TSE:6273

Stock Analysis Report

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Executive Summary

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide.

Rewards

Earnings are forecast to grow 10.6% per year

Risk Analysis

No risks detected for 6273 from our risk checks.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has SMC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6273 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

6273

1.9%

JP Machinery

1.0%

JP Market


1 Year Return

45.8%

6273

-1.5%

JP Machinery

-0.7%

JP Market

Return vs Industry: 6273 exceeded the JP Machinery industry which returned -0.4% over the past year.

Return vs Market: 6273 exceeded the JP Market which returned 0.4% over the past year.


Shareholder returns

6273IndustryMarket
7 Day4.2%1.9%1.0%
30 Day0.6%-5.2%-3.9%
90 Day16.2%16.1%9.8%
1 Year47.1%45.8%0.8%-1.5%1.8%-0.7%
3 Year64.5%59.8%-3.9%-10.2%5.2%-2.1%
5 Year70.2%62.7%0.7%-9.9%10.2%-1.8%

Price Volatility Vs. Market

How volatile is SMC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SMC undervalued compared to its fair value and its price relative to the market?

34.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6273 (¥56530) is trading above our estimate of fair value (¥33112.81)

Significantly Below Fair Value: 6273 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6273 is poor value based on its PE Ratio (34.1x) compared to the Machinery industry average (12.2x).

PE vs Market: 6273 is poor value based on its PE Ratio (34.1x) compared to the JP market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6273 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 6273 is overvalued based on its PB Ratio (3x) compared to the JP Machinery industry average (0.7x).


Next Steps

Future Growth

How is SMC forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6273's forecast earnings growth (10.6% per year) is above the savings rate (0.05%).

Earnings vs Market: 6273's earnings (10.6% per year) are forecast to grow slower than the JP market (12.4% per year).

High Growth Earnings: 6273's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6273's revenue (6% per year) is forecast to grow faster than the JP market (3.3% per year).

High Growth Revenue: 6273's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6273's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has SMC performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6273 has high quality earnings.

Growing Profit Margin: 6273's current net profit margins (21%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: 6273's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: 6273's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6273 had negative earnings growth (-15.3%) over the past year, making it difficult to compare to the Machinery industry average (-20.1%).


Return on Equity

High ROE: 6273's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is SMC's financial position?


Financial Position Analysis

Short Term Liabilities: 6273's short term assets (¥964.5B) exceed its short term liabilities (¥94.4B).

Long Term Liabilities: 6273's short term assets (¥964.5B) exceed its long term liabilities (¥42.9B).


Debt to Equity History and Analysis

Debt Level: 6273's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 6273's debt to equity ratio has reduced from 7.7% to 0.9% over the past 5 years.

Debt Coverage: 6273's debt is well covered by operating cash flow (1082.1%).

Interest Coverage: 6273 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is SMC current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6273's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.45%).

High Dividend: 6273's dividend (0.71%) is low compared to the top 25% of dividend payers in the JP market (3.45%).


Stability and Growth of Payments

Stable Dividend: 6273 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6273 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6273 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6273's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Katsunori Maruyama (73yo)

no data

Tenure

Mr. Katsunori Maruyama serves as the President and Representative Director of SMC Corp. and served as its Vice President. 


Leadership Team

NamePositionTenureCompensationOwnership
Katsunori Maruyama
President & Representative Directorno datano data0.0032% ¥118.4m
Masahiro Ota
Executive Officer1.08yrsno datano data
Seiji Kosugi
Executive MDno datano data0.013% ¥478.9m
Toshio Isoe
Executive Officer1.08yrsno data0.00015% ¥5.6m
Akinori Kato
General Manager of Corporate Communications Officeno datano datano data
Yoshiki Takada
Representative Director & Executive VPno datano datano data
Masahiko Satake
Executive MDno datano data0.0015% ¥56.2m
Samuel Neff
Executive Officer & Director0.083yrno datano data
Susumu Maruyama
Executive Officer & Director0.083yrno datano data

0.6yrs

Average Tenure

73yo

Average Age

Experienced Management: 6273's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Katsunori Maruyama
President & Representative Directorno datano data0.0032% ¥118.4m
Masahiro Ota
Executive Officer1.08yrsno datano data
Seiji Kosugi
Executive MDno datano data0.013% ¥478.9m
Toshio Isoe
Executive Officer1.08yrsno data0.00015% ¥5.6m
Yoshiki Takada
Representative Director & Executive VPno datano datano data
Masahiko Satake
Executive MDno datano data0.0015% ¥56.2m
Samuel Neff
Executive Officer & Director0.083yrno datano data
Susumu Maruyama
Executive Officer & Director0.083yrno datano data
Yoshiyuki Takada
Honorary Chairman of the Board of Directors0.83yrno data0.015% ¥563.2m
Masanobu Kaizu
Independent Outside Directorno datano datano data

0.8yrs

Average Tenure

73yo

Average Age

Experienced Board: 6273's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SMC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMC Corporation
  • Ticker: 6273
  • Exchange: TSE
  • Founded: 1959
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥3.747t
  • Shares outstanding: 66.52m
  • Website: https://www.smcworld.com

Number of Employees


Location

  • SMC Corporation
  • Akihabara UDX15F
  • 4-14-1, Sotokanda
  • Tokyo
  • 101-0021
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6273TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
QMCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
SMEC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
SMC NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
SMCA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 2013

Biography

SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. The company offers directional control valves, air cylinders, rotary actuators/air grippers, electric actuators/cylinders, vacuum equipment, air preparation equipment, modular F.R.L./pressure control equipment, lubrication equipment, fittings and tubings, flow control equipment, speed controllers, silencers/exhaust cleaners/blow guns/pressure gauges, switches/sensors/controllers, and static neutralization equipment. It also provides process valves, chemical liquid valves/fittings and needle valves/tubings, process pumps, temperature control equipment, process gas equipment, high vacuum equipment, industrial filters/sintered metal elements, pneumatic instrumentation equipment, and hydraulic equipment. The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was founded in 1959 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 14:50
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.