Tokyo Electron Device Limited (2760) AI Stock Analysis

• Market Cap: ¥104.16B
• Dividend Yield: 3.02%
• Average Volume (3M): 109.76K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.00
• Revenue Growth: -14.47%
• EPS Growth: -26.11%
• Country: JP
• Employees: 1,357
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 31,336,500
• 10 Day Avg. Volume: 120,410
• 30 Day Avg. Volume: 109,756
• PEG Ratio: -0.89
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 5.13
• 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: 70 Outperform
• Price Target: ¥4,032.00 ▲(25.41% Upside)
• Action: Upgraded Date: 02/05/26
• Date: Action: Upgraded 02/05/26

The score is driven primarily by steady profitability and improving leverage, tempered by revenue cyclicality and historically volatile cash flows. Technicals are supportive with price above major moving averages and healthy (not overstretched) momentum. Valuation appears reasonable with a moderate P/E and a ~2.8% dividend yield.

Positive Factors

Stable Profitability Margins

Consistent operating and net margins indicate durable unit economics for a value-added distributor and solutions provider. Stable margins reflect ongoing pricing ability and cost control, supporting predictable earnings and allowing reinvestment or shareholder returns across cycles.

Improving Balance Sheet Leverage

Progressively lower leverage enhances financial flexibility and lowers distress risk in cyclical end markets. An improving capital structure supports funding for working capital, strategic partnerships, and modest M&A while reducing refinancing pressure over the medium term.

Strong Recent Cash Generation

TTM operating and free cash flows tracking net income indicate solid cash conversion and earnings quality. Reliable cash generation supports dividends, debt reduction and solution investments, improving resilience to demand swings over the next several quarters.

Negative Factors

Revenue Cyclicality

Revenues are tied to semiconductor and electronics capex cycles, producing material year-to-year swings. This cyclicality makes revenue visibility weak, complicates capacity planning and revenue guidance, and increases the chance of next-period declines when end markets cool.

Volatile Cash Flows and Negative FCF Growth

Large working-capital swings and prior periods of negative operating cash flow highlight lumpiness in cash conversion. Persistently volatile FCF can constrain reinvestment, dividend consistency and debt repayment when revenue weakens, raising operational financing risk.

Meaningful Debt for a Cyclical Business

Although leverage has improved, remaining debt burdens a business with modest net margins (~4%). Interest and principal obligations reduce headroom during downturns, limiting agility to invest in solutions or absorb prolonged industry slowdowns without cutting costs.

Tokyo Electron Device Limited Business Overview & Revenue Model

Company Description

Tokyo Electron Device Limited (2760) is a Japan-based company primarily engaged in the manufacturing and sale of semiconductor and electronic components. The company operates in various sectors, including semiconductor production equipment, electronic components, and system solutions. Tokyo Electron Device specializes in providing advanced technologies and products for the semiconductor industry, including wafer fabrication equipment, test and measurement instruments, and packaging materials, thus supporting the global electronics market.

How the Company Makes Money

Tokyo Electron Device generates revenue through multiple key streams. The primary source of income comes from the sales of semiconductor production equipment, which includes tools and machinery used in the manufacturing of semiconductors. Additionally, the company earns revenue from electronic components, which are essential for various electronic devices, and system solutions that cater to specific customer needs. Significant partnerships with major players in the semiconductor industry enhance its market presence and contribute to its earnings. Furthermore, the company's focus on research and development allows it to innovate and maintain a competitive edge, driving sales and expanding its customer base in a rapidly evolving technology landscape.

Tokyo Electron Device Limited Financial Statement Overview

Summary

Income statement strength is solid (stable ~5–6% operating/EBITDA margins and ~4% net margin) with modest TTM revenue growth (+4.4%), but prior annual revenue decline (-10.9%) signals cyclicality. Balance sheet leverage is improving (debt-to-equity ~0.71) with ROE ~17%, yet debt remains meaningful for a cyclical business. Cash flow quality is good in TTM (FCF ~0.99x net income), but FCF growth is down (-16.2%) and historical cash flows have been volatile.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up modestly (+4.4%), but the prior annual period showed a meaningful revenue decline (-10.9%), pointing to some demand cyclicality. Profitability is steady: gross margin is ~15% and net margin is ~4% in both TTM and the latest annual period, which is solid for a hardware distribution/solutions profile but not high. Operating profit and EBITDA margins are stable (~5–6%), indicating consistent cost control, though limited margin expansion keeps the score below the top tier.

Balance Sheet

Leverage has improved versus prior years: debt-to-equity is ~0.71 in TTM (down from ~0.89 in the latest annual and >1.1 in earlier years), reflecting a healthier capital structure. Returns remain attractive with return on equity around the mid-to-high teens in TTM (~17%), though down from the low-20s achieved previously, suggesting profitability has normalized. Overall, the balance sheet looks sound and improving, but still carries meaningful debt for a cyclical industry.

