SMC Corporation (6273.T) stock analysis

In our weekly check, SMC Corporation is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 9, red flags: 3.

About SMC Corporation

SMC Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 6273.T.

What our checks show for 6273.T

Red flags

• The gross margin fell by 4.1 points, to 46%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 4.8 points from today's 22%.
• Recovering from its deepest fall took about 4.1 years.

Warning signs

• The net margin fell by 4.6 points over 5 years, to 22%: the company keeps less of each sale as profit.
• Revenue grew only 3.5% a year over the last 3 years.
• Earnings per share fell 2.7% a year over the last 3 years.
• Net profit fell 3.7% a year over the last 3 years.
• Free cash flow is only 4% of revenue.
• The price swings a lot: 48.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 60% from a peak. Would you have held through that?
• Thinly traded (about 300 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 10%.

Strengths

• Debt is low: 0.02x equity.
• Operating profit covers interest 413 times over.
• The company keeps 22% of its revenue as net profit.
• A large company: market value $24.77 billion.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-13

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Questions

What grade does SMC Corporation (6273.T) have?

In our weekly check, SMC Corporation is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 9, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6273.T stock?

This week's biggest flags for SMC Corporation: Gross margin falling, Margins expected to shrink, Slow recovery after falls. In total 12 of 24 checks show a warning or a red flag.

What does SMC Corporation do?

SMC Corporation is an Industrials company (Industrial - Machinery) based in Japan, listed on JPX as 6273.T.

When does SMC Corporation report earnings next?

The next earnings report is expected on 2026-11-13. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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