ROHM Co., Ltd.

A middle-of-the-pack grower that's turning around. Forward growth is running well ahead of the historical pace, a growth inflection. Strong fit for growth and momentum strategies, with execution the key risk. The strongest point: revenue is set to grow 9%/yr over the next 3 years, ahead of most of the market. The one thing to watch: the company is not profitable yet.

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The strongest point: strong recent results. The one thing to watch: the multi-year record is weak.

Valuation is a weak point here. A mix of reasonable multiples and yields without extreme cheapness. Can work in diversified value portfolios, but not a standout bargain. The strongest point: its forward P/E of 18x is 15% below its own 21x historical median P/E. The one thing to watch: free cash flow is negative.

Business quality is a weak point here. Profitability and capital efficiency lag the market. Better suited to value or turnaround angles than to quality strategies. The strongest point: it carries net cash rather than net debt, better than 90% of companies worldwide. The one thing to watch: free cash flow is negative.