Tokyo Electron Ltd. (JP:8035)
:8035
Top Page
Tokyo Electron
(8035)
Select Model
Select Model
Rating:79Outperform
Price Target:
¥48,766.00
▲(27.33% Upside)
Action:ReiteratedDate:01/16/26
Tokyo Electron achieves a strong score driven primarily by its exceptional financial stability, high operational efficiency, and robust cash generation. While the market trend is clearly bullish, the score is tempered by a premium valuation and technical signs of being overbought, which suggest potential near-term volatility despite the solid fundamental foundation.
Positive Factors
Strong Financial Position
The company's low leverage and high return on equity underscore its financial health, positioning it well for future growth in the semiconductor industry.
Negative Factors
Geopolitical Risks
Involvement in Chinese semiconductor manufacturing poses geopolitical risks, potentially impacting long-term business operations due to regulatory scrutiny.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Financial Position
The company's low leverage and high return on equity underscore its financial health, positioning it well for future growth in the semiconductor industry.
Read all positive factors
Tokyo Electron (8035) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.93T
Dividend Yield1.79%
Average Volume (3M)5.80M
Price to Earnings (P/E)33.2
Beta (1Y)1.34
Revenue Growth16.74%
EPS Growth16.03%
CountryJP
Employees17,702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)258.59
Shares Outstanding471,632,720
10 Day Avg. Volume5,268,610
30 Day Avg. Volume5,798,936
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)4.99
Price to Sales (P/S)3.81
P/FCF Ratio21.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥50,524.47Price Target Upside31.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)1,201.2
Revenue Forecast (FY)¥2.42T
Tokyo Electron Business Overview & Revenue Model
Company Description
Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, and internationally. The company...
How the Company Makes Money
Tokyo Electron generates revenue primarily through the sale of semiconductor manufacturing equipment and services, which constitute the bulk of its earnings. The company’s revenue model is heavily reliant on the cyclical nature of the semiconducto...
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
85
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.39T | 2.43T | 1.83T | 2.21T | 2.00T | 1.40T |
| Gross Profit | 1.09T | 1.15T | 830.27B | 984.41B | 911.82B | 564.95B |
| EBITDA | 718.41B | 768.38B | 508.68B | 660.82B | 636.20B | 354.73B |
| Net Income | 503.13B | 544.13B | 363.96B | 471.58B | 437.08B | 242.94B |
Balance Sheet | ||||||
| Total Assets | 2.64T | 2.63T | 2.46T | 2.31T | 1.89T | 1.43T |
| Cash, Cash Equivalents and Short-Term Investments | 418.48B | 496.24B | 472.55B | 473.10B | 371.27B | 311.55B |
| Total Debt | 86.95B | 21.40B | 13.32B | 13.22B | 4.36B | 3.81B |
| Total Liabilities | 629.76B | 770.77B | 696.28B | 712.07B | 547.41B | 400.80B |
| Stockholders Equity | 2.01T | 1.86T | 1.76T | 1.60T | 1.35T | 1.02T |
Cash Flow | ||||||
| Free Cash Flow | 272.08B | 423.80B | 317.73B | 359.37B | 227.23B | 92.08B |
| Operating Cash Flow | 598.77B | 582.17B | 434.72B | 426.27B | 283.39B | 145.89B |
| Investing Cash Flow | -168.67B | -169.61B | -125.15B | -41.76B | -55.63B | -18.27B |
| Financing Cash Flow | -298.02B | -388.84B | -325.01B | -256.53B | -167.26B | -114.53B |
Tokyo Electron Technical Analysis
Negative
38300.00
Price Trends
41574.80
Negative
37436.90
Positive
31286.13
Positive
Market Momentum
-785.19
Positive
40.53
Neutral
38.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8035, the sentiment is Negative. The current price of 38300 is below the 20-day moving average (MA) of 41150.50, below the 50-day MA of 41574.80, and above the 200-day MA of 31286.13, indicating a neutral trend. The MACD of -785.19 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 38.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥2.87T | 25.03 | 53.12% | 1.11% | 32.51% | 57.19% | |
79 Outperform | ¥17.93T | 33.18 | 26.01% | 1.79% | 16.74% | 16.03% | |
78 Outperform | ¥1.75T | 15.60 | 21.73% | 2.29% | 11.29% | 11.38% | |
77 Outperform | $15.59T | 45.29 | 47.37% | 0.25% | 63.36% | 149.43% | |
77 Outperform | ¥581.00B | 24.84 | 12.66% | 2.28% | 9.53% | -11.17% | |
75 Outperform | $7.08T | 35.55 | 25.78% | 0.79% | 13.45% | 20.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:8035
Tokyo Electron
39,130.00
17,365.92
79.79%
JP:6857
Advantest
22,345.00
14,649.93
190.38%
JP:7735
SCREEN Holdings Co
19,205.00
9,039.58
88.92%
JP:6146
Disco
65,390.00
31,475.71
92.81%
JP:6920
Lasertec
31,870.00
18,136.18
132.05%
JP:7729
Tokyo Seimitsu Co., Ltd
14,150.00
5,829.92
70.07%
Tokyo Electron Corporate Events
Tokyo Electron Taiwan Indicted Over Information Leak Incident
Dec 3, 2025
Tokyo Electron Taiwan Ltd., a subsidiary of Tokyo Electron Limited, has been indicted by the Taiwan prosecutor’s office for a breach of supervisory obligations under Taiwan’s National Security Act, following an incident involving a for...
Tokyo Electron Increases Interim Dividend Amid Strong Performance
Oct 31, 2025
Tokyo Electron Limited announced an increase in its interim dividend for the first half of the fiscal year ending March 31, 2026, raising it to 264 yen per share from the previously forecasted 245 yen. This decision reflects the company’s im...
Tokyo Electron Reports Q2 Financial Results with Strategic Adjustments
Oct 31, 2025
Tokyo Electron Limited reported its consolidated financial results for the second quarter ending September 30, 2025, showing a slight decline in operating and ordinary income compared to the previous year. Despite this, the company maintains a str...
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.