Torex Semiconductor Ltd. (6616) AI Stock Analysis

• Market Cap: ¥19.11B
• Dividend Yield: 3.98%
• Average Volume (3M): 17.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -6.84%
• EPS Growth: 50.71%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 23.01
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥1,714.00 ▲(18.62% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Fabless business model

Torex’s fabless model reduces long-term capital intensity and fixed manufacturing costs, enabling flexible scaling with customer demand. This structural advantage preserves cash for R&D and product development and supports margin stability as volumes rise, durable over multiple quarters.

Positive operating cash flow

Sustained positive operating cash flow indicates core business generates cash even while accounting profits are negative. That cash provides a durable buffer to fund working capital and R&D, reducing immediate financing needs and supporting operations through cyclical semiconductor demand.

Positive gross profit margin

A positive gross margin shows the company retains unit-level profitability and has pricing or cost advantages in its product portfolio. That structural margin can translate into sustainable profitability if revenue stabilizes and SG&A is controlled, supporting long-term recovery prospects.

Negative Factors

Declining revenue trend

A continued revenue decline signals weakening end-market demand or loss of design traction, which undermines scale economics in power-ICs. Over multiple quarters this reduces bargaining power with foundries, pressures per-unit margins, and limits ability to recover fixed R&D and overhead costs.

Negative profitability / ROE

Negative ROE and recurring net losses indicate the company is not generating returns on shareholder capital. Over time this erodes equity, constrains reinvestment capacity, and can necessitate external financing, weakening long-term financial resilience and strategic optionality.

Negative free cash flow (high capex)

Persistent negative free cash flow from elevated capex consumes operating cash and limits internal funding for growth or dividends. Over months this increases reliance on external funding or asset sales, raising leverage risk and constraining the firm’s ability to invest in competitive product development.

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 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 1445.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6616, the sentiment is Positive. The current price of 1445 is below the 20-day moving average (MA) of 1651.20, below the 50-day MA of 1547.06, and below the 200-day MA of 1486.82, indicating a bullish trend. The MACD of 59.88 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6616.

Torex Semiconductor Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6871	71 Outperform	¥478.98B	39.16	―	1.02%	29.60%	24.39%
6627	66 Neutral	¥90.88B	26.44	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥151.33B	-41.74	―	―	-51.82%	-96.08%
6769	49 Neutral	¥9.37B	-27.68	―	1.86%	-7.54%	―
6616	45 Neutral	¥19.11B	-12.61	―	3.98%	-6.84%	50.71%

Torex Semiconductor Ltd. Corporate Events

Torex Semiconductor Revamps Board Lineup and Executive Structure

Torex Semiconductor has proposed a slate of director candidates for approval at its 31st Ordinary General Meeting of Shareholders in June 2026, while simultaneously setting a new executive structure effective April 1, 2026. The core management team, including Representative Director and Chairman Koji Shibamiya and Representative Director and President Takeshi Kimura, is slated for reappointment along with several incumbent directors.

The company is also reinforcing its governance and oversight by nominating two new outside directors as Audit and Supervisory Committee members, Michimasa Honda and Tatsuya Imade, alongside the reappointment of existing outside committee members. With the planned retirement of two current outside directors at the end of their terms, Torex is maintaining and expanding its pool of independent officers, which may strengthen corporate governance and investor confidence.

The most recent analyst rating on (JP:6616) stock is a Hold with a Yen1714.00 price target. To see the full list of analyst forecasts on Torex Semiconductor Ltd. stock, see the JP:6616 Stock Forecast page.

Torex Semiconductor Returns to Profit, Affirms Full-Year Outlook and Dividend

Torex Semiconductor reported nine-month net sales to December 31, 2025 of ¥18.23 billion, nearly flat year on year, but swung from a loss to a profit with operating income of ¥695 million and profit attributable to owners of parent of ¥580 million. Earnings per share improved to ¥54.73, equity rose slightly to ¥17.60 billion despite a modest dip in the equity ratio, and the company maintained its full-year forecast, targeting ¥25.0 billion in sales and ¥550 million in profit while planning to keep its annual dividend at ¥56 per share.

The balance sheet expanded to ¥35.30 billion in total assets, supported by an improved comprehensive income of ¥985 million, indicating strengthened financial resilience after the prior year’s losses. Torex also increased treasury shares over the period, which, alongside stable dividend guidance and an unchanged earnings outlook, signals a continued focus on shareholder returns and confidence in achieving a moderate 4.4% full-year sales increase under Japanese GAAP.

The most recent analyst rating on (JP:6616) stock is a Hold with a Yen1503.00 price target. To see the full list of analyst forecasts on Torex Semiconductor Ltd. stock, see the JP:6616 Stock Forecast page.

Torex Semiconductor Raises Full-Year Earnings Forecast on Demand Recovery

Torex Semiconductor has revised its full-year earnings forecast for the fiscal year ending March 2026, lifting expected sales from ¥24.5 billion to ¥25.0 billion and raising operating and ordinary profit projections from ¥600 million to ¥800 million, with net income now seen at ¥550 million. The upgrade reflects stronger-than-expected recovery in demand and new order momentum at both Torex and Phenitec, signaling a more robust turnaround from last year’s losses and improved profitability that may strengthen the company’s financial position and competitiveness in its markets.

The most recent analyst rating on (JP:6616) stock is a Hold with a Yen1503.00 price target. To see the full list of analyst forecasts on Torex Semiconductor Ltd. stock, see the JP:6616 Stock Forecast page.