TDK (TTDKY) AI Stock Analysis

• Market Cap: $31.10B
• Dividend Yield: 1.24%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.14
• Revenue Growth: 8.57%
• EPS Growth: -0.32%
• Country: US
• Employees: 105,067
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.24
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.53
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 13.67
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: $18.40
• Price Target Upside: 12.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $15.14B

• Rating: 77 Outperform
• Price Target: $18.50 ▲(12.80% Upside)

TDK's overall stock score reflects strong financial performance and technical momentum, which are the most significant factors. The company's robust revenue and profit growth, along with a stable balance sheet, support a positive outlook. However, the high valuation and mixed earnings call results, including challenges in the automotive market and foreign exchange impacts, introduce some risks. Investors should be cautious of the stock's current valuation and potential overbought technical indicators.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for TDK's products, showcasing the company's ability to capture market opportunities despite economic challenges.

Energy Application Products

Growth in energy application products reflects TDK's strategic positioning in high-demand sectors like ICT, supporting long-term revenue expansion.

Operational Efficiency

Improved margins demonstrate TDK's effective cost control and operational efficiency, enhancing profitability and competitive positioning.

Negative Factors

Decline in Operating Profit

Reduced operating profit highlights vulnerability to currency fluctuations, which can affect profitability and financial stability over time.

Challenges in Automotive Market

Weakness in the automotive sector could hinder TDK's growth, as this market is crucial for its passive components and sensors business.

Free Cash Flow Decline

Negative free cash flow may limit TDK's ability to invest in growth initiatives, affecting long-term strategic opportunities and financial health.

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 Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, inductive devices, ferrite cores, transformers, high-frequency devices, piezoelectric materials, and circuit protection components. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices, such as rechargeable batteries and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TDK generates revenue primarily through the sale of electronic components and materials to original equipment manufacturers (OEMs) and other businesses across multiple industries. Key revenue streams include the production of passive components like capacitors and inductors, which are critical for various electronic devices. Additionally, TDK earns income from its magnetic and sensor technologies, as well as energy devices, which are increasingly in demand due to the rise of electric vehicles and renewable energy solutions. The company also engages in strategic partnerships and collaborations with technology firms and research institutions, enhancing its innovation capabilities and market reach. Factors contributing to TDK's earnings include global demand for advanced electronic components, a focus on high-growth sectors, and ongoing investments in R&D to develop next-generation products.

TDK Financial Statement Overview

Summary

TDK demonstrates strong revenue and profit growth, supported by efficient operations and a stable balance sheet. The company maintains a healthy leverage position and generates adequate cash flow, although the recent decline in free cash flow growth could pose a risk. Overall, TDK is well-positioned in its industry with solid financial health, but should focus on improving cash flow growth to sustain long-term investments.

Income Statement

TDK shows strong revenue growth with a TTM increase of 7.69%, indicating robust demand in its sector. The gross profit margin improved to 31.08%, reflecting efficient cost management. Net profit margin also increased to 6.71%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 10.37% and 19.12% respectively, indicating strong operational performance. Overall, TDK's income statement reflects solid growth and profitability.

Balance Sheet

TDK maintains a stable financial position with a debt-to-equity ratio of 0.38, indicating moderate leverage. The return on equity is 8.29%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 49.15%, suggesting a balanced capital structure. While the company is managing its debt well, there is room for improvement in enhancing shareholder returns.

Cash Flow

TDK's cash flow statement shows a decline in free cash flow growth by 14.18%, which could be a concern for future investments. The operating cash flow to net income ratio is 0.38, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.44, suggesting that a significant portion of net income is being converted into free cash flow. While cash flow generation is stable, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	2.22T	―	2.20T	2.10T	2.18T	1.90T
Gross Profit	690.41B	―	688.04B	603.02B	584.52B	563.85B
EBITDA	417.12B	―	447.40B	343.36B	394.28B	357.37B
Net Income	149.00B	―	167.16B	124.69B	114.19B	131.30B
Balance Sheet
Total Assets	3.62T	―	3.54T	3.42T	3.15T	3.15T
Cash, Cash Equivalents and Short-Term Investments	710.40B	―	774.61B	697.05B	558.33B	558.33B
Total Debt	669.82B	―	608.40B	685.74B	752.16B	679.81B
Total Liabilities	1.83T	―	1.73T	1.70T	1.68T	1.68T
Stockholders Equity	1.78T	―	1.80T	1.71T	1.46T	1.30T
Cash Flow
Free Cash Flow	189.28B	―	220.55B	228.42B	-12.94B	-12.94B
Operating Cash Flow	432.26B	―	445.84B	447.01B	262.77B	262.77B
Investing Cash Flow	-251.99B	―	-244.84B	-216.59B	-234.40B	-234.40B
Financing Cash Flow	-89.74B	―	-143.33B	-146.37B	14.95B	113.74B

TDK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.4 is above the 20-day moving average (MA) of 16.21, above the 50-day MA of 15.59, and above the 200-day MA of 12.37, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 59.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTDKY.

TDK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	78 Outperform	$8.52B	35.05	10.81%	―	7.40%	13.79%
TTDKY	77 Outperform	$31.10B	26.73	9.32%	1.24%	8.57%	-0.32%
TTMI	77 Outperform	$7.25B	55.93	8.12%	―	17.88%	91.41%
TRMB	73 Outperform	$19.37B	55.37	6.13%	―	-0.86%	-75.37%
FLEX	66 Neutral	$21.86B	26.09	17.45%	―	0.77%	0.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$22.51B	35.57	40.43%	0.15%	3.18%	-46.01%

TDK Corporate Events

TDK Corporation Reports Mixed Q1 FY2026 Results

TDK Corporation is a leading global electronics company headquartered in Japan, specializing in electronic components, sensors, and energy application products. It operates primarily in the technology and electronics sector, known for its innovative solutions and extensive product range.

TDK Corporation’s Earnings Call: Mixed Sentiments Amid Challenges

Despite a rise in net sales and growth in specific segments such as sensor and energy application products, TDK Corporation’s latest earnings call conveyed a cautious sentiment. The company faces significant challenges, including a decline in overall operating and net profit, primarily driven by foreign exchange losses and a slowdown in the automotive market. While there are optimistic projections for the second quarter, the negative impacts from the current quarter and ongoing uncertainties weigh heavily on the overall sentiment.