TSE:6645

Stock Analysis Report

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Executive Summary

OMRON Corporation engages in industrial automation, social systems, healthcare, environmental solutions, automotive electronic, and mechanical components businesses worldwide. More Details

Rewards

Earnings are forecast to grow 14.32% per year

Risk Analysis

No risks detected for 6645 from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6645 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

6645

0.3%

JP Electronic

-1.4%

JP Market


1 Year Return

25.2%

6645

14.0%

JP Electronic

-1.7%

JP Market

Return vs Industry: 6645 exceeded the JP Electronic industry which returned 14% over the past year.

Return vs Market: 6645 exceeded the JP Market which returned -1.7% over the past year.


Shareholder returns

6645IndustryMarket
7 Day1.3%0.3%-1.4%
30 Day-3.3%2.4%-2.1%
90 Day6.4%10.8%5.6%
1 Year26.7%25.2%15.9%14.0%0.7%-1.7%
3 Year29.0%23.6%15.4%9.9%-0.4%-7.3%
5 Year104.8%90.0%59.5%47.0%21.6%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

39.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6645 (¥8010) is trading above our estimate of fair value (¥4097.71)

Significantly Below Fair Value: 6645 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6645 is poor value based on its PE Ratio (39.8x) compared to the JP Electronic industry average (17.8x).

PE vs Market: 6645 is poor value based on its PE Ratio (39.8x) compared to the JP market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6645 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 6645 is overvalued based on its PB Ratio (3x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is OMRON forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6645's forecast earnings growth (14.3% per year) is above the savings rate (0.05%).

Earnings vs Market: 6645's earnings (14.3% per year) are forecast to grow slower than the JP market (17.3% per year).

High Growth Earnings: 6645's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6645's revenue (5% per year) is forecast to grow slower than the JP market (5.2% per year).

High Growth Revenue: 6645's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6645's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has OMRON performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6645 has high quality earnings.

Growing Profit Margin: 6645's current net profit margins (6.2%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: 6645's earnings have declined by 0.6% per year over the past 5 years.

Accelerating Growth: 6645's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6645 had negative earnings growth (-13.4%) over the past year, making it difficult to compare to the Electronic industry average (-13%).


Return on Equity

High ROE: 6645's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is OMRON's financial position?


Financial Position Analysis

Short Term Liabilities: 6645's short term assets (¥434.6B) exceed its short term liabilities (¥129.0B).

Long Term Liabilities: 6645's short term assets (¥434.6B) exceed its long term liabilities (¥73.1B).


Debt to Equity History and Analysis

Debt Level: 6645 is debt free.

Reducing Debt: 6645 had no debt 5 years ago.

Debt Coverage: 6645 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6645 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6645's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 6645's dividend (1.05%) is low compared to the top 25% of dividend payers in the JP market (3.21%).


Stability and Growth of Payments

Stable Dividend: 6645's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6645's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 6645's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Yoshihito Yamada (59 yo)

9.33yrs

Tenure

JP¥224,000,000

Compensation

Mr. Yoshihito Yamada has been the Chief Executive Officer and President at Omron Corporation since June 2011. Mr. Yamada served as Senior General Manager of Corporate Planning HQ at Omron Corp. since March ...


CEO Compensation Analysis

Compensation vs Market: Yoshihito's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD2.00M).

Compensation vs Earnings: Yoshihito's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yoshihito Yamada
President9.33yrsJP¥224.00m0.018%
¥ 288.0m
Koji Nitto
Senior Managing Executive Officer6.33yrsJP¥127.00m0.0065%
¥ 104.1m
Kiichiro Miyata
Senior Managing Executive Officer3.33yrsJP¥133.00m0.0050%
¥ 80.0m
Takayoshi Oue
Executive Officer and Senior GM of Global Finance & Accounting HQno datano datano data
Tsutomu Igaki
Executive Officer and Senior GM of Global Investor & Corporate Communications HQ3.5yrsno datano data
Shuji Tamaki
Executive Officer and Senior GM of Global Risk Management & Legal HQ5.5yrsno datano data
Masahiko Tomita
Managing Executive Officer and Senior GM of Global Human Resources & Administration HQno datano datano data
Shizuto Yukumoto
Managing Executive Officer & Senior General Manager of Business Development HQno datano datano data
Yutaka Miyanaga
Executive Vice President3.5yrsno datano data
Toshio Hosoi
Managing Executive Officerno datano datano data
Nigel Blakeway
Managing Executive Officerno datano datano data
Isao Ogino
Managing Executive Officerno datano datano data

4.5yrs

Average Tenure

59yo

Average Age

Experienced Management: 6645's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshihito Yamada
President9.33yrsJP¥224.00m0.018%
¥ 288.0m
Koji Nitto
Senior Managing Executive Officer6.33yrsJP¥127.00m0.0065%
¥ 104.1m
Kiichiro Miyata
Senior Managing Executive Officer3.33yrsJP¥133.00m0.0050%
¥ 80.0m
Kobayashi Eizo
Independent Outside Director7.33yrsno data0.0045%
¥ 72.0m
Takehiro Kamigama
Independent Outside Director3.33yrsno datano data
Fumio Tateishi
Chairman of the Board7.33yrsJP¥154.00m0.59%
¥ 9.5b
Tadashi Kunihiro
Independent Audit & Supervisory Board Member3.33yrsno data0.00050%
¥ 8.1m
Izumi Kobayashi
Independent Outside Director0.75yrno datano data
Kiichiro Kondo
Audit & Supervisory Board Member5.33yrsno data0.0099%
¥ 160.0m
Satoshi Ando
Director3.33yrsno data0.0089%
¥ 144.1m
Kiyoshi Yoshikawa
Audit & Supervisory Board Member1.33yrsno data0.0040%
¥ 64.1m
Hideyo Uchiyama
Independent Audit & Supervisory Board Member4.33yrsno data0.00050%
¥ 8.1m

3.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 6645's board of directors are considered experienced (3.8 years average tenure).


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

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


Key Information

  • Name: OMRON Corporation
  • Ticker: 6645
  • Exchange: TSE
  • Founded: 1933
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥1.613t
  • Shares outstanding: 201.67m
  • Website: https://www.omron.com

Number of Employees


Location

  • OMRON Corporation
  • Shiokoji Horikawa
  • Shimogyo-ku
  • Kyoto
  • 600-8530
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMRDB (Deutsche Boerse AG)NPV (DT ZERT)DEEURJan 1992
OMRN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
OMR1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
6645TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
OMRN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
OMRN.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 1993

Biography

OMRON Corporation engages in industrial automation, social systems, healthcare, environmental solutions, automotive electronic, and mechanical components businesses worldwide. The company’s Industrial Auto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 14:51
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
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.