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TDK Corporation (TTDKY)
OTHER OTC:TTDKY
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TDK
(OTC:TTDKY)
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Rating:80Outperform
Price Target:―
TDK Corporation's stock is supported by strong financial performance and a positive outlook from the latest earnings call, particularly in the HDD market. Challenges in passive components and automotive sectors, as well as neutral technical indicators, temper the otherwise positive view. The valuation suggests the stock is reasonably priced, offering a balanced risk-reward profile.
TDK (TTDKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.12B
Dividend Yield1.02%
Average Volume (3M)3.56K
Price to Earnings (P/E)27.1
Beta (1Y)1.00
Revenue Growth4.40%
EPS Growth-11.79%
CountryUS
Employees105,067
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.15
Shares Outstanding1,943,859,900
10 Day Avg. Volume4,577
30 Day Avg. Volume3,560
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TDK Business Overview & Revenue Model
Company DescriptionTDK 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 MoneyTDK Corporation generates revenue primarily through the manufacturing and sale of its electronic components and devices. The company's key revenue streams include sales of passive components like capacitors and inductors, sensor application products, and magnetic application products such as magnetic heads and power supplies. TDK's revenue is significantly supported by its strong presence in the automotive sector, where its components are used in electric vehicles and advanced driver-assistance systems. Additionally, TDK benefits from strategic partnerships and collaborations with other technology firms, enhancing its product offerings and market reach. The company's focus on innovation and R&D also contributes to its earnings by enabling the development of cutting-edge technologies that meet evolving market demands.
TDK Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
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.Q1-2026 Updates
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.
Energy Application Products Performance
The energy application products segment saw net sales of JPY285.5 billion, up 8.6% YoY, with operating profit slightly higher than the previous year.
Improvement in MEMS Sensors
MEMS sensors achieved sales growth driven by increased microphone sales for the ICT market and higher motion sensor sales for the industrial equipment market, resulting in a significant improvement in profit.
Magnetic Application Products Profitability
Operating profit for the magnetic application products segment increased by JPY7 billion, thanks to improved product mix and cost efficiency.
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.
Net Profit Decline
Net profit was JPY41.5 billion, down JPY18.2 billion or 30.5%, due to foreign exchange losses and the absence of a tax expense reversal recorded in the previous year.
Challenges in Automotive Market
Sales of passive components and sensors decreased in the automotive market due to a slowdown in BEV demand, impacting overall segment profitability.
Negative Free Cash Flow
Free cash flow was negative at JPY3.9 billion, aligned with Q1 expectations but still a negative indicator.
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
TDK demonstrates strong financial health with robust profitability and cash generation. The company maintains prudent leverage management and a stable equity base, although slightly higher liabilities could pose long-term risks. Overall, TDK is well-positioned for future challenges and opportunities.Income Statement
TDK shows strong profitability with a TTM gross profit margin of 31.44% and a net profit margin of 7.71%. Revenue growth is evident with a 2.45% increase from the previous year. The EBIT margin stands at 10.27%, indicating efficient core operations. EBITDA margin is robust at 19.05%, reflecting strong operational cash generation.85
Very Positive
Balance Sheet
The debt-to-equity ratio of 0.36 suggests prudent leverage management. Return on Equity (ROE) is healthy at 8.78%, indicating effective use of equity. The equity ratio of 50.00% shows a balanced asset financing structure. The company's solid equity base provides stability, though slightly higher liabilities could pose long-term risks.78
Positive
Cash Flow
Free cash flow has grown by 13.09% over the year, showcasing efficient cash management. The operating cash flow to net income ratio is strong at 2.91, indicating excellent cash conversion. The free cash flow to net income ratio of 1.56 further underscores the company's robust cash-generating ability.90
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16T | 2.10T | 2.18T | 1.90T | 1.90T | 1.48T |
| Gross Profit | 677.45B | 603.02B | 584.52B | 563.85B | 563.85B | 434.32B |
| EBITDA | 410.49B | 355.47B | 394.28B | 357.37B | 273.10B | 222.85B |
| Net Income | 166.06B | 124.69B | 114.19B | 131.30B | 131.30B | 79.34B |
Balance Sheet | ||||||
| Total Assets | 3.79T | 3.42T | 3.15T | 3.15T | 3.04T | 2.40T |
| Cash, Cash Equivalents and Short-Term Investments | 818.37B | 650.00B | 558.33B | 558.33B | 506.28B | 446.33B |
| Total Debt | 681.32B | 685.74B | 752.16B | 752.16B | 679.81B | 521.61B |
| Total Liabilities | 1.88T | 1.70T | 1.68T | 1.68T | 1.74T | 1.40T |
| Stockholders Equity | 1.89T | 1.71T | 1.46T | 1.46T | 1.30T | 1.00T |
Cash Flow | ||||||
| Free Cash Flow | 258.30B | 228.42B | -12.94B | -12.94B | -112.35B | 10.46B |
| Operating Cash Flow | 482.66B | 447.01B | 262.77B | 262.77B | 178.99B | 222.81B |
| Investing Cash Flow | -224.24B | -216.59B | -234.40B | -234.40B | -281.55B | -231.49B |
| Financing Cash Flow | -129.70B | -146.37B | 14.95B | 14.95B | 113.74B | 29.19B |
TDK Technical Analysis
Positive
14.25
Price Trends
13.09
Positive
12.00
Positive
11.64
Positive
Market Momentum
0.42
Negative
58.42
Neutral
61.73
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 14.25 is above the 20-day moving average (MA) of 13.82, above the 50-day MA of 13.09, and above the 200-day MA of 11.64, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 61.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTDKY.
TDK Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | 149.68B | 48.91 | 27.60% | 0.54% | 40.51% | 49.81% | |
80 Outperform | $27.12B | 27.06 | 8.36% | 1.02% | 4.40% | -11.79% | |
75 Outperform | 16.42B | 21.91 | 7.41% | 0.58% | -0.12% | -11.27% | |
72 Outperform | 64.13B | 44.81 | 11.75% | 1.25% | 4.86% | -56.43% | |
71 Outperform | 67.97B | 84.01 | 7.37% | 1.41% | 14.63% | 86.61% | |
70 Outperform | 19.33B | 69.37 | 26.18% | ― | -3.72% | -80.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
TTDKY
TDK
14.25
1.52
11.94%
FLEX
Flex
56.85
23.42
70.06%
JBL
Jabil
215.84
96.24
80.47%
SANM
Sanmina-Sci
114.11
45.66
66.71%
TRMB
Trimble
81.24
19.15
30.84%
TTMI
TTM Technologies
55.78
37.53
205.64%
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.