# Renesas Electronics (6723.JP)

Canonical: https://gigainvestors.com/s/6723.JP

Analysis as of: 2026-10-15T07:11:04.752Z. Financial observations: FY2013–FY2025.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 3,014.00 per share; close as of 2026-10-15.

Estimated value: low JPY 2,034.26 per share, central JPY 2,294.42 per share, high JPY 2,640.76 per share. Buy at or below the central value JPY 2,294.42 per share. Valuation as of 2026-10-15T07:11:04.752Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: fail

- 7 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 7

- Years with a net loss: 2

- Operating margin variation: 0.56×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.09×

- FY2019: 0.01×

- FY2020: 0.09×

- FY2021: 0.17×

- FY2022: 0.28×

- FY2023: 0.27×

- FY2024: 0.17×

- FY2025: 0.15×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.4%

- ROIC, second-lowest year: 9.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.8%

- ROIC including acquisitions, ten-year median: 12.1%

- Typical minus recent gross margin: -12.8 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.6%

- FY2017: 14.5%

- FY2018: 12.4%

- FY2019: 0.8%

- FY2020: 9.4%

- FY2021: 22.3%

- FY2022: 43.6%

- FY2023: 36.5%

- FY2024: 14.1%

- FY2025: 14.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.35×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 1.19T

- Net income, five-year total: JPY 881B

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, final three-year average: 8.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.75×

- FY2022: 1.36×

- FY2023: 1.15×

- FY2024: 1.14×

- FY2025: 0.15×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 14.5% vs 14.3%

- Per-share earnings: 51.76 to 122.51 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 1.0%

- Market cap gain: JPY 2.32T

- Cumulative retained earnings: JPY 1.01T

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.4%

- Per-share value change: JPY 70.75

- Per-share value, starting three-year median: JPY 51.76

- Per-share value, ending three-year median: JPY 122.51

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 1.07T

- ROIC, first three-year median: 14.5%

- ROIC, last three-year median: 14.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: JPY 0

- FY2017: JPY 61.20

- FY2018: JPY 30.57

- FY2019: JPY -3.73

- FY2020: JPY 26.54

- FY2021: JPY 64.77

- FY2022: JPY 137.66

- FY2023: JPY 189.77

- FY2024: JPY 122.51

- FY2025: JPY -28.65

### accounting: pass

- Sloan accruals: -12.1%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.2%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.16×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.0%

- FY2017: -6.3%

- FY2018: -11.5%

- FY2019: -12.5%

- FY2020: -11.1%

- FY2021: -7.7%

- FY2022: -7.9%

- FY2023: -5.0%

- FY2024: -2.7%

- FY2025: -12.1%

## Holders

## Price story

Down 37% since Jun 2026 · sales -2%

Story as of 2026-10-16T10:00:14.502Z; price observation 2026-10-15.

Price needs cash profits to grow 4.5% a year for ten years

### Sales · FY2024–2025

sales -2%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR06.pdf; observed 2026-03-19.

- FY2016: JPY 0 

- FY2017: JPY 779B 

- FY2018: JPY 757B 

- FY2019: JPY 718B 

- FY2020: JPY 716B 

- FY2021: JPY 994B 

- FY2022: JPY 1.50T 

- FY2023: JPY 1.47T 

- FY2024: JPY 1.35T 

- FY2025: JPY 1.32T 

### Gross margin · FY2025

gross margin 57.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR06.pdf; observed 2026-03-19.

