Rohm Co (6963) AI Stock Analysis

• Market Cap: $1.16T
• Dividend Yield: 2.3%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 0.04%
• EPS Growth: -323.26%
• Country: JP
• Employees: 23,014
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 11.67
• Shares Outstanding: 403,760,000
• 10 Day Avg. Volume: 3,594,560
• 30 Day Avg. Volume: 3,352,980
• PEG Ratio: 0.06
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.23
• P/FCF Ratio: -10.64
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 14.27
• Enterprise Value/Ebitda: 48.98
• 1Y Price Target: $2,679.46
• Price Target Upside: -7.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 36.06
• Revenue Forecast (FY): $480.92B

• Rating: 49 Neutral
• Price Target: ¥2,862.00 ▼(-1.31% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held down primarily by weak financial performance, with losses and negative free cash flow despite stable revenue and a solid equity base. Technicals are moderately supportive (positive MACD and price above longer-term averages), while valuation is constrained by negative earnings, partially offset by a modest dividend yield.

Positive Factors

Moderate leverage and sizable equity base

A sizable equity base and moderate debt-to-equity (~0.44) provide durable financial flexibility. This capitalization helps Rohm fund multiyear R&D and factory investments, supports customer qualification and design‑in cycles, and cushions the firm through semiconductor demand cyclicality.

Positive operating cash flow

Sustained positive operating cash flow (~¥86.8B TTM) indicates core semiconductor operations generate cash to run and support customers. That recurring OCF underpins ongoing R&D and manufacturing support needed for long product lifecycles and design‑in processes, even while capex pressures FCF in the near term.

Exposure to structural demand (auto & industrial)

Rohm’s product mix—SiC and silicon power devices, power management and analog ICs—maps to long-term trends in automotive electrification and industrial energy efficiency. These structural markets favor multi-year design‑ins and recurring shipments once platforms scale, supporting revenue durability over cycles.

Negative Factors

Swing to negative profitability

A swing to negative operating profit and a ~-9% net margin materially erodes earnings power. Persistent losses reduce retained earnings, depress return metrics, limit reinvestment capacity for fabs and R&D, and make restoring consistent profitability across semiconductor cycles a multi-quarter structural challenge.

Material negative free cash flow

Meaningful and volatile negative free cash flow (~-¥44.2B TTM) weakens financial flexibility despite positive operating cash flow. Sustained negative FCF may force external financing, constrain strategic capex/R&D choices, and slow the company’s ability to capitalize on recovery or fund large customer qualification investments.

Severe EPS deterioration and volatility

An extreme EPS decline (~-490% YoY) signals large earnings volatility and a sharp drop in profitability. Such volatility complicates forecasting and capital allocation, undermines return expectations for shareholders, and raises execution risk when trying to stabilize margins and restore investor confidence.

Rohm Co Business Overview & Revenue Model

Company Description

ROHM Co., Ltd. manufactures and sells electronic components worldwide. It operates through three segments: ICs, Discrete Semiconductor Devices, and Modules. The company provides ICs comprising memory, amplifiers and linear, power management, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, motor/actuator drivers, interfaces, communication and speech synthesis LSI, audio and video, and microcontrollers. It also offers discrete semiconductor products include MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; passive devices, such as resistors, and conductive polymer and tantalum capacitors; modules, including wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors. In addition, the company provides commercial products, such as chipsets; and foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Further, it offers light-emitting diodes; and power and optical modules. The company's products are used in industry, automotive, consumer electronics, and consumer electronics applications. ROHM Co., Ltd. has strategic partnerships with Geely Automobile Group Co., Ltd. to develop advanced technologies in the automotive field; and Delta Electronics, Inc. to develop and produce gallium nitride power devices. The company was formerly known as Toyo Electronics Industry Corporation and changed its name to ROHM Co., Ltd. in 1981. ROHM Co., Ltd. was incorporated in 1940 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Rohm Co generates revenue primarily through the sale of its semiconductor products, which are utilized in a multitude of applications across different sectors. The company's key revenue streams include sales of discrete semiconductors, analog ICs, and power devices. Rohm also benefits from long-term partnerships with major industry players, which help secure consistent orders and foster collaboration on new technologies. Additionally, the company invests in research and development to create innovative products that meet evolving market demands, further enhancing its market share and profitability.

