TDK Corporation (TTDKY)
OTHER OTC:TTDKY
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TDK
(OTC:TTDKY)
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Rating:65Neutral
Price Target:
$13.00
▼(-10.78% Downside)
Action:ReiteratedDate:02/04/26
Overall score reflects solid profitability and a manageable balance sheet, tempered by weaker cash-flow quality (low FCF conversion and recent FCF decline). Technical indicators are mixed with negative MACD and price below the 100DMA, while valuation is reasonable (P/E ~19.3) with a modest dividend yield (~1.43%).
Positive Factors
Improving profitability
TTD’s margins are structurally stronger than recent years, with gross, EBITDA and net margins around 30.8%, 18.5% and 7.8% respectively. Sustained margins support durable earnings, fund reinvestment into higher-value modules, and provide buffer against cyclical revenue dips.
Negative Factors
Weak free cash flow conversion
FCF conversion at roughly 39% of net income, with a recent 6.5% decline, limits internal funding for capex, R&D or higher shareholder distributions. Persistent low conversion reduces margin of safety and may force external financing when investing in growth or smoothing payouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
TTD’s margins are structurally stronger than recent years, with gross, EBITDA and net margins around 30.8%, 18.5% and 7.8% respectively. Sustained margins support durable earnings, fund reinvestment into higher-value modules, and provide buffer against cyclical revenue dips.
Read all positive factors
TDK (TTDKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.53B
Dividend Yield1.4%
Average Volume (3M)48.51K
Price to Earnings (P/E)14.8
Beta (1Y)1.16
Revenue Growth8.57%
EPS Growth-0.32%
CountryUS
Employees105,067
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.24
Shares Outstanding1,943,859,900
10 Day Avg. Volume86,042
30 Day Avg. Volume48,507
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.67
Price to Sales (P/S)1.37
P/FCF Ratio13.67
Enterprise Value/Market Cap154.79
Enterprise Value/Revenue1.76
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda9.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.73
Revenue Forecast (FY)$16.41B
TDK Business Overview & Revenue Model
Company Description
TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through four segments: Passive Components, Sensor Appl...
How the Company Makes Money
TDK makes money primarily by selling electronic components and related systems to original equipment manufacturers (OEMs) and electronics supply-chain customers worldwide. Its revenue is generally driven by (1) passive components—high-volume sales...
TDK Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed financial outlook. While there were positive developments such as overall revenue growth and improvements in specific segments like energy application products and MEMS sensors, these were offset by notable declines in operating and net profit, mainly due to foreign exchange impacts and struggles in the automotive market. The forecast for upcoming quarters maintains uncertainty, particularly with ongoing geopolitical and market challenges.Positive Updates
Overall Revenue Growth
Net sales for Q1 increased by 3.3% YoY to JPY535.8 billion, indicating a positive trend in overall revenue.
Negative Updates
Decline in Operating Profit
Operating profit decreased by 2.5% YoY due to the significant appreciation of the yen and a decline in shipments for automotive applications.
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Q1-2026 Updates
Positive
Negative
Overall Revenue Growth
Net sales for Q1 increased by 3.3% YoY to JPY535.8 billion, indicating a positive trend in overall revenue.
Read all positive updates
Company Guidance
During the Q1 performance briefing for the fiscal year ending March 2026, TDK reported a 3.3% increase in net sales to JPY535.8 billion, despite a challenging global economic environment and significant yen appreciation. Operating profit decreased by 2.5% to JPY56.4 billion, influenced by foreign exchange losses of JPY7.1 billion. The company experienced a 30.5% decline in net profit to JPY41.5 billion, partly due to the absence of a tax expense reversal from the previous year. In terms of segment performance, the energy application products segment saw an 8.6% increase in net sales, driven by higher sales of small capacity batteries for the ICT market, while the passive components segment faced a 3.4% decline in net sales due to reduced demand in the automotive market. Looking ahead, TDK forecasts a 12% to 15% increase in revenue for energy application products in Q2, supported by seasonal demand for smartphones, and maintains its full-year projections based on a base scenario despite uncertain demand due to ongoing tariff negotiations.TDK Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.42T | 2.20T | 2.10T | 2.18T | 1.90T | 1.90T |
| Gross Profit | 745.36B | 688.04B | 603.02B | 584.52B | 563.85B | 563.85B |
| EBITDA | 471.93B | 447.40B | 343.36B | 394.28B | 357.37B | 273.10B |
| Net Income | 189.98B | 167.16B | 124.69B | 114.19B | 131.30B | 79.34B |
Balance Sheet | ||||||
| Total Assets | 4.34T | 3.54T | 3.42T | 3.15T | 3.15T | 3.04T |
| Cash, Cash Equivalents and Short-Term Investments | 878.76B | 774.61B | 697.05B | 558.33B | 558.33B | 446.33B |
| Total Debt | 755.16B | 608.40B | 685.74B | 752.16B | 679.81B | 521.82B |
| Total Liabilities | 2.23T | 1.73T | 1.70T | 1.68T | 1.68T | 1.74T |
| Stockholders Equity | 2.10T | 1.80T | 1.71T | 1.46T | 1.30T | 958.93B |
Cash Flow | ||||||
| Free Cash Flow | 175.34B | 220.55B | 228.42B | -12.94B | -12.94B | -112.35B |
| Operating Cash Flow | 440.84B | 445.84B | 447.01B | 262.77B | 262.77B | 178.99B |
| Investing Cash Flow | -344.67B | -244.84B | -216.59B | -234.40B | -234.40B | -281.55B |
| Financing Cash Flow | -53.13B | -143.33B | -146.37B | 14.95B | 113.74B | 113.74B |
TDK Technical Analysis
Positive
14.57
Price Trends
13.83
Positive
14.17
Negative
13.90
Positive
Market Momentum
-0.16
Negative
55.55
Neutral
93.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTDKY, the sentiment is Positive. The current price of 14.57 is above the 20-day moving average (MA) of 13.14, above the 50-day MA of 13.83, and above the 200-day MA of 13.90, indicating a bullish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 93.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTDKY.
TDK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $28.22B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
69 Neutral | $31.60B | 31.64 | 58.99% | 0.14% | 13.18% | -38.37% | |
68 Neutral | $12.56B | 41.17 | 10.61% | ― | 17.88% | 91.41% | |
66 Neutral | $8.07B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
65 Neutral | $27.53B | 14.77 | 9.89% | 1.40% | 8.57% | -0.32% | |
63 Neutral | $15.15B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TTDKY
TDK
14.52
5.28
57.20%
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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.