Tomen Devices Corp. (2737) AI Stock Analysis

• Market Cap: ¥84.88B
• Dividend Yield: 2.41%
• Average Volume (3M): 21.98K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.40
• Revenue Growth: 16.05%
• EPS Growth: 3.58%
• Country: JP
• Employees: 187
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 376.92
• Shares Outstanding: 6,802,000
• 10 Day Avg. Volume: 16,690
• 30 Day Avg. Volume: 21,983
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥13,338.00 ▼(-1.05% Downside)
• Action: Downgraded Date: 02/03/26
• Date: Action: Downgraded 02/03/26

The score is driven by strong financial performance (growth, improving profitability, solid leverage, and better free cash flow) and supportive valuation (low P/E and decent yield). These positives are tempered by weak technical momentum, with the stock trading below key moving averages and bearish/oversold indicators.

Positive Factors

Revenue Growth

Sustained revenue growth of 13.75% year-over-year indicates expanding end-market demand and successful commercial traction. Over a multi-quarter horizon this supports capacity utilization, incremental operating leverage and the ability to fund product development without relying solely on external capital.

Improving Profitability

Margins have meaningfully improved, showing management can extract more profit from sales through cost control or higher-margin offerings. Persistent margin expansion enhances internal funding for R&D and capital expenditures and strengthens resilience to cyclical swings in the semiconductor sector.

Cash Generation & Low Leverage

Solid free cash flow and an OCF/net income ratio above 1, combined with low debt-to-equity, signal strong cash conversion and prudent capital structure. This durable fiscal profile gives flexibility to invest, absorb shocks, or pursue selective growth without pressuring the balance sheet.

Negative Factors

Thin Absolute Margins

Absolute margin levels remain very thin despite improvement, leaving a narrow buffer against input cost increases, pricing pressure, or customer mix shifts. Over several quarters, low margins can constrain reinvestment, limit ability to scale profits, and heighten vulnerability to industry cyclicality.

Declining Cash Reserves

The balance sheet note that cash reserves are falling is a structural concern: even with positive FCF, declining liquidity reduces headroom for unexpected capex, customer concentration effects, or downturns. Prolonged declines could force external financing or slow strategic initiatives.

Limited Scale / Small Workforce

A small employee base in the capital- and scale-sensitive semiconductor industry can limit R&D throughput, manufacturing scale and commercial reach. Over months this may impede product development velocity, bargaining power with suppliers, and the ability to expand into new segments competitively.

Tomen Devices Corp. Business Overview & Revenue Model

Company Description

Tomen Devices Corporation operates as an electronics trading company in Japan. The company sells semiconductors products and electronic components. Its products include memory semiconductors, including dynamic random access, flash, solid-state drive, and multi-chip package; system LSI semiconductors, including system on a chip and application specific intergraded circuits, display drive ICs, and CMOS image sensors; and liquid crystal displays, light emitting diodes, organic light emitting diodes, and multi-layered ceramic capacitors. The company was incorporated in 1945 and is headquartered in Tokyo, Japan.

How the Company Makes Money

null

Tomen Devices Corp. Financial Statement Overview

Summary

Strong fundamentals overall: revenue grew 13.75% (2024–2025) and profitability improved (net margin 1.33%, EBIT margin 2.41%). Balance sheet leverage is manageable (debt-to-equity 0.28; equity ratio 43.54%) with improved ROE (11.26%). Cash flow is a positive (FCF 9,204m yen; OCF/net income 1.65), though declining cash reserves warrant monitoring.

Income Statement

Tomen Devices Corp. shows a robust performance in the semiconductor industry, highlighted by strong revenue growth of 13.75% from 2024 to 2025 and a healthy gross profit margin of 3.48% for 2025. The net profit margin improved significantly to 1.33% in 2025, reflecting enhanced profitability. EBIT margin at 2.41% and EBITDA margin at 2.26% indicate efficient core operations, although there is room for improvement. Overall, the company demonstrates positive growth and profitability trends.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.28 in 2025, indicating manageable leverage. The equity ratio of 43.54% suggests a stable financial structure with adequate shareholder equity. ROE improved to 11.26%, showcasing effective utilization of equity to generate profit. While the balance sheet shows stability, the decreasing cash reserves need monitoring for liquidity management.

Cash Flow

Cash flow analysis shows a substantial improvement, with free cash flow growing to 9,204 million yen in 2025. The operating cash flow to net income ratio of 1.65 indicates effective cash conversion from net income. However, the free cash flow to net income ratio of 1.65 underlines efficient cash management, but the company should continue focusing on consistent cash flow generation to support operations and growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	421.17B	421.67B	370.68B	417.62B	462.82B	302.38B
Gross Profit	13.25B	14.50B	13.61B	15.96B	14.21B	7.75B
EBITDA	10.13B	10.40B	10.05B	12.59B	10.78B	5.11B
Net Income	5.32B	5.59B	2.10B	4.91B	6.38B	3.45B
Balance Sheet
Total Assets	158.74B	114.01B	130.24B	107.33B	117.07B	120.00B
Cash, Cash Equivalents and Short-Term Investments	6.10B	13.17B	20.86B	12.14B	8.22B	9.55B
Total Debt	48.77B	14.20B	29.75B	20.73B	9.55B	14.63B
Total Liabilities	110.76B	64.39B	84.73B	63.13B	77.70B	87.20B
Stockholders Equity	47.98B	49.62B	45.51B	43.21B	38.59B	32.17B
Cash Flow
Free Cash Flow	0.00	9.20B	4.41B	-5.17B	5.75B	-11.59B
Operating Cash Flow	0.00	9.21B	4.42B	-4.96B	5.90B	-11.58B
Investing Cash Flow	0.00	-21.00M	494.00M	-263.00M	-183.00M	401.00M
Financing Cash Flow	0.00	-16.85B	2.90B	8.58B	-7.60B	10.87B

Tomen Devices Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13480.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2737, the sentiment is Neutral. The current price of 13480 is above the 20-day moving average (MA) of 13058.50, above the 50-day MA of 12892.80, and above the 200-day MA of 9140.25, indicating a neutral trend. The MACD of -120.87 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 45.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2737.

Tomen Devices Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6855	81 Outperform	¥90.07B	6.87	―	1.72%	36.31%	101.77%
8084	70 Outperform	¥69.15B	15.74	5.37%	3.41%	-12.80%	4.26%
3445	69 Neutral	¥109.70B	10.73	―	0.93%	28.52%	43.16%
2737	66 Neutral	¥84.88B	8.78	―	2.41%	16.05%	3.58%
6627	65 Neutral	¥81.51B	17.02	―	1.85%	3.60%	-17.45%
3132	64 Neutral	¥410.26B	14.59	―	2.87%	8.99%	-43.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%