OMRON (6645) AI Stock Analysis

• Market Cap: ¥1.09T
• Dividend Yield: 2.62%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 46.6
• Beta (1Y): 0.91
• Revenue Growth: 3.51%
• EPS Growth: N/A
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 26.91
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,053,160
• 30 Day Avg. Volume: 1,306,276
• PEG Ratio: 0.51
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 122.12
• 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: ¥5,190.39
• Price Target Upside: -6.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 161.33
• Revenue Forecast (FY): ¥844.86B

• Rating: 57 Neutral
• Price Target: ¥5,746.00 ▲(3.49% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily held back by weak cash conversion and still-subdued profitability despite strong recent revenue momentum. Technicals are supportive due to a clear uptrend, but overbought readings raise near-term risk. Valuation is a drag given the high P/E, with only moderate offset from the dividend yield.

Positive Factors

Revenue momentum

Sustained trailing‑12‑month revenue growth indicates expanding end‑market demand and stronger order flow in automation and components. Durable top‑line momentum supports continued investment in product development and channel expansion, helping stabilize future earnings recovery.

Diversified business mix

A broad portfolio across factory automation, components and healthcare reduces reliance on any single cyclical market. Recurring design‑ins, global sales channels and multi‑industry exposure provide structural resilience and multiple growth levers across different demand cycles.

Generally sound balance sheet

A sizeable equity base and only moderate net leverage give the company capacity to fund capex, R&D and operational needs without immediate financing stress. This capital strength supports strategic investments and buffers against cyclical volatility.

Negative Factors

Subdued profitability

Margins remain well below historical peaks, limiting retained earnings and returns on capital. Persistent weak profitability constrains internal funding for growth initiatives, lowers ROE, and leaves less room to absorb cost inflation or pricing pressure in capital‑intensive end markets.

Weak cash conversion

Thin and volatile free cash flow reduces the company's ability to self‑fund capex, debt reduction or higher shareholder distributions. Low cash conversion increases dependence on financing for strategic moves and raises vulnerability to working‑capital shocks in cyclical downturns.

Rising leverage vs prior years

A notable increase in debt relative to earlier years reduces financial flexibility and raises interest exposure. Higher leverage constrains capacity for opportunistic M&A or large capex, and heightens downside risk if profitability and cash flow recovery stall.

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 generates revenue primarily through its diverse product offerings in industrial automation, healthcare, and other sectors. The company's revenue model is anchored in the sale of its products and solutions, which serve various industries, including manufacturing, healthcare, and infrastructure. Key revenue streams include the sale of industrial automation equipment, which accounts for a significant portion of its earnings, along with healthcare products that cater to both consumer and professional markets. Additionally, OMRON has established strategic partnerships and collaborations with other companies and organizations to enhance its technological capabilities and expand its market reach. These partnerships often lead to joint development projects and co-marketing initiatives that further drive sales and revenue growth. The company's focus on innovation and the development of IoT-enabled solutions also positions it well in the rapidly evolving technology landscape, contributing to its financial success.

OMRON Financial Statement Overview

Summary

Revenue is up strongly in the TTM period, but profitability remains subdued (net margin ~2.8%, operating margin ~4.4%) and still well below prior-cycle peaks. The balance sheet is generally sound with moderate leverage (~0.33x debt/equity), but leverage is higher than 2021–2023 and ROE is low (~3%). Cash flow is the main weak spot: free cash flow is positive but small and down sharply, with weak cash conversion (~11% of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior period, but profitability remains subdued: net margin is ~2.8% and operating margin is ~4.4%. Margins and earnings are well below the 2022–2023 peak (when net margin was ~8%+), though they have improved versus FY2024’s very weak profit base. Overall, top-line momentum is a positive, but the earnings profile has not fully recovered.

Balance Sheet

The balance sheet looks generally sound with moderate leverage in TTM (debt is ~0.33x equity) and a large equity base. However, leverage has risen meaningfully versus 2021–2023 (when debt-to-equity was ~0.06–0.09x), and returns on equity are currently low (~3% TTM), reflecting weaker profitability. Net: good capital support, but a less conservative leverage position than a few years ago and muted returns.

