Education
About Us
Working with TipRanks
Follow Us
Tokyo Electron (TOELY)
:TOELY
Top Page
Tokyo Electron
(OTC:TOELY)
Rating:68Neutral
Price Target:―
Tokyo Electron (TOELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.52B
Dividend Yield1.36%
Average Volume (3M)6.19K
Price to Earnings (P/E)24.0
Beta (1Y)1.44
Revenue Growth26.33%
EPS Growth43.83%
CountryUS
Employees17,702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.13
Shares Outstanding943,265,440
10 Day Avg. Volume18,565
30 Day Avg. Volume6,188
Financial Highlights & Ratios
PEG Ratio5.77
Price to Book (P/B)6.73
Price to Sales (P/S)0.00
P/FCF Ratio42.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$159.85Price Target Upside72.25% Upside
Rating ConsensusHold
Number of Analyst Covering0
Tokyo Electron Business Overview & Revenue Model
Company DescriptionTokyo 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's Semiconductor Production Equipment segment offers coaters/developers, etch systems, deposition systems, and cleaning systems used in wafer processing; wafer probers used in wafer testing process; and wafer bonders/debonders. Its Flat Panel Display Production Equipment segment provides coaters/developers and etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED panels. The company also offers logistic, facility maintenance, and insurance services. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyTokyo Electron generates revenue primarily through the sale of its semiconductor and flat panel display manufacturing equipment. Its key revenue streams include the sale of new equipment, maintenance services, and spare parts. The company also benefits from long-term partnerships and alliances with major semiconductor manufacturers and technology firms, which ensure a steady demand for its products. Tokyo Electron's earnings are further supported by its investment in research and development, enabling the company to continually innovate and maintain its competitive edge in advanced manufacturing technologies. Additionally, the company's global reach and strategic positioning in key markets contribute to its revenue growth and stability.
Tokyo Electron Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q4-2025)
| % Change Since: 24.65%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance for the fiscal year with record-high net sales and operating income driven by significant growth in DRAM and logic segments. Despite a decrease in Q4 metrics and challenges in the Chinese market, the company maintains a positive outlook with continued high investment in R&D and expects further growth. The financial achievements and optimistic forecasts outweigh the quarterly setbacks.Q4-2025 Updates
Positive Updates
Record-High Financial Performance
Net sales reached ¥2,431.5 billion, a 32.8% increase year-over-year. Gross profit exceeded ¥1 trillion for the first time, with a gross profit margin of 47.1%. Operating income increased by 52.8% year-over-year to ¥697.3 billion.
Strong DRAM and Logic Segment Growth
Sales to DRAM customers increased by 59% year-over-year, driven by adoption of tools for HBM and significant market share increase in etch systems.
Successful Product Innovations
Introduced multiple new products like single-wafer plasma CVD and laser-lift-off system, contributing to semiconductor technology innovation.
Positive Future Outlook
Expecting record-high net sales of ¥2,600 billion in fiscal 2026, with continued R&D investment of ¥300 billion.
Negative Updates
Quarterly Decline in Key Metrics
In Q4, gross profit decreased by 0.4% and operating income fell by 7.9% from the previous quarter due to increased SG&A expenses.
Decrease in China Market Share
Sales to China declined by 8.4 percentage points from the previous quarter, due to shipment pulls and reduced capital investment by emerging customers.
Challenges in Profit Margin
Operating profit margin decreased by 3.8 percentage points year-over-year, despite a record high gross profit margin.
