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Market Cap

JP¥1.7t

Last Updated

2021/05/16 08:30 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Earnings are forecast to grow 12.49% per year

Earnings grew by 10.6% over the past year

Risk Analysis

No risks detected for 6645 from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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 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.


Market Performance


7 Day Return

-1.9%

6645

-3.6%

JP Electronic

-2.6%

JP Market


1 Year Return

24.1%

6645

31.5%

JP Electronic

28.6%

JP Market

Return vs Industry: 6645 underperformed the JP Electronic industry which returned 31.5% over the past year.

Return vs Market: 6645 underperformed the JP Market which returned 28.6% over the past year.


Shareholder returns

6645IndustryMarket
7 Day-1.9%-3.6%-2.6%
30 Day-6.9%-4.7%-4.0%
90 Day-15.1%-11.5%-4.0%
1 Year25.4%24.1%33.1%31.5%31.4%28.6%
3 Year42.3%36.6%28.8%23.4%11.3%3.5%
5 Year158.8%141.4%111.0%96.2%55.1%37.9%

Long-Term 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?

38.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6645 (¥8280) is trading above our estimate of fair value (¥5996.69)

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 (38.6x) compared to the JP Electronic industry average (15.9x).

PE vs Market: 6645 is poor value based on its PE Ratio (38.6x) compared to the JP market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6645 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 6645 is overvalued based on its PB Ratio (2.8x) compared to the JP Electronic industry average (0.9x).


Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6645's forecast earnings growth (12.5% per year) is above the savings rate (0%).

Earnings vs Market: 6645's earnings (12.5% per year) are forecast to grow slower than the JP market (14.2% per year).

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

Revenue vs Market: 6645's revenue (5.3% per year) is forecast to grow slower than the JP market (5.3% per year).

High Growth Revenue: 6645's revenue (5.3% 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 (10.6%).


Past Performance

How has OMRON performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6645 has high quality earnings.

Growing Profit Margin: 6645's current net profit margins (6.6%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 6645's earnings have declined by 2.9% per year over the past 5 years.

Accelerating Growth: 6645's earnings growth over the past year (10.6%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: 6645 earnings growth over the past year (10.6%) exceeded the Electronic industry 9.4%.


Return on Equity

High ROE: 6645's Return on Equity (7.2%) is considered low.


Financial Health

How is OMRON's financial position?


Financial Position Analysis

Short Term Liabilities: 6645's short term assets (¥514.4B) exceed its short term liabilities (¥161.4B).

Long Term Liabilities: 6645's short term assets (¥514.4B) exceed its long term liabilities (¥49.7B).


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


Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6645's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.29%).

High Dividend: 6645's dividend (1.04%) is low compared to the top 25% of dividend payers in the JP market (2.94%).


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 (39.1%), 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?

4.1yrs

Average management tenure


CEO

Yoshihito Yamada (59 yo)

9.92yrs

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: Insufficient data to establish whether Yoshihito's total compensation is reasonable compared to companies of similar size in the JP market.

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


Leadership Team

Experienced Management: 6645's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 6645's board of directors are considered experienced (4.4 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¥1.670t
  • Shares outstanding: 201.67m
  • Website: https://www.omron.com

Number of Employees


Location

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

Listings


Biography

OMRON Corporation engages in industrial automation, electronic and mechanical components, social systems, and healthcare businesses worldwide. The company’s Industrial Automation Business offers sensors, s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 08:30
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.