• Rohm’s Operating Income Forecast for the full year stands at 14.00 billion yen, falling short of the estimated 55.69 billion yen.
• The company’s net income is also expected to be 14.00 billion yen, less than the predicted 47.65 billion yen.
• Rohm anticipates net sales of 480.00 billion yen, lower than the estimate of 523.64 billion yen.
• The projected dividend per share is 50.00 yen, which is slighter lower than the estimate of 52.25 yen.
• For the first half of the year, Rohm projects 225.00 billion yen in net sales, 6.00 billion yen in operating income and 7.50 billion yen in net income.
• Fourth quarter results show operating income at 2.68 billion yen, down 84% year-on-year, against the forecast of 3.91 billion yen.
• Net income for the fourth quarter was at 8.86 billion yen, a reduction of 29% year-on-year, although it surpassed the estimate of 4.19 billion yen.
• Fourth quarter net sales fell by 4.3% year-on-year to 112.65 billion yen, narrowly missing the estimate of 114.5 billion yen.
• Reflecting on the company’s performance and potential, 14 analysts rate it as a “buy”, 1 as a “hold” and 1 as a “sell”.
ROHM Co Ltd on Smartkarma
Analyst coverage of ROHM Co Ltd on Smartkarma provides valuable insights for investors. Scott Foster, in his report “Quantum Process Optimization,” highlights the partnership with Quanmatic to enhance electrical die sorting efficiency, driving growth through power semiconductors for EVs and margin expansion from technological advancements. Foster anticipates improved EDS performance and full-scale implementation starting April, indicating a bullish stance for long-term growth.
In another report by Scott Foster titled “Government Subsidy for Power Device Project with Toshiba,” he notes the positive impact of METI subsidy on ROHM’s share price following the collaboration with Toshiba in power semiconductors. With the expectation of profit recovery post inventory clearance and the semiconductor cycle, Foster recommends a long-term Buy for ROHM. The subsidy, amounting to a significant portion of planned investments, underscores the company’s strategic positioning in the electric vehicle market and other industries amidst market recovery efforts.
A look at ROHM Co Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ROHM Co Ltd, a leading manufacturer of custom linear integrated circuits and semiconductor devices for consumer electronics, is positioned for a positive long-term outlook. With strong scores in Value, Growth, and Resilience, the company demonstrates solid fundamentals and growth potential. The Value score of 4 indicates that ROHM Co Ltd is undervalued relative to its peers, presenting an attractive investment opportunity. Furthermore, the Growth score of 4 suggests that the company is poised for expansion and increasing market share, supported by its innovative products and global presence. Additionally, the Resilience score of 3 reflects the company’s ability to weather economic uncertainties and industry challenges, adding to its appeal as a long-term investment.
Despite a lower Momentum score of 2, ROHM Co Ltd‘s overall Smart Score paints a promising picture for investors looking at the company from a long-term perspective. While short-term performance may be subdued, the company’s strong underlying value, growth prospects, and resilience bode well for its future performance. With a diverse product portfolio and a global presence through its subsidiaries, including Wako Electric and Apollo Electronics, ROHM Co Ltd is well-positioned to capitalize on evolving consumer electronics trends and maintain its competitive edge in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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