- FY2017: 45.3% 

- FY2018: 43.9% 

- FY2019: 41.0% 

- FY2020: 46.9% 

- FY2021: 49.9% 

- FY2022: 56.9% 

- FY2023: 56.8% 

- FY2024: 55.6% 

- FY2025: 57.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 1.3 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR06.pdf (filed 2026-03-19); FY2025: revenue 1321212000000; grossProfit 753792000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 55.6% to 57.1% during 2023–25; it earns 14.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2023: grossProfit / revenue = 56.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2024: grossProfit / revenue = 55.6%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR06.pdf (filed 2026-03-19); FY2025: grossProfit / revenue = 57.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); 10-year return on capital observations [[2016,0.20601192896841536],[2017,0.1451703754794846],[2018,0.12410297194505338],[2019,0.007958247817331386],[2020,0.09394100190276156],[2021,0.2233109280929864],[2022,0.4362302318585447],[2023,0.3648722793628612],[2024,0.14065975499008201],[2025,0.14261113259814764]]; median 0.14389075403881613. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2017: growth capex 47142000000; upkeep 76495000000; owner earnings 101669000000. Growth capex / owner earnings = 0.4636811614159675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2018: growth capex 0; upkeep 86874000000; owner earnings 75942000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2019: growth capex 0; upkeep 56368000000; owner earnings 79615000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2020: growth capex 0; upkeep 38186000000; owner earnings 144127000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2021: growth capex 0; upkeep 52346000000; owner earnings 208666000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2022: growth capex 0; upkeep 88199000000; owner earnings 348564000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2023: growth capex 0; upkeep 129127000000; owner earnings 388172000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2024: growth capex 0; upkeep 169835000000; owner earnings 250046000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,49702000000],[2025,50311000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits grow 4.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); Ten-year compound average after fade. Initial solved rate 0.051702576126616884. Price 3014; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 856.00 per share

