RNECF (Renesas Electronics) Operating Income: $1,768 Mil (TTM As of Mar. 2026)


RNECF Renesas Electronics Corp RNECF
79 GF Score
Price $29.95
GF Value $15.07
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Renesas Electronics Operating Income?

Renesas Electronics RNECF -0.68% 79 Operating Income is $1,768 Mil as of Mar. 2026. GuruFocus rates RNECF with a GF Score™ of 79/100 and a GF Value™ of $15.07 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Renesas Electronics's Operating Income for the three months ended in Mar. 2026 was $571 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,768 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Renesas Electronics's Operating Income for the three months ended in Mar. 2026 was $571 Mil. Renesas Electronics's Revenue for the three months ended in Mar. 2026 was $2,397 Mil. Therefore, Renesas Electronics's Operating Margin % for the quarter that ended in Mar. 2026 was 23.81%.

Good Sign:

Renesas Electronics Corp operating margin is expanding. Margin expansion is usually a good sign.

Renesas Electronics's 5-Year average Growth Rate for Operating Margin % was 6.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Renesas Electronics's annualized ROC % for the quarter that ended in Mar. 2026 was 7.55%. Renesas Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 93.60%.

Renesas Electronics  (OTCPK:RNECF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Renesas Electronics's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2282.896 * ( 1 - 19.25% )/( (24541.834 + 24273.692)/ 2 )
=1843.43852/24407.763
=7.55 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=26791.284 - 1562.031 - ( 2145.387 - max(0, 3953.308 - 4640.727+2145.387))
=24541.834

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=26640.327 - 1490.333 - ( 1940.394 - max(0, 3791.516 - 4667.818+1940.394))
=24273.692

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Renesas Electronics's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2406.008/( ( (2282.237 + max(97.225999999999, 0)) + (2278.207 + max(483.216, 0)) )/ 2 )
=2406.008/( ( 2379.463 + 2761.423 )/ 2 )
=2406.008/2570.443
=93.60 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1084.719 + 1192.336 + 218.285) - (1562.031 + 0 + 836.083)
=97.225999999999

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1248.101 + 1260.301 + 219.022) - (1490.333 + 0 + 753.875)
=483.216

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Renesas Electronics's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=570.724/2396.562
=23.81 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Renesas Electronics Operating Income Related Terms

Renesas Electronics Operating Income Historical Data

* Premium members only.

The historical data trend for Renesas Electronics's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Renesas Electronics Operating Income Chart

Renesas Electronics Annual Data
Trend Mar16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,527.04 3,143.86 2,714.00 1,449.65 1,290.23

Renesas Electronics Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 144.41 275.30 491.13 431.29 570.72
RNECF
79GF Score
Renesas Electronics Corp RNECF
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Renesas Electronics Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,768 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $1,768 Mil mean?
Renesas Electronics (RNECF) has a Operating Income of $1,768 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Renesas Electronics and its competitors.
Is Renesas Electronics' Operating Income too high?
Renesas Electronics' current Operating Income is $1,768 Mil. Overall, Renesas Electronics has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Renesas Electronics' Operating Income compare to NVDA and AVGO?
Renesas Electronics' Operating Income of $1,768 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Semiconductors company?
A good Operating Income depends on the Semiconductors industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Renesas Electronics and its competitors. Renesas Electronics's current Operating Income is $1,768 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renesas Electronics stock overvalued right now?
Based on GuruFocus' analysis, Renesas Electronics (RNECF) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.07, compared to a current price of $29.95 — trading 98.7% above its estimated fair value. The current Operating Income is $1,768 Mil. Renesas Electronics' overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Renesas Electronics (RNECF), the current Operating Income is $1,768 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Renesas Electronics (RNECF) Overvalued in 2026?

Based on GuruFocus' analysis, Renesas Electronics stock appears to be overvalued. The current stock price of $29.95 is trading 98.7% above its estimated GF Value™ of $15.07. GuruFocus considers Renesas Electronics to be Significantly Overvalued.

Key valuation signals for RNECF:

  • Operating Income: $1,768 Mil
  • GF Value™: $15.07 vs. price of $29.95 (98.7% above fair value)
  • GF Score™: 79/100 with 6 warning signs

No single metric tells the full story. See the RNECF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Renesas Electronics Business Description

Address 3-2-24 Toyosu, Koto-ku, Tokyo, JPN, 135-0061
Renesas Electronics is a Japanese broad-based integrated device manufacturer involved in the design and manufacturing of microcontrollers and analog chips, used across automotive, industrial, enterprise, and consumer industries. Headquartered in Tokyo, the company was created through the combination of electronics business units from NEC Electronics, Mitsubishi, and Hitachi. The company's businesses are primarily focused in Asia, where they historically account for 70%-80% of its sales. Renesas is the third- and ninth-largest manufacturer of MCUs and power/analog devices, with a 17% and 3.5% market share, respectively, as of 2024.
79GF Score

Get the complete analysis for RNECF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$29.95
Price
$15.07
GF Value