TDK Corporation (6762) AI Stock Analysis

• Market Cap: ¥4.43T
• Dividend Yield: 1.41%
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.40
• Revenue Growth: 7.73%
• EPS Growth: -1.93%
• Country: JP
• Employees: 105,067
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 36.78
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 7,555,660
• 30 Day Avg. Volume: 8,133,680
• PEG Ratio: 0.52
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 13.32
• 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: ¥2,914.29
• Price Target Upside: 24.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 102
• Revenue Forecast (FY): ¥2.42T

• Rating: 67 Neutral
• Price Target: ¥2,631.00 ▲(12.60% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is supported primarily by solid profitability and a manageable balance sheet, but is held back by weaker cash-flow consistency (declining and historically volatile free cash flow). Technical signals are mixed with negative MACD despite moderately strong RSI, and valuation is fair (P/E ~20) with only a modest dividend yield.

Positive Factors

Profitability

Sustained gross and net margins near historical strength indicate durable pricing power and operational efficiency across product lines. Strong margins support reinvestment in R&D and capacity, help absorb cyclical demand swings, and underpin steady returns on capital over months.

Manageable leverage

A modest debt-to-equity ratio and growing equity base provide balance-sheet resilience. This financial flexibility lowers default risk, preserves capacity to fund capex or design wins, and gives management room to prioritize strategic investments over short-term cash raises.

Diversified product & end-markets

Broad product portfolio and exposure to consumer, automotive, and industrial end-markets reduce single-market dependency. Multiple secular drivers (automotive electronics, industrial automation, steady component demand) support more stable multi-month revenue streams and recurring design-win opportunities.

Negative Factors

Free cash flow volatility

Declining and historically volatile free cash flow undermines predictability of shareholder returns and reinvestment capacity. With FCF conversion ~43% of net income, capital intensity and working-capital swings can constrain the firm's ability to fund growth or return cash during multi-month stress periods.

Modest, uneven revenue growth

Modest and uneven top-line growth limits sustainable earnings expansion absent margin gains. Reliance on cyclical end-markets like smartphones and autos means revenue can lag during downturns, pressuring operating leverage and requiring continual design wins to regain durable momentum.

Large absolute debt & capital intensity

Despite reasonable leverage ratios, sizeable absolute debt combined with a capital-intensive manufacturing footprint raises fixed-cost risk. In a prolonged slowdown this can limit strategic flexibility, constrain M&A or dividend policies, and increase sensitivity to margin erosion over months.

TDK Corporation Business Overview & Revenue Model

Company Description

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through four segments: Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, inductive devices, ferrite cores, transformers, high-frequency devices, piezoelectric materials, and circuit protection components. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices, such as rechargeable batteries and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TDK Corporation generates revenue primarily through the sale of electronic components and systems. Its key revenue streams include passive components, which account for a significant portion of sales, particularly capacitors and inductors, as well as magnetic products and energy devices. The company has established partnerships with major players in various sectors, enabling it to leverage demand for advanced technologies such as electric vehicles, renewable energy solutions, and IoT devices. Additionally, TDK invests in research and development to create innovative products that meet the evolving needs of its clients, thus driving growth and enhancing profitability.

TDK Corporation Financial Statement Overview

Summary

Overall fundamentals are solid: healthy and improving profitability (TTM gross margin ~31%, net margin ~7.5%) and manageable leverage (debt-to-equity ~0.35). The main constraint is cash-flow quality/consistency—free cash flow is positive (~¥169B) but recently declined (TTM ~-8.4%) and has been volatile historically, which reduces confidence in steady shareholder-return capacity.

Income Statement

TDK’s profitability is solid and improving: TTM (Trailing-Twelve-Months) gross margin is ~31% and net margin is ~7.5%, with EBIT and EBITDA margins near ~10.6% and ~18.3%, respectively. Revenue growth is positive in TTM (~4.1%) and the latest annual period is slightly positive, recovering from the prior year’s decline. The main weakness is that growth remains modest/uneven versus earlier years, suggesting a more cyclical or normalization phase rather than a strong expansion cycle.

Balance Sheet

Leverage looks manageable with TTM (Trailing-Twelve-Months) debt-to-equity around ~0.35, an improvement versus higher levels earlier in the history provided. Equity has also grown alongside assets, supporting balance-sheet resilience. Return on equity is steady around ~9–10% in the latest periods, which is respectable but not exceptional, and total debt is still large in absolute terms—meaning profitability needs to stay steady to keep the risk profile contained.

