Rohm Co (6963) AI Stock Analysis

• Market Cap: ¥844.47B
• Dividend Yield: 2.36%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 0.04%
• EPS Growth: -323.26%
• Country: JP
• Employees: 23,014
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 19.04
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,303.38
• Price Target Upside: 8.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥2,010.00 ▼(-5.05% Downside)

Rohm Co's overall stock score reflects significant financial and technical challenges. The financial performance is the most critical factor, highlighting declining profitability and liquidity issues. Technical analysis indicates bearish momentum, while valuation concerns are underscored by a negative P/E ratio. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong Industry Position

Rohm Co's position as a leading semiconductor manufacturer provides a competitive edge in the industry, allowing it to leverage scale and expertise to capture market opportunities.

Diverse Product Portfolio

A diverse product portfolio enables Rohm Co to serve multiple industries, reducing dependency on any single market and enhancing resilience against sector-specific downturns.

Long-term Partnerships

Long-term partnerships with major players secure consistent orders and foster collaboration on new technologies, supporting stable revenue streams and innovation.

Negative Factors

Declining Profitability

Declining profitability and net losses indicate financial distress, potentially limiting reinvestment in growth and innovation, impacting long-term competitiveness.

Cash Flow Challenges

Negative free cash flow due to high capital expenditures strains liquidity, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Revenue Decline

Declining revenue suggests potential demand issues or competitive pressures, which could impact long-term growth prospects and market share.

Rohm Co Business Overview & Revenue Model

Company Description

Rohm Co (6963) is a leading semiconductor manufacturer based in Japan, specializing in the design and production of a wide range of electronic components. The company operates primarily in the semiconductor and electronic component sectors, focusing on products such as integrated circuits (ICs), diodes, transistors, and power management devices. With a strong emphasis on innovation, Rohm serves various industries including automotive, consumer electronics, industrial equipment, and telecommunications, providing high-quality solutions that enhance performance and energy efficiency.

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

Rohm Co faces significant financial challenges, with declining profitability and revenue concerns. The income statement shows volatility and a net loss, while the balance sheet is stable but indicates increasing leverage. Cash flow issues persist due to high capital expenditures, impacting liquidity. Overall, the financial health is strained, requiring operational improvements and strategic investment management.

Income Statement

Rohm Co's income statement shows significant volatility. The gross profit margin decreased sharply from previous years, reflecting higher costs or lower sales prices. The net profit margin turned negative in 2025, indicating a net loss, a drastic change from positive margins in prior years. Revenue has been declining, pointing to potential demand issues or competitive pressures. EBIT and EBITDA margins have also deteriorated, highlighting operational challenges. Overall, the income statement suggests financial distress, impacting profitability and growth.

Balance Sheet

The balance sheet of Rohm Co presents a mixed picture. The debt-to-equity ratio is relatively stable, suggesting manageable leverage, but the increase in total debt in 2025 could signal future risks. Return on Equity (ROE) has turned negative due to net losses, which is concerning for shareholders. However, the company maintains a strong equity ratio, indicating a sound capital structure with substantial equity backing. While the balance sheet is stable, the recent net losses raise concerns about future financial flexibility.

Cash Flow

Rohm Co's cash flow statement shows declining free cash flow over the years, with significant negative free cash flow in 2025, primarily due to high capital expenditures. The operating cash flow remains positive, indicating core operations generate cash, but the ratio to net income has weakened. The free cash flow to net income ratio is negative, reflecting cash flow challenges. The cash flow situation suggests that while operations are stable, heavy investments or poor cash conversion are straining liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	460.67B	448.47B	467.78B	507.88B	452.12B	362.88B
Gross Profit	76.02B	74.26B	145.69B	193.66B	162.32B	111.76B
EBITDA	12.24B	27.73B	144.19B	166.08B	126.30B	73.92B
Net Income	-41.81B	-50.06B	53.97B	80.38B	66.83B	25.63B
Balance Sheet
Total Assets	1.44T	1.44T	1.48T	1.12T	1.03T	848.87B
Cash, Cash Equivalents and Short-Term Investments	308.23B	248.60B	244.57B	329.25B	342.40B	315.72B
Total Debt	400.00B	400.00B	340.14B	40.34B	40.54B	40.94B
Total Liabilities	534.74B	551.11B	513.17B	207.82B	188.78B	133.40B
Stockholders Equity	903.80B	889.03B	967.47B	914.91B	839.82B	714.99B
Cash Flow
Free Cash Flow	-57.33B	-51.84B	-83.42B	-2.14B	25.60B	37.25B
Operating Cash Flow	77.05B	83.96B	82.86B	98.63B	92.18B	79.13B
Investing Cash Flow	-28.09B	-115.68B	-431.95B	-88.74B	-55.44B	-8.68B
Financing Cash Flow	-60.72B	39.05B	265.06B	-22.15B	-16.23B	-17.07B

Rohm Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2117.00
• 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:6963, the sentiment is Neutral. The current price of 2117 is below the 20-day moving average (MA) of 2124.55, below the 50-day MA of 2204.23, and above the 200-day MA of 1836.70, indicating a neutral trend. The MACD of -17.86 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 30.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6963.

Rohm Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7735	77 Outperform	¥1.17T	13.31	21.73%	2.43%	11.29%	11.38%
6920	67 Neutral	¥2.57T	27.13	53.12%	1.15%	32.51%	57.19%
6525	66 Neutral	¥1.09T	31.66	―	0.81%	10.98%	6.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6967	60 Neutral	―	―	―	―	2.41%	-3.95%
6963	46 Neutral	¥844.47B	-19.54	-4.26%	2.36%	0.04%	-323.26%
6707	46 Neutral	¥109.76B	95.61	―	―	-51.82%	-96.08%