TDK (TTDKY) AI Stock Analysis

• Market Cap: $28.19B
• Dividend Yield: 1.4%
• Average Volume (3M): 96.51K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.08
• 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: 137,041
• 30 Day Avg. Volume: 96,508
• 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: 152.92
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 5.78
• Enterprise Value/Ebitda: 9.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $15.42B

• Rating: 65 Neutral
• Price Target: $16.50 ▲(13.25% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 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

Diversified product portfolio

TDK's broad product set across passive components, sensors, power and magnetic materials supplies multiple end markets. This diversification reduces single-market dependence, enables cross-selling to OEMs and supports resilience from secular trends like automotive electrification and industrial automation.

Manageable leverage and equity base

A debt-to-equity near 0.36 and an expanded equity base indicate conservative leverage and capital flexibility. That balance-sheet strength supports steady capex, M&A optionality and resilience through demand cycles, while modest ROE reflects reasonable returns without excess financial risk.

Positive operating and free cash flow

Sustained positive operating cash flow and positive FCF provide internal funding for R&D, capacity upgrades and shareholder returns. Reliable cash generation supports long-term investment in higher-value modules and helps the company navigate cyclical downturns without immediate external financing.

Negative Factors

Weak FCF conversion

FCF converting to only ~39% of net income and a recent decline indicate earnings are not fully translating into cash. This undermines the firm's ability to sustainably fund capex, buybacks or dividends from operating results and raises sensitivity to working-capital swings and inventory cycles.

Moderate revenue growth pace

Revenue growth around mid-single digits suggests limited top-line momentum versus faster-growing peers and constrained scale-up of higher-margin products. Persistently modest growth can cap long-term margin expansion and makes earnings improvements reliant on efficiency or price recovery rather than strong demand expansion.

Exposure to cyclical end markets

Significant exposure to consumer electronics and automotive OEM cycles means demand and pricing can swing materially. For an components supplier, cyclicality affects factory utilization, inventory and margin sustainability, increasing earnings volatility across 2–6 month horizons and during longer market downturns.

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

Financials are solid but not top-tier: Income Statement (76) shows modest revenue growth (+4.6%) with improved margins (gross ~30.8%, EBITDA ~18.5%, net ~7.8%); Balance Sheet (74) indicates manageable leverage (debt/equity ~0.36) and moderate ROE (~9.9%). Cash Flow is the key drag (58) due to weaker cash conversion (FCF ~39% of net income) and a recent FCF decline (-6.5%).

Income Statement

TTM (Trailing-Twelve-Months) results show steady top-line growth (+4.6%) with solid profitability: gross margin ~30.8%, operating profitability supported by an EBITDA margin ~18.5%, and a net margin ~7.8%. Compared with prior annual periods, margins and earnings appear structurally improved versus 2023–2024 levels, though profitability is still moderate for the sector and the growth pace is not high.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.36 in TTM (Trailing-Twelve-Months), improved from higher levels in earlier years, and equity has expanded. Returns are reasonable (ROE ~9.9% TTM (Trailing-Twelve-Months)) but not exceptional, implying decent balance-sheet strength with room for better capital efficiency.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow of ~441B and free cash flow of ~175B, but conversion is a key weakness: free cash flow is only ~39% of net income and free cash flow declined (-6.5%) versus the prior period. The profile is improved versus the negative free-cash-flow year (2023), but consistency and cash conversion still lag.

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

• Technical Analysis Sentiment: Positive
• Last Price: 14.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.57 is below the 20-day moving average (MA) of 14.66, above the 50-day MA of 14.00, and above the 200-day MA of 13.54, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 63.56 is Neutral, neither overbought nor oversold. The STOCH value of 72.30 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
JBL	73 Outperform	$27.58B	41.22	47.87%	0.14%	13.18%	-38.37%
FLEX	72 Outperform	$24.08B	29.32	16.85%	―	0.77%	0.51%
SANM	71 Outperform	$7.77B	34.05	9.74%	―	7.40%	13.79%
TTMI	68 Neutral	$11.68B	67.23	10.67%	―	17.88%	91.41%
TTDKY	65 Neutral	$28.19B	23.47	9.88%	1.40%	8.57%	-0.32%
TRMB	63 Neutral	$15.64B	37.99	7.32%	―	-0.86%	-75.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%