Rohm Co (6963) AI Stock Analysis

• Market Cap: $543.70B
• Dividend Yield: 3.5%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 58.0
• Beta (1Y): 1.17
• Revenue Growth: -3.29%
• EPS Growth: -84.02%
• Country: JP
• Employees: 23,014
• Sector: Technology
• Sector Strength: 65
• Industry: Semiconductors
• EPS (TTM): -4.81
• Shares Outstanding: 403,760,000
• 10 Day Avg. Volume: 1,805,420
• 30 Day Avg. Volume: 3,440,536
• PEG Ratio: -1.12
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.38
• 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: $1,573.59
• Price Target Upside: 15.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Rohm Co's overall score is impacted by several financial challenges, particularly in profitability and cash flow management. The technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. Despite a strong equity base, the company's declining ROE, high debt levels, and negative free cash flow are significant concerns. The dividend yield provides some support but is insufficient to counterbalance the other negative factors.

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., Ltd. generates revenue primarily through the design, manufacturing, and sale of semiconductor products and electronic components. The company's key revenue streams include sales of integrated circuits (ICs), discrete semiconductors, and opto-semiconductors, which are widely used in automotive electronics, industrial devices, and consumer electronics. Rohm also earns from its passive components and LED lighting solutions. By establishing strong partnerships with global manufacturers and leveraging its advanced research and development capabilities, Rohm maintains a competitive edge in the market. The company invests significantly in innovation to enhance product performance and efficiency, catering to the needs of emerging technologies and sustainability demands, which further contributes to its revenue growth.

Rohm Co Financial Statement Overview

Summary

Rohm Co is experiencing financial challenges, particularly in profitability and cash flow management. The decline in revenue and profit margins indicates operational inefficiencies and market pressures. Although the balance sheet is relatively strong with considerable equity, the high debt levels and declining ROE are concerns. Negative free cash flow also signals potential liquidity issues. Overall, the company needs to focus on improving operational efficiency and cash flow management to enhance financial health.

Income Statement

Rohm Co's revenue has shown volatility, with a decrease from 2023 to 2024 in TTM figures. The gross profit margin in TTM stands at 22.98%, indicating a decline from previous years. Net profit margin for TTM is 1.98%, reflecting a drop from 11.53% in 2023. The company experienced negative EBIT in TTM, indicating operational challenges. EBITDA margin for TTM is 17.39%, showing a decrease compared to prior periods. These figures suggest reduced profitability and operational efficiency.

Balance Sheet

Rohm Co maintains a strong equity base with an equity ratio of 63.54% for TTM, despite a high debt-to-equity ratio of 0.41, indicating moderate leverage. The return on equity is 0.94% for TTM, a notable decline from previous years, suggesting challenges in generating returns from equity. The company's total assets have grown, reflecting potential for future growth, but profitability challenges remain.

Cash Flow

The cash flow statements reveal a challenging cash position, with TTM free cash flow at -36,592 million JPY, indicating a decline from previous periods. Operating cash flow to net income ratio is 7.55 for TTM, indicating strong cash generation relative to earnings. However, free cash flow to net income is negative, highlighting cash outflows in capital expenditures exceeding operating cash flows, posing potential liquidity risks.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
457.30B	467.78B	507.88B	452.12B	359.89B	362.88B
	Gross Profit
105.12B	145.69B	193.66B	162.32B	117.64B	111.76B
	EBIT
-8.40B	43.33B	92.32B	71.48B	38.49B	29.49B
	EBITDA
79.51B	144.19B	166.08B	126.30B	81.08B	82.64B
	Net Income Common Stockholders
9.07B	53.97B	80.38B	66.83B	37.00B	25.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
275.74B	244.57B	329.25B	342.40B	319.43B	315.72B
	Total Assets
1.52T	1.48T	1.12T	1.03T	926.24B	848.87B
	Total Debt
400.00B	340.14B	40.34B	40.54B	40.73B	40.94B
	Net Debt
132.26B	102.20B	-250.82B	-252.61B	-220.56B	-257.36B
	Total Liabilities
552.22B	513.17B	207.82B	188.78B	156.75B	133.40B
	Stockholders Equity
964.48B	967.47B	914.91B	839.82B	768.97B	714.99B
Cash Flow		Free Cash Flow
-36.59B	-83.42B	-2.14B	25.60B	13.60B	37.25B
	Operating Cash Flow
68.48B	82.86B	98.63B	92.18B	45.98B	79.13B
	Investing Cash Flow
-88.80B	-431.95B	-88.74B	-55.44B	-40.84B	-8.68B
	Financing Cash Flow
39.40B	265.06B	-22.15B	-16.23B	-24.84B	-17.07B

Rohm Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1363.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1363 is above the 20-day moving average (MA) of 1267.55, below the 50-day MA of 1389.71, and below the 200-day MA of 1549.65, indicating a neutral trend. The MACD of -10.15 indicates Negative momentum. The RSI at 56.46 is Neutral, neither overbought nor oversold. The STOCH value of 84.18 is Negative, 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
6762	78 Outperform	¥3.06T	17.97		1.89%	4.80%	34.01%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
6963	55 Neutral	$543.70B	57.98	0.94%	3.50%	-3.29%	-84.02%