SMC Corp Japan (SMCAY) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of SMC Corp Japan stock $12.09, price $17.74, that is 31.9% below the price, quality 56 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $12.10 – $27.71 · fair‑value band $7.89 – $17.81 · the $17.74 price screens above the $12.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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SMC Corporation manufactures, processes, and sells automatic control equipment worldwide.
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The company offers air management system, directional control valves, air cylinders, rotary actuators, air grippers, magnet grippers, electric actuators/cylinders, vacuum equipment, air grippers for collaborative robots, compact compressor, air preparation equipment, modular F.R.L., pressure control equipment, booster regulators, lubrication equipment, gas generator, fittings and tubing, flow control equipment, speed controllers, silencers/exhaust cleaners/pressure gauges, air blowing equipment, switches/sensors/controllers, static neutralization equipment/ionizers, industrial device communication equipment/wireless system, process valves, chemical valves/fittings & tubing/needle valves, process pumps/diaphragm pumps, temperature control equipment, process gas equipment ap tech, high vacuum equipment, industrial filters/sintered metal elements, pneumatic instrumentation equipment, hydraulic equipment, and specialized products for general use.
It serves automobiles, semiconductor/liquid crystal/electric, machine tool, food/beverages, physicochemical/medical/pharmaceutical, agriculture, energy, production facility, and other industries.
The company was formerly known as Shoketsu Kinzoku Kogyo Co., Ltd. and changed its name to SMC Corporation in April 1986. SMC Corporation was incorporated in 1959 and is headquartered in Tokyo, Japan.
Stock analysis
SMC Corp Japan (SMCAY) currently trades at $17.74, while our model-based Fair Value estimate is $12.09, 32% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $19.32 per share, and 6 of the 26 models we run sit above the $17.74 price.
Bear case: the Dividend Discount group reads lowest at $5.97, and 20 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $7.89 (bear) to $17.81 (bull), the price of $17.74 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
SMC Corp Japan reported revenue of ¥893B in FY2026 versus ¥727B in FY2022, a compound +5.3%/yr. Reported net income was ¥177B in FY2026, compounding −2.1%/yr from FY2022.
Key figures
Market cap $26.3B Large · P/E ratio 20.4 · P/S ratio 4.05 · EPS (TTM) $0.8700 · Dividend yield 1.5% · Net margin 19.9% · Return on equity 9.9% · Return on assets (EBIT) 10.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 74 out of 100 (medium confidence).
What moves the price
The share trades about 34% below its 52-week high and 29% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −32%, SMCAY screens cheaper than that median.
Fair Value models
Bear$7.89Fair Value $12.09Bull$17.81
Price $17.74 · Downside -31.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($0.5315 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$5.63$6.88$8.8282
Growth DCF$5.67$6.79$8.4180
Owner Earnings$4.99$5.90$7.2978
All 26 models by family
DCF Models
FCF DCF$5.63$6.88$8.8282
Owner Earnings$4.99$5.90$7.2978
5Y Revenue Exit$7.71$10.87$14.9473
5Y EBITDA Exit$11.32$17.61$24.9975
5Y P/E Exit$12.39$19.58$27.1871
10Y Revenue Exit$6.76$9.49$13.2167
10Y EBITDA Exit$9.26$14.19$20.9168
10Y P/E Exit$9.94$15.57$22.5863
Earnings-Based
Graham-Dodd$6.11$18.61$24.7065
Lynch FV$3.99$5.70$7.4161
PEG = 1.0$3.99$5.70$7.4157
EPV$9.65$10.71$11.6474
Dividend Discount
Gordon GGM$3.18$6.70$10.8066
DDM Multi-Stage$3.18$5.23$7.0166
Multiples
P/E Multiple$14.14$18.86$23.5763
P/S Multiple$6.78$9.04$11.3158
P/B Multiple$36.02$48.02$60.0355
EV/EBIT$16.39$20.74$25.0866
EV/EBITDA$15.67$19.78$23.8867
EV/Revenue$9.05$11.49$13.9354
Asset-Based
NCAV (Graham)$4.39$6.65$8.3155
Growth DCF
Growth DCF$5.67$6.79$8.4180
Rev-Margin DCF$7.71$10.81$14.3273
Economic Profit
Residual Income$9.13$9.85$11.4176
ROIC Compounder$9.65$10.71$12.5972
Growth Earnings
Growth-Adj P/E$11.61$16.59$21.5667
The fair value above starts from this blend and is adjusted for dilution from new shares.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+12.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.1%
Start year 2021 (pandemic). Over 10 years: +6.5% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.7%
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What shareholders gained per year (last 5 years), in JPY ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in JPY: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.0%
Dividend (yield on the price)1.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.0% vs 5.6%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.28% → 23%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+31.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in JPY, Japan: IMF forecast 2.1% a year to 2030, 1.3% from 2016 to 2025) that is about +29.1% a year for the price and +8.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (23 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: High margins from pricing strength in niche pneumatic machinery form the core strength while limited public signals on governance and insider activity constrain evidence of a durable moat.
