TDK Corporation (JP:6762)
:6762
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TDK Corporation
(6762)
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Rating:67Neutral
Price Target:
¥2,631.00
▲(28.81% Upside)
Action:ReiteratedDate: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
Strong profitability margins
Sustained mid-to-high gross and healthy operating margins indicate persistent product-level profitability and pricing power across components. These margins support internal investment for R&D and capacity, provide a cushion through cycles, and underpin durable return on capital.
Negative Factors
Volatile and declining free cash flow
Persistent volatility and a recent decline in free cash flow weaken the company's ability to fund dividends, buybacks, or large investments reliably. Variable FCF points to capital intensity and working-capital swings that raise execution risk and constrain long-term capital-allocation flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability margins
Sustained mid-to-high gross and healthy operating margins indicate persistent product-level profitability and pricing power across components. These margins support internal investment for R&D and capacity, provide a cushion through cycles, and underpin durable return on capital.
Read all positive factors
TDK Corporation (6762) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.88T
Dividend Yield1.41%
Average Volume (3M)8.13M
Price to Earnings (P/E)15.0
Beta (1Y)1.41
Revenue Growth7.73%
EPS Growth-1.93%
CountryJP
Employees105,067
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)36.78
Shares Outstanding1,943,859,900
10 Day Avg. Volume7,555,660
30 Day Avg. Volume8,133,680
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.63
Price to Sales (P/S)1.33
P/FCF Ratio13.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,942.86Price Target Upside44.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)102.67
Revenue Forecast (FY)¥2.44T
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 Appl...
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...
TDK Corporation Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were notable achievements such as growth in net sales, energy application products, and a return to profitability for sensor applications, these were tempered by declines in operating and net profits, challenges in the automotive market, and negative free cash flow.Positive Updates
Increase in Net Sales
Net sales for Q1 FY2026 were JPY535.8 billion, up JPY16.9 billion or 3.3% YoY, driven by increased sales in the ICT market and recovery in the industrial equipment market.
Negative Updates
Decrease in Operating Profit
Operating profit decreased by 2.5% YoY to JPY56.4 billion, impacted by yen appreciation and a decline in shipments for automotive applications.
Read all updates
Q1-2026 Updates
Positive
Negative
Increase in Net Sales
Net sales for Q1 FY2026 were JPY535.8 billion, up JPY16.9 billion or 3.3% YoY, driven by increased sales in the ICT market and recovery in the industrial equipment market.
Read all positive updates
Company Guidance
In the Q1 performance briefing for the fiscal year ending March 2026, TDK provided a comprehensive overview of its financial results and guidance. Net sales for the quarter increased by 3.3% year-over-year (YoY) to JPY535.8 billion, while operating profit decreased by 2.5% YoY to JPY56.4 billion, impacted by a significant yen appreciation against the US dollar and euro, resulting in foreign exchange losses of JPY37.6 billion in sales and JPY7.1 billion in operating profit. Net profit fell by 30.5% YoY to JPY41.5 billion, with earnings per share at JPY21.85. The energy application products segment saw an 8.6% YoY increase in net sales to JPY285.5 billion, driven by strong demand for small capacity batteries in the ICT market. In contrast, the passive components segment experienced a 3.4% YoY decline in net sales to JPY138.1 billion due to reduced demand in the automotive market. The company maintained its full-year projections, citing ongoing uncertainties related to US tariff policies and geopolitical risks, and outlined two scenarios—a base scenario and a risk scenario—to navigate these challenges. TDK's guidance for Q2 anticipates revenue increases across several segments, with expected demand growth in the automotive and ICT markets, and it maintains its full-year financial forecasts, with exchange rates set at JPY140 per US dollar and JPY155 per euro.TDK Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| 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
Negative
2042.50
Price Trends
2160.91
Negative
2266.04
Negative
2083.68
Negative
Market Momentum
-35.15
Positive
40.92
Neutral
39.05
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 2042.5 is below the 20-day moving average (MA) of 2201.45, below the 50-day MA of 2160.91, and below the 200-day MA of 2083.68, indicating a bearish trend. The MACD of -35.15 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 39.05 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $411.76B | 9.21 | 11.96% | 3.04% | 2.70% | ― | |
74 Outperform | ¥6.47T | 59.16 | 8.95% | 1.88% | 2.88% | 28.76% | |
70 Outperform | ¥35.10B | 10.46 | ― | 4.53% | -2.57% | 3.43% | |
67 Neutral | ¥3.88T | 15.03 | ― | 1.41% | 7.73% | -1.93% | |
64 Neutral | ¥1.03T | 15.16 | 8.05% | 1.58% | 0.96% | 3.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | ¥493.06B | 15.62 | ― | 2.57% | 4.81% | -49.43% |
* Technology Sector Average
JP:6762
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TDK Corporation Corporate Events
TDK Raises Full-Year Earnings and Dividend Outlook on Strong Components Demand
Feb 2, 2026
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 H...
TDK Lifts Full-Year Outlook on Strong Nine-Month Earnings and Higher Dividend Plan
Feb 2, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.