TDK Corporation (TTDKY)
OTHER OTC:TTDKY
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TDK
(OTC:TTDKY)
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Rating:61Neutral
Price Target:
$23.00
▲(57.86% Upside)
Action:Downgraded
Date:05/30/26
The score is driven primarily by improving financial performance (recovery in growth/profitability, stronger leverage trend, and positive free cash flow). However, the stock’s technicals are overextended (very high RSI/Stoch), and valuation is a meaningful headwind (high P/E and low yield), pulling the overall score down.
Positive Factors
Improved free cash flow
Sustained positive free cash flow through 2024–2026 materially improves the company's ability to fund capex, R&D and working capital internally. Over a 2–6 month horizon this reduces refinancing risk and gives management durable optionality for reinvestment, deleveraging or strategic allocation.
Negative Factors
Margin volatility and cyclical sensitivity
Multi-year margin swings indicate earnings are sensitive to end-market demand and cost pressures. Over a 2–6 month horizon, this structural cyclicality can produce uneven profitability, complicate planning and capex decisions, and limit predictability of operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow
Sustained positive free cash flow through 2024–2026 materially improves the company's ability to fund capex, R&D and working capital internally. Over a 2–6 month horizon this reduces refinancing risk and gives management durable optionality for reinvestment, deleveraging or strategic allocation.
Read all positive factors
TDK (TTDKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.23B
Dividend Yield1.4%
Average Volume (3M)30.89K
Price to Earnings (P/E)36.3
Beta (1Y)1.28
Revenue Growth14.69%
EPS Growth19.27%
CountryUS
Employees105,067
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)104.55
Shares Outstanding1,943,859,900
10 Day Avg. Volume28,118
30 Day Avg. Volume30,886
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)1.78
Price to Sales (P/S)1.47
P/FCF Ratio17.61
Enterprise Value/Market Cap151.19
Enterprise Value/Revenue2.75
Enterprise Value/Gross Profit8.80
Enterprise Value/Ebitda14.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.75
Revenue Forecast (FY)$16.72B
TDK Business Overview & Revenue Model
Company Description
TDK Corporation, along with its affiliated companies, is a global enterprise that manufactures and distributes electronic components across numerous regions, including Japan, Europe, China, various parts of Asia, and the Americas. The company's op...
How the Company Makes Money
TDK primarily makes money by manufacturing and selling electronic components and modules to OEMs and other manufacturers, generating revenue through product shipments across multiple end-markets. Key revenue streams include: (1) Passive components...
TDK Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 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.
Read all updates
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
78
Positive
Balance Sheet
73
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.66T | 2.20T | 2.10T | 2.18T | 1.90T |
| Gross Profit | 830.65B | 688.04B | 603.02B | 584.52B | 563.85B |
| EBITDA | 470.31B | 447.40B | 343.36B | 394.28B | 357.37B |
| Net Income | 207.46B | 167.16B | 124.69B | 114.19B | 131.30B |
Balance Sheet | |||||
| Total Assets | 4.43T | 3.54T | 3.42T | 3.15T | 3.15T |
| Cash, Cash Equivalents and Short-Term Investments | 846.43B | 774.61B | 697.05B | 558.33B | 558.33B |
| Total Debt | 618.64B | 608.40B | 685.74B | 752.16B | 679.81B |
| Total Liabilities | 2.22T | 1.73T | 1.70T | 1.68T | 1.68T |
| Stockholders Equity | 2.20T | 1.80T | 1.71T | 1.46T | 1.30T |
Cash Flow | |||||
| Free Cash Flow | 221.69B | 220.55B | 228.42B | -12.94B | -12.94B |
| Operating Cash Flow | 538.29B | 445.84B | 447.01B | 262.77B | 262.77B |
| Investing Cash Flow | -400.53B | -244.84B | -216.59B | -234.40B | -234.40B |
| Financing Cash Flow | -68.65B | -143.33B | -146.37B | 14.95B | 113.74B |
TDK Technical Analysis
Positive
14.57
Price Trends
19.26
Positive
16.52
Positive
15.67
Positive
Market Momentum
1.23
Positive
57.62
Neutral
38.37
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 23.00, below the 50-day MA of 19.26, and below the 200-day MA of 15.67, indicating a bullish trend. The MACD of 1.23 indicates Positive momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.37 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $54.67B | 62.45 | 17.26% | ― | 8.14% | 10.64% | |
72 Outperform | $13.93B | 52.04 | 10.88% | ― | 44.48% | 8.59% | |
72 Outperform | $40.68B | 49.43 | 58.99% | 0.14% | 19.00% | 78.70% | |
70 Neutral | $11.70B | 26.10 | 7.95% | ― | 3.25% | -68.85% | |
67 Neutral | $21.46B | 106.13 | 11.26% | ― | 23.10% | 146.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $46.23B | 36.32 | 9.82% | 1.40% | 14.69% | 19.27% |
* Technology Sector Average
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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.