Tokyo Electron Device Limited (2760) AI Stock Analysis

• Market Cap: ¥88.28B
• Dividend Yield: 3.99%
• Average Volume (3M): 117.82K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.14
• Revenue Growth: -14.79%
• EPS Growth: -26.05%
• Country: JP
• Employees: 1,357
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.23
• Shares Outstanding: 31,336,500
• 10 Day Avg. Volume: 114,160
• 30 Day Avg. Volume: 117,820
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,145.00
• Price Target Upside: 9.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥3,145.00 ▲(9.62% Upside)

The overall stock score of 71 reflects a stable financial performance with strong profitability and improved leverage, despite challenges in revenue growth and cash flow conversion. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, making it appealing for value and income investors. Technical indicators show mixed momentum, suggesting a neutral short-term outlook.

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 shows stable financial performance with strong profitability metrics and improved leverage. However, declining revenue growth and lower cash flow conversion from operations pose potential risks.

Income Statement

The income statement shows a mixed performance. The company has maintained a stable gross profit margin around 15.6% and a net profit margin of approximately 4.1% over the TTM. However, there is a notable decline in revenue growth rate by 5.3% in the TTM, indicating potential challenges in sales. Despite this, the EBIT and EBITDA margins have remained relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.89 in the TTM, indicating a reduction in leverage compared to previous years. Return on equity is strong at 18.98%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals positive trends with a 26.48% growth in free cash flow in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.25, suggesting that cash generation from operations is lower than net income, which could be a concern. The free cash flow to net income ratio is healthy at 0.92, showing good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.91B	216.38B	242.89B	240.35B	179.91B	143.27B
Gross Profit	30.99B	33.73B	37.17B	34.24B	25.64B	20.60B
EBITDA	11.77B	12.75B	14.88B	13.03B	8.86B	5.23B
Net Income	7.60B	8.88B	9.99B	8.78B	5.08B	3.14B
Balance Sheet
Total Assets	144.12B	156.84B	162.57B	143.45B	107.80B	90.87B
Cash, Cash Equivalents and Short-Term Investments	7.01B	8.38B	6.87B	6.54B	5.13B	5.68B
Total Debt	32.50B	42.56B	52.10B	45.65B	29.32B	25.33B
Total Liabilities	96.02B	107.84B	116.38B	104.46B	75.78B	61.22B
Stockholders Equity	46.94B	47.86B	45.04B	37.85B	30.95B	28.96B
Cash Flow
Free Cash Flow	21.96B	17.36B	-602.00M	-12.46B	-1.27B	-3.89B
Operating Cash Flow	23.39B	18.91B	301.00M	-12.19B	-891.00M	-3.46B
Investing Cash Flow	-1.67B	-2.07B	-2.69B	-199.00M	-155.00M	-469.00M
Financing Cash Flow	-21.50B	-15.25B	2.53B	13.75B	606.00M	5.08B

Tokyo Electron Device Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2869.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2869 is below the 20-day moving average (MA) of 2934.45, above the 50-day MA of 2831.02, and above the 200-day MA of 2851.97, indicating a neutral trend. The MACD of 26.42 indicates Positive momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 9.37 is Positive, 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
6814	75 Outperform	¥176.63B	12.91	15.87%	1.96%	9.11%	114.88%
6957	75 Outperform	¥109.67B	36.46	10.16%	2.12%	4.48%	-39.40%
8159	74 Outperform	¥68.06B	10.16	7.42%	3.57%	-4.57%	-11.79%
2760	71 Outperform	¥88.28B	11.74	―	3.99%	-14.79%	-26.05%
6866	68 Neutral	¥82.84B	13.76	―	3.29%	7.11%	7.49%
7433	67 Neutral	¥71.32B	16.79	6.57%	6.86%	0.81%	-36.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.