OMRON (6645) AI Stock Analysis

• Market Cap: ¥761.54B
• Dividend Yield: 2.69%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 46.8
• Beta (1Y): 0.86
• Revenue Growth: -2.08%
• EPS Growth: 100.89%
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 46.16
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,442,800
• 30 Day Avg. Volume: 1,298,933
• PEG Ratio: 0.95
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 181.26
• 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: ¥4,026.52
• Price Target Upside: 4.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ¥4,020.00 ▲(4.01%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, headquartered in Kyoto, Japan, is a global leader in the field of automation, with a diversified portfolio of products and services in industrial automation, healthcare, and electronic components. The company specializes in the manufacture of control equipment, factory automation systems, electronic components, automotive electronics, and medical devices such as blood pressure monitors and nebulizers. Omron leverages its technological expertise to deliver innovative solutions that enhance the quality and efficiency of operations across various industries.

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 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

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
801.75B	818.76B	876.08B	762.93B	655.53B
	Gross Profit
357.14B	346.46B	393.88B	346.83B	298.35B
	EBIT
54.04B	34.95B	100.69B	89.32B	59.47B
	EBITDA
62.45B	65.77B	125.00B	110.08B	87.84B
	Net Income Common Stockholders
16.27B	8.11B	73.86B	61.40B	43.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
149.02B	143.09B	105.28B	155.48B	250.75B
	Total Assets
1.36T	1.35T	998.16B	930.63B	820.38B
	Total Debt
144.31B	172.76B	45.37B	60.12B	38.89B
	Net Debt
-4.71B	29.67B	-59.91B	-95.37B	-211.87B
	Total Liabilities
387.47B	403.74B	266.93B	262.66B	211.02B
	Stockholders Equity
771.88B	786.69B	728.47B	665.23B	606.86B
Cash Flow		Free Cash Flow
6.79B	-503.00M	8.44B	34.07B	67.17B
	Operating Cash Flow
55.78B	44.88B	53.46B	67.43B	93.83B
	Investing Cash Flow
-47.89B	-107.10B	-55.53B	-150.16B	-14.79B
	Financing Cash Flow
-4.61B	85.99B	-58.76B	-29.60B	-20.35B

OMRON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3865.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3865 is above the 20-day moving average (MA) of 3778.20, below the 50-day MA of 3979.54, and below the 200-day MA of 4937.25, indicating a neutral trend. The MACD of -67.75 indicates Negative momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.49 is Negative, 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	81 Outperform	¥556.71B	17.17	8.88%	2.89%	14.45%	26.45%
6479	75 Outperform	$824.84B	13.80	8.10%	0.02%	8.60%	10.82%
4186	73 Outperform	$478.49B	17.54	13.63%	1.65%	24.52%	88.51%
6965	71 Outperform	¥493.28B	26.69	5.58%	2.20%	-3.32%	-48.13%
7701	62 Neutral	¥1.05T	19.49	10.72%	0.01%	5.30%	-5.16%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
6645	62 Neutral	¥761.54B	46.82	2.10%	2.69%	-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.