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SMC
(OTC:SMCAY)
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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)
Market Cap
$26.69B
Dividend Yield1.12%
Average Volume (3M)59.87K
Price to Earnings (P/E)21.2
Beta (1Y)0.87
Revenue Growth11.80%
EPS Growth37.63%
CountryUS
Employees24,773
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)161.85
Shares Outstanding1,277,387,200
10 Day Avg. Volume47,467
30 Day Avg. Volume59,870
Financial Highlights & Ratios
PEG Ratio13.52
Price to Book (P/B)1.85
Price to Sales (P/S)4.40
P/FCF Ratio102.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 928.46B | 893.35B | 792.11B | 776.87B | 824.77B | 727.40B |
| Gross Profit | 426.66B | 404.46B | 363.04B | 363.08B | 421.16B | 363.85B |
| EBITDA | 288.03B | 249.60B | 245.45B | 286.09B | 283.97B | 248.42B |
| Net Income | 203.80B | 177.39B | 156.34B | 178.32B | 224.61B | 192.99B |
Balance Sheet | ||||||
| Total Assets | 2.35T | 2.32T | 2.10T | 2.09T | 1.93T | 1.77T |
| Cash, Cash Equivalents and Short-Term Investments | 754.22B | 714.79B | 685.55B | 511.29B | 623.50B | 697.05B |
| Total Debt | 45.54B | 5.11B | 5.04B | 13.07B | 12.19B | 11.54B |
| Total Liabilities | 212.33B | 197.44B | 172.46B | 208.69B | 225.62B | 210.68B |
| Stockholders Equity | 2.14T | 2.12T | 1.93T | 1.88T | 1.70T | 1.56T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 38.40B | 88.85B | -6.10B | 27.24B | 75.16B |
| Operating Cash Flow | 0.00 | 200.31B | 196.66B | 98.21B | 101.62B | 156.09B |
| Investing Cash Flow | 0.00 | -113.99B | 35.23B | -131.90B | -87.09B | -116.22B |
| Financing Cash Flow | 0.00 | -99.80B | -100.20B | -87.93B | -113.30B | -88.93B |
SMC Technical Analysis
Negative
22.29
Price Trends
22.51
Negative
22.39
Negative
21.11
Positive
Market Momentum
-0.30
Positive
42.21
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $119.67B | 33.37 | 25.11% | 0.75% | 8.31% | 4.96% | |
76 Outperform | $29.10B | 30.78 | 9.46% | 0.09% | 7.85% | 88.74% | |
76 Outperform | $83.10B | 32.72 | 12.69% | 1.48% | 4.82% | -1.66% | |
75 Outperform | $26.69B | 21.24 | 9.68% | 1.12% | 11.80% | 37.63% | |
75 Outperform | $16.56B | 32.01 | 12.91% | 1.29% | 7.32% | 12.36% | |
68 Neutral | $47.24B | 40.06 | 33.32% | 1.18% | 11.27% | 25.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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.