Rohm Co Financial Statement Overview

Summary

Financial performance is pressured: TTM profitability has swung to negative operating profit and a net loss (net margin ~-9%) despite modest revenue growth (+2.75%). The balance sheet is a relative strength with moderate leverage (debt-to-equity ~0.44), but returns have turned negative and free cash flow is meaningfully negative (~-¥44.2B), limiting flexibility.

Income Statement

Results have deteriorated sharply versus prior years: TTM (Trailing-Twelve-Months) revenue is up modestly (+2.75%), but profitability is weak with negative operating profit and a net loss (net margin about -9%). This contrasts with strong profitability in FY2023–FY2024 (healthy gross margins and solid net income), indicating a downcycle/pressure on pricing and/or costs. The key positive is that revenue has held up recently, but the swing to losses and much lower margins meaningfully weighs on the score.

Balance Sheet

The balance sheet remains a stabilizer with a sizable equity base (TTM equity ~¥926B vs debt ~¥400B), keeping leverage moderate (debt-to-equity ~0.44). However, returns have turned negative (TTM return on equity is below zero), reflecting the earnings downturn. Overall: adequate capitalization and manageable leverage, but profitability-driven balance-sheet quality has weakened.

Cash Flow

Cash generation is mixed: TTM operating cash flow is positive (~¥86.8B), but free cash flow is meaningfully negative (~-¥44.2B) and has been volatile over the past few years. Cash flow is not currently translating into surplus cash after investment needs, which reduces financial flexibility during a weaker earnings period. The main strength is continued positive operating cash flow; the main weakness is persistent/large negative free cash flow recently.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	473.34B	448.47B	467.78B	507.88B	452.12B	359.89B
Gross Profit	84.95B	74.26B	145.69B	193.66B	162.32B	117.64B
EBITDA	24.75B	27.73B	144.19B	166.08B	126.30B	81.08B
Net Income	-35.45B	-50.06B	53.97B	80.38B	66.83B	37.00B
Balance Sheet
Total Assets	1.45T	1.44T	1.48T	1.12T	1.03T	926.24B
Cash, Cash Equivalents and Short-Term Investments	312.47B	248.60B	244.57B	329.25B	342.40B	319.43B
Total Debt	400.00B	400.00B	340.14B	40.34B	40.54B	40.73B
Total Liabilities	523.78B	551.11B	513.17B	207.82B	188.78B	156.75B
Stockholders Equity	925.51B	889.03B	967.47B	914.91B	839.82B	768.97B
Cash Flow
Free Cash Flow	-44.16B	-51.84B	-83.42B	-2.14B	25.60B	13.60B
Operating Cash Flow	86.80B	83.96B	82.86B	98.63B	92.18B	45.98B
Investing Cash Flow	-25.89B	-115.68B	-431.95B	-88.74B	-55.44B	-40.84B
Financing Cash Flow	-20.78B	39.05B	265.06B	-22.15B	-16.23B	-24.84B

Rohm Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2900.00
• 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:6963, the sentiment is Positive. The current price of 2900 is above the 20-day moving average (MA) of 2630.05, above the 50-day MA of 2499.16, and above the 200-day MA of 2116.16, indicating a bullish trend. The MACD of 74.64 indicates Negative momentum. The RSI at 69.85 is Neutral, neither overbought nor oversold. The STOCH value of 91.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6963.

Rohm Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6875	70 Outperform	¥149.50B	11.09	1.86%	0.76%	-16.19%	-50.21%
6723	63 Neutral	¥5.15T	-99.78	-2.51%	1.31%	-10.97%	-118.87%
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%
3436	50 Neutral	¥624.70B	-53.09	―	1.14%	0.66%	-87.63%
6963	49 Neutral	$1.16T	-31.57	-4.26%	2.30%	0.04%	-323.26%
6616	45 Neutral	¥19.11B	-12.61	―	3.98%	-6.84%	50.71%