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SMC (SMCAY)
OTHER OTC:SMCAY
US Market
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SMC (SMCAY) AI Stock Analysis

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SMCAY

SMC

(OTC:SMCAY)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
$27.00
â–²(21.13% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance—especially the very low-leverage balance sheet and solid profitability—partly offset by uneven free-cash-flow conversion and some margin compression from prior peaks. Technicals are supportive with price above major moving averages and positive MACD, though the high stochastic signals potential near-term overbought risk. Valuation is a modest headwind with a ~24 P/E and only ~1% dividend yield.
Positive Factors
Re-accelerating revenue growth
The return to double-digit revenue growth indicates renewed demand for SMC's automation components. Sustained factory automation investment and recurring replacement needs could support expansion across manufacturers, machine builders, and distributors.
Negative Factors
Volatile free cash flow conversion
Uneven free cash flow suggests that working capital and investment requirements can materially reduce accounting earnings conversion. This may limit internally funded expansion and make cash generation less predictable despite positive operating cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Re-accelerating revenue growth
The return to double-digit revenue growth indicates renewed demand for SMC's automation components. Sustained factory automation investment and recurring replacement needs could support expansion across manufacturers, machine builders, and distributors.
Read all positive factors

SMC (SMCAY) vs. SPDR S&P 500 ETF (SPY)

SMC Business Overview & Revenue Model

Company Description
SMC Corporation, a global enterprise, is engaged in the manufacturing, processing, and worldwide sale of automated control systems, sintered filters, and various other filtration technologies. The company's comprehensive product lineup encompasses...
How the Company Makes Money
SMC makes money primarily by selling industrial automation components and related solutions to manufacturers, machine builders, and industrial distributors. Its revenue model is largely product-driven: (1) Core component sales: The largest portion...

SMC Financial Statement Overview

Summary
Strong overall financial quality: re-accelerating revenue growth (~13% latest year) and solid profitability (~45% gross margin, ~20% net margin). The balance sheet is exceptionally conservative with minimal leverage (debt-to-equity ~0.2%). Offsetting factors are multi-year margin compression versus 2022–2024 peaks and volatile free cash flow (negative in 2024 and a sharp drop in 2026; latest FCF ~19% of net income).
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue928.46B893.35B792.11B776.87B824.77B727.40B
Gross Profit426.66B404.46B363.04B363.08B421.16B363.85B
EBITDA288.03B249.60B245.45B286.09B283.97B248.42B
Net Income203.80B177.39B156.34B178.32B224.61B192.99B
Balance Sheet
Total Assets2.35T2.32T2.10T2.09T1.93T1.77T
Cash, Cash Equivalents and Short-Term Investments754.22B714.79B685.55B511.29B623.50B697.05B
Total Debt45.54B5.11B5.04B13.07B12.19B11.54B
Total Liabilities212.33B197.44B172.46B208.69B225.62B210.68B
Stockholders Equity2.14T2.12T1.93T1.88T1.70T1.56T
Cash Flow
Free Cash Flow0.0038.40B88.85B-6.10B27.24B75.16B
Operating Cash Flow0.00200.31B196.66B98.21B101.62B156.09B
Investing Cash Flow0.00-113.99B35.23B-131.90B-87.09B-116.22B
Financing Cash Flow0.00-99.80B-100.20B-87.93B-113.30B-88.93B

SMC Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.29
Price Trends
50DMA
22.51
Negative
100DMA
22.39
Negative
200DMA
21.11
Positive
Market Momentum
MACD
-0.30
Positive
RSI
42.21
Neutral
STOCH
12.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMCAY, the sentiment is Negative. The current price of 22.29 is below the 20-day moving average (MA) of 22.95, below the 50-day MA of 22.51, and above the 200-day MA of 21.11, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMCAY.

SMC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$119.67B33.3725.11%0.75%8.31%4.96%
76
Outperform
$29.10B30.789.46%0.09%7.85%88.74%
76
Outperform
$83.10B32.7212.69%1.48%4.82%-1.66%
75
Outperform
$26.69B21.249.68%1.12%11.80%37.63%
75
Outperform
$16.56B32.0112.91%1.29%7.32%12.36%
68
Neutral
$47.24B40.0633.32%1.18%11.27%25.32%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMCAY
SMC
21.56
6.71
45.20%
EMR
Emerson Electric Company
150.21
19.17
14.63%
IEX
IDEX
223.10
60.66
37.34%
PH
Parker Hannifin
964.52
213.81
28.48%
ROK
Rockwell Automation
428.28
90.93
26.96%
IR
Ingersoll Rand
75.40
-3.72
-4.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 17, 2026