Rohm Co (6963) AI Stock Analysis

• Market Cap: $796.00B
• Dividend Yield: 2.51%
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): 60.0
• Beta (1Y): 1.13
• Revenue Growth: -4.19%
• EPS Growth: -236.23%
• Country: JP
• Employees: 23,014
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 7.69
• Shares Outstanding: 403,760,000
• 10 Day Avg. Volume: 5,188,730
• 30 Day Avg. Volume: 5,262,213
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 13.72
• Enterprise Value/Ebitda: 48.84
• 1Y Price Target: $1,906.88
• Price Target Upside: -4.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: ¥1,890.00 ▼(-5.29% Downside)

Rohm Co's stock score is primarily driven by strong technical momentum, which is the most positive factor. However, financial performance issues, including declining profitability and cash flow challenges, significantly impact the score. The negative P/E ratio further highlights valuation concerns, offsetting the positive technical indicators.

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 and electronic components. The company's key revenue streams include the manufacturing and distribution of integrated circuits, discrete semiconductors, and power devices to original equipment manufacturers (OEMs) and other businesses across different industries. Rohm's products are integral to various applications, such as automotive electronics, mobile devices, and industrial machinery, allowing the company to capitalize on the growing demand for electronic components in these sectors. Additionally, strategic partnerships and collaborations with leading technology firms further bolster its market position and contribute to its earnings.

Rohm Co Financial Statement Overview

Summary

Rohm Co faces significant financial challenges. The income statement indicates declining profitability and revenue concerns, while the balance sheet shows increasing leverage. Cash flow issues persist, primarily due to high capital expenditures, impacting liquidity. The company needs to address operational inefficiencies to restore financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	448.47B	467.78B	507.88B	452.12B	359.89B
Gross Profit	74.26B	145.69B	193.66B	162.32B	117.64B
EBITDA	27.73B	144.19B	166.08B	126.30B	81.08B
Net Income	-50.06B	53.97B	80.38B	66.83B	37.00B
Balance Sheet
Total Assets	1.44T	1.48T	1.12T	1.03T	926.24B
Cash, Cash Equivalents and Short-Term Investments	248.60B	244.57B	329.25B	342.40B	319.43B
Total Debt	400.00B	340.14B	40.34B	40.54B	40.73B
Total Liabilities	551.11B	513.17B	207.82B	188.78B	156.75B
Stockholders Equity	889.03B	967.47B	914.91B	839.82B	768.97B
Cash Flow
Free Cash Flow	-51.84B	-83.42B	-2.14B	25.60B	13.60B
Operating Cash Flow	83.96B	82.86B	98.63B	92.18B	45.98B
Investing Cash Flow	-115.68B	-431.95B	-88.74B	-55.44B	-40.84B
Financing Cash Flow	39.05B	265.06B	-22.15B	-16.23B	-24.84B

Rohm Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1995.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1995.5 is above the 20-day moving average (MA) of 1928.62, above the 50-day MA of 1813.78, and above the 200-day MA of 1545.68, indicating a bullish trend. The MACD of 49.65 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 72.16 is Neutral, 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
Sector *	68 Neutral	¥238.13B	15.93	6.62%	2.46%	9.00%	-0.33%
6963	63 Neutral	$796.00B	60.02	-5.40%	2.51%	-4.19%	-236.23%
DINRF	―	$7.95B	12.21	24.92%	2.54%	―	―
LSRCF	―	$8.83B	15.86	47.47%	2.23%	―	―
6525	68 Neutral	¥731.49B	24.20		1.20%	5.69%	-10.53%
6707	67 Neutral	¥209.58B	4.11		0.38%	-48.30%	―
6967	60 Neutral	$797.03B	44.60		0.84%	2.41%	-3.95%