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6645

OMRON TSE:6645 Stock Report

Last Price

JP¥7.91k

Market Cap

JP¥1.6t

7D

5.7%

1Y

-19.4%

Updated

16 Aug, 2022

Data

Company Financials +
6645 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends2/6

6645 Stock Overview

OMRON Corporation engages in industrial automation, electronic and mechanical components, social systems, and healthcare businesses worldwide.

Rewards

Trading at 12.7% below our estimate of its fair value

Earnings are forecast to grow 11.05% per year

Risk Analysis

No risks detected for 6645 from our risk checks.

OMRON Competitors

Price History & Performance

Summary of all time highs, changes and price drops for OMRON
Historical stock prices
Current Share PriceJP¥7,905.00
52 Week HighJP¥12,115.00
52 Week LowJP¥6,431.00
Beta1.19
1 Month Change14.37%
3 Month Change9.53%
1 Year Change-19.42%
3 Year Change54.09%
5 Year Change44.52%
Change since IPO143.23%

Recent News & Updates

Shareholder Returns

6645JP ElectronicJP Market
7D5.7%3.8%2.5%
1Y-19.4%-3.3%1.9%

Return vs Industry: 6645 underperformed the JP Electronic industry which returned -2.3% over the past year.

Return vs Market: 6645 underperformed the JP Market which returned 2.5% over the past year.

Price Volatility

Is 6645's price volatile compared to industry and market?
6645 volatility
6645 Average Weekly Movement4.7%
Electronic Industry Average Movement4.0%
Market Average Movement3.8%
10% most volatile stocks in JP Market7.8%
10% least volatile stocks in JP Market2.0%

Stable Share Price: 6645 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6645's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193329,020Yoshihito Yamadahttps://www.omron.com

OMRON Corporation engages in industrial automation, electronic and mechanical components, social systems, and healthcare businesses worldwide. The company’s Industrial Automation Business offers sensors, switches, safety and control components, relays, automation systems, motion/drives, robotics, energy conservation support/environment measure equipment, and power supplies. Its Electronic and Mechanical Components Business provides relays, switches, connectors, sensors, and components/units for amusement equipment.

OMRON Fundamentals Summary

How do OMRON's earnings and revenue compare to its market cap?
6645 fundamental statistics
Market CapJP¥1.58t
Earnings (TTM)JP¥49.20b
Revenue (TTM)JP¥759.12b

32.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6645 income statement (TTM)
RevenueJP¥759.12b
Cost of RevenueJP¥419.21b
Gross ProfitJP¥339.91b
Other ExpensesJP¥290.72b
EarningsJP¥49.20b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)246.41
Gross Margin44.78%
Net Profit Margin6.48%
Debt/Equity Ratio0%

How did 6645 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

37%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6645 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6645?

Other financial metrics that can be useful for relative valuation.

6645 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA15.1x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

How does 6645's PE Ratio compare to its peers?

6645 PE Ratio vs Peers
The above table shows the PE ratio for 6645 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.9x
6762 TDK
14x7.3%JP¥1.9t
6971 Kyocera
17.5x4.8%JP¥2.8t
6965 Hamamatsu Photonics K.K
24.7x4.7%JP¥958.4b
6806 Hirose ElectricLtd
19.6x5.0%JP¥680.8b
6645 OMRON
32.1x11.1%JP¥1.6t

Price-To-Earnings vs Peers: 6645 is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the peer average (18.9x).


Price to Earnings Ratio vs Industry

How does 6645's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6645 is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the JP Electronic industry average (11.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6645's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6645 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.1x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: 6645 is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the estimated Fair Price-To-Earnings Ratio (17x).


Share Price vs Fair Value

What is the Fair Price of 6645 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6645 (¥7905) is trading below our estimate of fair value (¥9056.64)

Significantly Below Fair Value: 6645 is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6645's forecast earnings growth (11.1% per year) is above the savings rate (0.04%).

Earnings vs Market: 6645's earnings (11.1% per year) are forecast to grow faster than the JP market (8.6% per year).

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

Revenue vs Market: 6645's revenue (4.9% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6645's revenue (4.9% 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 (10.1%).


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Past Performance

How has OMRON performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6645 has high quality earnings.

Growing Profit Margin: 6645's current net profit margins (6.5%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 6645's earnings have declined by 3.9% 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 (-8.6%) over the past year, making it difficult to compare to the Electronic industry average (28.2%).


Return on Equity

High ROE: 6645's Return on Equity (7%) is considered low.


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Financial Health

How is OMRON'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: 6645's short term assets (¥472.7B) exceed its short term liabilities (¥176.9B).

Long Term Liabilities: 6645's short term assets (¥472.7B) exceed its long term liabilities (¥48.4B).


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


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Dividend

What is OMRON 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

  • Cash Flow Coverage


1.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6645's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.63%).

High Dividend: 6645's dividend (1.24%) is low compared to the top 25% of dividend payers in the JP market (3.61%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.4%), 6645's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (230.4%), 6645's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

Yoshihito Yamada (61 yo)

11.17yrs

Tenure

JP¥289,000,000

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 ($USD2.17M) is above average for companies of similar size in the JP market ($USD1.53M).

Compensation vs Earnings: Yoshihito's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 6645's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: 6645's board of directors are considered experienced (5.2 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 employee growth, exchange listings and data sources


Key Information

  • Name: OMRON Corporation
  • Ticker: 6645
  • Exchange: TSE
  • Founded: 1933
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: JP¥1.578t
  • Shares outstanding: 199.64m
  • Website: https://www.omron.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.