OMRON (6645) AI Stock Analysis

• Market Cap: ¥718.43B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 44.2
• Beta (1Y): 0.86
• Revenue Growth: -2.08%
• EPS Growth: 100.89%
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 46.16
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,356,220
• 30 Day Avg. Volume: 1,216,356
• PEG Ratio: 0.16
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -273.88
• 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: ¥3,999.71
• Price Target Upside: 9.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• 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 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, 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 Money

Omron 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
790.47B	818.76B	876.08B	762.93B	655.53B	677.98B
	Gross Profit
350.01B	346.46B	393.88B	346.83B	298.35B	303.70B
	EBIT
43.67B	34.34B	100.69B	89.32B	59.47B	53.48B
	EBITDA
67.98B	65.77B	125.00B	110.08B	87.84B	79.18B
	Net Income Common Stockholders
7.44B	8.11B	73.86B	61.40B	43.31B	74.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
136.91B	143.09B	105.28B	155.48B	250.75B	185.53B
	Total Assets
1.37T	1.35T	998.16B	930.63B	820.38B	758.12B
	Total Debt
188.15B	172.76B	45.37B	60.12B	38.89B	30.89B
	Net Debt
51.24B	29.67B	-59.91B	-95.37B	-211.87B	-154.64B
	Total Liabilities
409.00B	403.74B	266.93B	262.66B	211.02B	225.53B
	Stockholders Equity
798.48B	786.69B	728.47B	665.23B	606.86B	530.41B
Cash Flow		Free Cash Flow
-2.89B	-503.00M	8.44B	34.07B	67.17B	52.16B
	Operating Cash Flow
45.91B	44.88B	53.46B	67.43B	93.83B	89.79B
	Investing Cash Flow
-71.23B	-107.10B	-55.53B	-150.16B	-14.79B	28.64B
	Financing Cash Flow
17.03B	85.99B	-58.76B	-29.60B	-20.35B	-29.43B

OMRON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3650.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6806	78 Outperform	¥547.51B	17.06	8.88%	2.81%	14.45%	26.45%
4186	73 Outperform	$465.74B	17.07	13.63%	1.65%	24.52%	88.51%
6479	73 Outperform	$774.63B	12.96	8.10%	2.23%	8.60%	10.82%
6965	71 Outperform	¥473.35B	25.52	5.58%	2.46%	-3.32%	-48.13%
7701	62 Neutral	¥1.01T	18.62	10.72%	1.84%	5.30%	-5.16%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
6645	62 Neutral	¥718.43B	44.17	2.10%	2.64%	-2.08%	100.89%

OMRON Corporate Events

OMRON Revises Incentive Plan to Boost Director Engagement

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

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

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

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

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.