Tokyo Electron Ltd. (JP:8035)
:8035
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Tokyo Electron
(8035)
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Rating:80Outperform
Price Target:
¥78,200.00
▲(77.69% Upside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by strong financial performance (high profitability and an exceptionally conservative balance sheet), supported by a strong bullish price trend and positive momentum. The main constraint is valuation, with a high P/E and low dividend yield.
Positive Factors
High profitability
Sustained net margins near 23.5% indicate durable pricing power and efficient operations for a capital-equipment supplier. High margins support reinvestment, R&D and shareholder returns, and provide a buffer versus cyclical revenue swings over the medium term.
Negative Factors
Revenue cyclicality tied to capex
A substantial portion of revenue depends on semiconductor manufacturers' CAPEX cycles, producing durable but pronounced volatility across 2-6 month horizons and beyond. This limits predictability of top-line and free-cash-flow in prolonged industry downcycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained net margins near 23.5% indicate durable pricing power and efficient operations for a capital-equipment supplier. High margins support reinvestment, R&D and shareholder returns, and provide a buffer versus cyclical revenue swings over the medium term.
Read all positive factors
Tokyo Electron (8035) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥33.07T
Dividend Yield1.79%
Average Volume (3M)5.80M
Price to Earnings (P/E)56.8
Beta (1Y)1.23
Revenue Growth0.49%
EPS Growth6.10%
CountryJP
Employees17,702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1254.68
Shares Outstanding468,032,750
10 Day Avg. Volume5,268,610
30 Day Avg. Volume5,798,936
Financial Highlights & Ratios
PEG Ratio4.86
Price to Book (P/B)8.24
Price to Sales (P/S)6.98
P/FCF Ratio51.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥61,530.77Price Target Upside39.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1,553.47
Revenue Forecast (FY)¥3.21T
Tokyo Electron Business Overview & Revenue Model
Company Description
Tokyo Electron Limited, operating globally with its subsidiaries, is actively engaged in the engineering, fabrication, and international sales of advanced equipment for both semiconductor and flat panel display (FPD) production. Its extensive mark...
How the Company Makes Money
Tokyo Electron primarily makes money by selling capital equipment used by semiconductor manufacturers and, to a smaller extent, flat panel display manufacturers. The largest revenue stream is the one-time sale of new production tools (e.g., coater...
Tokyo Electron Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook driven by strong financial performance, record growth projections, and advancements in AI technology. Despite challenges such as cash flow issues, China market volatility, and regulatory hurdles, the company remains confident in its strategic initiatives and technological advancements.Positive Updates
Strong Financial Performance
Net sales reached ¥654.5 billion, a 15.5% increase from the previous quarter. Gross profit was ¥311.7 billion, a 19.9% increase, and operating income reached ¥199.6 billion, a 34.7% increase. Net income attributable to owners of parent was ¥157.2 billion, a 33.6% increase.
Negative Updates
Cash Flow Challenges
The third quarter saw a free cash outflow of ¥64.1 billion due to transient increase in receivables and tax payments, though improvement is expected in the fourth quarter.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance
Net sales reached ¥654.5 billion, a 15.5% increase from the previous quarter. Gross profit was ¥311.7 billion, a 19.9% increase, and operating income reached ¥199.6 billion, a 34.7% increase. Net income attributable to owners of parent was ¥157.2 billion, a 33.6% increase.
Read all positive updates
Company Guidance
During the third quarter of the fiscal year ending March 2025, Tokyo Electron reported robust financial performance, with net sales reaching ¥654.5 billion, marking a 15.5% increase from the previous quarter. The company achieved a gross profit of ¥311.7 billion, representing a 19.9% rise, and an improved gross profit margin of 47.6%, up by 1.7 percentage points. Operating income surged by 34.7% to ¥199.6 billion, with an operating profit margin of 30.5%, up by 4.3 percentage points. Income before income taxes increased by 30.3% to ¥200.1 billion, and net income attributable to owners stood at ¥157.2 billion, a 33.6% rise. The company reported capital expenditures of ¥50.2 billion, focusing on future growth investments. The balance sheet showed total assets at ¥2,501.9 billion, with a notable decline in cash and cash equivalents by ¥230.0 billion due to dividends, share repurchase, and tax payments. Free cash outflow was reported at ¥64.1 billion, with expectations for positive figures in the fourth quarter. The ongoing strategic share repurchase program saw the acquisition of 2,024,200 shares at ¥46.9 billion, completed in January 2025.Tokyo Electron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
96
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.44T | 2.43T | 1.83T | 2.21T | 2.00T |
| Gross Profit | 1.11T | 1.15T | 830.27B | 984.41B | 911.82B |
| EBITDA | 829.52B | 768.38B | 508.68B | 660.82B | 636.20B |
| Net Income | 574.45B | 544.13B | 363.96B | 471.58B | 437.08B |
Balance Sheet | |||||
| Total Assets | 2.86T | 2.63T | 2.46T | 2.31T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 506.25B | 496.24B | 472.55B | 473.10B | 371.27B |
| Total Debt | 0.00 | 21.40B | 13.32B | 13.22B | 4.36B |
| Total Liabilities | 791.00B | 770.77B | 696.28B | 712.07B | 547.41B |
| Stockholders Equity | 2.07T | 1.86T | 1.76T | 1.60T | 1.35T |
Cash Flow | |||||
| Free Cash Flow | 330.75B | 423.80B | 317.73B | 359.37B | 227.23B |
| Operating Cash Flow | 539.73B | 582.17B | 434.72B | 426.27B | 283.39B |
| Investing Cash Flow | -96.49B | -169.61B | -125.15B | -41.76B | -55.63B |
| Financing Cash Flow | -425.36B | -388.84B | -325.01B | -256.53B | -167.26B |
Tokyo Electron Technical Analysis
Positive
44010.00
Price Trends
49731.00
Positive
45315.38
Positive
37257.88
Positive
Market Momentum
5016.05
Negative
75.84
Negative
86.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8035, the sentiment is Positive. The current price of 44010 is below the 20-day moving average (MA) of 56222.00, below the 50-day MA of 49731.00, and above the 200-day MA of 37257.88, indicating a bullish trend. The MACD of 5016.05 indicates Negative momentum. The RSI at 75.84 is Negative, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8035.