Main risk: Fluctuations in global semiconductor and automation investments could cut demand for specialized pneumatic components and hit revenues.
SMC's specialized pneumatic components keep benefiting from ongoing semiconductor and automation investments worldwide. The company recently completed a large share repurchase using its robust cash flows. Does this signal disciplined capital allocation in a mature business or limited high-return opportunities for further expansion?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 813 stocks
Beats the industry median on 11/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score56 · Above median
Fair Value upside−31.9% · Above median
Profitability
Return on equity (12 months)9.9% · Above median
Return on assets7.6% · Top 25%
Net margin (12 months)22.0% · Top 25%
Operating margin (12 months)27.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)35.4% · Top 25%
Dividend yield (12 months)1.5% · Above median
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "SMC Corp Japan Fair Value". https://www.fairvalue-calculator.com/stock/SMCAY
Frequently asked questions
Is SMC Corp Japan (SMCAY) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $12.09 versus a price of $17.74, about 32% lower (overvalued).
What is the fair value of SMCAY?
Our model-based fair value for SMC Corp Japan is $12.09 (as of Nov 6, 2026), built from audited fundamentals. The current price: $17.74.
What is the quality score of SMCAY?
SMC Corp Japan has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for SMC Corp Japan (SMCAY)?
Our model-based price target is the fair value of $12.09 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $7.89, optimistic scenario $17.81. It is a calculation from audited fundamentals, not an analyst target.
What is the SMC Corp Japan stock forecast for 2026?
Our models put fair value at $12.09, about 32% lower versus a price of $17.74 (overvalued). Cautious scenario $7.89, optimistic scenario $17.81. The calculation is refreshed regularly with new filings.
What is the revenue of SMC Corp Japan (SMCAY)?
SMC Corp Japan reported trailing-twelve-month revenue of about ¥913B (latest available figure, as of Nov 6, 2026).
Does SMC Corp Japan pay a dividend?
SMC Corp Japan currently shows a dividend yield of 1.49% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of SMC Corp Japan (SMCAY) and when is the ex-dividend date?
SMC Corp Japan has a dividend yield of 1.5%. The last ex-dividend date was Mar 31, 2026. A dividend has been paid every year since at least 2014. The payout ratio is 29.4% of earnings. Free cash flow covers the dividend 0.74 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into SMC Corp Japan (SMCAY)?
For today's price to be fair in a discounted-cash-flow model, SMC Corp Japan would have to grow free cash flow by +31.8 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.1 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of SMCAY use?
Our models discount SMC Corp Japan at 8.9 %: a base by market capitalisation (large), damped by beta 0.83, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For SMC Corp Japan that is +31.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has SMC Corp Japan (SMCAY) delivered so far?
