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TDK Corporation (TTDKY)
OTHER OTC:TTDKY
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TDK
(OTC:TTDKY)
Rating:80Outperform
Price Target:―
TDK (TTDKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.04B
Dividend Yield1.65%
Average Volume (3M)2.16K
Price to Earnings (P/E)19.7
Beta (1Y)1.06
Revenue Growth-0.57%
EPS Growth27.75%
CountryUS
Employees105,067
SectorTechnology
Sector Strength84
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,943,859,900
10 Day Avg. Volume6,485
30 Day Avg. Volume2,161
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
TDK Business Overview & Revenue Model
Company DescriptionTDK Corporation is a leading Japanese multinational electronics company specializing in electronic components and devices. Founded in 1935, TDK operates in various sectors, including information and communication technology, automotive, and industrial equipment. The company's core products include capacitors, inductors, sensors, magnetic heads, and energy devices, which serve a wide range of applications in electronics and technology industries globally.
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:Apr 28, 2025
(Q3-2025)
| % Change Since: 9.31%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
While TDK Corporation achieved record operating profit and significant growth in the HDD market, challenges persist in passive components and sensor applications due to market weaknesses and increased expenses. The automotive sector also faced difficulties, and there is an expected decline in sales for the fourth quarter.Q3-2025 Updates
Positive Updates
Record Operating Profit
Operating profit increased by 34.3% year-on-year, marking the highest record for the third quarter.
Significant Growth in HDD Market
Demand for nearline HDDs for data centers increased 1.6 times year-on-year, with HDD heads sales volume increasing by 37% year-on-year.
Increased Free Cash Flow
Free cash flow was JPY213.5 billion, surpassing previous year's JPY185.5 billion, and well above the targeted level announced at the beginning of the year.
Positive Currency Impact
FX fluctuations had a positive impact of JPY8.5 billion on net sales and JPY16.8 billion on operating profit.
Negative Updates
Decline in Passive Components Sales
Net sales for passive components decreased by 0.6% year-on-year, with operating profit falling by 18.6% due to weak demand in industrial and auto markets.
Challenges in Sensor Applications
Operating profit for sensor application products fell by 45.2% year-on-year due to one-time gains in the previous year and increased expenses.
Struggles in Automotive Sector
Sales of power supplies for EVs and BEVs declined, reflecting a slowdown in the automotive market.
Projected Decline in Fourth Quarter
Anticipated decline in sales for passive components, sensor application products, and magnetic application products in the fourth quarter due to seasonality and stagnant demand.
Company Guidance
During the third quarter financial results briefing for TDK Corporation's fiscal year ending March 2025, several key metrics were highlighted. Net sales increased by 3.2% year-on-year to JPY1,670.5 trillion, with operating profit rising by 34.3% to JPY209.1 billion, both achieving record highs. The depreciation of the yen had a positive impact of JPY8.5 billion on net sales and JPY16.8 billion on operating profit. Earnings per share stood at JPY84.79. Notably, sales of small rechargeable batteries and HDD components for the ICT market saw significant growth, while the auto market struggled with a decline in BEV demand. However, demand for nearline HDDs for data centers increased 1.6 times year-on-year, boosting profitability. The company also adjusted its full-year projections, revising net sales upwards to JPY2,180.0 billion, while maintaining operating profit forecasts due to anticipated one-off expenses related to structural reforms. Free cash flow projections improved from JPY120 billion to JPY200 billion.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
11.15
Price Trends
10.73
Positive
10.61
Positive
11.61
Negative
Market Momentum
0.18
Negative
54.83
Neutral
72.22
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 11.15 is above the 20-day moving average (MA) of 10.84, above the 50-day MA of 10.73, and below the 200-day MA of 11.61, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $22.04B | 19.73 | 9.39% | 1.65% | -0.57% | 27.75% | |
78 Outperform | $50.49B | 37.32 | 11.33% | 1.67% | 1.23% | -58.22% | |
77 Outperform | $117.80B | 47.19 | 27.53% | 0.68% | 30.70% | 27.09% | |
77 Outperform | $18.24B | 12.68 | 31.00% | ― | -6.93% | 537.94% | |
73 Outperform | $18.07B | 23.34 | 7.70% | 0.60% | 0.85% | -10.01% | |
64 Neutral | $45.04B | 100.63 | 4.14% | 2.13% | 9.77% | -26.50% | |
63 Neutral | $33.24B | 5.92 | -11.55% | 1.90% | 5.54% | -20.14% |
* Technology Sector Average
Performance Comparison
TTDKY
TDK
11.15
-2.19
-16.42%
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FTV
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53.34
-0.98
-1.80%
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.