Tokyo Electron Device Limited (2760) AI Stock Analysis

• Market Cap: ¥91.29B
• Dividend Yield: 4.07%
• Average Volume (3M): 180.52K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.11
• Revenue Growth: -14.79%
• EPS Growth: -26.05%
• Country: JP
• Employees: 1,357
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.23
• Shares Outstanding: 31,336,500
• 10 Day Avg. Volume: 232,100
• 30 Day Avg. Volume: 180,516
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,036.00
• Price Target Upside: 3.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥3,036.00 ▲(3.94% Upside)

Tokyo Electron Device Limited demonstrates strong financial performance with consistent revenue growth and stable profitability. The technical indicators show positive momentum, and the stock appears undervalued with a high dividend yield. However, increasing debt levels and past cash flow volatility are risks that need monitoring.

Tokyo Electron Device Limited Business Overview & Revenue Model

Company Description

Tokyo Electron Device Limited (2760) is a prominent Japanese company specializing in the distribution and development of semiconductor products and IT solutions. Operating in the technology sector, the company offers a diverse range of electronic components, computer network products, and software solutions. Their services cater to various industries, including telecommunications, automotive, and consumer electronics, providing essential components and systems to enhance technological infrastructure and innovation.

How the Company Makes Money

Tokyo Electron Device Limited generates revenue through multiple streams, primarily by distributing semiconductor products and IT solutions. The company collaborates with leading semiconductor manufacturers to supply high-quality electronic components to its clients. Additionally, they provide value-added services such as design support, system integration, and customized solutions, which further contribute to their earnings. Strategic partnerships with technology innovators enable Tokyo Electron Device Limited to offer cutting-edge products and services, ensuring a competitive edge in the market. Revenue is driven by sales to industries like telecommunications, automotive, and consumer electronics where demand for advanced technology solutions is consistently high.

Tokyo Electron Device Limited Financial Statement Overview

Summary

Tokyo Electron Device Limited exhibits a strong financial position with consistent revenue growth and stable profitability margins. The balance sheet shows a sound equity base, but increasing debt levels require monitoring. Improvements in cash flow dynamics are positive, but volatility in cash flows suggests a need for careful management.

Income Statement

Tokyo Electron Device Limited has demonstrated consistent revenue growth over the years with a notable increase from 2020 to 2024. The gross profit margin has remained stable, reflecting efficient cost management. However, there was a decline in revenue from 2024 to 2025. The company maintains healthy EBIT and EBITDA margins, indicating strong operational performance. Net profit margins are solid, but the recent reduction in revenue growth could impact future profitability.

Balance Sheet

The company's balance sheet shows a stable equity position with increasing stockholders' equity over the years, which is a positive sign. The debt-to-equity ratio is moderate, suggesting a balanced approach to leverage. However, the total debt has increased, which could pose a risk if not managed carefully. The equity ratio indicates a satisfactory level of financial stability.

Cash Flow

Tokyo Electron Device Limited has experienced fluctuations in its cash flow, with significant improvements in free cash flow in 2025. The operating cash flow has shown improvement from a negative position in previous years, which is a positive development. The free cash flow to net income ratio is robust, indicating effective conversion of earnings into cash. However, past negative cash flows highlight potential risks if such volatility continues.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	216.38B	242.89B	240.35B	179.91B	143.27B
Gross Profit	33.73B	37.17B	34.24B	25.64B	20.60B
EBITDA	12.75B	14.88B	14.79B	8.86B	5.23B
Net Income	8.88B	9.99B	8.78B	5.08B	3.14B
Balance Sheet
Total Assets	156.84B	162.57B	143.45B	107.80B	90.87B
Cash, Cash Equivalents and Short-Term Investments	8.38B	6.87B	6.54B	5.13B	5.68B
Total Debt	42.56B	52.10B	45.65B	29.32B	25.33B
Total Liabilities	107.84B	116.38B	104.46B	75.78B	61.22B
Stockholders Equity	47.86B	45.04B	37.85B	30.95B	28.96B
Cash Flow
Free Cash Flow	17.36B	-602.00M	-12.46B	-1.27B	-3.89B
Operating Cash Flow	18.91B	301.00M	-12.19B	-891.00M	-3.46B
Investing Cash Flow	-2.07B	-2.69B	-199.00M	-155.00M	-469.00M
Financing Cash Flow	-15.25B	2.53B	13.75B	606.00M	5.08B

Tokyo Electron Device Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2921.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2760, the sentiment is Positive. The current price of 2921 is above the 20-day moving average (MA) of 2678.25, above the 50-day MA of 2678.36, and above the 200-day MA of 2907.76, indicating a bullish trend. The MACD of 71.74 indicates Negative momentum. The RSI at 65.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8159	81 Outperform	¥68.96B	10.30		3.51%	-4.57%	-11.79%
6814	75 Outperform	¥150.45B	10.99		2.31%	9.11%	114.88%
2760	75 Outperform	¥91.29B	11.69		4.07%	-14.79%	-26.05%
7433	72 Outperform	¥72.07B	16.97		6.74%	0.81%	-36.93%
6866	68 Neutral	¥82.70B	13.99		3.37%	7.11%	7.49%
Sector *	68 Neutral	¥242.18B	15.62	6.62%	2.44%	9.08%	2.46%
6957	67 Neutral	¥91.42B	30.27		2.34%	4.48%	-39.40%

Tokyo Electron Device Limited Corporate Events

Tokyo Electron Device Reports Decline in Q1 2025 Financial Results

Tokyo Electron Device Limited reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 20.3% and net income attributable to owners of the parent decreasing by 51.2% compared to the previous year. Despite the downturn, the company maintains its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious outlook amidst challenging market conditions.

Tokyo Electron Device Affirms Independence from Tokyo Electron Limited

Tokyo Electron Device Limited announced that its relationship with Tokyo Electron Limited, its affiliated company, does not affect its independent management or business activities. The company confirmed that Tokyo Electron Limited does not exert control beyond an equity-method relationship, ensuring independence. Additionally, transactions with Tokyo Electron Limited are not significant enough to impact minority shareholders, indicating no need for further disclosure.

Tokyo Electron Device Limited Revamps Director Remuneration Plans

Tokyo Electron Device Limited has announced plans to renew its annual performance-linked stock-based remuneration plan for corporate directors and introduce a new non-performance-linked stock-based remuneration plan for non-executive directors. These initiatives aim to align director incentives with company performance and shareholder value, enhancing long-term corporate value and management oversight.

Tokyo Electron Device Limited Updates Stock-Based Incentive Plan

Tokyo Electron Device Limited announced the renewal and partial amendments of its stock-based remuneration plan, which serves as a medium-term incentive for its officers and employees. This plan is linked to the achievement of the VISION 2030 management plan, aiming to align the company’s leadership with its strategic goals and enhance corporate value. The plan includes mechanisms like the Board Incentive Plan Trust and Employee Stock Ownership Plan Trust, which are designed to incentivize performance and align with international standards.

Tokyo Electron Device Announces Year-End Dividend Distribution

Tokyo Electron Device Limited announced a year-end dividend distribution of 67.00 yen per share, based on its financial results for the fiscal year ending March 31, 2025. This decision reflects a decrease from the previous year’s dividend, attributed to a share split conducted in October 2023, impacting the company’s dividend strategy and shareholder returns.