Over the past 5 years revenue at SMC Corp Japan grew +10.1 % a year. The price currently implies free-cash-flow growth of +31.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of SMC Corp Japan (SMCAY) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into SMC Corp Japan (+31.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of SMC Corp Japan (SMCAY)?
The free-cash-flow yield on the price is 1.08 %: that much free cash flow SMC Corp Japan produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of SMC Corp Japan (SMCAY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SMC Corp Japan it is $12.09 per share (as of Nov 6, 2026), against a price of $17.74. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is SMC Corp Japan stock overvalued or undervalued in 2026?
As of Nov 6, 2026, SMCAY trades above its calculated fair value: price $17.74, fair value $12.09, a gap of about −32% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SMCAY?
No. The price is what the market pays today ($17.74); the fair value is what the company's own numbers justify ($12.09). For SMC Corp Japan the two are $5.65 per share apart. That gap is exactly why we show both numbers side by side.
How much is SMC Corp Japan worth?
The market values SMC Corp Japan at about $26.3B (market capitalisation, as of Nov 6, 2026). Per share that is $17.74; our models calculate a fair value of $12.09 per share.
What do the bullish and bearish scenarios say about SMCAY?
Our models span a range for SMC Corp Japan: cautious scenario $7.89, base $12.09, optimistic $17.81 per share (as of Nov 6, 2026, price $17.74). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SMCAY?
SMC Corp Japan trades at a price-to-earnings ratio of 20.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $12.09 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 21.3. Other multiples: P/B 2.0, P/S 4.6, EV/EBITDA 13.1.
How solid is the balance sheet of SMC Corp Japan (SMCAY)?
Balance-sheet figures for SMC Corp Japan (as of Nov 6, 2026): return on equity 9.9%. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is SMCAY from its 52-week high?
SMC Corp Japan trades at $17.74, about 34% below its 52-week high of $26.82 and 29% above the low of $13.74 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $12.09 is for.
Which stocks are comparable to SMC Corp Japan?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SMC Corp Japan stock attractive at the current price?
The data as of Nov 6, 2026: price $17.74, calculated fair value $12.09 (−32%), Quality Score 56/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SMCAY calculated?
We run SMC Corp Japan through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $12.09 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. SMC Corp Japan itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SMC Corp Japan (SMCAY)?
The closing price on Nov 6, 2026 was $17.74. Our model-based fair value is $12.09, about 32% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SMC Corp Japan right now?
Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range ($7.89 to $17.81) leaves room in how you read the outcome.
Where does the earnings growth of SMC Corp Japan (SMCAY) come from?
Earnings per share at SMC Corp Japan grew +6.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +7.4 %, EBIT margin −1.9 %, tax rate −0.2 %, residual (interest, one-offs) +1.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of SMC Corp Japan
How large is the market capitalisation of SMC Corp Japan (SMCAY)?
The market capitalisation of SMC Corp Japan is $26.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SMC Corp Japan (SMCAY)?
The price-to-sales ratio of SMC Corp Japan is 4.05 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SMC Corp Japan (SMCAY)?
Earnings per share at SMC Corp Japan are $0.8700 (price ÷ EPS = P/E 20.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of SMC Corp Japan (SMCAY)?
The dividend yield of SMC Corp Japan is 1.5% (payout 30.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of SMC Corp Japan (SMCAY)?
The net margin of SMC Corp Japan is 19.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SMC Corp Japan (SMCAY)?
The return on equity (ROE) of SMC Corp Japan is 9.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SMC Corp Japan (SMCAY)?
On an EBIT basis the return on assets of SMC Corp Japan is 10.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SMC Corp Japan (SMCAY)?
The operating margin of SMC Corp Japan is 27.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SMC Corp Japan (SMCAY)?
Revenue at SMC Corp Japan is growing +35.4% versus a year earlier (3y avg +2.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at SMC Corp Japan (SMCAY)?
Earnings per share at SMC Corp Japan are growing +97.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does SMC Corp Japan (SMCAY) hold?
SMC Corp Japan holds more cash than debt, ¥662B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026