OMRON (6645) AI Stock Analysis

• Market Cap: $806.22B
• Dividend Yield: 2.54%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.80
• Revenue Growth: 1.05%
• EPS Growth: N/A
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 34.62
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,275,520
• 30 Day Avg. Volume: 1,938,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 13.42
• 1Y Price Target: $4,775.50
• Price Target Upside: 20.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: ¥4,232.00 ▲(6.36% Upside)

OMRON's stable financial performance, particularly its strong balance sheet and cash flow, is the primary driver of its stock score. Technical indicators suggest a neutral to slightly bearish short-term outlook. The valuation is moderate, with a reasonable dividend yield providing additional support.

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 primarily through the sale of its diverse range of products and solutions across its key business segments. The Industrial Automation segment is a major revenue generator, providing automation systems and solutions that improve production efficiency and quality for various industries. The Healthcare segment contributes significantly through sales of medical devices, such as blood pressure monitors and nebulizers, which are popular worldwide. Additionally, the Electronic and Mechanical Components segment earns revenue by supplying essential components to various industries, including automotive and consumer electronics. Strategic partnerships and collaborations with other technological leaders and a strong global distribution network further bolster OMRON's earnings, allowing the company to penetrate new markets and enhance its technological offerings.

OMRON Financial Statement Overview

Summary

OMRON exhibits a stable financial foundation with solid balance sheet metrics and cash flow generation. Income statement metrics indicate some challenges in revenue and profitability growth, suggesting the need for strategic adjustments to sustain growth momentum.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	801.75B	801.75B	818.76B	876.08B	762.93B	655.53B
Gross Profit	357.14B	357.14B	346.46B	393.88B	346.83B	298.35B
EBITDA	73.19B	62.45B	65.77B	125.00B	110.08B	87.84B
Net Income	16.27B	16.27B	8.11B	73.86B	61.40B	43.31B
Balance Sheet
Total Assets	1.36T	1.36T	1.35T	998.16B	930.63B	820.38B
Cash, Cash Equivalents and Short-Term Investments	149.02B	149.02B	143.09B	105.28B	155.48B	250.75B
Total Debt	144.31B	144.31B	172.76B	45.37B	60.12B	38.89B
Total Liabilities	387.47B	387.47B	403.74B	266.93B	262.66B	211.02B
Stockholders Equity	771.88B	771.88B	786.69B	728.47B	665.23B	606.86B
Cash Flow
Free Cash Flow	6.79B	6.79B	-503.00M	8.44B	34.07B	67.17B
Operating Cash Flow	55.78B	55.78B	44.88B	53.46B	67.43B	93.83B
Investing Cash Flow	-47.89B	-47.89B	-107.10B	-55.53B	-150.16B	-14.79B
Financing Cash Flow	-4.61B	-4.61B	85.99B	-58.76B	-29.60B	-20.35B

OMRON Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3979.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 3979 is above the 20-day moving average (MA) of 3899.42, above the 50-day MA of 3843.20, and below the 200-day MA of 4189.14, indicating a neutral trend. The MACD of 62.20 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.46 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6806	77 Outperform	¥624.41B	20.18	8.92%	2.58%	13.89%	11.34%
6479	73 Outperform	¥1.14T	20.04	8.00%	1.78%	4.71%	-11.61%
4186	73 Outperform	¥603.87B	21.62	11.30%	1.31%	21.48%	65.56%
6645	70 Outperform	$806.22B	24.65	4.20%	2.54%	1.05%	―
7701	69 Neutral	¥1.10T	21.03	10.80%	1.66%	4.01%	-6.45%
6965	69 Neutral	¥508.73B	34.89	7.59%	2.31%	0.66%	-52.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OMRON Corporate Events

OMRON Corporation Reports Q1 FY2025 Revenue Growth Amid Tariff Challenges

OMRON Corporation reported an increase in consolidated revenue and profit in Q1 FY2025, despite challenges from U.S. tariff policies. The Industrial Automation Business (IAB) and Device & Module Solutions Business (DMB) experienced growth, while the Healthcare Business (HCB) faced declines due to a market slowdown in China. The company remains cautious about the future due to ongoing tariff uncertainties but is progressing with initiatives to enhance competitiveness and profitability.

The most recent analyst rating on (JP:6645) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.