OTCPK:OMRN.Y

Stock Analysis Report

Executive Summary

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


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: OMRN.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

OMRN.Y

-10.2%

US Electronic

-10.6%

US Market


1 Year Return

24.3%

OMRN.Y

-4.4%

US Electronic

5.2%

US Market

Return vs Industry: OMRN.Y exceeded the US Electronic industry which returned -4.4% over the past year.

Return vs Market: OMRN.Y exceeded the US Market which returned 5.2% over the past year.


Shareholder returns

OMRN.YIndustryMarket
7 Day-7.7%-10.2%-10.6%
30 Day-7.7%-11.8%-8.5%
90 Day-7.3%-10.8%-4.6%
1 Year25.0%24.3%-3.4%-4.4%7.4%5.2%
3 Year25.0%24.3%21.2%17.8%31.7%23.2%
5 Year26.8%26.1%50.8%43.3%56.4%39.3%

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?

26.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OMRN.Y ($54.48) is trading above our estimate of fair value ($42.4)

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


Price To Earnings Ratio

PE vs Industry: OMRN.Y is poor value based on its PE Ratio (26.1x) compared to the Electronic industry average (17.3x).

PE vs Market: OMRN.Y is poor value based on its PE Ratio (26.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: OMRN.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OMRN.Y is overvalued based on its PB Ratio (2.2x) compared to the US Electronic industry average (1.8x).


Next Steps

Future Growth

How is OMRON forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-4.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMRN.Y's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: OMRN.Y's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: OMRN.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OMRN.Y's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OMRN.Y's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMRN.Y's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has OMRON performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMRN.Y has high quality earnings.

Growing Profit Margin: OMRN.Y's current net profit margins (6.7%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: OMRN.Y's earnings have declined by -0.1% per year over the past 5 years.

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

Earnings vs Industry: OMRN.Y had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: OMRN.Y's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is OMRON's financial position?


Financial Position Analysis

Short Term Liabilities: OMRN.Y's short term assets (¥485.2B) exceed its short term liabilities (¥165.0B).

Long Term Liabilities: OMRN.Y's short term assets (¥485.2B) exceed its long term liabilities (¥62.1B).


Debt to Equity History and Analysis

Debt Level: OMRN.Y is debt free.

Reducing Debt: OMRN.Y has no debt compared to 5 years ago when its debt to equity ratio was 0.03%.

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

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


Balance Sheet

Inventory Level: OMRN.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if OMRN.Y's debt is covered by short term assets.


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.6%markettop25%4.1%industryaverage1.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: OMRN.Y's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: OMRN.Y's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), OMRN.Y's dividend payments are 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?

4.8yrs

Average management tenure


CEO

Yoshihito Yamada (58yo)

8.7yrs

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 ($USD2.04M) is below average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yoshihito Yamada
President8.7yrsJP¥224.00m0.017% ¥1.9m
Koji Nitto
Senior Managing Executive Officer5.7yrsJP¥127.00m0.0059% ¥668.0k
Kiichiro Miyata
Senior Managing Executive Officer2.7yrsJP¥133.00m0.0049% ¥556.1k
Takayoshi Oue
Executive Officer and Senior GM of Global Finance & Accounting HQ0yrsno datano data
Tsutomu Igaki
Executive Officer and Senior GM of Global Investor & Corporate Communications HQ2.8yrsno datano data
Shuji Tamaki
Executive Officer and Senior GM of Global Risk Management & Legal HQ4.8yrsno datano data
Masahiko Tomita
Managing Executive Officer and Senior GM of Global Human Resources & Administration HQ0yrsno datano data
Shizuto Yukumoto
Managing Executive Officer & Senior General Manager of Business Development HQ0yrsno datano data
Yutaka Miyanaga
Executive Vice President0yrsno datano data
Toshio Hosoi
Managing Executive Officer0yrsno datano data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: OMRN.Y's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshihito Yamada
President8.7yrsJP¥224.00m0.017% ¥1.9m
Koji Nitto
Senior Managing Executive Officer5.7yrsJP¥127.00m0.0059% ¥668.0k
Kiichiro Miyata
Senior Managing Executive Officer2.7yrsJP¥133.00m0.0049% ¥556.1k
Eizo Kobayashi
Outside Director6.7yrsno data0.0039% ¥445.4k
Takehiro Kamigama
Outside Director2.7yrsno datano data
Fumio Tateishi
Chairman of the Board6.7yrsJP¥154.00m0.58% ¥66.7m
Kiichiro Kondo
Audit & Supervisory Board Member4.7yrsno data0.0092% ¥1.1m
Satoshi Ando
Director2.7yrsno data0.0083% ¥945.5k
Kiyoshi Yoshikawa
Audit & Supervisory Board Member0.7yrsno data0.0039% ¥445.4k
Kuniko Nishikawa
Outside Director4.7yrsno datano data

4.7yrs

Average Tenure

61yo

Average Age

Experienced Board: OMRN.Y's board of directors are considered experienced (4.7 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: OMRN.Y
  • Exchange: OTCPK
  • Founded: 1933
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥1.256t
  • Listing Market Cap: JP¥11.419b
  • Shares outstanding: 205.30m
  • 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 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 Social Systems Business provides wrong-way vehicle detection systems, automated ticket gates, and ticket vending machines, as well as onboard driver monitoring service. The company’s Healthcare Business offers blood pressure monitors, nebulizers, electrotherapy TENS devices, digital thermometers, body composition monitors, and others. Its Environmental Solutions Business provides PV inverters, monitoring systems, surveillant maintenance/O&M services, hybrid storage systems, flexible storage systems, power monitors, and protective relays. The company’s Automotive Electronic Business offers body, motor, and power control products, and active safety products. Its Mechanical Components Business provides relays, switches, connectors, sensors, and components/units for amusement equipment. The company was formerly known as OMRON Tateisi Electronics Co. and changed its name to OMRON Corporation in January 1990. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:58
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.