Cash Flow

Cash generation is strong in TTM with operating cash flow (~¥17.4B) and free cash flow (~¥17.1B) closely tracking net income (free cash flow is ~0.99x net income), which supports earnings quality. However, free cash flow growth in TTM is sharply negative (-16.2%), and prior years show large volatility including periods of negative operating and free cash flow (notably FY2023 and FY2024), highlighting working-capital swings and lumpiness in cash conversion. The result is a decent but not premium cash flow score.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	201.00B	216.38B	242.89B	240.35B	179.91B	143.27B
Gross Profit	30.98B	33.73B	37.17B	34.24B	25.64B	20.60B
EBITDA	12.04B	12.75B	14.88B	13.03B	8.86B	5.23B
Net Income	8.33B	8.88B	9.99B	8.78B	5.08B	3.14B
Balance Sheet
Total Assets	158.33B	156.84B	162.57B	143.45B	107.80B	90.87B
Cash, Cash Equivalents and Short-Term Investments	5.64B	8.38B	6.87B	6.54B	5.13B	5.68B
Total Debt	34.83B	42.56B	52.10B	45.65B	29.32B	25.33B
Total Liabilities	108.24B	107.84B	116.38B	104.46B	75.78B	61.22B
Stockholders Equity	49.18B	47.86B	45.04B	37.85B	30.95B	28.96B
Cash Flow
Free Cash Flow	17.15B	17.36B	-602.00M	-12.46B	-1.27B	-3.89B
Operating Cash Flow	17.40B	18.91B	301.00M	-12.19B	-891.00M	-3.46B
Investing Cash Flow	860.00M	-2.07B	-2.69B	-199.00M	-155.00M	-469.00M
Financing Cash Flow	-22.36B	-15.25B	2.53B	13.75B	606.00M	5.08B

Tokyo Electron Device Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3215.00
• 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:2760, the sentiment is Neutral. The current price of 3215 is below the 20-day moving average (MA) of 3684.75, below the 50-day MA of 3549.60, and above the 200-day MA of 3043.12, indicating a neutral trend. The MACD of 7.64 indicates Positive momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 42.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2760.

Tokyo Electron Device Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	$14.78T	30.90	12.80%	0.78%	7.09%	7.51%
6951	78 Outperform	¥337.23B	8.42	―	2.04%	-0.69%	-29.88%
7701	75 Outperform	¥1.14T	19.48	10.84%	1.46%	3.92%	9.99%
4186	75 Outperform	¥1.13T	20.85	14.01%	1.08%	19.45%	41.03%
2760	70 Outperform	¥104.16B	10.19	―	3.02%	-14.47%	-26.11%
6728	62 Neutral	¥501.35B	19.20	6.61%	2.35%	-9.06%	-35.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tokyo Electron Device Limited Corporate Events

Tokyo Electron Device Reshapes Top Leadership, Names Miyamoto President

Tokyo Electron Device Limited announced a restructuring of its top management, appointing current Senior Executive Vice President and Corporate Director Takayoshi Miyamoto as President & Representative Director while elevating current President & CEO Atsushi Tokushige to Chairman & Representative Director CEO, effective April 1, 2026. The move, driven by a planned change in management structure, signals a generational and organizational shift designed to strengthen leadership continuity, as Miyamoto—who has held key roles in corporate account sales and led the CN Business Unit—steps into the top executive role, potentially aligning the company’s governance and operational leadership more closely with its core growth businesses.

The most recent analyst rating on (JP:2760) stock is a Hold with a Yen3870.00 price target. To see the full list of analyst forecasts on Tokyo Electron Device Limited stock, see the JP:2760 Stock Forecast page.

Tokyo Electron Device Posts Lower Nine-Month Earnings but Affirms Full-Year Forecast and Dividend Plan

Tokyo Electron Device reported consolidated net sales of ¥146.7 billion for the nine months ended December 31, 2025, down 9.5% year on year, with operating income falling 28.8% to ¥6.3 billion and net income attributable to owners of the parent declining 9.8% to ¥5.0 billion, reflecting margin pressure amid softer demand. Despite the earnings contraction, the company’s equity ratio improved slightly to 31.1% as net assets rose to ¥50.1 billion, and it maintained its full-year forecast for fiscal 2026, projecting ¥200.0 billion in net sales and a roughly 19% decline in net income to ¥7.2 billion, while signaling continued shareholder returns through a planned annual dividend of ¥99 per share, albeit lower than the prior year’s ¥119.

The most recent analyst rating on (JP:2760) stock is a Hold with a Yen3870.00 price target. To see the full list of analyst forecasts on Tokyo Electron Device Limited stock, see the JP:2760 Stock Forecast page.