ROHM Co., Ltd. (6963) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Restar Corp.

Kyocera Corp.

Micronics Japan Co., Ltd.

Rorze Corp.

Ferrotec Holdings Corp.

Renesas Electronics Corp.

ROHM Co., Ltd.

Socionext, Inc.

Nikon Corp.

JSR Corp.

Sanken Electric Co., Ltd.

Why is ROHM Co., Ltd. ?

Poor Management Efficiency with a low ROE of 5.50%

The company has been able to generate a Return on Equity (avg) of 5.50% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.50%

With a growth in Net Sales of 8.79%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 10 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at JPY 86,795 MM
PRE-TAX PROFIT(Q) At JPY 3,568 MM has Grown at 191.55%
NET PROFIT(Q) At JPY 1,812.57 MM has Grown at 165.39%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 97.84%, its profits have fallen by -130.4%

Majority shareholders : Non Institution

Market Beating Performance

The stock has generated a return of 97.84% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 41.38%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ROHM Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ROHM Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ROHM Co., Ltd.

97.84%

1.17

48.53%

Japan Nikkei 225

41.38%

1.48

27.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.33%

EBIT Growth (5y)

-206.32%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.87

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.37

Tax Ratio

11.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.98%

ROE (avg)

5.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.74

EV to EBIT

-20.28

EV to EBITDA

18.74

EV to Capital Employed

0.78

EV to Sales

1.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.85%

ROE (Latest)

-1.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 86,795 MM

PRE-TAX PROFIT(Q)

At JPY 3,568 MM has Grown at 191.55%

NET PROFIT(Q)

At JPY 1,812.57 MM has Grown at 165.39%

RAW MATERIAL COST(Y)

Fallen by -36.73% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 9.46 %

INVENTORY TURNOVER RATIO(HY)

Highest at 1.84 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.18 times

-8What is not working for the Company

INTEREST(HY)

At JPY 731 MM has Grown at 99.18%

Here's what is working for ROHM Co., Ltd.

Operating Cash Flow

Highest at JPY 86,795 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Pre-Tax Profit

At JPY 3,568 MM has Grown at 191.55%

over average net sales of the previous four periods of JPY -3,897.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,812.57 MM has Grown at 165.39%

over average net sales of the previous four periods of JPY -2,771.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 9.46 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 1.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -36.73% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for ROHM Co., Ltd.

Interest

At JPY 731 MM has Grown at 99.18%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)