OMRON Corp. (6645) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Daifuku Co., Ltd.

Hitachi Ltd.

DISCO Corp.

Tokyo Electron Ltd.

FANUC Corp.

DAIKIN INDUSTRIES Ltd.

SMC Corp. (Japan)

YASKAWA Electric Corp.

Toyota Industries Corp.

OMRON Corp.

TOSHIBA Corp.

Why is OMRON Corp. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.19% over the last 5 years

Flat results in Mar 26

DEBT-EQUITY RATIO (HY) Highest at 8.93 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.51 times
NET SALES(Q) Lowest at JPY 153,063 MM

With ROE of 4.29%, it has a very expensive valuation with a 1.19 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 51.72%, its profits have risen by 1.2% ; the PEG ratio of the company is 24.2
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 51.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is OMRON Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

OMRON Corp.

49.33%

11.22

45.65%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.19%

EBIT Growth (5y)

-1.86%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.89

Tax Ratio

46.37%

Dividend Payout Ratio

125.85%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.15%

ROE (avg)

6.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.19

EV to EBIT

19.22

EV to EBITDA

11.69

EV to Capital Employed

1.18

EV to Sales

1.19

PEG Ratio

24.15

Dividend Yield

ROCE (Latest)

6.14%

ROE (Latest)

4.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 60,919 MM

ROCE(HY)

Highest at 4.25%

RAW MATERIAL COST(Y)

Fallen by -24.49% (YoY

OPERATING PROFIT(Q)

Highest at JPY 34,814 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.74 %

EPS(Q)

Highest at JPY 71.96

-8What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 8.93 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.51 times

NET SALES(Q)

Lowest at JPY 153,063 MM

Here's what is working for OMRON Corp.

Operating Cash Flow

Highest at JPY 60,919 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Operating Profit

Highest at JPY 34,814 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 22.74 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at JPY 71.96

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -24.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 8,734 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for OMRON Corp.

Net Sales

At JPY 153,063 MM has Fallen at -31.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 153,063 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Debt-Equity Ratio

Highest at 8.93 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio