Rohm Co (6963) AI Stock Analysis

• Market Cap: ¥1.09T
• Dividend Yield: 2.3%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,700.00
• Price Target Upside: -3.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 36.06
• Revenue Forecast (FY): ¥480.92B

• Rating: 49 Neutral
• Price Target: ¥2,786.00 ▼(-0.50% 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

Solid Capitalization

A sizable equity base and moderate leverage (debt-to-equity ~0.44) provide capital resilience. This reduces refinancing risk and preserves capacity to fund R&D and capacity investments tied to long sales cycles, supporting durable operational continuity despite cyclical earnings.

Structural End-Market Exposure

Rohm's product mix—power semiconductors, analog ICs and discretes—aligns with long-term trends like automotive electrification and industrial energy efficiency. These secular drivers create multi-year design cycles and sustained demand for power conversion and motor control components.

Design-in Business Model

The design-in approach creates sticky revenue once products are adopted into OEM platforms. Engineering-led design wins and reference solutions lengthen customer lifecycles and support recurring volume ramps, giving predictable revenue streams as end markets scale.

Negative Factors

Profitability Deterioration

A swing to negative operating profit and a ~-9% net margin undermines internal funding capacity and weakens unit economics. Persistent losses compress retained earnings, reduce reinvestment ability, and raise the bar for a durable recovery in returns and cash conversion.

Negative Free Cash Flow

Meaningful negative free cash flow despite positive operating cash inflow signals heavy capex or working capital strain. Sustained negative FCF reduces financial flexibility for capacity builds or strategic investments and may force external funding if losses persist.

Returns Turned Negative

A negative return on equity indicates capital deployed is not generating expected profits. This weakens shareholder return prospects and may limit the effectiveness of future reinvestment, making recovery in profitability and ROE a multi-quarter structural challenge.

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: 2800.00
• 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 2800 is above the 20-day moving average (MA) of 2620.95, above the 50-day MA of 2483.69, and above the 200-day MA of 2108.82, indicating a bullish trend. The MACD of 62.62 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 90.64 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	¥148.69B	11.10	1.86%	0.76%	-16.19%	-50.21%
6723	63 Neutral	¥5.05T	-101.52	-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	¥149.67B	-42.74	―	―	-51.82%	-96.08%
3436	50 Neutral	¥581.98B	-49.28	―	1.14%	0.66%	-87.63%
6963	49 Neutral	¥1.09T	-30.32	-4.26%	2.30%	0.04%	-323.26%
6616	45 Neutral	¥18.95B	-12.29	―	3.98%	-6.84%	50.71%