Torex Semiconductor Ltd. (6616) AI Stock Analysis

• Market Cap: ¥13.07B
• Dividend Yield: 4.69%
• Average Volume (3M): 26.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -6.97%
• EPS Growth: 45.07%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 78
• Industry: Semiconductors
• EPS (TTM): -193.32
• Shares Outstanding: 11,554,200
• 10 Day Avg. Volume: 33,260
• 30 Day Avg. Volume: 26,950
• PEG Ratio: -0.39
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.89
• 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

• Rating: 52 Neutral
• Price Target: ¥1,146.00 ▼(-4.10%Downside)

Torex Semiconductor Ltd. has a moderate overall score driven primarily by its financial performance and valuation challenges. Declining revenues and losses weigh heavily on its financial score, while technical indicators suggest neutral market sentiment. Despite a high dividend yield, the negative P/E ratio reflects profitability issues.

Torex Semiconductor Ltd. Business Overview & Revenue Model

Company Description

Torex Semiconductor Ltd. (6616) is a Tokyo-based company specializing in the design and manufacture of analog power management integrated circuits (ICs). With a focus on energy-efficient solutions, Torex offers a wide range of products including DC-DC converters, voltage regulators, and load switches. The company's products are utilized in various sectors such as consumer electronics, industrial applications, and automotive systems, enhancing power efficiency and performance.

How the Company Makes Money

Torex Semiconductor Ltd. generates revenue primarily through the sale of its power management IC products to businesses across multiple industries. The company's revenue model is based on manufacturing and distributing its semiconductor products to original equipment manufacturers (OEMs) and other clients who integrate these components into their devices and systems. Key revenue streams include the sales of DC-DC converters, voltage regulators, and other related semiconductor components. Torex maintains significant partnerships with electronics manufacturers and distributors, which helps in expanding its market reach. The company's focus on energy-efficient and high-performance solutions contributes to its competitive positioning and drives demand for its products, thereby supporting its earnings.

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
24.50B	23.96B	25.75B	31.96B	30.86B	23.71B
	Gross Profit
4.47B	5.27B	3.56B	10.02B	9.47B	5.96B
	EBIT
-1.47B	-632.17M	-1.78B	3.98B	3.90B	1.21B
	EBITDA
-895.24M	720.13M	-1.67B	4.70B	5.76B	2.42B
	Net Income Common Stockholders
-3.72B	-2.36B	-4.30B	2.18B	3.16B	933.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.13B	9.43B	9.23B	8.57B	10.22B	11.74B
	Total Assets
37.14B	33.61B	36.64B	37.05B	34.77B	31.51B
	Total Debt
13.56B	12.98B	11.52B	7.88B	5.84B	7.39B
	Net Debt
3.43B	3.55B	2.29B	-689.62M	-4.38B	-4.35B
	Total Liabilities
17.15B	16.21B	16.08B	12.45B	12.04B	11.72B
	Stockholders Equity
19.99B	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: 1195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1195 is above the 20-day moving average (MA) of 1136.15, above the 50-day MA of 1126.42, and below the 200-day MA of 1275.16, indicating a neutral trend. The MACD of 19.98 indicates Negative momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 82.98 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
6627	80 Outperform	¥26.19B	7.94		3.82%	3.61%	-14.91%
6707	69 Neutral	¥189.21B	3.64		0.38%	-48.30%	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
6769	61 Neutral	¥9.62B	145.91		1.69%	-8.06%	―
6616	52 Neutral	¥13.07B	―		4.69%	-6.97%	45.07%

Torex Semiconductor Ltd. Corporate Events

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.

Torex Semiconductor Reports Financial Results and Forecasts Recovery

Torex Semiconductor Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a decrease in net sales and a negative operating profit compared to the previous year. Despite the financial challenges, the company is forecasting a recovery in the next fiscal year with an expected increase in net sales and a return to profitability, which may positively impact its market positioning and stakeholder confidence.

Torex Semiconductor Revises Financial Forecasts Amid Impairment Loss

Torex Semiconductor Ltd. announced an expected impairment loss of 1,115 million yen for the fiscal year ending March 31, 2025, due to asset impairment at its Kagoshima Plant. Consequently, the company revised its full-year earnings forecast, anticipating a significant decrease in profit attributable to owners of the parent, although the fiscal year-end cash dividend forecast remains unchanged.

Torex Semiconductor Completes Share Buyback

Torex Semiconductor Ltd. has completed the acquisition of its own shares, as initially resolved in a Board of Directors meeting on February 14, 2025. The acquisition involved purchasing 170,100 common shares at a total cost of 185,124,600 yen through market purchases on the Tokyo Stock Exchange, marking a strategic move to enhance shareholder value.

Torex Semiconductor Announces Share Buyback to Optimize Capital Structure

Torex Semiconductor Ltd. announced the acquisition of 119,400 of its own shares, amounting to 151,966,700 yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 500,000 shares, aiming to enhance shareholder value and optimize capital structure.