Rohm Co (6963) AI Stock Analysis

• Market Cap: ¥1.24T
• Dividend Yield: 2.3%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): 47.6
• Beta (1Y): 0.95
• 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: ¥2,713.22
• Price Target Upside: -12.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 32.91
• Revenue Forecast (FY): ¥483.12B

• Rating: 52 Neutral
• Price Target: ¥3,509.00 ▲(13.12% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by weak financial performance (swing to losses and negative free cash flow despite positive operating cash flow). Technicals are a supporting factor with strong uptrend signals, but overbought readings add near-term risk. Valuation is a secondary headwind due to a high P/E and only modest dividend yield.

Positive Factors

Structural End-Market Tailwinds

Rohm’s product mix (power semiconductors, power ICs, discretes) maps directly to long-term structural growth in automotive electrification and industrial energy efficiency. Those secular end-market trends support multi-year design cycles and recurring volume once products are designed into OEM platforms, underpinning durable demand.

Moderate Leverage / Capitalization

A substantial equity base and modest debt-to-equity give Rohm financial flexibility to absorb cyclical earnings weakness, fund capex and R&D, and sustain supply investments. This capitalization reduces bankruptcy risk and supports strategic investments needed to maintain technology leadership over multiple quarters.

Positive Operating Cash Flow

Consistent positive operating cash flow indicates core business operations still convert sales into cash, supporting working capital and ongoing R&D investments. Over a multi-month horizon this cash generation cushions near-term liquidity needs and helps finance customer support and production continuity despite margin pressure.

Negative Factors

Swing to Losses

The shift from profit to a material net loss undermines long-term reinvestment capacity and raises questions about pricing, cost structure, or product mix. Persistent negative profitability would erode margins, limit R&D and capacity spending, and weaken the company’s ability to capitalize on structural market opportunities.

Negative Free Cash Flow

Sustained negative free cash flow constrains strategic options: it limits internal funding for capex, dividends, or share repurchases and may force external financing. If FCF remains negative across cycles, the company’s ability to sustain growth investments and respond to customer ramp requirements will be impaired.

Declining Returns on Equity

A negative ROE signals that deployed capital is not generating adequate returns, reflecting either margin compression or inefficient capital allocation. Over time this reduces shareholder value creation, may pressure management to cut investment or restructure, and undermines the case for higher-risk growth initiatives.

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 makes money primarily by selling semiconductor devices and electronic components to manufacturers (OEMs) and electronics suppliers globally, generating revenue when its products are designed into customers’ end products and then shipped in volume. Key revenue streams include: (1) Power devices: sales of power semiconductors (including silicon MOSFETs/IGBTs and silicon carbide (SiC) power devices) used in high-efficiency power conversion and motor/inverter systems, with automotive and industrial customers typically driving higher-volume, longer-cycle demand once platforms enter mass production. (2) Integrated circuits: sales of analog and power management ICs (e.g., DC-DC converters, LDOs, LED driver ICs, motor drivers, interface and other mixed-signal ICs) that manage power, control, and signal functions in customer systems; these ICs are often sold as part of broader solutions supporting specific applications. (3) Discretes and modules: sales of discrete semiconductors (diodes, transistors) and, where applicable, power modules that integrate multiple devices to simplify customer design and improve performance. Revenue is supported by a design-in model: Rohm provides application engineering, reference designs, and technical support to secure adoption in customer platforms, which then drives recurring shipments over the product lifecycle. Factors contributing to earnings typically include product mix (e.g., higher-value power and automotive-grade products), customer demand in automotive electrification and industrial energy efficiency, and the company’s manufacturing and supply chain execution. Specific partnership details are not available in this response and are therefore null.

Rohm Co Financial Statement Overview

Summary

Profitability has deteriorated sharply versus prior years: TTM revenue is only modestly higher, but operating profit is negative and the company posted a net loss (~-9% net margin). The balance sheet remains reasonably resilient with moderate leverage (debt-to-equity ~0.44), but returns have turned negative. Operating cash flow is positive (~¥86.8B), yet free cash flow is meaningfully negative (~-¥44.2B), limiting flexibility in the downturn.

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 2023	Mar 2022
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	44.18B	43.55B	115.40B	148.76B	113.81B	78.95B
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	402.82B	343.22B	42.04B	42.99B	43.08B
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: 3102.00
• 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 3102 is above the 20-day moving average (MA) of 3043.78, above the 50-day MA of 2761.64, and above the 200-day MA of 2236.38, indicating a bullish trend. The MACD of 182.01 indicates Negative momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 51.77 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
6875	70 Outperform	¥137.47B	2.91	1.86%	0.76%	-16.19%	-50.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6723	57 Neutral	¥4.04T	-74.70	-2.51%	1.31%	-10.97%	-118.87%
6707	55 Neutral	¥130.10B	-13.62	―	―	-51.82%	-96.08%
6963	52 Neutral	¥1.24T	47.56	-4.26%	2.30%	0.04%	-323.26%
3436	50 Neutral	¥558.87B	-11.66	―	1.14%	0.66%	-87.63%
6616	45 Neutral	¥17.24B	15.70	―	3.98%	-6.84%	50.71%