TDK Corporation (6762) AI Stock Analysis

• Market Cap: ¥2.89T
• Dividend Yield: 2.14%
• Average Volume (3M): 7.09M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.49
• Revenue Growth: 4.80%
• EPS Growth: 34.01%
• Country: JP
• Employees: 105,067
• Sector: Technology
• Sector Strength: 78
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.31
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 6,874,320
• 30 Day Avg. Volume: 7,091,976
• PEG Ratio: -1.20
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -138.47
• 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: ¥2,101.20
• Price Target Upside: 40.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ¥1,724.00 ▲(15.47%Upside)

The overall stock score of 73.6 reflects TDK Corporation's strong financial performance and balanced valuation, which are the most significant factors. The technical analysis indicates neutral momentum, suggesting a stable outlook in the short term.

Positive Factors

Automotive Focus

The company's strategic focus on automotive applications has bolstered its revenue streams, with it leveraging increased production volumes in response to rising global demand for eco-friendly vehicles.

Innovation in Technology

TDK's development of CeraCharge, a next-generation solid-state battery with a remarkable energy density of 1,000 Wh/L, positions the company at the forefront of wearable technology innovation.

Strategic Partnerships

The company's strategic joint venture with CATL for mid-sized battery production enhances its production capacity and market reach, enabling TDK to scale up and meet the growing needs of the EV market.

Negative Factors

Market Demand

Prolonged decline in demand in hard disk drive HDD market; slower-than-expected recovery in consumer electronics devices due to economic uncertainties.

TDK Corporation Business Overview & Revenue Model

Company Description

TDK Corporation, founded in 1935 and headquartered in Tokyo, Japan, is a leading global electronics company specializing in the development and manufacturing of electronic components, modules, and systems. The company operates in various sectors, including automotive, industrial, consumer electronics, and information and communication technology. TDK's core products include passive components such as capacitors and inductors, sensor systems, magnetic products, and energy devices like batteries and power supplies.

How the Company Makes Money

TDK Corporation generates revenue through the sale of its diverse range of electronic components and solutions. The company's key revenue streams include passive components, sensor application products, magnetic application products, and energy appliances. TDK serves a broad array of industries, with significant contributions from the automotive sector, where its components are integral to electric vehicles and advanced driver-assistance systems (ADAS). Additionally, TDK's partnerships with major technology firms and its investments in research and development drive innovation, enhancing its product offerings and market position. The company also benefits from its global manufacturing and sales network, which enables it to efficiently serve customers worldwide and capitalize on emerging market opportunities.

TDK Corporation Financial Statement Overview

Summary

TDK Corporation exhibits strong financial health with impressive revenue growth, solid profit margins, and effective cash flow management. The balance sheet is well-structured with low leverage, though continuous monitoring of debt is advisable.

Income Statement

TDK Corporation has demonstrated strong revenue growth with a significant increase from the previous year. The gross profit margin remains robust at approximately 31.2%, and the net profit margin has improved to 7.6%. Consistent EBIT and EBITDA margins at 8.8% and 20.3% respectively, indicate stable operational efficiency. These metrics suggest a healthy growth trajectory and profitability for the company.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.34, indicating prudent financial leverage. Return on equity has improved to 9.3%, reflecting effective use of shareholder funds. The equity ratio stands at 50.8%, showcasing a strong financial position with adequate asset backing. However, vigilance on debt levels is recommended to maintain financial stability.

Cash Flow

TDK Corporation has shown a robust operating cash flow relative to net income, with a ratio of 2.67, indicating strong cash generation capabilities. The free cash flow growth rate has seen fluctuations but remains positive, providing flexibility for reinvestments or debt servicing. The free cash flow to net income ratio of 1.32 further underscores the company's efficient cash utilization.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.20T	2.10T	2.18T	1.90T	1.48T
	Gross Profit
688.04B	603.02B	584.52B	563.85B	434.32B
	EBIT
194.01B	150.50B	168.83B	166.78B	111.53B
	EBITDA
447.47B	355.47B	364.01B	337.67B	271.40B
	Net Income Common Stockholders
167.16B	124.69B	114.19B	131.30B	74.68B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
697.31B	650.00B	558.33B	506.28B	446.33B
	Total Assets
3.54T	3.42T	3.15T	3.04T	2.40T
	Total Debt
608.40B	685.74B	752.16B	679.81B	521.61B
	Net Debt
-88.91B	35.74B	245.97B	240.47B	141.23B
	Total Liabilities
1.73T	1.70T	1.68T	1.74T	1.40T
	Stockholders Equity
1.80T	1.71T	1.46T	1.30T	1.00T
Cash Flow		Free Cash Flow
220.55B	228.42B	-12.94B	-112.35B	10.46B
	Operating Cash Flow
445.84B	447.01B	262.77B	178.99B	222.81B
	Investing Cash Flow
-244.84B	-216.59B	-234.40B	-281.55B	-231.49B
	Financing Cash Flow
-143.33B	-146.37B	14.95B	113.74B	29.19B

TDK Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1493.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1493 is below the 20-day moving average (MA) of 1544.85, above the 50-day MA of 1486.13, and below the 200-day MA of 1745.43, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 47.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6762.

TDK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	78 Outperform	¥3.80T	16.63	8.98%	2.61%	6.29%	30.68%
6479	75 Outperform	¥818.56B	13.70	8.10%	2.47%	8.60%	10.82%
6762	74 Outperform	¥2.89T	16.95		2.14%	4.80%	34.01%
4062	68 Neutral	$803.87B	23.86	6.76%	0.66%	-0.29%	7.03%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
6645	62 Neutral	¥746.18B	45.88	2.10%	0.02%	-2.08%	100.89%
6976	52 Neutral	¥292.81B	124.89		3.86%	5.82%	-71.99%

TDK Corporation Corporate Events

TDK Corporation Reports Strong Fiscal Year 2025 Results Amid Upcoming Challenges

TDK Corporation reported a strong financial performance for the fiscal year ended March 2025, with net sales increasing by 4.8% and net profit rising by 35.1% compared to the previous year. The company also implemented a share split, which affected its earnings per share calculations. Looking ahead, TDK projects a slight decline in net sales and profits for the fiscal year ending March 2026, indicating potential challenges in maintaining its growth trajectory.

TDK Corporation Proposes Increased Year-End Dividend Amid Strong Performance

TDK Corporation announced a proposed increase in its year-end dividend to 16 yen per share, up from the previously forecasted 14 yen, reflecting its strong business performance for the fiscal year ending March 31, 2025. This move aligns with TDK’s strategy to enhance shareholder value through consistent dividend growth and a targeted payout ratio of 35%, indicating a positive outlook for stakeholders.