Torex Semiconductor Ltd. (6616) AI Stock Analysis

• Market Cap: ¥15.46B
• Dividend Yield: 3.96%
• Average Volume (3M): 17.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -6.84%
• EPS Growth: 50.71%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 28.34
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥1,510.00 ▲(6.86% Upside)

The overall stock score is primarily influenced by weak financial performance and technical analysis. The company is struggling with profitability and negative earnings, impacting its valuation. Technical indicators suggest bearish momentum, although the stock might be oversold. The high dividend yield provides some support, but the negative P/E ratio is a significant concern.

Positive Factors

Cash Generation

Positive operating cash flow indicates Torex's ability to generate cash from its core operations, providing a buffer against short-term financial challenges and supporting ongoing business activities.

Product Portfolio

Torex's focus on power-efficient ICs positions it well in the growing automotive and industrial sectors, where demand for energy-efficient solutions is increasing, supporting long-term revenue potential.

Market Presence

Strategic alliances and industry participation strengthen Torex's market position, enabling access to new technologies and customer bases, which can drive sustainable growth.

Negative Factors

Revenue Decline

Declining revenues highlight challenges in maintaining market share or pricing power, which could pressure margins and affect long-term growth prospects if not addressed.

Profitability Issues

Negative profitability metrics suggest operational inefficiencies or cost pressures, which could hinder reinvestment in growth initiatives and impact financial health over time.

Free Cash Flow

Negative free cash flow limits Torex's ability to invest in new projects or reduce debt, potentially constraining growth and increasing financial risk if capital expenditures remain high.

Torex Semiconductor Ltd. Business Overview & Revenue Model

Company Description

Torex Semiconductor Ltd. (6616) is a leading provider of power management semiconductor solutions, primarily focused on the automotive and industrial sectors. The company specializes in designing and manufacturing integrated circuits (ICs) that optimize power efficiency in electronic devices. Its core product offerings include voltage regulators, power management ICs, and LED drivers, catering to a diverse range of applications including automotive lighting, consumer electronics, and industrial automation.

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 facing challenges with declining revenues and negative net income, impacting profitability. The balance sheet shows moderate leverage but declining equity ratios, while cash flow indicates sufficient operational cash generation but negative free cash flow. The company needs to address profitability and manage capital expenditures to enhance financial health.

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: 1413.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1413 is below the 20-day moving average (MA) of 1481.60, below the 50-day MA of 1541.32, and above the 200-day MA of 1387.31, indicating a neutral trend. The MACD of -38.06 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 20.62 is Neutral, 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	¥53.76B	17.29	―	1.85%	3.60%	-17.45%
6871	67 Neutral	¥224.32B	22.26	―	1.20%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6769	61 Neutral	¥8.62B	1,220.71	―	1.88%	-7.54%	―
6707	46 Neutral	¥112.91B	97.35	―	―	-51.82%	-96.08%
6616	45 Neutral	¥15.46B	-7.64	―	3.96%	-6.84%	50.71%

Torex Semiconductor Ltd. Corporate Events

Torex Semiconductor Transfers Majority Stake in Vietnamese Subsidiary to Panjit

Torex Semiconductor Ltd. has decided to transfer 95% of its equity interest in Torex Vietnam Semiconductor Co., Ltd. to Panjit International Inc. This strategic move aims to concentrate Torex’s resources on its core competencies in wafer design and manufacturing while leveraging Panjit’s strengths in semiconductor manufacturing. The transfer is expected to create synergies between the two companies, enhancing Torex’s competitiveness in the advancing semiconductor packaging technology sector.

Torex Semiconductor Reports Mixed Financial Results for H1 2025

Torex Semiconductor Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a decline in net sales by 5.1% compared to the previous year. Despite the drop in sales, the company experienced a significant increase in operating and ordinary profits, indicating improved operational efficiency. The company’s profit attributable to owners of the parent also saw a considerable rise, reflecting a positive shift in financial performance.

Torex Semiconductor Revises FY2026 Earnings Forecast Amid Market Challenges

Torex Semiconductor Ltd. has revised its full-year earnings forecast for FY2026, anticipating a decrease in sales but an increase in operating and net profits due to favorable foreign exchange rates and cost-reduction measures. Despite a resilient global economy, the company faces challenges with weaker-than-expected demand recovery in the semiconductor market, though order levels show signs of improvement.

Torex Semiconductor to Relocate Head Office to Enhance Employee Environment

Torex Semiconductor Ltd. announced the relocation of its head office to a new address in Toyosu, Tokyo, scheduled for November 25, 2025. This move aims to improve the workplace environment, boosting employee productivity and organizational vitality, with the costs already factored into the company’s financial forecasts for the fiscal year ending March 2026.

Torex Semiconductor Secures Prime Market Listing Compliance

Torex Semiconductor Ltd. has successfully met the continued listing criteria for the Prime Market of the Tokyo Stock Exchange as of July 31, 2025. This achievement follows the company’s strategic initiatives to improve the market capitalization of its tradable shares, ensuring compliance with the exchange’s requirements. Torex plans to maintain this compliance through ongoing initiatives aimed at sustainable growth and enhancing corporate value.