Tokyo Electron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥4.36T | 48.27 | 53.12% | 1.11% | 12.01% | 26.66% | |
80 Outperform | ¥33.07T | 56.79 | 26.01% | 1.79% | 0.49% | 6.10% | |
80 Outperform | ¥2.77T | 30.39 | 21.73% | 2.29% | -3.12% | -4.90% | |
80 Outperform | ¥9.25T | 64.93 | 25.78% | 0.79% | 11.08% | 9.32% | |
78 Outperform | ¥20.52T | 59.18 | 47.37% | 0.25% | 44.75% | 135.64% | |
73 Outperform | ¥811.35B | 31.04 | 12.66% | 2.28% | 10.83% | -3.75% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Tokyo Electron Corporate Events
Tokyo Electron Sets Up ¥150 Billion Share Buyback Facility Ahead of Stock Split
May 29, 2026
Tokyo Electron has approved the establishment of a new share repurchase facility, authorizing buybacks of up to 7.5 million common shares, or about 1.6% of its outstanding stock excluding treasury shares, for a total of up to ¥150 billion. Th...
Tokyo Electron Announces 5-for-1 Stock Split and Major Increase in Authorized Shares
May 29, 2026
Tokyo Electron plans a five-for-one stock split effective October 1, 2026, aiming to lower the minimum investment and bring its per-unit share price closer to the Tokyo Stock Exchange’s preferred range to attract more individual investors. T...
Tokyo Electron Raises Annual Dividend Payout for Fiscal 2026
May 12, 2026
Tokyo Electron’s board has approved a year-end dividend of 364 yen per share for the fiscal year ended March 31, 2026, unchanged from its recent forecast and payable on June 2 to shareholders of record as of March 31. The total year-end payo...
Tokyo Electron Lifts Profit and Dividends as Semiconductor Demand Stays Strong
Apr 30, 2026
Tokyo Electron reported consolidated net sales of ¥2.43 trillion for the year ended March 31, 2026, with operating income of ¥697.3 billion and net income attributable to owners of the parent of ¥544.1 billion. Profitability metrics...
Tokyo Electron Taiwan Fined Over Lapse in Supervision on Trade Secrets Case
Apr 27, 2026
Tokyo Electron Limited reported that a Taiwan court has ordered its subsidiary, Tokyo Electron Taiwan Ltd., to pay a NT$150 million fine, with a three-year suspended sentence contingent on payments to an affected customer and the Taiwanese governm...
Tokyo Electron to Change Representative Director as Sadao Sasaki Retires
Apr 6, 2026
Tokyo Electron announced that Senior Executive Vice President and Representative Director Sadao Sasaki will step down from his role as Representative Director when his term as Corporate Director expires. The retirement is scheduled to take effect ...
Tokyo Electron to Cancel 3.6 Million Treasury Shares to Streamline Capital Base
Mar 27, 2026
Tokyo Electron Limited has approved the cancellation of 3.6 million shares of its common stock, equivalent to 0.76% of its outstanding shares, under Article 178 of the Companies Act of Japan. The cancellation is scheduled for April 30, 2026, and w...
Tokyo Electron Completes ¥150 Billion Share Buyback Program
Mar 27, 2026
Tokyo Electron has completed a share repurchase program authorized by its board on February 6, 2026, under which it bought back 1,854,800 common shares for about ¥75.0 billion on the Tokyo Stock Exchange between March 1 and March 9, 2026. Thi...
Tokyo Electron Revamps Board Slate Ahead of June Shareholders’ Meeting
Mar 27, 2026
Tokyo Electron has announced a slate of nine candidates for its Board of Directors, combining reappointments with new nominees ahead of the Annual General Meeting of Shareholders scheduled for June 23, 2026. The proposed lineup includes a mix of i...
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.