TDK (TTDKY) AI Stock Analysis

• Market Cap: $24.18B
• Dividend Yield: 0.09%
• Average Volume (3M): 3.51K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.05
• Revenue Growth: -0.57%
• EPS Growth: 27.75%
• Country: US
• Employees: 105,067
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 3,513
• 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 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 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
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

• Technical Analysis Sentiment: Positive
• Last Price: 12.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 12.55 is above the 20-day moving average (MA) of 11.37, above the 50-day MA of 11.00, and above the 200-day MA of 11.51, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 72.38 is Negative, neither overbought nor oversold. The STOCH value of 94.78 is Negative, 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
APH	81 Outperform	$126.35B	40.14	31.02%	0.63%	40.51%	49.81%
TTDKY	80 Outperform	$24.18B	21.45	9.39%	0.09%	-0.57%	27.75%
TRMB	76 Outperform	$20.09B	13.71	31.00%	―	-6.93%	537.94%
TEL	72 Outperform	$60.97B	41.72	11.63%	1.29%	4.86%	-56.43%
FTV	68 Neutral	$17.31B	22.44	7.70%	0.44%	0.85%	-10.01%
GLW	64 Neutral	$47.72B	106.77	4.14%	2.02%	9.77%	-26.50%
Sector *	58 Neutral	€2.95B	11.66	-8.77%	2.74%	5.06%	-52.33%