SMC (SMCAY) AI Stock Analysis

• Market Cap: $22.01B
• Dividend Yield: 1.41%
• Average Volume (3M): 7.80K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.80
• Revenue Growth: 3.31%
• EPS Growth: -0.92%
• Country: US
• Employees: 23,144
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.24
• Shares Outstanding: 1,277,387,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 7,805
• PEG Ratio: 9.05K
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 3.87
• P/FCF Ratio: 34.54
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $20.50 ▲(16.61% Upside)

SMCAY's strong financial performance, characterized by robust revenue growth and a stable balance sheet, is the primary driver of its score. The technical analysis supports a positive trend, though caution is advised due to the high RSI. Valuation metrics suggest the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and strong demand for SMC's products, supporting long-term business sustainability.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Product Innovation

Ongoing innovation helps SMC maintain a competitive edge, meeting evolving customer needs and driving future revenue growth.

Negative Factors

Cash Generation

Moderate cash generation relative to profits may limit SMC's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Net Profit Margin Decline

A declining net profit margin could signal rising costs or pricing pressures, potentially affecting SMC's profitability and financial health.

EPS Growth Decline

A decline in EPS growth may indicate challenges in maintaining profitability, which could impact investor confidence and future stock performance.

SMC Business Overview & Revenue Model

Company Description

SMC (SMCAY) is a global leader in the manufacturing and distribution of pneumatic and automation components, serving various sectors including industrial automation, transportation, and machine building. The company offers a wide range of products, including cylinders, valves, and actuators, as well as comprehensive solutions for automation processes. With a strong emphasis on innovation and quality, SMC aims to enhance productivity and efficiency for its customers through advanced technological solutions.

How the Company Makes Money

SMC generates revenue primarily through the sales of its pneumatic and automation equipment. The company has established a diverse revenue model that includes direct sales to end-users, distribution partnerships, and a robust supply chain network. Key revenue streams include sales from core products such as pneumatic cylinders, valves, and fittings, which are essential in various manufacturing and automation applications. Additionally, SMC benefits from long-term contracts with major industrial clients, providing stable income over time. Strategic partnerships with distributors and integrators also play a crucial role in expanding SMC's market reach and driving sales growth. The company's commitment to research and development further enables it to introduce innovative products that meet evolving customer needs, contributing to increased revenue opportunities.

SMC Financial Statement Overview

Summary

SMC presents a strong financial position with consistent revenue growth, solid profitability, and a stable balance sheet. The income statement and balance sheet are impressive, with low leverage and effective equity utilization. However, the cash flow statement indicates potential areas for improvement in cash generation.

Income Statement

SMC has demonstrated strong revenue growth over the years, with a notable increase in total revenue from 2020 to 2025. The gross profit margin has remained robust, indicating efficient cost management. However, there is a slight decline in net profit margin from 2024 to 2025, which could be a point of concern. Overall, the company maintains healthy EBIT and EBITDA margins, reflecting solid operational performance.

Balance Sheet

The balance sheet is strong, with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity has been consistently positive, showcasing effective use of shareholders' equity to generate profits. The equity ratio is high, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

SMC's cash flow statement shows a significant improvement in free cash flow growth in 2025, recovering from negative growth in previous years. The operating cash flow to net income ratio indicates that the company generates sufficient cash from operations to cover its net income. However, the free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	789.51B	792.11B	776.87B	824.77B	727.40B	552.18B
Gross Profit	355.01B	363.04B	363.08B	421.16B	363.85B	265.85B
EBITDA	231.86B	245.45B	286.09B	283.97B	248.42B	171.94B
Net Income	142.28B	156.34B	178.32B	224.61B	192.99B	121.79B
Balance Sheet
Total Assets	2.11T	2.10T	2.09T	1.93T	1.77T	1.54T
Cash, Cash Equivalents and Short-Term Investments	711.60B	685.55B	511.29B	623.50B	697.05B	640.55B
Total Debt	5.00B	5.04B	13.07B	12.19B	11.54B	10.79B
Total Liabilities	187.82B	172.46B	208.69B	225.62B	210.68B	159.88B
Stockholders Equity	1.92T	1.93T	1.88T	1.70T	1.56T	1.38T
Cash Flow
Free Cash Flow	0.00	88.85B	-6.10B	27.24B	75.16B	91.18B
Operating Cash Flow	0.00	196.66B	98.21B	101.62B	156.09B	120.47B
Investing Cash Flow	0.00	35.23B	-131.90B	-87.09B	-116.22B	73.44B
Financing Cash Flow	0.00	-100.20B	-87.93B	-113.30B	-88.93B	-56.01B

SMC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMCAY, the sentiment is Positive. The current price of 17.58 is above the 20-day moving average (MA) of 17.34, above the 50-day MA of 16.75, and above the 200-day MA of 17.16, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMCAY.

SMC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	77 Outperform	$14.36B	30.60	17.85%	0.70%	8.01%	2.67%
SMCAY	76 Outperform	$22.01B	21.18	7.96%	1.41%	3.31%	-0.92%
PNR	75 Outperform	$17.36B	26.91	17.97%	0.95%	0.83%	-1.32%
NDSN	75 Outperform	$13.37B	29.92	15.59%	1.33%	4.49%	-3.33%
IEX	75 Outperform	$13.02B	27.50	12.21%	1.71%	7.09%	-2.29%
GGG	70 Outperform	$13.67B	28.17	19.45%	1.33%	2.85%	3.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%