SMC Corporation
SMC Corporation Fundamental Analysis
SMC Corporation (SMECF) shows weak financial fundamentals with a PE ratio of 29.46, profit margin of 19.43%, and ROE of 8.05%. The company generates $813.6B in annual revenue with weak year-over-year growth of 1.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMECF's fundamental strength across five key dimensions:
Efficiency Score
WeakSMECF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMECF shows balanced valuation metrics.
Growth Score
WeakSMECF faces weak or negative growth trends.
Financial Health Score
ExcellentSMECF maintains a strong and stable balance sheet.
Profitability Score
WeakSMECF struggles to sustain strong margins.
Key Financial Metrics
Is SMECF Expensive or Cheap?
P/E Ratio
SMECF trades at 29.46 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SMECF's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values SMC Corporation at 2.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.80 times EBITDA. This signals the market has high growth expectations.
How Well Does SMECF Make Money?
Net Profit Margin
For every $100 in sales, SMC Corporation keeps $19.43 as profit after all expenses.
Operating Margin
Core operations generate 22.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.05 in profit for every $100 of shareholder equity.
ROA
SMC Corporation generates $7.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SMC Corporation generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
SMC Corporation generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SMECF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SMECF Stacks Against Its Sector Peers
| Metric | SMECF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.46 | 26.49 | Worse (Expensive) |
| ROE | 8.05% | 1307.00% | Weak |
| Net Margin | 19.43% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 9.00 | 10.48 | Strong Liquidity |
| ROA | 7.01% | -1549793.00% (disorted) | Weak |
SMECF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SMC Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.08%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
47.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
64.62%
Industry Style: Cyclical, Value, Infrastructure
High Growth