Cash Flow

Cash generation is positive with TTM (Trailing-Twelve-Months) operating cash flow of ~¥430B and free cash flow of ~¥169B, but free cash flow has declined (TTM growth ~-8.4%) and conversion is only moderate (free cash flow is ~43% of net income in TTM). History also shows volatility, including periods of negative free cash flow, which points to capital intensity and/or working-capital swings. Overall cash flow is healthy today, but less consistent than earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.39T	2.20T	2.10T	2.18T	1.90T	1.48T
Gross Profit	737.74B	688.04B	603.02B	584.52B	563.85B	434.32B
EBITDA	443.22B	396.95B	343.36B	364.01B	337.67B	251.82B
Net Income	187.50B	167.16B	124.69B	114.19B	131.30B	74.68B
Balance Sheet
Total Assets	4.34T	3.54T	3.42T	3.15T	3.04T	2.36T
Cash, Cash Equivalents and Short-Term Investments	878.16B	697.31B	650.00B	506.19B	439.34B	380.39B
Total Debt	754.64B	608.40B	685.74B	752.16B	679.81B	525.68B
Total Liabilities	2.23T	1.73T	1.70T	1.68T	1.74T	1.40T
Stockholders Equity	2.09T	1.80T	1.71T	1.46T	1.30T	958.93B
Cash Flow
Free Cash Flow	169.22B	220.55B	228.42B	-12.94B	-112.35B	18.66B
Operating Cash Flow	430.02B	445.84B	447.01B	262.77B	178.99B	230.85B
Investing Cash Flow	-337.66B	-244.84B	-216.59B	-234.40B	-281.66B	-237.37B
Financing Cash Flow	-51.73B	-143.33B	-146.37B	14.95B	113.86B	27.04B

TDK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2336.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6762, the sentiment is Positive. The current price of 2336.5 is above the 20-day moving average (MA) of 2300.92, above the 50-day MA of 2180.36, and above the 200-day MA of 2039.03, indicating a bullish trend. The MACD of 70.19 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6762.

TDK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	74 Outperform	$7.50T	39.89	8.95%	1.88%	2.88%	28.76%
6762	67 Neutral	¥4.43T	24.54	―	1.41%	7.73%	-1.93%
6479	64 Neutral	¥1.35T	20.72	8.05%	1.58%	0.96%	3.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4062	61 Neutral	$2.63T	66.74	6.81%	0.40%	5.18%	3.36%
6645	57 Neutral	$1.07T	46.64	3.60%	2.62%	3.51%	―
6976	56 Neutral	¥611.23B	88.44	―	2.57%	4.81%	-49.43%

TDK Corporation Corporate Events

TDK Raises Full-Year Earnings and Dividend Outlook on Strong Components Demand

TDK Corporation revised upward its consolidated forecasts for the fiscal year ending March 31, 2026, citing stronger-than-expected demand for rechargeable batteries and sensors driven by new smartphone models, as well as sustained brisk sales of HDD suspension assemblies for data centers and the positive impact of a weaker yen. The company now projects net sales of ¥2.47 trillion and net income attributable to owners of the parent of ¥190 billion, both above previous guidance and last year’s results, and has also raised its planned year-end dividend from ¥16 to ¥18 per share, increasing the full-year dividend forecast to ¥34 per share, signaling confidence in its earnings momentum and shareholder returns.

The most recent analyst rating on (JP:6762) stock is a Hold with a Yen2120.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.

TDK Lifts Full-Year Outlook on Strong Nine-Month Earnings and Higher Dividend Plan

TDK Corporation reported solid growth for the nine months ended December 31, 2025, with net sales up 11.3% year on year to ¥1.86 trillion and operating profit rising 10.4% to ¥230.7 billion, while net profit attributable to owners of the parent increased 12.6% to ¥181.2 billion, reflecting improved earnings per share after a five-for-one stock split. The company’s total assets expanded to ¥4.34 trillion and equity attributable to owners reached ¥2.09 trillion, underscoring a strong balance sheet, and TDK raised its full-year FY March 2026 forecast to ¥2.47 trillion in net sales and ¥190 billion in net profit attributable to owners, alongside a higher projected annual dividend of ¥34 per share post-split, signaling confidence in sustained earnings growth and ongoing shareholder returns.

The most recent analyst rating on (JP:6762) stock is a Hold with a Yen2120.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.