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TDK
(OTC:TTDKY)
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Rating:65Neutral
Price Target:
$21.00
▲(13.82% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial performance (improving profitability and manageable leverage) tempered by weak recent free-cash-flow conversion. Earnings call factors are moderately positive due to record results and strong AI/HDD-driven demand, but guidance was not raised and results benefited from FX/one-offs while free cash flow was negative. Technicals and valuation are neutral-to-slightly negative, with mixed momentum signals and a somewhat elevated P/E alongside a modest dividend yield.
Positive Factors
Secular end‑market exposure
TDK's revenue mix benefits from structural demand in AI data centers, HDDs and energy/battery applications. These secular end‑markets support higher content-per-system and multi-year platform cycles, giving durable volume and product‑mix tailwinds that reduce reliance on any single consumer cycle.
Negative Factors
Weak free cash flow
A sharp drop in free cash flow and low FCF-to-net-income ratio reflect heavier capex, acquisitions and working capital absorption. Persistent weak cash conversion reduces financial flexibility for dividends, buybacks or debt paydown and could constrain investment if operating performance softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Secular end‑market exposure
TDK's revenue mix benefits from structural demand in AI data centers, HDDs and energy/battery applications. These secular end‑markets support higher content-per-system and multi-year platform cycles, giving durable volume and product‑mix tailwinds that reduce reliance on any single consumer cycle.
Read all positive factors
TDK (TTDKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.46B
Dividend Yield1.22%
Average Volume (3M)101.41K
Price to Earnings (P/E)24.3
Beta (1Y)1.31
Revenue Growth18.15%
EPS Growth52.66%
CountryUS
Employees106,545
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)126.29
Shares Outstanding1,943,859,900
10 Day Avg. Volume219,538
30 Day Avg. Volume101,406
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)1.78
Price to Sales (P/S)1.47
P/FCF Ratio17.61
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.8
Revenue Forecast (FY)$17.46B
TDK Business Overview & Revenue Model
Company Description
TDK Corporation, together with its subsidiaries, engages in the manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Pro...
How the Company Makes Money
TDK primarily makes money by selling electronic components, modules, and energy devices to OEMs (original equipment manufacturers) and suppliers that integrate these parts into finished products. Its revenue model is largely product-sales driven a...
TDK Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call presented strong quarter-on-quarter and year-on-year financial performance with record net sales and operating profit driven by AI data center demand, HDD momentum, and recovery in multiple product lines. Several segments delivered double-digit YoY revenue and large profit improvements, and many businesses returned to or improved profitability. However, the results were partially supported by a significant FX tailwind and one-time gains, cash flow was weak with materially negative free cash flow due to capex and an acquisition, and there are lingering demand uncertainties in ICT-related products and specific product lines. On balance, positive operational momentum and record profitability outweigh the cash flow and one-off concerns.Positive Updates
Record Quarterly Revenue and Profit
Consolidated net sales of JPY 741.0 billion, up JPY 205.3 billion or 38.3% year-on-year; operating profit JPY 86.3 billion, up JPY 29.9 billion or 53%; profit before tax JPY 94.5 billion, up 64%; profit attributable to owners JPY 80.6 billion, up 94.4%; quarterly EPS JPY 42.45.
Negative Updates
Weakness in ICT-Related Production Affecting Batteries
Production of ICT-related products declined YoY due to tight memory supply/demand and higher memory prices; shipment volumes of rechargeable batteries declined, negatively impacting part of Energy Application Products despite overall YoY segment growth.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Revenue and Profit
Consolidated net sales of JPY 741.0 billion, up JPY 205.3 billion or 38.3% year-on-year; operating profit JPY 86.3 billion, up JPY 29.9 billion or 53%; profit before tax JPY 94.5 billion, up 64%; profit attributable to owners JPY 80.6 billion, up 94.4%; quarterly EPS JPY 42.45.
Read all positive updates
Company Guidance
Management maintained its full‑year March 2027 earnings forecast while providing Q2 guidance assuming JPY150/USD and noting FX sensitivity of ~JPY2.0 billion in operating profit per JPY1 move vs the dollar (and ~JPY0.3 billion vs the euro); quarter‑over‑quarter segment growth targets (excluding FX) are Passive Components +2–5%, Sensor Application Products +3–6%, Magnetic Application Products +5–8% (driven by ~+10% heads volume and ~+6% suspension volume uplifts), and Energy Application Products +9–12% (smartphone production peaking in Q2 with ~+5% QoQ and small battery sales volume ~+10%), with management expecting Q2 sales to exceed initial projections across all segments but remaining cautious on demand and FX hence keeping the full‑year outlook unchanged.TDK Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.76T | 2.66T | 2.20T | 2.10T | 2.18T | 1.90T |
| Gross Profit | 855.48B | 830.65B | 688.04B | 603.02B | 584.52B | 563.85B |
| EBITDA | 521.40B | 470.31B | 447.40B | 343.36B | 394.28B | 357.37B |
| Net Income | 238.59B | 207.46B | 167.16B | 124.69B | 114.19B | 131.30B |
Balance Sheet | ||||||
| Total Assets | 4.72T | 4.43T | 3.54T | 3.42T | 3.15T | 3.15T |
| Cash, Cash Equivalents and Short-Term Investments | 864.45B | 846.43B | 774.61B | 697.05B | 558.33B | 558.33B |
| Total Debt | 759.36B | 618.64B | 608.40B | 685.74B | 752.16B | 679.81B |
| Total Liabilities | 2.42T | 2.22T | 1.73T | 1.70T | 1.68T | 1.68T |
| Stockholders Equity | 2.28T | 2.20T | 1.80T | 1.71T | 1.46T | 1.30T |
Cash Flow | ||||||
| Free Cash Flow | 110.34B | 221.69B | 220.55B | 228.42B | -12.94B | -12.94B |
| Operating Cash Flow | 439.75B | 538.29B | 445.84B | 447.01B | 262.77B | 262.77B |
| Investing Cash Flow | -383.84B | -400.53B | -244.84B | -216.59B | -234.40B | -234.40B |
| Financing Cash Flow | -16.03B | -68.65B | -143.33B | -146.37B | 14.95B | 113.74B |
TDK Technical Analysis
Neutral
18.45
Price Trends
21.50
Negative
18.83
Positive
16.80
Positive
Market Momentum
-0.53
Negative
45.84
Neutral
79.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTDKY, the sentiment is Neutral. The current price of 18.45 is below the 20-day moving average (MA) of 18.86, below the 50-day MA of 21.50, and above the 200-day MA of 16.80, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TTDKY.
TDK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $33.01B | 38.90 | 62.42% | 0.10% | 17.80% | 55.75% | |
70 Neutral | $13.19B | 29.47 | 7.95% | ― | 3.25% | -68.85% | |
65 Neutral | $36.46B | 24.32 | 11.06% | 1.25% | 18.15% | 52.66% | |
63 Neutral | $41.68B | 43.92 | 18.71% | ― | 12.25% | 14.09% | |
63 Neutral | $9.95B | 32.55 | 12.57% | ― | 58.56% | 19.37% | |
62 Neutral | $11.99B | 61.08 | 11.26% | ― | 23.10% | 146.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TTDKY
TDK
18.92
6.05
47.04%
FLEX
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121.35
71.19
141.93%
JBL
Jabil
341.22
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SANM
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202.73
83.57
70.13%
TRMB
Trimble
59.51
-23.08
-27.95%
TTMI
TTM Technologies
137.21
92.60
207.58%
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.