TDK (TTDKY) AI Stock Analysis

• Market Cap: $21.36B
• Dividend Yield: 1.75%
• Average Volume (3M): 4.38K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 1.07
• Revenue Growth: -0.57%
• EPS Growth: 27.75%
• Country: US
• Employees: 105,067
• Sector: Technology
• Sector Strength: 79
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4,384
• PEG Ratio: -0.24
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -27.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• 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 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 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 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.

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.

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.

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
	EBIT
221.36B	172.89B	168.83B	166.78B	166.78B	111.53B
	EBITDA
410.49B	355.47B	394.28B	357.37B	273.10B	222.85B
	Net Income Common Stockholders
166.06B	124.69B	114.19B	131.30B	131.30B	79.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
818.37B	650.00B	558.33B	558.33B	506.28B	446.33B
	Total Assets
3.79T	3.42T	3.15T	3.15T	3.04T	2.40T
	Total Debt
681.32B	685.74B	752.16B	752.16B	679.81B	521.61B
	Net Debt
-137.05B	35.74B	245.97B	245.97B	240.47B	141.23B
	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

• Technical Analysis Sentiment: Negative
• Last Price: 10.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 10.73 is above the 20-day moving average (MA) of 10.73, above the 50-day MA of 10.32, and below the 200-day MA of 11.73, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTDKY.

TDK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTDKY	80 Outperform	$21.36B	18.89	9.39%	1.75%	-0.57%	27.75%
TEL	78 Outperform	$49.23B	35.64	11.33%	1.71%	1.23%	-58.22%
APH	77 Outperform	$114.43B	44.82	27.53%	0.70%	30.70%	27.09%
TRMB	77 Outperform	$17.31B	11.78	31.00%	―	-6.93%	537.94%
FTV	74 Outperform	$24.11B	30.48	7.70%	0.45%	0.85%	-10.01%
GLW	64 Neutral	$43.21B	96.54	4.14%	2.20%	9.77%	-26.50%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%