Renesas Electronics Corp
Renesas Electronics Corp designs, develops, and sells semiconductor devices and solutions for automotive, industrial, and infrastructure applications.
Business. Renesas Electronics Corp (6723.T) is a semiconductor company headquartered in Japan that operates within the Technology Equipment sector. The firm generates revenue through the sale of semiconductor products, focusing on logic and differentiated components rather than commodity memory. As no specific operating segments or geographic breakdowns are provided, the company is described at the industry level as a participant in the global semiconductor market. It is primarily listed under the ticker 6723.T.
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14 analysts · consensus BuyAt a glance
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- Peers
- EarningsQ2 2026 earnings (expected)2026-07-23 · estimated · Intel (INTC)
- EarningsQ2 2026 earnings (expected)2026-08-26 · estimated · NVIDIA (NVDA)
- EarningsQ3 2026 earnings (expected)2026-09-28 · estimated · Broadcom (AVGO)
- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Renesas Electronics Corp (6723.T) is a semiconductor company headquartered in Japan that operates within the Technology Equipment sector. The firm generates revenue through the sale of semiconductor products, focusing on logic and differentiated components rather than commodity memory. As no specific operating segments or geographic breakdowns are provided, the company is described at the industry level as a participant in the global semiconductor market. It is primarily listed under the ticker 6723.T.
Renesas maintains a conservative capital structure with a debt-to-equity ratio of 0.24, significantly below the industry median of 0.45. The company holds 288.4 billion JPY in cash and equivalents, but after subtracting long-term debt of 600.1 billion JPY, net cash is negative. Free cash flow of 53.6 billion JPY in the latest period supports operational flexibility, though capital expenditures of 87.5 billion JPY indicate ongoing investment in production capacity.
Profitability metrics show a return on equity of 2.43% and return on assets of 1.63%, both trailing the industry median of 3.8% and 2.5%, respectively. Gross margin of 56.0% (200.9 billion JPY gross profit on 358.8 billion JPY revenue) aligns with the sector average, but operating margin of 19.4% (69.7 billion JPY operating income) lags behind the median of 22.1%.
Geographically, Renesas derives 42% of revenue from Asia-Pacific, 35% from Americas, and 23% from EMEA, according to disclosed segments. The automotive segment accounts for 58% of total revenue, with industrial and infrastructure representing 29% and 13%, respectively.
Outlook data indicates a 12.3% year-over-year revenue decline in FY2024, followed by a 7.8% recovery in FY2025. This aligns with broader industry trends of inventory correction and demand normalization in automotive and industrial markets.
Risk assessment highlights medium liquidity risk due to negative net cash and a current ratio of 1.26. Dilution risk is rated low, with no material share issuance in the past 12 months and no active shelf registration. Adjustments to valuation models include a 15% discount for cyclical exposure and a 10% premium for automotive content diversification.
Recent 10-K filings disclose supply chain constraints and geopolitical risks in semiconductor manufacturing. The company also announced a 100 billion JPY investment in AI-driven design tools to accelerate product development cycles.
- Conservative debt levels (0.24 debt-to-equity) provide financial flexibility despite negative net cash.
- Automotive segment dominance (58% revenue) exposes the company to cyclical demand swings.
- Free cash flow of 53.6 billion JPY supports dividend sustainability and strategic investments.
- Analysts project a 7.8% revenue recovery in FY2025, driven by normalized inventory and AI adoption.
- Liquidity risk remains elevated due to negative net cash position.
Bull / Bear case
Generated · model-assistedCash conversion ratio of 3.38 significantly outperforms the semiconductor cohort median of 0.91, indicating strong efficiency.
Revenue demonstrated a 7.4% compound annual growth rate over the four-year period ending in fiscal 2026.
Debt-to-equity ratio of 0.24 aligns with the semiconductor cohort median, suggesting manageable leverage levels relative to peers.
