Torex Semiconductor Ltd. (6616) AI Stock Analysis

• Market Cap: ¥16.54B
• Dividend Yield: 3.7%
• Average Volume (3M): 17.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -7.92%
• EPS Growth: 43.84%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 3.38
• Shares Outstanding: 11,554,200
• 10 Day Avg. Volume: 19,040
• 30 Day Avg. Volume: 17,826
• PEG Ratio: 0.12
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -25.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,483.00
• Price Target Upside: -1.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥1,483.00 ▼(-1.92% Downside)

Torex Semiconductor Ltd. faces significant challenges with declining revenues and negative profitability, reflected in a low financial performance score. Technical indicators suggest bearish momentum, further impacting the stock's outlook. While the high dividend yield offers some appeal, the negative P/E ratio highlights ongoing financial struggles. Overall, the stock's score is primarily driven by financial and technical weaknesses.

Torex Semiconductor Ltd. Business Overview & Revenue Model

Company Description

Torex Semiconductor Ltd. researches, develops, manufactures, and sells integrated circuits (ICs) and active discrete components in Japan and internationally. The company offers DC/DC converters, voltage regulators and detectors, push button controllers, LED lighting drivers, load switches, power MOSFETs, temperature sensors, and transient voltage suppressors; charge pump, battery charge, hall, PLL clock generators, and oscillator ICs; and Shottky barrier, Zener, switching, bridge, and fast recovery diodes. Its products are used in industrial/IoT and automotive product applications. Torex Semiconductor Ltd. was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Torex Semiconductor generates revenue primarily through the sale of its semiconductor products, which are utilized in various applications across automotive, industrial, and consumer electronics sectors. The company employs a direct sales model as well as partnerships with distributors to reach a broader customer base. Key revenue streams include the sale of integrated circuits and related components, with significant contributions from long-term contracts with automotive manufacturers and industrial clients. Additionally, Torex may benefit from recurring revenue through ongoing supply agreements and product support services. Strategic partnerships with technology firms and participation in industry consortia also enhance its market presence and drive sales growth.

Torex Semiconductor Ltd. Financial Statement Overview

Summary

Torex Semiconductor Ltd. is struggling with declining revenues and negative net income, which impacts profitability. The balance sheet shows moderate leverage but declining equity ratios. Cash flow indicates sufficient operational cash generation despite negative free cash flow, which poses a risk to financial flexibility.

Income Statement

Torex Semiconductor Ltd. experienced a decline in revenue from the previous period with a negative revenue growth rate. The company shows negative EBIT and net income margins indicating a struggle with profitability. However, the gross profit margin remains positive, suggesting some potential to improve operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, but the equity ratio has shown a decreasing trend. Return on equity has been negative, reflecting current losses. Nevertheless, the company retains a substantial amount of cash and short-term investments, providing liquidity.

Cash Flow

Operating cash flow remains positive despite the net income being negative, indicating decent cash generation capability. However, the free cash flow is negative due to high capital expenditures, posing a risk to financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.57B	23.96B	25.75B	31.96B	30.86B	23.71B
Gross Profit	4.86B	5.27B	3.99B	10.02B	9.47B	5.96B
EBITDA	266.49M	720.13M	-1.67B	4.70B	5.76B	2.42B
Net Income	-2.41B	-2.36B	-4.30B	2.18B	3.16B	933.59M
Balance Sheet
Total Assets	33.51B	33.61B	36.64B	37.05B	34.77B	31.51B
Cash, Cash Equivalents and Short-Term Investments	9.52B	9.43B	9.23B	8.57B	10.22B	11.74B
Total Debt	13.50B	12.98B	11.52B	7.88B	5.84B	7.39B
Total Liabilities	16.54B	16.21B	16.08B	12.45B	12.04B	11.72B
Stockholders Equity	16.97B	17.40B	20.55B	24.59B	22.73B	19.79B
Cash Flow
Free Cash Flow	0.00	-521.13M	-2.66B	-3.32B	-59.06M	305.52M
Operating Cash Flow	0.00	3.36B	1.93B	1.29B	1.75B	1.79B
Investing Cash Flow	0.00	-3.76B	-4.55B	-4.57B	-1.61B	-1.55B
Financing Cash Flow	0.00	442.36M	2.71B	1.51B	-2.06B	2.18B

Torex Semiconductor Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1512.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6616, the sentiment is Negative. The current price of 1512 is below the 20-day moving average (MA) of 1666.27, below the 50-day MA of 1645.79, and above the 200-day MA of 1311.35, indicating a neutral trend. The MACD of -24.67 indicates Positive momentum. The RSI at 33.41 is Neutral, neither overbought nor oversold. The STOCH value of 9.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6616.

Torex Semiconductor Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	79 Outperform	¥49.76B	16.68	―	2.01%	-0.46%	-25.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6769	61 Neutral	¥8.81B	143.62	―	1.84%	-11.56%	-252.45%
6707	54 Neutral	¥144.48B	3.31	―	0.38%	-58.24%	―
6616	46 Neutral	¥16.54B	―	―	3.70%	-7.92%	43.84%

Torex Semiconductor Ltd. Corporate Events

Torex Semiconductor Reports Q1 Financial Decline but Maintains Positive Outlook

Torex Semiconductor Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 6.2% and operating profit dropping by 54.8% compared to the previous year. The company maintains its forecast for the fiscal year ending March 31, 2026, anticipating a 6.4% increase in net sales, despite the challenging financial results in the recent quarter.

Torex Semiconductor Announces Plan to Meet Tokyo Stock Exchange Listing Criteria

Torex Semiconductor Ltd. has announced a plan to comply with the Tokyo Stock Exchange’s continued listing criteria, as it currently does not meet the market capitalization requirement for tradable shares. The company intends to improve profitability and market capitalization through initiatives such as expanding sales in core businesses, enhancing profitability by leveraging core strengths, and implementing a new medium-term management plan. If Torex fails to meet the criteria by March 2026, its stock risks being delisted.

Torex Semiconductor Evaluates Board Effectiveness, Plans Strategic Improvements

Torex Semiconductor Ltd. conducted an analysis of its Board of Directors’ effectiveness for FY2024, finding it generally effective but identifying areas for improvement, such as management issue analysis and succession planning. The company plans to address these by enhancing discussions on medium- and long-term strategies and improving risk management and stakeholder engagement.