Tokyo Electron Ltd (TOELY)
OTHER OTC:TOELY
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Tokyo Electron
(OTC:TOELY)
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Rating:79Outperform
Price Target:
$138.00
▲(5.96% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by strong financial quality (high margins, strong ROE, and very low leverage) and supportive technical momentum (price above key moving averages with positive MACD). This is tempered by a relatively expensive valuation (P/E ~37) and some cyclicality/cash-conversion headwinds reflected in recent TTM growth and FCF-to-earnings conversion.
Positive Factors
Balance-sheet strength
Extremely low leverage and a large equity base provide durable financial flexibility. This reduces refinancing risk across semiconductor cycles, supports sustained R&D and capex spending, and enables opportunistic investments or shareholder returns without jeopardizing solvency.
Negative Factors
Cyclicality of revenue
Revenue is highly exposed to semiconductor and display capex cycles, creating durable volatility in orders and utilization. This cyclicality complicates capacity planning, can depress margins in downturns, and leads to uneven near-term cash flow and earnings visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Extremely low leverage and a large equity base provide durable financial flexibility. This reduces refinancing risk across semiconductor cycles, supports sustained R&D and capex spending, and enables opportunistic investments or shareholder returns without jeopardizing solvency.
Read all positive factors
Tokyo Electron (TOELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$121.47B
Dividend Yield1.78%
Average Volume (3M)12.36K
Price to Earnings (P/E)33.1
Beta (1Y)1.41
Revenue Growth17.58%
EPS Growth16.78%
CountryUS
Employees17,702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.83
Shares Outstanding943,265,440
10 Day Avg. Volume7,736
30 Day Avg. Volume12,359
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)5.09
Price to Sales (P/S)3.89
P/FCF Ratio22.81
Enterprise Value/Market Cap159.45
Enterprise Value/Revenue8.08
Enterprise Value/Gross Profit17.78
Enterprise Value/Ebitda26.82
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.5
Revenue Forecast (FY)$18.48B
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 primarily makes money by selling capital equipment used in semiconductor and display fabrication, supplemented by ongoing service and support revenue tied to its installed base.
1) Semiconductor production equipment sales (core rev...
Tokyo Electron Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant financial achievements, with record-breaking revenue and growth in key segments like DRAM and HBM. However, challenges such as quarterly declines in profit margins, decreased sales in China, and potential impacts from new tariffs were noted. Despite these lowlights, the positive outlook for fiscal 2026 suggests continued growth.Positive Updates
Record-Breaking Financial Performance
Net sales reached ¥2,431.5 billion, a 32.8% increase year-over-year. Operating income was ¥697.3 billion, a 52.8% increase, and net income was ¥544.1 billion, a 49.5% increase year-over-year. Gross profit exceeded ¥1 trillion for the first time with a margin of 47.1%.
Negative Updates
Quarterly Decline in Key Metrics
In the fourth quarter, gross profit declined by 0.4% and net income decreased by 9.1% from the previous quarter, with operating profit margin dropping by 2.5 percentage points.
Read all updates
Q4-2025 Updates
Positive
Negative
Record-Breaking Financial Performance
Net sales reached ¥2,431.5 billion, a 32.8% increase year-over-year. Operating income was ¥697.3 billion, a 52.8% increase, and net income was ¥544.1 billion, a 49.5% increase year-over-year. Gross profit exceeded ¥1 trillion for the first time with a margin of 47.1%.
Read all positive updates
Company Guidance
During the call, Tokyo Electron provided comprehensive guidance for the fiscal year ended March 2025, outlining significant financial achievements and future expectations. The company reported net sales of ¥2,431.5 billion, a 32.8% increase year-over-year, with gross profit surpassing ¥1 trillion for the first time at ¥1,146.2 billion, resulting in a gross profit margin of 47.1%. Operating income reached ¥697.3 billion, reflecting a 52.8% increase, while net income attributable to owners was ¥544.1 billion, up by 49.5%. The return on equity (ROE) was 30.3%. Tokyo Electron also highlighted their robust R&D and capital expenditures, with R&D expenses totaling ¥250.0 billion, a 23.2% increase, and capital expenditures amounting to ¥162.1 billion. Looking ahead, the company anticipates net sales of ¥2,600 billion for fiscal 2026, representing a 6.9% growth, with plans to invest ¥300 billion in R&D. The guidance also touched on the company's strategic focus areas, including advanced logic for AI servers, HBM, and emerging technologies such as cryogenic etching and wafer bonding, aiming to capitalize on the expected growth in the WFE market driven by AI-related investments.Tokyo Electron Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.40T | 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 | 722.18B | 759.59B | 508.68B | 660.82B | 636.20B | 354.73B |
| Net Income | 505.27B | 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 | 418.76B | 496.24B | 472.55B | 473.10B | 371.27B | 311.55B |
| Total Debt | 87.01B | 0.00 | 13.32B | 13.22B | 4.36B | 3.81B |
| Total Liabilities | 630.19B | 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 | 403.86B | 414.13B | 309.74B | 349.96B | 218.28B | 84.96B |
| Operating Cash Flow | 599.21B | 582.17B | 434.72B | 426.27B | 283.39B | 145.89B |
| Investing Cash Flow | -165.30B | -169.61B | -125.15B | -41.76B | -55.63B | -18.27B |
| Financing Cash Flow | -302.78B | -388.84B | -325.01B | -256.53B | -167.26B | -114.53B |
Tokyo Electron Technical Analysis
Positive
130.24
Price Trends
130.76
Positive
120.83
Positive
104.50
Positive
Market Momentum
-1.66
Negative
58.83
Neutral
54.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOELY, the sentiment is Positive. The current price of 130.24 is above the 20-day moving average (MA) of 123.39, below the 50-day MA of 130.76, and above the 200-day MA of 104.50, indicating a bullish trend. The MACD of -1.66 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 54.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOELY.
Tokyo Electron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $323.13B | 34.75 | 62.59% | 0.56% | 25.66% | 46.68% | |
79 Outperform | $121.47B | 33.10 | 26.01% | 1.78% | 17.58% | 16.78% | |
78 Outperform | $551.53B | 36.81 | 52.14% | 0.63% | 24.91% | 39.95% | |
75 Outperform | $475.35B | 8.48 | 40.84% | 0.20% | 45.43% | 203.31% | |
72 Outperform | $315.71B | 31.26 | 38.90% | 0.69% | 4.47% | 0.48% | |
71 Outperform | $385.82B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TOELY
Tokyo Electron
132.49
64.50
94.87%
AMD
Advanced Micro Devices
236.64
147.94
166.79%
AMAT
Applied Materials
397.81
260.63
189.98%
ASML
ASML Holding
1,448.64
803.89
124.68%
LRCX
Lam Research
258.76
192.81
292.38%
MU
Micron
421.51
351.63
503.17%
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.