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OMRON Corp 6645

Morningstar Rating
¥‎5,293.00 +10.00 (0.19%)
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Company Report

Expect Omron’s Industrial Automation To Be the Medium-Term Profit Driver Despite Headwinds for 2024

Omron uses its sensing and control-related technologies to cover a broad spectrum of fields, but we expect its profit drivers to be its industrial automation and healthcare businesses. The firm is one of the leading domestic players in the factory automation, or FA, control equipment market (which include programmable logic controllers, or PLCs, relays, sensors, and switches). As the main driver, we expect the industrial automation segment is 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 740% premium.
Price
¥‎5,293.00
Fair Value
¥‎4,517.00
Uncertainty
Medium
1-Star Price
¥‎84,396.00
5-Star Price
¥‎2,333.00
Economic Moat
Ypsj
Capital Allocation
Vpkpfjmvxv

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.

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News

Trading Information

Previous Close Price
¥‎5,283.00
Day Range
¥‎5,225.005,333.00
52-Week Range
¥‎4,935.008,474.00
Bid/Ask
¥‎5,280.00 / ¥‎5,297.00
Market Cap
¥‎1.04 Tril
Volume/Avg
818,600 / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
84.69
Price/Sales
1.27
Dividend Yield (Trailing)
1.96%
Dividend Yield (Forward)
1.96%
Total Yield
1.97%

Company Profile

Omron Corporation is an diversified industrials company, with businesses in the areas of industrial automation, healthcare, social systems, and electronic components. The industrial automation business offers automation control systems, motion/drives, sensors, and robotics. The social systems business provides automated ticket gates in train stations, ticket vending machines, as well as onboard driver monitoring service in mainly Japan. The company’s healthcare business offers BPMs, nebulizers, electrotherapy devices, thermometers, and others. The electronic/mechanical components business offers mainly switches, safety and control components, and relays. Omron was founded in 1933 and is headquartered in Kyoto, Japan.
Sector
Technology
Industry
Electronic Components
Stock Style Box
Mid Growth
Total Number of Employees
28,450

Competitors

Valuation

Metric
6645
6506
SIE
Price/Earnings (Normalized)
84.6927.0617.85
Price/Book Value
1.323.262.90
Price/Sales
1.272.371.75
Price/Cash Flow
44.5321.4811.81
Price/Earnings
6645
6506
SIE

Financial Strength

Metric
6645
6506
SIE
Quick Ratio
1.361.081.07
Current Ratio
2.372.311.41
Interest Coverage
19.785.75
Quick Ratio
6645
6506
SIE

Profitability

Metric
6645
6506
SIE
Return on Assets (Normalized)
0.88%7.03%4.09%
Return on Equity (Normalized)
1.31%12.78%12.81%
Return on Invested Capital (Normalized)
1.08%10.02%5.07%
Return on Assets
6645
6506
SIE
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