Rohm Co (6963) AI Stock Analysis

• Market Cap: ¥1.07T
• Dividend Yield: 2.3%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• 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: ¥2,400.00
• Price Target Upside: 0.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥2,758.00 ▲(15.64% Upside)

The score is primarily held back by weak financial performance (declining revenue, deteriorating margins, and a net loss with negative free cash flow). Technicals are supportive with an uptrend and positive MACD, but extremely overbought momentum raises pullback risk. Valuation remains pressured due to losses (negative P/E), with only modest support from the dividend yield.

Positive Factors

Design-in business model & product breadth

Rohm’s design-in model and broad product portfolio (power semiconductors, ICs, discretes) create sticky OEM relationships and recurring shipments once platforms reach mass production. This drives multi-year revenue visibility, higher switching costs, and durable customer lock-in across automotive and industrial end markets.

Exposure to automotive electrification tailwinds

Rohm’s focus on SiC/silicon power devices and power-management ICs maps to secular growth in EVs and industrial energy efficiency. These structural trends expand Rohm’s addressable market and underpin multi-year demand prospects for higher-margin, automotive-qualified products, supporting sustainable revenue potential.

Positive operating cash flow

Despite negative free cash flow, Rohm’s positive operating cash flow shows its core semiconductor operations convert sales into cash. Over the medium term this supports working capital needs and ongoing R&D/capex funding, providing a buffer while investments scale toward higher-volume production.

Negative Factors

Declining revenue & negative margins

A trajectory of falling revenue and sharply compressed gross and net margins led to a 2025 net loss. Sustained weak top-line or margin pressure undermines profitability, erodes ROE, reduces reinvestment capacity, and impairs competitive positioning in key automotive and industrial segments over the coming months.

Negative free cash flow from heavy capex

Material negative free cash flow driven by heavy capex strains liquidity and financial flexibility. In a capital-intensive semiconductor footprint, prolonged negative FCF can necessitate additional borrowing or equity actions, constrain strategic investments, and raise execution risk during cyclical downturns.

Negative ROE and rising debt

ROE turned negative while total debt rose in 2025, weakening returns to shareholders and increasing leverage risk. Continued losses plus higher debt amplify interest burdens, limit strategic options, and could pressure credit metrics, making the company more vulnerable through industry cycles.

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

Weak profitability and growth: revenue is declining, margins have deteriorated, and net profit turned negative in 2025. Balance sheet leverage appears manageable with a solid equity base, but rising debt and negative ROE are concerns. Cash flow is pressured by heavy capex, with negative free cash flow in 2025 despite positive operating cash flow.

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: Positive
• Last Price: 2385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2385 is below the 20-day moving average (MA) of 2492.60, above the 50-day MA of 2282.26, and above the 200-day MA of 1973.64, indicating a bullish trend. The MACD of 132.18 indicates Negative momentum. The RSI at 75.86 is Negative, neither overbought nor oversold. The STOCH value of 90.24 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
6920	81 Outperform	¥3.28T	38.74	53.12%	1.11%	32.51%	57.19%
7735	72 Outperform	¥1.79T	22.45	21.73%	2.29%	11.29%	11.38%
6525	67 Neutral	¥1.52T	46.80	―	0.73%	10.98%	6.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥146.38B	127.51	―	―	-51.82%	-96.08%
6963	52 Neutral	¥1.07T	-24.87	-4.26%	2.30%	0.04%	-323.26%