TSE:6723

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Renesas Electronics

Executive Summary

Renesas Electronics Corporation, together with its subsidiaries, researches, develops, designs, manufactures, sells, and services semiconductors in Japan, North America, Europe, and Asia.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Renesas Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6723's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

6723

4.7%

JP Semiconductor

-0.1%

JP Market


1 Year Return

-3.1%

6723

56.3%

JP Semiconductor

-1.0%

JP Market

Return vs Industry: 6723 underperformed the JP Semiconductor industry which returned 55.5% over the past year.

Return vs Market: 6723 underperformed the JP Market which returned -0.7% over the past year.


Shareholder returns

6723IndustryMarket
7 Day2.8%4.7%-0.1%
30 Day-8.3%10.2%-4.2%
90 Day32.7%33.9%9.3%
1 Year-3.1%-3.1%59.2%56.3%1.5%-1.0%
3 Year-41.5%-41.5%48.7%39.8%4.3%-2.9%
5 Year-26.3%-26.3%139.8%119.0%9.5%-2.4%

Price Volatility Vs. Market

How volatile is Renesas Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Renesas Electronics undervalued compared to its fair value and its price relative to the market?

29.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6723 (¥593) is trading below our estimate of fair value (¥841.64)

Significantly Below Fair Value: 6723 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6723 is poor value based on its PE Ratio (140.2x) compared to the JP Semiconductor industry average (24.1x).

PE vs Market: 6723 is poor value based on its PE Ratio (140.2x) compared to the JP market (15x).


Price to Earnings Growth Ratio

PEG Ratio: 6723 is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: 6723's PB Ratio (1.6x) is in line with the JP Semiconductor industry average.


Next Steps

Future Growth

How is Renesas Electronics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6723's forecast earnings growth (38% per year) is above the savings rate (0.05%).

Earnings vs Market: 6723's earnings (38% per year) are forecast to grow faster than the JP market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6723's revenue (6.5% per year) is forecast to grow faster than the JP market (3.4% per year).

High Growth Revenue: 6723's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6723's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Renesas Electronics performed over the past 5 years?

-30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6723 has a large one-off loss of ¥25.5B impacting its March 31 2020 financial results.

Growing Profit Margin: 6723's current net profit margins (1%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 6723's earnings have declined by -30.1% per year over the past 5 years.

Accelerating Growth: 6723's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6723 had negative earnings growth (-71.7%) over the past year, making it difficult to compare to the Semiconductor industry average (-22.7%).


Return on Equity

High ROE: 6723's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Renesas Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: 6723's short term assets (¥322.1B) exceed its short term liabilities (¥249.5B).

Long Term Liabilities: 6723's short term assets (¥322.1B) do not cover its long term liabilities (¥781.0B).


Debt to Equity History and Analysis

Debt Level: 6723's debt to equity ratio (121.8%) is considered high.

Reducing Debt: 6723's debt to equity ratio has increased from 80.9% to 121.8% over the past 5 years.

Debt Coverage: 6723's debt is well covered by operating cash flow (27.6%).

Interest Coverage: 6723's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Renesas Electronics's current dividend yield, its reliability and sustainability?

0.37%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6723's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6723's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6723's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6723's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6723's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Hidetoshi Shibata (48yo)

1

Tenure

Mr. Hidetoshi Shibata has been Chief Financial Officer and Executive Vice President of Renesas Electronics Singapore Pte. Ltd. since November 1, 2013 and served as its Managing Executive Officer. Mr. Shiba ...


Leadership Team

NamePositionTenureCompensationOwnership
Hidetoshi Shibata
President1yrno data0.00015% ¥1.5m
Shuhei Shinkai
Senior VP & CFO0.92yrno datano data
Shinichi Yoshioka
Senior VP & CTO0.92yrno datano data
Jason Hall
Senior VP & CLO3yrsno datano data
Shingo Yamamoto
Executive VP & GM of Automotive Solution Business Unit2.33yrsno datano data
Sailesh Chittipeddi
Executive VP and GM of IoT & Infrastructure Business Unit1.25yrsno datano data
Chris Allexandre
Senior VP and Head of Sales1.25yrsno datano data
Roger Wendelken
Senior VP and Head of MCU Business1.25yrsno datano data
Masahiko Nozaki
Executive VP and GM of Production & Technology Unit1.25yrsno datano data
Tomomitsu Maoka
Senior VP & Deputy GM of Automotive Solution Business Unit1.25yrsno datano data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: 6723's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hidetoshi Shibata
President1yrno data0.00015% ¥1.5m
Jiro Iwasaki
Independent Outside Directorno datano datano data
Tetsuya Tsurumaru
Chairmanno datano data0.00058% ¥5.9m
Kazuki Fukuda
Full-Time Corporate Auditorno datano data0.00026% ¥2.6m
Takeshi Sekine
Part-Time Corporate Auditorno datano datano data
Kazuyoshi Yamazaki
Part-Time Corporate Auditorno datano datano data
Arunjai Mittal
Independent Outside Director0.33yrno datano data
Tetsuro Toyoda
Independent Outside Directorno datano datano data
Noboru Yamamoto
Part-Time Outside Corporate Auditor2.33yrsno datano data
Selena Loh LaCroix
Independent Outside Director0.33yrno datano data

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 6723's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Renesas Electronics Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Renesas Electronics Corporation
  • Ticker: 6723
  • Exchange: TSE
  • Founded: 2002
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: JP¥1.015t
  • Shares outstanding: 1.71b
  • Website: https://www.renesas.com

Number of Employees


Location

  • Renesas Electronics Corporation
  • TOYOSU FORESIA
  • 3-2-24 Toyosu
  • Tokyo
  • 135-0061
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6723TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 2003
NENDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2003
RNEC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 2003
RNEC NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2003
RNEC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDSep 2003

Biography

Renesas Electronics Corporation, together with its subsidiaries, researches, develops, designs, manufactures, sells, and services semiconductors in Japan, North America, Europe, and Asia. The company offers microcontrollers and microprocessors, amplifiers and buffers, analog devices, audio and video products, automotive products, data converters, interfaces, memory products, and optoelectronics, as well as peripherals; ICs for communication and power devices, factory automation, and motor/actuator drivers; and embedded system platforms. It also provides automotive, building automation, energy management system, healthcare, home appliance, industrial and office automation, network infrastructure, technology, and other application solutions. The company offers its solutions to the automotive, industrial, and broad-based markets. It has a collaboration with Altair Semiconductor Ltd. to develop cellular IoT solutions with CAT-M and NB-IoT dual mode chipsets and technologies. Renesas Electronics Corporation has a collaboration with Panthronics AG for wireless charging and connected IoT solutions. The company was founded in 2002 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 14:49
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.