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SMC Corporation

SMCAY
60
Industrial - Machinery · Industrials
Price
$21.21
-0.38 (-1.75%)
Market Cap
$26.79B
Exchange
Other OTC
Winston Score
60
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 8, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
Growth
Strong
Cash Flow
Weak
Stability
Exceptional
Valuation
Good
Dividends
Good

Share count falling — buybacks

4.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.32B (2022) → 1.27B (2026)

§Winston Score History

The full picture

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 a wide array of industrial components. These include directional control valves, air and electric cylinders, rotary actuators, and air grippers, alongside vacuum and air preparation equipment, and modular F.R.L. and pressure control devices. SMC also supplies essential items such as lubrication equipment, various fittings and tubing, flow control mechanisms, speed controllers, noise reduction solutions (silencers, exhaust cleaners), pressure gauges, blow guns, switches, sensors, controllers, and static neutralization apparatus. Furthermore, its specialized industrial offerings extend to process valves, chemical liquid and needle valves with their corresponding fittings and tubing, process pumps, temperature and process gas management systems, high vacuum technology, industrial filters (including sintered metal elements), pneumatic instrumentation, and hydraulic machinery. Founded in 1959, the organization was originally known as Shoketsu Kinzoku Kogyo Co., Ltd., before rebranding to SMC Corporation in April 1986. Its corporate domicile is in Tokyo, Japan.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+37.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+101.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥42.4B/ year

Rising (+19280% vs prior year)

4.7% of revenue

In line with sector average (4%)

R&D investment increasing — building for the future

Cash Position

Cash flow positive

¥832.7B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

SMC Corporation grew revenue 37% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
46.8%
Healthy — 46.8% gross margin
Profit after running costs
Operating Margin
27.3%
Excellent — 27.3% operating margin
Return on the money invested
ROCE
10.4%
Below par — 10.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+17.6%
Fast-growing sales (+17.6% YoY)
Profit growth
EPS YoY
+45.2%
Earnings growing fast (+45.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
0%
Weak — only 0% of profit becomes cash
Spare cash per sale
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
412.41x
Comfortably covers interest (412.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
20.7x
Growth-priced — P/E 20.7

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+1.7
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
1.48%
Small dividend — 1.48% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+31.8%
Dividend growing fast (31.8% YoY)

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