Company Guidance
During the financial announcement call for the fiscal year ended March 2025, Tokyo Electron reported record-breaking results, surpassing previous guidance in several key metrics. Net sales reached ¥2,431.5 billion, a 32.8% increase year-over-year, driven by robust customer spending on both advanced and mature nodes. Gross profit exceeded ¥1 trillion for the first time, reaching ¥1,146.2 billion, with a gross profit margin of 47.1%. Operating income rose by 52.8% year-over-year to ¥697.3 billion, while net income hit ¥544.1 billion, marking a 49.5% increase. Despite a dip in operating profit margin to 28.7% due to sustained R&D investments, the company maintained strong growth in key areas such as DRAM sales, which surged by 59% year-over-year. The balance sheet highlighted total assets of ¥2,625.9 billion, with a significant free cash inflow of ¥225.8 billion, reaching an all-time high on both a quarterly and fiscal year basis. Looking ahead, Tokyo Electron anticipates continued growth, forecasting a 6.9% increase in net sales for fiscal 2026 and planning substantial R&D and capital expenditure investments to support further expansion.Tokyo Electron Financial Statement Overview
Summary
Tokyo Electron demonstrates strong financial health with high profitability margins and solid cash flow management. The company benefits from a robust equity position, low leverage, and effective cost control. However, the recent decline in revenue and free cash flow growth could pose challenges if trends continue.Income Statement
Tokyo Electron shows strong profitability with a healthy gross profit margin of approximately 45.36% in 2024. However, revenue growth has been negative, with a decline of about 17.14% from 2023 to 2024. Despite this, the company maintains a robust net profit margin of 19.88%, indicating efficient cost management. The EBIT margin remains solid at 24.92%, albeit slightly lower than the previous year due to reduced revenue, reflecting strong operational efficiency.75
Positive
Balance Sheet
The balance sheet of Tokyo Electron is strong with a low debt-to-equity ratio of 0.0076, indicating minimal leverage. The company has a high equity ratio of 71.68%, showing strong solvency and asset financing through equity. Return on equity is impressive at 20.68%, suggesting effective use of shareholder funds to generate profits. The company's financial position is stable with solid equity backing and low financial risk.80
Positive
Cash Flow
Tokyo Electron's cash flow is positive, with operating cash flow exceeding net income, resulting in a healthy operating cash flow to net income ratio of 1.19. However, there's a decline in free cash flow by around 11.49% from 2023 to 2024, which could impact future investments. Despite this, the company maintains a commendable free cash flow to net income ratio of 0.85, suggesting effective cash management.70
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.43T | 1.83T | 2.21T | 2.00T | 1.40T |
| Gross Profit | 1.15T | 830.27B | 984.41B | 911.82B | 564.95B |
| EBITDA | 759.59B | 508.68B | 660.82B | 636.20B | 354.73B |
| Net Income | 544.13B | 363.96B | 471.58B | 437.08B | 242.94B |
Balance Sheet | |||||
| Total Assets | 2.63T | 2.46T | 2.31T | 1.89T | 1.43T |
| Cash, Cash Equivalents and Short-Term Investments | 496.24B | 472.55B | 473.10B | 371.27B | 311.55B |
| Total Debt | 0.00 | 13.32B | 13.22B | 4.36B | 3.81B |
| Total Liabilities | 770.77B | 696.28B | 712.07B | 547.41B | 400.80B |
| Stockholders Equity | 1.86T | 1.76T | 1.60T | 1.35T | 1.02T |
Cash Flow | |||||
| Free Cash Flow | 414.13B | 309.74B | 349.96B | 218.28B | 84.96B |
| Operating Cash Flow | 582.17B | 434.72B | 426.27B | 283.39B | 145.89B |
| Investing Cash Flow | -169.61B | -125.15B | -41.76B | -55.63B | -18.27B |
| Financing Cash Flow | -388.84B | -325.01B | -256.53B | -167.26B | -114.53B |
Tokyo Electron Technical Analysis
Positive
92.80
Price Trends
82.10
Positive
77.67
Positive
78.97
Positive
Market Momentum
3.60
Negative
63.31
Neutral
74.18
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 92.8 is above the 20-day moving average (MA) of 87.83, above the 50-day MA of 82.10, and above the 200-day MA of 78.97, indicating a bullish trend. The MACD of 3.60 indicates Negative momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 74.18 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
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $120.69B | 33.17 | 104.10% | 0.83% | 20.44% | 44.14% | |
80 Outperform | $153.10B | 23.22 | 36.37% | 0.96% | 6.12% | -5.66% | |
80 Outperform | $218.57B | 101.03 | 3.90% | ― | 21.71% | 99.00% | |
80 Outperform | $125.53B | 27.34 | 53.14% | 0.94% | 20.33% | 31.89% | |
68 Neutral | $85.52B | 23.99 | 29.69% | 1.36% | 26.33% | 43.83% | |
56 Neutral | $95.96B | ― | -18.66% | 2.27% | -3.97% | -562.40% | |
50 Neutral | AU$1.52B | 1.92 | -28.25% | 3.31% | 16.21% | -7.40% |
* Technology Sector Average
Performance Comparison
TOELY
Tokyo Electron
92.80
-24.18
-20.67%
AMD
Advanced Micro Devices
137.82
-46.14
-25.08%
AMAT
Applied Materials
194.99
-57.59
-22.80%
INTC
Intel
23.59
-11.06
-31.92%
KLAC
KLA
919.22
35.10
3.97%
LRCX
Lam Research
99.83
-11.60
-10.41%
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.