OMRON Corp 6645

Morningstar Rating
¥4,936.00 −260.00 (5.00%)
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Company Report

Omron's Solution-Led Automation Business Supports a Higher Midterm Margin Outlook

Omron's sensing and control-related technologies cover a broad spectrum, but we expect its profit drivers to be its industrial automation and healthcare businesses. The firm is one of the leading global players in the factory automation control and inspection equipment market (which includes programmable logic controllers, relays, sensors, and switches). As the main driver, we expect the industrial automation segment to be well positioned for secular growth, driven by an aging population in developed markets, increasing labor costs, and production safety. As trends related to the Internet of Things gain prominence, automation equipment such as PLCs will be required to connect to networks/databases in factories. Also, Omron’s recent acquisitions increased its product line, allowing the firm to provide tailored automation solutions to customers.

Price vs Fair Value

6645 is trading at a LOCK|VM!>## premium.
Price
¥4,936.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The industrial automation business significantly outpaces market growth as Omron builds out its offerings for the semiconductor/electronics industry in Asia.

Bears

Cross-segment synergies are unclear, and social infrastructure and electronic components businesses are value-destructive.

Trading Information

Previous Close Price
¥5,196.00
Day Range
¥4,595.00–5,044.00
52-Week Range
¥3,690.00–7,245.00
Bid/Ask
¥5,130.00 / ¥5,130.00
Shares Outstanding
196.63M
Market Cap
¥970.56B
Volume/Avg
4M / 1M

Key Statistics

Price/Earnings (Normalized)
17.78
Price/Sales
1.22
Dividend Yield (Trailing)
2.17%
Dividend Yield (Forward)
2.23%
Dividend Payment Schedule
Jun, Dec
Total Yield
2.36%

Company Profile

Omron Corporation was founded in 1933 and is headquartered in Kyoto, Japan. It is a leading global manufacturer specializing in automation, sensing, and control technologies. The company operates through diverse business segments, including industrial automation, healthcare, social systems, device & module solutions, and data solutions. Its offerings range from factory automation equipment, electronic components, and social infrastructure systems to medical devices and healthcare data analytics. With operations across Japan, Asia, the Americas, Europe, and other regions, Omron plays a pivotal role in advancing industrial productivity, healthcare innovation, and social infrastructure, guided by its mission of “improving lives and contributing to a better society.”
Sector
Technology
Industry
Electronic Components
Stock Style Box
Mid Growth
Total Number of Employees
26,050

Competitors

Valuation

Metric
6645
6503
6506
Price/Earnings (Normalized)
17.7820.0728.05
Price/Book Value
1.162.142.00
Price/Sales
1.221.621.78
Price/Cash Flow
7.7516.2913.85
Price/Earnings
6645
6503
6506

Financial Strength

Metric
6645
6503
6506
Quick Ratio
1.051.271.22
Current Ratio
1.932.012.42
Interest Coverage
—41.2113.48
Quick Ratio
6645
6503
6506

Profitability

Metric
6645
6503
6506
Return on Assets (Normalized)
—7.50%4.59%
Return on Equity (Normalized)
—12.02%7.78%
Return on Invested Capital (Normalized)
—10.65%5.91%
Return on Assets
6645
6503
6506

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