SMC (TSE:6273) - Share price, News & Analysis

6273 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

6273 Stock Overview

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

Rewards

Trading at 8.8% below our estimate of its fair value

Earnings are forecast to grow 3.67% per year

Earnings grew by 58.5% over the past year

Risk Analysis

No risks detected for 6273 from our risk checks.

SMC Competitors

Fanuc

TSE:6954

JP¥4.0t

YASKAWA Electric

TSE:6506

JP¥1.1t

NSK

TSE:6471

JP¥376.9b

Amada

TSE:6113

JP¥360.5b

Price History & Performance

Summary of all time highs, changes and price drops for SMC
Historical stock prices
Current Share Price	JP¥66,250.00
52 Week High	JP¥79,510.00
52 Week Low	JP¥59,550.00
Beta	1.03
1 Month Change	4.20%
3 Month Change	-2.74%
1 Year Change	3.79%
3 Year Change	80.52%
5 Year Change	84.70%
Change since IPO	1,629.77%

Shareholder Returns

	6273	JP Machinery	JP Market
7D	0.7%	0.1%	-0.3%
1Y	3.8%	-11.1%	-3.7%

Return vs Industry: 6273 exceeded the JP Machinery industry which returned -11.1% over the past year.

Return vs Market: 6273 exceeded the JP Market which returned -3.7% over the past year.

Price Volatility

Is 6273's price volatile compared to industry and market?
6273 volatility
6273 Average Weekly Movement	5.0%
Machinery Industry Average Movement	4.5%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 6273 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6273's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1959	21,620	Yoshiki Takada	https://www.smcworld.com

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.

SMC Fundamentals Summary

How do SMC's earnings and revenue compare to its market cap?
6273 fundamental statistics
Market Cap	JP¥4.33t
Earnings (TTM)	JP¥192.99b
Revenue (TTM)	JP¥727.40b

22.4x

P/E Ratio

6.0x

P/S Ratio

Is 6273 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6273 income statement (TTM)
Revenue	JP¥727.40b
Cost of Revenue	JP¥363.55b
Gross Profit	JP¥363.85b
Other Expenses	JP¥170.86b
Earnings	JP¥192.99b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.95k
Gross Margin	50.02%
Net Profit Margin	26.53%
Debt/Equity Ratio	0.7%

How did 6273 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 6273 (¥66250) is trading below our estimate of fair value (¥72616.02)

Significantly Below Fair Value: 6273 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 6273 is poor value based on its Price-To-Earnings Ratio (22.4x) compared to the JP Machinery industry average (11.1x).

PE vs Market: 6273 is poor value based on its Price-To-Earnings Ratio (22.4x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: 6273 is poor value based on its PEG Ratio (6.1x)

Price to Book Ratio

PB vs Industry: 6273 is overvalued based on its Price-To-Book Ratio (2.8x) compared to the JP Machinery industry average (0.7x).

Future Growth

How is SMC forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6273's forecast earnings growth (3.7% per year) is above the savings rate (0.02%).

Earnings vs Market: 6273's earnings (3.7% per year) are forecast to grow slower than the JP market (8.7% per year).

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

Revenue vs Market: 6273's revenue (5.8% per year) is forecast to grow faster than the JP market (4.1% per year).

High Growth Revenue: 6273's revenue (5.8% 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 (11.1%).

Past Performance

How has SMC performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6273 has high quality earnings.

Growing Profit Margin: 6273's current net profit margins (26.5%) are higher than last year (22.1%).

Past Earnings Growth Analysis

Earnings Trend: 6273's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: 6273's earnings growth over the past year (58.5%) exceeds its 5-year average (4% per year).

Earnings vs Industry: 6273 earnings growth over the past year (58.5%) exceeded the Machinery industry 32.3%.

Return on Equity

High ROE: 6273's Return on Equity (12.4%) is considered low.

Financial Health

How is SMC's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6273's short term assets (¥1,258.4B) exceed its short term liabilities (¥169.4B).

Long Term Liabilities: 6273's short term assets (¥1,258.4B) exceed its long term liabilities (¥41.3B).

Debt to Equity History and Analysis

Debt Level: 6273 has more cash than its total debt.

Reducing Debt: 6273's debt to equity ratio has reduced from 1.7% to 0.7% over the past 5 years.

Debt Coverage: 6273's debt is well covered by operating cash flow (1352.3%).

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?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6273's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.66%).

High Dividend: 6273's dividend (1.36%) is low compared to the top 25% of dividend payers in the JP market (3.74%).

Stability and Growth of Payments

Stable Dividend: 6273's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6273's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), 6273's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (78.2%), 6273's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure

CEO

Yoshiki Takada (63 yo)

1.08yrs

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 ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: 6273's board of directors are not considered experienced ( 2.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31