OTCPK:RNEC.F

Stock Analysis Report

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

Fundamentals

Mediocre balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

0%

RNEC.F

-0.01%

US Semiconductor

0.4%

US Market


1 Year Return

3.3%

RNEC.F

21.5%

US Semiconductor

6.9%

US Market

Return vs Industry: RNEC.F underperformed the US Semiconductor industry which returned 21.5% over the past year.

Return vs Market: RNEC.F underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

RNEC.FIndustryMarket
7 Day0%-0.01%0.4%
30 Day3.3%-0.4%-1.1%
90 Day12.4%3.3%-0.5%
1 Year3.3%3.3%23.9%21.5%9.3%6.9%
3 Year9.1%9.1%80.5%69.8%45.8%36.4%
5 Year-13.6%-13.6%132.4%108.4%62.9%45.1%

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?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RNEC.F ($6.35) is trading below our estimate of fair value ($7.44)

Significantly Undervalued: RNEC.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RNEC.F is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: RNEC.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate RNEC.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNEC.F is good value based on its PB Ratio (2.1x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

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

39.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNEC.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: RNEC.F is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: RNEC.F's loss is forecast to worsen by 0% next year.

Revenue vs Market: RNEC.F's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RNEC.F's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RNEC.F's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Renesas Electronics performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RNEC.F is unprofitable, and losses have increased over the past 5 years at a rate of -5.6% per year.

Accelerating Growth: Unable to compare RNEC.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RNEC.F is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.2%).


Return on Equity

High ROE: RNEC.F has a negative Return on Equity (-0.23%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RNEC.F is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RNEC.F is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Renesas Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: RNEC.F's short term assets (¥310.1B) exceeds its short term liabilities (¥279.5B)

Long Term Liabilities: RNEC.F's short term assets (310.1B) do not cover its long term liabilities (795.2B)


Debt to Equity History and Analysis

Debt Level: RNEC.F's debt to equity ratio (139.7%) is considered high

Reducing Debt: RNEC.F's debt to equity ratio has increased from 116.3% to 139.7% over the past 5 years.


Balance Sheet

Inventory Level: RNEC.F has a high level of physical assets or inventory.

Debt Coverage by Assets: RNEC.F's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RNEC.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RNEC.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.3% per year.


Next Steps

Dividend

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

0.25%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if RNEC.F'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 RNEC.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Renesas Electronics's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

Hidetoshi Shibata (47yo)

0.3yrs

Tenure

0

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 ...


Management Age and Tenure

0.5yrs

Average Tenure

52yo

Average Age

Experienced Management: RNEC.F's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: RNEC.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Hidetoshi Shibata (47yo)

    President

    • Tenure: 0.3yrs
  • Sailesh Chittipeddi (56yo)

    Executive VP and GM of IoT & Infrastructure Business Unit

    • Tenure: 0.5yrs
  • Roger Wendelken (52yo)

    Senior VP and Head of MCU Business

    • Tenure: 0.5yrs
  • Shingo Yamamoto (53yo)

    Executive VP & GM of Automotive Solution Business Unit

    • Tenure: 1.6yrs
  • Shinichi Yoshioka

    Senior VP & CTO

    • Tenure: 0.2yrs
  • Chris Allexandre (44yo)

    Senior VP and Head of Sales

    • Tenure: 0.5yrs
  • Masahiko Nozaki

    Executive VP and GM of Production & Technology Unit

    • Tenure: 0.5yrs
  • Olav Schulte (52yo)

    Senior VP & Deputy GM of Automotive Solution Business Unit

    • Tenure: 1.3yrs
  • Shuhei Shinkai

    Senior VP & CFO

    • Tenure: 0.2yrs
  • Jason Hall

    Senior VP & CLO

    • Tenure: 2.3yrs

Board Members

  • Jiro Iwasaki (74yo)

    Outside Director

    • Tenure: 0yrs
  • Hidetoshi Shibata (47yo)

    President

    • Tenure: 0.3yrs
  • Tetsuya Tsurumaru (65yo)

    Chairrman

    • Tenure: 0yrs
  • Kazuki Fukuda (69yo)

    Full-Time Corporate Auditor

    • Tenure: 0yrs
  • Takeshi Sekine (58yo)

    Part-Time Corporate Auditor

    • Tenure: 0yrs
  • Kazuyoshi Yamazaki (70yo)

    Part-Time Corporate Auditor

    • Tenure: 0yrs
  • Tetsuro Toyoda (57yo)

    Outside Director

    • Tenure: 5.7yrs
  • Noboru Yamamoto (57yo)

    Part-Time Outside Corporate Auditor

    • Tenure: 1.6yrs
  • Yukiko Nakagawa

    Outside Director

    • Tenure: 0.6yrs
  • Kyoko Okumiya

    Outside Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Renesas Electronics Corporation
  • Ticker: RNEC.F
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: JP¥1.251t
  • Listing Market Cap: JP¥11.530b
  • Shares outstanding: 1.70b
  • 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 offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:20
End of Day Share Price2019/10/10 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.