Continued focus on improving profitability and managing capital expenditures will be crucial for enhancing financial performance.
Income Statement
75
Positive
OMRON's income statement shows a mixed performance. The company has maintained a steady gross profit margin of around 44% over the years. However, the net income has declined in the TTM, leading to a lower net profit margin of 0.94% compared to 9.92% in the previous year. The revenue has shown volatility, with a noticeable decrease in the TTM compared to the previous annual period. The EBIT and EBITDA margins have also decreased, indicating reduced operating efficiency.
Balance Sheet
80
Positive
OMRON's balance sheet remains strong with a high equity ratio of approximately 58%, indicating solid financial stability. The company's debt-to-equity ratio is low at 0.24, suggesting prudent financial leverage. However, the return on equity has decreased significantly in the TTM to 0.93% from 1.03% in the previous year, reflecting challenges in generating profits from equity.
Cash Flow
70
Positive
The cash flow statement reveals some concerns. There is a substantial decline in free cash flow in the TTM to negative figures, indicating potential liquidity issues. The operating cash flow to net income ratio is favorable at 6.17, suggesting good cash generation relative to net profits. However, the free cash flow to net income ratio has turned negative due to increased capital expenditures.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
790.47B818.76B876.08B762.93B655.53B677.98B
Gross Profit
350.01B346.46B393.88B346.83B298.35B303.70B
EBIT
43.67B34.34B100.69B89.32B59.47B53.48B
EBITDA
67.98B65.77B125.00B110.08B87.84B79.18B
Net Income Common Stockholders
7.44B8.11B73.86B61.40B43.31B74.89B
Balance SheetCash, Cash Equivalents and Short-Term Investments
136.91B143.09B105.28B155.48B250.75B185.53B
Total Assets
1.37T1.35T998.16B930.63B820.38B758.12B
Total Debt
188.15B172.76B45.37B60.12B38.89B30.89B
Net Debt
51.24B29.67B-59.91B-95.37B-211.87B-154.64B
Total Liabilities
409.00B403.74B266.93B262.66B211.02B225.53B
Stockholders Equity
798.48B786.69B728.47B665.23B606.86B530.41B
Cash FlowFree Cash Flow
-2.89B-503.00M8.44B34.07B67.17B52.16B
Operating Cash Flow
45.91B44.88B53.46B67.43B93.83B89.79B
Investing Cash Flow
-71.23B-107.10B-55.53B-150.16B-14.79B28.64B
Financing Cash Flow
17.03B85.99B-58.76B-29.60B-20.35B-29.43B

OMRON Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3650.00
Price Trends
50DMA
4019.16
Negative
100DMA
4343.61
Negative
200DMA
4966.78
Negative
Market Momentum
MACD
-116.10
Positive
RSI
35.92
Neutral
STOCH
20.55
Neutral
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 3650 is below the 20-day moving average (MA) of 3824.20, below the 50-day MA of 4019.16, and below the 200-day MA of 4966.78, indicating a bearish trend. The MACD of -116.10 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 20.55 is Neutral, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥547.51B17.068.88%2.81%14.45%26.45%
73
Outperform
$465.74B17.0713.63%1.65%24.52%88.51%
73
Outperform
$774.63B12.968.10%2.23%8.60%10.82%
71
Outperform
¥473.35B25.525.58%2.46%-3.32%-48.13%
62
Neutral
¥1.01T18.6210.72%1.84%5.30%-5.16%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
62
Neutral
¥718.43B44.172.10%2.64%-2.08%100.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6645
OMRON
3,700.00
-1,353.12
-26.78%
JP:6479
MinebeaMitsumi
1,896.50
-1,377.75
-42.08%
JP:6806
HIROSE ELECTRIC CO
16,765.00
-605.62
-3.49%
JP:7701
Shimadzu
3,424.00
-541.03
-13.65%
JP:6965
Hamamatsu Photonics KK
1,526.50
-772.11
-33.59%
JP:4186
Tokyo Ohka Kogyo Co
3,763.00
-506.32
-11.86%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.