- 2016-12: JPY 928.00 per share

- 2017-01: JPY 1,018.00 per share

- 2017-02: JPY 914.00 per share

- 2017-03: JPY 1,167.00 per share

- 2017-04: JPY 1,060.00 per share

- 2017-05: JPY 895.00 per share

- 2017-06: JPY 979.00 per share

- 2017-07: JPY 1,039.00 per share

- 2017-08: JPY 1,109.00 per share

- 2017-09: JPY 1,226.00 per share

- 2017-10: JPY 1,450.00 per share

- 2017-11: JPY 1,373.00 per share

- 2017-12: JPY 1,313.00 per share

- 2018-01: JPY 1,283.00 per share

- 2018-02: JPY 1,237.00 per share

- 2018-03: JPY 1,070.00 per share

- 2018-04: JPY 1,148.00 per share

- 2018-05: JPY 1,082.00 per share

- 2018-06: JPY 1,086.00 per share

- 2018-07: JPY 996.00 per share

- 2018-08: JPY 840.00 per share

- 2018-09: JPY 710.00 per share

- 2018-10: JPY 598.00 per share

- 2018-11: JPY 535.00 per share

- 2018-12: JPY 500.00 per share

- 2019-01: JPY 625.00 per share

- 2019-02: JPY 652.00 per share

- 2019-03: JPY 512.00 per share

- 2019-04: JPY 593.00 per share

- 2019-05: JPY 495.00 per share

- 2019-06: JPY 535.00 per share

- 2019-07: JPY 649.00 per share

- 2019-08: JPY 664.00 per share

- 2019-09: JPY 702.00 per share

- 2019-10: JPY 740.00 per share

- 2019-11: JPY 713.00 per share

- 2019-12: JPY 750.00 per share

- 2020-01: JPY 711.00 per share

- 2020-02: JPY 651.00 per share

- 2020-03: JPY 389.00 per share

- 2020-04: JPY 580.00 per share

- 2020-05: JPY 559.00 per share

- 2020-06: JPY 551.00 per share

- 2020-07: JPY 578.00 per share

- 2020-08: JPY 667.00 per share

- 2020-09: JPY 765.00 per share

- 2020-10: JPY 861.00 per share

- 2020-11: JPY 928.00 per share

- 2020-12: JPY 1,079.00 per share

- 2021-01: JPY 1,200.00 per share

- 2021-02: JPY 1,169.00 per share

- 2021-03: JPY 1,200.00 per share

- 2021-04: JPY 1,275.00 per share

- 2021-05: JPY 1,114.00 per share

- 2021-06: JPY 1,201.00 per share

- 2021-07: JPY 1,181.00 per share

- 2021-08: JPY 1,189.00 per share

- 2021-09: JPY 1,396.00 per share

- 2021-10: JPY 1,402.00 per share

- 2021-11: JPY 1,442.00 per share

- 2021-12: JPY 1,423.00 per share

- 2022-01: JPY 1,298.00 per share

- 2022-02: JPY 1,340.00 per share

- 2022-03: JPY 1,432.00 per share

- 2022-04: JPY 1,408.00 per share

- 2022-05: JPY 1,524.00 per share

- 2022-06: JPY 1,233.00 per share

- 2022-07: JPY 1,270.00 per share

- 2022-08: JPY 1,324.00 per share

- 2022-09: JPY 1,202.00 per share

- 2022-10: JPY 1,246.50 per share

- 2022-11: JPY 1,316.00 per share

- 2022-12: JPY 1,183.50 per share

- 2023-01: JPY 1,329.50 per share

- 2023-02: JPY 1,764.00 per share

- 2023-03: JPY 1,913.50 per share

- 2023-04: JPY 1,772.00 per share

- 2023-05: JPY 2,290.00 per share

- 2023-06: JPY 2,701.50 per share

- 2023-07: JPY 2,755.50 per share

- 2023-08: JPY 2,450.50 per share

- 2023-09: JPY 2,285.50 per share

- 2023-10: JPY 1,955.50 per share

- 2023-11: JPY 2,603.50 per share

- 2023-12: JPY 2,549.00 per share

- 2024-01: JPY 2,472.00 per share

- 2024-02: JPY 2,454.50 per share

- 2024-03: JPY 2,640.50 per share

- 2024-04: JPY 2,628.50 per share

- 2024-05: JPY 2,936.00 per share

- 2024-06: JPY 3,009.00 per share

- 2024-07: JPY 2,578.00 per share

- 2024-08: JPY 2,514.00 per share

- 2024-09: JPY 2,079.00 per share

- 2024-10: JPY 2,110.00 per share

- 2024-11: JPY 1,963.50 per share

- 2024-12: JPY 2,046.50 per share

- 2025-01: JPY 2,107.50 per share

- 2025-02: JPY 2,464.50 per share

- 2025-03: JPY 1,987.50 per share

- 2025-04: JPY 1,672.50 per share

- 2025-05: JPY 1,783.00 per share

- 2025-06: JPY 1,789.00 per share

- 2025-07: JPY 1,866.00 per share

- 2025-08: JPY 1,767.00 per share

- 2025-09: JPY 1,706.00 per share

- 2025-10: JPY 1,911.00 per share

- 2025-11: JPY 1,851.50 per share

- 2025-12: JPY 2,140.00 per share

- 2026-01: JPY 2,576.00 per share

- 2026-02: JPY 2,969.00 per share

- 2026-03: JPY 2,151.50 per share

- 2026-04: JPY 3,212.00 per share

- 2026-05: JPY 4,500.00 per share

- 2026-06: JPY 4,807.00 per share

- 2026-07: JPY 3,442.00 per share

- 2026-08: JPY 3,392.00 per share

- 2026-09: JPY 3,477.00 per share

- 2026-10: JPY 3,414.00 per share

## Annual estimated value (JPY per share)

- FY2021: low JPY 877.48 per share, central JPY 983.37 per share, high JPY 1,124.33 per share

- FY2022: low JPY 1,936.43 per share, central JPY 2,180.78 per share, high JPY 2,506.07 per share

- FY2023: low JPY 2,145.14 per share, central JPY 2,432.07 per share, high JPY 2,789.03 per share

- FY2024: low JPY 2,082.57 per share, central JPY 2,679.78 per share, high JPY 3,115.04 per share

- FY2025: low JPY 1,827.23 per share, central JPY 2,058.60 per share, high JPY 2,366.61 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:11:04.752Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100XR06.pdf); period 2025-12-31, filed 2026-03-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.