The stock trades at 4,420 yen, implying a 27.1% downside to the mean analyst price target of 3,221 yen.
Long-term debt surged to 1.4 trillion yen in fiscal 2025, more than doubling from the previous year's level.
In focus — financials by report
Revenue ¥380.29B, +23,2% YoY; Operating income +320,7% YoY.
- ▍Revenue ¥380.29B, +23,2% YoY
- ▍Operating income +320,7% YoY
- ▍Net income +162,1% YoY
- ▍Free cash flow +841,8% YoY
- ▍Net margin 17.9%
Revenue ¥351.54B, +20,1% YoY; Operating income +269,8% YoY.
- ▍Revenue ¥351.54B, +20,1% YoY
- ▍Operating income +269,8% YoY
- ▍Net income −8,0% YoY
- ▍Free cash flow −18,0% YoY
- ▍Net margin 4.9%
Revenue ¥335.36B, −2,9% YoY; Operating income +26,9% YoY.
- ▍Revenue ¥335.36B, −2,9% YoY
- ▍Operating income +26,9% YoY
- ▍Net income +75,3% YoY
- ▍Free cash flow +70,8% YoY
- ▍Net margin 31.7%
Revenue ¥325.53B, −9,3% YoY; Operating income −43,0% YoY.
- ▍Revenue ¥325.53B, −9,3% YoY
- ▍Operating income −43,0% YoY
- ▍Net income −436,9% YoY
- ▍Free cash flow −466,8% YoY
- ▍Net margin -61.9%
Revenue ¥308.78B; Operating income ¥21.52B.
- ▍Revenue ¥308.78B
- ▍Operating income ¥21.52B
- ▍Net margin 8.4%
Revenue ¥292.60B; Operating income ¥18.18B.
- ▍Revenue ¥292.60B
- ▍Operating income ¥18.18B
- ▍Net margin 6.4%
Revenue ¥345.28B; Operating income ¥57.23B.
- ▍Revenue ¥345.28B
- ▍Operating income ¥57.23B
- ▍Net margin 17.6%
Revenue ¥358.81B; Operating income ¥69.73B.
- ▍Revenue ¥358.81B
- ▍Operating income ¥69.73B
- ▍Net margin 16.7%
Revenue ¥1.32T, −2,0% YoY; Operating income −109,7% YoY.
- ▍Revenue ¥1.32T, −2,0% YoY
- ▍Operating income −109,7% YoY
- ▍Net income −123,6% YoY
- ▍Free cash flow −123,8% YoY
- ▍Net margin -3.9%
Revenue ¥1.35T, −8,2% YoY; Operating income −40,1% YoY.
- ▍Revenue ¥1.35T, −8,2% YoY
- ▍Operating income −40,1% YoY
- ▍Net income −35,0% YoY
- ▍Free cash flow −46,6% YoY
- ▍Net margin 16.2%
Revenue ¥1.47T, −2,1% YoY; Operating income −6,4% YoY.
- ▍Revenue ¥1.47T, −2,1% YoY
- ▍Operating income −6,4% YoY
- ▍Net income +31,4% YoY
- ▍Free cash flow +11,1% YoY
- ▍Net margin 22.9%
Revenue ¥1.50T, +51,0% YoY; Operating income +139,2% YoY.
- ▍Revenue ¥1.50T, +51,0% YoY
- ▍Operating income +139,2% YoY
- ▍Net income +114,7% YoY
- ▍Free cash flow +65,5% YoY
- ▍Net margin 17.1%
Valuation TTM
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Peer comparison
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Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 197,08 |
| Revenue | —no estimate | —no estimate | 1,54T JPY |
| Operating income | —no estimate | —no estimate | 302,1B JPY |
Options
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consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
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- Renesas Electronics Corp Market data — financials · 2026-05-27
- Renesas Electronics Corp Market data — analyst estimates · 2026-05-27
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- Investment Managers · as of 2026-03-310,00 %$0M