Renesas Electronics Corporation

6723.T

Semiconductors · Technology

Price

¥3314.00

-78.00 (-2.30%)

Market Cap

¥6.01T

Exchange

Tokyo Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Sep 1, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Weak

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Share count falling — buybacks

−4.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.89B (2021) → 1.81B (2025)

Winston Score History

The full picture

Renesas Electronics is a Japanese semiconductor company that designs and sells microcontrollers, analog chips, and system-on-chip products. Its chips go into cars, factories, and everyday electronics like appliances and smart devices. Renesas is one of the world's largest suppliers of automotive microcontrollers, making it a key player in the global car industry's shift toward more electronic features.

The company earns revenue by selling chips to automakers, industrial equipment makers, and electronics manufacturers worldwide. Headquartered in Tokyo, Renesas has grown significantly through acquisitions of companies like Dialog Semiconductor and Intersil, broadening its product lineup and customer base. Its strong position in automotive and industrial chips gives it a competitive edge, but the business faces risks from cyclical demand swings in the semiconductor industry and increasing competition from rivals expanding into automotive electronics.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+28.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+173.1% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥238.1B/ year

↓ Declining (-32% vs prior year)

18.0% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

7.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥699.7B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Renesas Electronics Corporation grew revenue 29% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

52.1%

Healthy — 52.1% gross margin

Profit after running costs

Operating Margin

25.1%

Excellent — 25.1% operating margin

Return on the money invested

ROCE

8.5%

Below par — 8.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+16.8%

Fast-growing sales (+16.8% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

145%

Turns 145% of profit into real cash

Spare cash per sale

FCF Margin

27.6%

Converts sales into free cash efficiently (27.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.41

Conservative — low debt load (0.41)

Covers its interest

Interest Cover

18.98x

Comfortably covers interest (19.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

17.7x

Fair value — P/E 17.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+6.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (17.7 → 11.5)

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Dividends

Dividend

Dividend Yield

0.84%

Small dividend — 0.84% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

N/A

Data not available

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