Want to see JP:8035 full AI Analyst Report?
Top Page
Tokyo Electron
(8035)
Select Model
Select Model
Rating:70Outperform
Price Target:
¥57,464.00
▲(30.57% Upside)
Action:Reiterated
Date:07/31/26
The score is supported primarily by strong financial performance—robust margins and returns alongside an exceptionally conservative balance sheet. Offsetting this, technicals are weak with the stock below its 20/50/100-day moving averages, and valuation is less favorable due to a high P/E with only a modest dividend yield.
Positive Factors
High Profitability & Margins
Sustained high gross and operating margins indicate durable earnings power and pricing or process advantages in capital equipment. Strong margins support ongoing R&D, service capabilities and resilience through cycles, enabling reinvestment without relying on leverage.
Negative Factors
End-market Cyclicality
Heavy reliance on semiconductor capex cycles means demand and bookings can swing materially with memory and foundry investment shifts. This cyclicality creates revenue and capacity planning volatility that can persist for multiple quarters and complicate multi-period forecasting.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
Sustained high gross and operating margins indicate durable earnings power and pricing or process advantages in capital equipment. Strong margins support ongoing R&D, service capabilities and resilience through cycles, enabling reinvestment without relying on leverage.
Read all positive factors
Tokyo Electron (8035) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥25.23T
Dividend Yield1.13%
Average Volume (3M)5.80M
Price to Earnings (P/E)40.8
Beta (1Y)1.23
Revenue Growth8.25%
EPS Growth16.50%
CountryJP
Employees20,236
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1358.91
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
¥78,841.39Price Target Upside79.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1,632.76
Revenue Forecast (FY)¥3.32T
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 to manufacture semiconductors and, to a lesser extent, display panels. Its core revenue stream is new tool sales: customers (chipmakers and foundries) place orders for TEL proc...
Tokyo Electron Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 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
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.63T | 2.44T | 2.43T | 1.83T | 2.21T | 2.00T |
| Gross Profit | 1.20T | 1.11T | 1.15T | 830.27B | 984.41B | 911.82B |
| EBITDA | 894.31B | 829.52B | 768.38B | 508.68B | 660.82B | 636.20B |
| Net Income | 620.99B | 574.45B | 544.13B | 363.96B | 471.58B | 437.08B |
Balance Sheet | ||||||
| Total Assets | 2.96T | 2.86T | 2.63T | 2.46T | 2.31T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 409.61B | 506.25B | 496.24B | 472.55B | 473.10B | 371.27B |
| Total Debt | 67.65B | 0.00 | 21.40B | 13.32B | 13.22B | 4.36B |
| Total Liabilities | 812.50B | 791.00B | 770.77B | 696.28B | 712.07B | 547.41B |
| Stockholders Equity | 2.14T | 2.07T | 1.86T | 1.76T | 1.60T | 1.35T |
Cash Flow | ||||||
| Free Cash Flow | 391.25B | 330.75B | 423.80B | 317.73B | 359.37B | 227.23B |
| Operating Cash Flow | 583.52B | 539.73B | 582.17B | 434.72B | 426.27B | 283.39B |
| Investing Cash Flow | -80.83B | -96.49B | -169.61B | -125.15B | -41.76B | -55.63B |
| Financing Cash Flow | -452.70B | -425.36B | -388.84B | -325.01B | -256.53B | -167.26B |
Tokyo Electron Technical Analysis
Positive
44010.00
Price Trends
65664.80
Negative
54863.01
Positive
45374.27
Positive
Market Momentum
-3489.62
Positive
43.61
Neutral
43.28
Neutral
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 63592.50, below the 50-day MA of 65664.80, and below the 200-day MA of 45374.27, indicating a neutral trend. The MACD of -3489.62 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 43.28 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥704.63B | 28.13 | 13.70% | 1.50% | 10.83% | -3.77% | |
72 Outperform | ¥22.67T | 51.32 | 56.56% | 0.20% | 36.20% | 104.76% | |
70 Outperform | ¥25.23T | 40.84 | 28.89% | 1.79% | 8.25% | 16.50% | |
70 Outperform | ¥3.42T | 38.43 | 40.97% | 0.76% | 12.01% | 26.66% | |
68 Neutral | ¥2.35T | 27.76 | 20.78% | 0.92% | -5.60% | -10.68% | |
67 Neutral | ¥6.34T | 43.44 | 26.19% | 0.83% | 15.20% | 17.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:8035
Tokyo Electron
55,330.00
34,711.85
168.36%
JP:6857
Advantest
32,930.00
22,853.98
226.82%
JP:7735
SCREEN Holdings Co
13,690.00
7,931.11
137.72%
JP:6146
Disco
61,590.00
21,785.90
54.73%
JP:6920
Lasertec
43,330.00
29,153.97
205.66%
JP:7729
Tokyo Seimitsu Co., Ltd
17,990.00
9,823.77
120.30%
Tokyo Electron Corporate Events
Tokyo Electron Extends Global Stock-Based Incentive Schemes for 2026
Jul 30, 2026
Tokyo Electron’s board has approved the continuation in 2026 of its global stock delivering scheme for directors, corporate officers, executive officers, and senior and mid-level employees, as well as a non-performance-linked stock-based com...
Tokyo Electron Q1 Profit Slips but First-Half Outlook Raised
Jul 30, 2026
Tokyo Electron reported first-quarter consolidated net sales of ¥549.6 billion, down 1.0% year on year, with operating income falling 12.7% to ¥144.7 billion and net income attributable to owners of the parent decreasing 6.6% to ¥11...
Tokyo Electron Begins Execution of Large-Scale Share Buyback Program
Jul 1, 2026
Tokyo Electron has initiated a share repurchase program authorized by its board, buying back 207,100 shares of common stock for about 11.47 billion yen between June 1 and June 30, 2026 through market purchases on the Tokyo Stock Exchange. This ini...
Tokyo Electron Revises Figures in Executive Stock Option Plan
Jun 30, 2026
Tokyo Electron has corrected figures in its recently announced stock-based compensation plan, revising the total number of share subscription rights to be issued in the 25th and 26th rounds. The changes slightly reduce the number of rights and und...
Tokyo Electron to Boost Retail Access With Five-for-One Stock Split
Jun 29, 2026
Tokyo Electron Limited said it will make its shares more accessible to individual investors by implementing a stock split, aiming to foster broader market participation and support liquidity in its shares. The move reflects management’s view...
Tokyo Electron Elevates Veteran Executive Hiroshi Ishida to Representative Director and Future COO
Jun 23, 2026
Tokyo Electron has appointed long-time executive Hiroshi Ishida as Senior Executive Vice President and Representative Director, effective June 23, 2026, as part of a move to reinforce its management structure. Ishida, who joined the company in 199...
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...
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.