OMRON Corporation
TSE-6645
Company Overview
OMRON Corporation engages in industrial automation, electronic and mechanical components, social systems, and healthcare businesses worldwide. The company's Industrial Automation Business offers sensors, switches, safety and control components, relays, automation systems, motion/drives, robotics, energy conservation support/environment measure equipment, and power supplies. Its Electronic and Mechanical Components Business provides relays, switches, connectors, sensors, and components/units for amusement equipment. The company's Social Systems, Solutions and Service Business offers terminals and systems, including PV inverters and storage batteries; railway station systems, such as automated ticket gates and ticket vending machines, traffic and road management systems, payment systems, and UPS that protect equipment from unexpected power disruption; a range of solutions comprising software development and maintenance services to support the social infrastructure; and transport management systems and infrastructure monitoring systems. Its Healthcare Business offers blood pressure monitors; nebulizers; electrotherapy TENS devices; digital thermometers; body composition monitors; and other products, such as activity monitors, AEDs, etc. OMRON Corporation has an agreement with JMDC Inc. to jointly develop personalized aggravation and nursing care prevention solutions that support prescription medication treatments and patient lifestyle changes by predicting the risk of the onset of individual patient events. The company was formerly known as OMRON Tateisi Electronics Co. and changed its name to OMRON Corporation in January 1990. OMRON Corporation was founded in 1933 and is headquartered in Kyoto, Japan.
Name
OMRON Corporation
CEO
Junta Tsujinaga
Website
www.omron.com
Sector
Electronic Equipment, Instruments and Components
Year Founded
1933
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Bulls Say
The industrial automation business significantly outpaces market growth as Omron builds out its offerings for the semiconductor/electronics industry in Asia.
Omron’s remote patient monitoring service becomes the primary profit driver over the next five years, as doctors use health data collected from Omron’s devices to make remote diagnoses.
Changes in the revenue model to increase sales of packaged industrial automation solutions and fee-based income lead to margins above past peak levels.
Bears Say
Cross-segment synergies are unclear and social infrastructure and electronic components businesses are value-destructive.
The industrial automation business' high exposure to the electronics/digital industry in Asia makes its profitability vulnerable during downcycles.
Omron's market share weakens in China, where about 30% of industrial automation sales are generated, as government policies create hurdles for foreign players.