TDK Corporation (6762) AI Stock Analysis

• Market Cap: ¥3.57T
• Dividend Yield: 0.89%
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.50
• Revenue Growth: 4.80%
• EPS Growth: 34.02%
• Country: JP
• Employees: 105,067
• Sector: Technology
• Sector Strength: 96
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.31
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 7,146,800
• 30 Day Avg. Volume: 7,580,770
• PEG Ratio: 29.43
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.52
• 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: ¥2,007.67
• Price Target Upside: 8.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: ¥2,046.00 ▲(10.83%Upside)

TDK Corporation's strong financial performance is the most compelling factor, supported by solid growth and profitability metrics. Technical indicators show positive trends, but caution is advised due to potential overbought conditions. The high P/E ratio suggests a premium valuation, which may limit future upside. Overall, the stock presents a balanced risk-reward profile.

Positive Factors

Innovation

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.

Market Position

TDK is a leading Japanese electronics component manufacturer with a 50%-60% market share in the cellphone battery worldwide market.

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, 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 through the design, manufacture, and sale of electronic components and systems. The company's key revenue streams include passive components, such as capacitors and inductors, which are critical in electronic circuits; magnetic application products, including hard disk drives and sensors, which are used in data storage and automotive applications; and energy devices, such as batteries, which power various electronic devices. Additionally, TDK collaborates with and supplies to major technology and automotive companies, enhancing its market presence and revenue potential. The company's global distribution network and focus on innovation in electronic materials contribute significantly to its earnings.

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, and the company displays a positive financial trajectory with a promising outlook for continued growth and profitability.

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
EBITDA	447.47B	355.47B	364.01B	337.67B	271.40B
Net Income	167.16B	124.69B	114.19B	131.30B	74.68B
Balance Sheet
Total Assets	3.54T	3.42T	3.15T	3.04T	2.40T
Cash, Cash Equivalents and Short-Term Investments	697.31B	650.00B	558.33B	506.28B	446.33B
Total Debt	608.40B	685.74B	752.16B	679.81B	521.61B
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: Positive
• Last Price: 1846.00
• 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:6762, the sentiment is Positive. The current price of 1846 is above the 20-day moving average (MA) of 1673.67, above the 50-day MA of 1598.71, and above the 200-day MA of 1713.20, indicating a bullish trend. The MACD of 53.82 indicates Negative momentum. The RSI at 67.44 is Neutral, neither overbought nor oversold. The STOCH value of 90.09 is Negative, 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
6762	75 Outperform	¥3.57T	20.95		0.89%	4.80%	34.02%
Sector *	51 Neutral	AU$1.68B	2.17	-31.66%	3.55%	16.55%	-7.79%
IBIDF	―	$5.99B	26.95	6.76%	0.67%	―	―
MNBEF	―	$6.54B	16.73	8.10%	1.91%	―	―
MRAAF	―	$27.55B	18.18	8.98%	2.51%	―	―
OMRNF	―	$5.24B	48.76	2.10%	2.70%	―	―
6976	59 Neutral	¥354.16B	151.05		3.19%	5.82%	-71.97%

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.