OMRON (6645) AI Stock Analysis

• Market Cap: $875.30B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.80
• Revenue Growth: 3.51%
• EPS Growth: N/A
• Country: JP
• Employees: 28,450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 11.34
• Shares Outstanding: 206,244,870
• 10 Day Avg. Volume: 1,188,270
• 30 Day Avg. Volume: 1,264,090
• PEG Ratio: 0.51
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 122.12
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 15.75
• 1Y Price Target: $4,869.82
• Price Target Upside: 14.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥4,727.00 ▲(11.28% Upside)

OMRON's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust cash flow and improving profitability support its financial health. However, the high P/E ratio and overbought technical signals suggest caution is warranted. The absence of recent earnings call insights and corporate events limits additional context.

OMRON Business Overview & Revenue Model

Company Description

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. The company's Social Systems, Solutions and Service Business offers terminals and systems, including PV inverters and storage batteries; railway station systems, such as automated ticket gates and ticket vending machines, traffic and road management systems, payment systems, and UPS that protect equipment from unexpected power disruption; a range of solutions comprising software development and maintenance services to support the social infrastructure; and transport management systems and infrastructure monitoring systems. Its Healthcare Business offers blood pressure monitors; nebulizers; electrotherapy TENS devices; digital thermometers; body composition monitors; and other products, such as activity monitors, AEDs, etc. OMRON Corporation has an agreement with JMDC Inc. to jointly develop personalized aggravation and nursing care prevention solutions that support prescription medication treatments and patient lifestyle changes by predicting the risk of the onset of individual patient events. 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.

How the Company Makes Money

OMRON generates revenue primarily through its diverse product offerings in industrial automation, healthcare, and other sectors. The company's revenue model is anchored in the sale of its products and solutions, which serve various industries, including manufacturing, healthcare, and infrastructure. Key revenue streams include the sale of industrial automation equipment, which accounts for a significant portion of its earnings, along with healthcare products that cater to both consumer and professional markets. Additionally, OMRON has established strategic partnerships and collaborations with other companies and organizations to enhance its technological capabilities and expand its market reach. These partnerships often lead to joint development projects and co-marketing initiatives that further drive sales and revenue growth. The company's focus on innovation and the development of IoT-enabled solutions also positions it well in the rapidly evolving technology landscape, contributing to its financial success.

OMRON Financial Statement Overview

Summary

OMRON exhibits a strong financial position with improving profitability and cash flow metrics. The company has managed to enhance its margins and cash generation despite fluctuations in revenue growth. The balance sheet remains solid, though attention to rising debt levels is necessary.

Income Statement

OMRON's income statement shows a strong gross profit margin of 44.18% TTM, indicating efficient cost management. The net profit margin improved significantly to 4.05% TTM from 2.03% in the previous year, reflecting enhanced profitability. However, revenue growth has been volatile, with a notable increase of 71.9% TTM after a decline in the previous periods. The EBIT and EBITDA margins are stable, suggesting consistent operational performance.

Balance Sheet

The balance sheet reveals a healthy debt-to-equity ratio of 0.27 TTM, indicating moderate leverage. Return on equity has improved to 4.21% TTM, showing better utilization of equity to generate profits. The equity ratio remains strong at 56.78%, reflecting a solid capital structure. However, the increase in total debt over the periods could pose a potential risk if not managed carefully.

Cash Flow

OMRON's cash flow statement highlights a robust free cash flow growth of 104.08% TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.28 TTM indicates efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.22 TTM shows a healthy cash flow position, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	807.52B	801.75B	818.76B	876.08B	762.93B	655.53B
Gross Profit	356.75B	357.14B	346.46B	393.88B	346.83B	298.35B
EBITDA	62.34B	62.45B	65.77B	125.00B	110.08B	87.84B
Net Income	32.71B	16.27B	8.11B	73.86B	61.40B	43.31B
Balance Sheet
Total Assets	1.37T	1.36T	1.35T	998.16B	930.63B	820.38B
Cash, Cash Equivalents and Short-Term Investments	156.91B	149.02B	143.09B	105.28B	155.48B	250.75B
Total Debt	210.35B	144.31B	172.76B	45.37B	60.12B	38.89B
Total Liabilities	429.37B	427.36B	403.74B	266.93B	262.66B	211.02B
Stockholders Equity	776.87B	771.88B	786.69B	728.47B	665.23B	606.86B
Cash Flow
Free Cash Flow	13.86B	6.79B	-503.00M	8.44B	34.07B	67.17B
Operating Cash Flow	63.35B	55.78B	44.88B	53.46B	67.43B	93.83B
Investing Cash Flow	-50.46B	-47.89B	-107.10B	-55.53B	-150.16B	-14.79B
Financing Cash Flow	-9.43B	-4.61B	85.99B	-58.76B	-29.60B	-20.35B

OMRON Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4248.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6645, the sentiment is Positive. The current price of 4248 is below the 20-day moving average (MA) of 4352.70, above the 50-day MA of 4112.64, and above the 200-day MA of 4106.69, indicating a neutral trend. The MACD of 44.75 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 23.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6645.

OMRON Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4186	78 Outperform	$720.96B	25.82	13.68%	1.10%	21.48%	65.56%
6479	76 Outperform	$1.27T	22.38	8.05%	1.61%	0.96%	3.22%
7701	75 Outperform	$1.23T	23.58	10.54%	1.56%	3.92%	9.99%
6965	74 Outperform	$553.22B	37.95	4.46%	2.26%	3.97%	-41.79%
6806	72 Outperform	$698.52B	23.17	8.09%	2.37%	11.18%	-0.75%
6645	68 Neutral	$875.30B	26.77	4.20%	2.45%	3.51%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OMRON Corporate Events

OMRON Plans Spin-Off of Device & Module Solutions Business

OMRON Corporation’s Board of Directors has initiated discussions to spin off its Device & Module Solutions Business (DMB) by April 1, 2026. This move aims to establish an independent management structure for DMB to enhance agility, cost-competitiveness, and investment in new product development, amidst growing market demand and competitive pressures.

The most recent analyst rating on (JP:6645) stock is a Buy with a Yen4232.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.

OMRON Corporation Reports Modest Sales Growth

OMRON Corporation is a global leader in the industrial automation and healthcare sectors, known for its innovative solutions in automation, sensing, and control technology.

OMRON Corporation Reports Q1 FY2025 Revenue Growth Amid Tariff Challenges

OMRON Corporation reported an increase in consolidated revenue and profit in Q1 FY2025, despite challenges from U.S. tariff policies. The Industrial Automation Business (IAB) and Device & Module Solutions Business (DMB) experienced growth, while the Healthcare Business (HCB) faced declines due to a market slowdown in China. The company remains cautious about the future due to ongoing tariff uncertainties but is progressing with initiatives to enhance competitiveness and profitability.

The most recent analyst rating on (JP:6645) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on OMRON stock, see the JP:6645 Stock Forecast page.