Cash Flow

Cash generation is the main weak spot. TTM free cash flow is positive but small (~¥5.9B) and down sharply versus the prior year, and cash conversion is light (free cash flow is only ~11% of net income). Operating cash flow is also modest relative to revenue, indicating working-capital/ongoing investment pressure. While operating cash flow is positive, the overall free-cash-flow profile is volatile and currently thin.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	836.34B	801.75B	818.76B	876.08B	762.93B	655.53B
Gross Profit	364.92B	357.14B	346.46B	393.88B	346.83B	298.35B
EBITDA	70.67B	62.45B	65.77B	125.00B	110.08B	87.84B
Net Income	23.43B	16.27B	8.11B	73.86B	61.40B	43.31B
Balance Sheet
Total Assets	1.45T	1.36T	1.35T	998.16B	930.63B	820.38B
Cash, Cash Equivalents and Short-Term Investments	155.20B	149.02B	143.09B	105.28B	155.48B	250.75B
Total Debt	264.25B	157.12B	172.76B	45.37B	60.12B	38.89B
Total Liabilities	475.68B	427.36B	403.74B	266.93B	262.66B	211.02B
Stockholders Equity	808.25B	771.88B	786.69B	728.47B	665.23B	606.86B
Cash Flow
Free Cash Flow	5.93B	6.79B	-503.00M	8.44B	34.07B	67.17B
Operating Cash Flow	56.13B	55.78B	44.88B	53.46B	67.43B	93.83B
Investing Cash Flow	-54.51B	-47.89B	-107.10B	-55.53B	-150.16B	-14.79B
Financing Cash Flow	12.60B	-4.61B	85.99B	-58.76B	-29.60B	-20.35B

OMRON Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5552.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6645, the sentiment is Positive. The current price of 5552 is above the 20-day moving average (MA) of 4829.55, above the 50-day MA of 4315.12, and above the 200-day MA of 4019.71, indicating a bullish trend. The MACD of 349.50 indicates Negative momentum. The RSI at 79.14 is Negative, neither overbought nor oversold. The STOCH value of 84.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6645.

OMRON Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	¥16.02T	38.32	12.80%	0.78%	7.09%	7.51%
6770	78 Outperform	¥459.59B	9.19	11.96%	3.04%	2.70%	―
6981	74 Outperform	¥7.58T	39.89	8.95%	1.88%	2.88%	28.76%
6762	67 Neutral	¥4.60T	24.54	―	1.41%	7.73%	-1.93%
6479	64 Neutral	¥1.36T	20.72	8.05%	1.58%	0.96%	3.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	57 Neutral	¥1.09T	46.64	3.60%	2.62%	3.51%	―

OMRON Corporate Events

OMRON Raises FY2025 Revenue Outlook as Automation Demand Lifts Sales but Margins Tighten

OMRON reported higher consolidated revenue for the third quarter of fiscal 2025, driven largely by strong growth in its Industrial Automation Business (IAB), which significantly increased sales by capturing AI-related and recovering factory automation demand globally. However, overall profits declined year-on-year as gross profit margins only recovered modestly and the company continued to prioritize medium- to long-term growth investments, resulting in operating profit falling below the previous year’s level. Reflecting favorable foreign exchange effects and an improved business environment expected in the fourth quarter, OMRON raised its full-year revenue forecast and indicated that profitability is steadily improving, with earnings projected to grow in Q4, while reaffirming its year-end dividend per share guidance, underscoring a commitment to shareholder returns amid ongoing strategic investment.

The most recent analyst rating on (JP:6645) stock is a Buy with a Yen5200.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.

Omron Lifts Full-Year Profit Outlook as Nine-Month Net Income Nearly Doubles

Omron reported consolidated net sales of ¥614.3 billion for the nine months ended December 31, 2025, a 6.0% year-on-year increase, while operating income declined 5.7% to ¥33.9 billion. Despite the lower operating profit, income before income taxes surged 65.5% to ¥26.5 billion and net income attributable to shareholders nearly doubled to ¥14.3 billion, with basic earnings per share rising to ¥72.87. The company’s financial position remained solid, with total assets of ¥1.45 trillion and a shareholders’ equity ratio of 55.8%, and it maintained its dividend policy, paying ¥52 per share at the half-year and projecting a full-year total of ¥104. Omron revised its full-year forecast, now projecting net sales of ¥855.0 billion (up 6.6%), operating income of ¥60.0 billion (up 11.0%), and net income attributable to shareholders of ¥29.0 billion (up 78.2%), signaling expectations of stronger profitability in the remainder of the fiscal year and reinforcing its stance on shareholder returns through stable dividends.

The most recent analyst rating on (JP:6645) stock is a Buy with a Yen5200.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.

OMRON HEALTHCARE Announces Tender Offer for Matsuya R&D

OMRON HEALTHCARE Co., Ltd. has announced its decision to initiate a tender offer to acquire shares of Matsuya R&D Co., Ltd., a company listed on the Growth Market of the Tokyo Stock Exchange. This strategic move is part of OMRON HEALTHCARE’s efforts to strengthen its market position and expand its influence in the healthcare sector. The tender offer is contingent upon obtaining necessary approvals under the competition laws of Taiwan and Vietnam, with the process expected to commence around late June 2026. This acquisition is likely to enhance OMRON HEALTHCARE’s capabilities and offerings, potentially impacting stakeholders positively by broadening the company’s market reach and operational scope.

The most recent analyst rating on (JP:6645) stock is a Hold with a Yen4307.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.