Market Cap
JP¥4.2t
Last Updated
2021/05/07 08:03 UTC
Data Sources
Company Financials +
Executive Summary
SMC Corporation manufactures, processes, and sells automatic control equipment, sintered filters, and various types of filtration equipment worldwide. More Details
Rewards
Risk Analysis
No risks detected for 6273 from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record.
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 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 6273's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.7%
6273
1.2%
JP Machinery
0.7%
JP Market
1 Year Return
26.4%
6273
47.5%
JP Machinery
34.0%
JP Market
Return vs Industry: 6273 underperformed the JP Machinery industry which returned 47.5% over the past year.
Return vs Market: 6273 underperformed the JP Market which returned 34% over the past year.
Shareholder returns
| 6273 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 1.2% | 0.7% |
| 30 Day | -1.3% | -1.7% | -1.4% |
| 90 Day | 0.8% | 2.2% | 1.3% |
| 1 Year | 27.2%26.4% | 49.5%47.5% | 36.9%34.0% |
| 3 Year | 52.3%48.5% | 13.0%6.1% | 16.0%8.0% |
| 5 Year | 154.6%143.5% | 74.9%58.1% | 59.2%41.7% |
Long-Term 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?
40.35x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 6273 (¥63900) is trading above our estimate of fair value (¥38040.6)
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 (40.4x) compared to the JP Machinery industry average (16.5x).
PE vs Market: 6273 is poor value based on its PE Ratio (40.4x) compared to the JP market (17.3x).
Price to Earnings Growth Ratio
PEG Ratio: 6273 is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: 6273 is overvalued based on its PB Ratio (3.2x) compared to the JP Machinery industry average (0.9x).
Future Growth
How is SMC forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
12.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6273's forecast earnings growth (12.1% per year) is above the savings rate (0%).
Earnings vs Market: 6273's earnings (12.1% per year) are forecast to grow slower than the JP market (15% per year).
High Growth Earnings: 6273's earnings are forecast to grow, but not significantly.
Revenue vs Market: 6273's revenue (7.5% per year) is forecast to grow faster than the JP market (5.6% per year).
High Growth Revenue: 6273's revenue (7.5% 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 (9.6%).
Past Performance
How has SMC performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6273 has high quality earnings.
Growing Profit Margin: 6273's current net profit margins (20.2%) are higher than last year (19.8%).
Past Earnings Growth Analysis
Earnings Trend: 6273's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: 6273's earnings growth over the past year (0.6%) is below its 5-year average (1.7% per year).
Earnings vs Industry: 6273 earnings growth over the past year (0.6%) exceeded the Machinery industry -17.4%.
Return on Equity
High ROE: 6273's Return on Equity (7.9%) is considered low.
Financial Health
How is SMC's financial position?
Financial Position Analysis
Short Term Liabilities: 6273's short term assets (¥1,021.2B) exceed its short term liabilities (¥95.8B).
Long Term Liabilities: 6273's short term assets (¥1,021.2B) exceed its long term liabilities (¥43.2B).
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 6.1% to 0.9% over the past 5 years.
Debt Coverage: 6273's debt is well covered by operating cash flow (963.2%).
Interest Coverage: 6273 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is SMC current dividend yield, its reliability and sustainability?
0.63%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6273's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.25%).
High Dividend: 6273's dividend (0.63%) is low compared to the top 25% of dividend payers in the JP market (2.86%).
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?
0.9yrs
Average management tenure
CEO
Yoshiki Takada (62 yo)
0.083
Tenure
Mr. Yoshiki Takada serves as President since April 1, 2021 and serves as its Senior General Manager of Sales Headquarters / Chairman, SMC US at SMC Corporation. He serves as Representative Director at SMC ...
Leadership Team
Experienced Management: 6273's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: 6273's board of directors are not considered experienced ( 1.9 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¥4.205t
- Shares outstanding: 66.08m
- Website: https://www.smcworld.com
Number of Employees
Location
- SMC Corporation
- Akihabara UDX Building
- 15th Floor
- Tokyo
- 101-0021
- Japan
Listings
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 cyl...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/07 08:03 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.