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TDK Corporation (TTDKY)
:TTDKY
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TDK
(OTC:TTDKY)
73Outperform
TDK (TTDKY) vs. S&P 500 (SPY)
Market Cap
$19.95B
Dividend Yield1.21%
Average Volume (3M)10.37K
Price to Earnings (P/E)18.0
Beta (1Y)1.20
Revenue Growth-4.18%
EPS Growth67.36%
CountryUS
Employees105,213
SectorTechnology
Sector Strength43
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.57
Shares Outstanding1,943,859,900
10 Day Avg. Volume0
30 Day Avg. Volume10,369
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)N/A
Price to Sales (P/S)0.78
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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, listed as TTDKY, is a Japanese multinational electronics company that specializes in manufacturing electronic components, modules, and systems. Founded in 1935 and headquartered in Tokyo, Japan, TDK is renowned for its expertise in magnetic technology, which is integral to its wide range of products. The company's core sectors include electronic components such as capacitors, inductors, and sensors, as well as data storage solutions and energy devices. TDK serves a diverse array of industries, including automotive, industrial, consumer electronics, and telecommunications.
How the Company Makes MoneyTDK Corporation generates revenue through the production and sale of its various electronic components and solutions. Its key revenue streams include passive components, such as capacitors and inductors, which are essential for electronic circuits across multiple industries. Additionally, TDK's sensor systems and magnetic application products, including hard disk drives and power supplies, contribute significantly to its earnings. The company also benefits from its advancements in energy devices, like rechargeable batteries, which are increasingly in demand in the automotive and consumer electronics sectors. Strategic partnerships and collaborations with major technology and automotive companies further enhance TDK's market presence and revenue potential. As the demand for electronic components grows in tandem with technological advancements, TDK's broad product portfolio and innovation in electronics manufacturing continue to drive its financial success.
TDK Financial Statement Overview
Summary
TDK demonstrates strong financial performance with robust profitability, operational efficiency, and a stable balance sheet. The company shows improvement in free cash flow, although there are some historical fluctuations. Overall, the financial health is solid, supporting its position in the hardware & equipment industry.Income Statement
TDK shows strong profitability with a consistent increase in net profit margins and stable gross profit margins. The revenue growth rate has been modest, but the company maintains a robust EBIT and EBITDA margin, indicating operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a healthy equity position with a manageable debt-to-equity ratio. The return on equity shows positive returns, and the company maintains a substantial equity ratio, signifying financial stability.80
Positive
Cash Flow
Cash flow analysis reveals significant improvement in free cash flow, driven by strong operating cash flow relative to net income. The company has managed to convert operating profits into cash efficiently, although historical fluctuations in free cash flow pose some risk.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.12T | 2.10T | 2.18T | 2.18T | 1.90T | 1.48T | Gross Profit |
| 643.30B | 603.02B | 584.52B | 584.52B | 563.85B | 434.32B | EBIT |
| 199.59B | 172.89B | 168.83B | 168.83B | 166.78B | 111.53B | EBITDA |
| 387.79B | 355.47B | 364.01B | 337.67B | 273.10B | 222.85B | Net Income Common Stockholders |
| 169.59B | 124.69B | 114.19B | 131.30B | 131.30B | 79.34B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 324.54B | 650.00B | 558.33B | 558.33B | 506.28B | 446.33B | Total Assets |
| 2.02T | 3.42T | 3.15T | 3.15T | 3.04T | 2.40T | Total Debt |
| 532.07B | 685.74B | 752.16B | 752.16B | 679.81B | 521.61B | Net Debt |
| 238.56B | 35.74B | 245.97B | 245.97B | 240.47B | 141.23B | Total Liabilities |
| 1.15T | 1.70T | 1.68T | 1.68T | 1.74T | 1.40T | Stockholders Equity |
| 863.35B | 1.71T | 1.46T | 1.46T | 1.30T | 1.00T |
| Cash Flow | Free Cash Flow | ||||
| 261.51B | 228.42B | -12.94B | -12.94B | -112.35B | 10.46B | Operating Cash Flow |
| 462.25B | 447.01B | 262.77B | 262.77B | 178.99B | 222.81B | Investing Cash Flow |
| -222.83B | -216.59B | -234.40B | -234.40B | -281.55B | -231.49B | Financing Cash Flow |
| -184.68B | -146.37B | 14.95B | 14.95B | 113.74B | 29.19B |
TDK Technical Analysis
Negative
10.13
Price Trends
11.15
Negative
12.01
Negative
12.38
Negative
Market Momentum
-0.18
Positive
33.37
Neutral
2.67
Positive
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 10.13 is below the 20-day moving average (MA) of 10.63, below the 50-day MA of 11.15, and below the 200-day MA of 12.38, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTDKY.
TDK Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $169.89B | 16.42 | 41.96% | 2.18% | 12.13% | 36.17% | |
75 Outperform | $787.25B | 80.76 | 14.85% | 1.30% | 40.30% | -22.79% | |
73 Outperform | $19.95B | 18.02 | 9.28% | 1.21% | -4.18% | 67.36% | |
71 Outperform | $100.02B | 64.31 | 4.43% | 1.82% | -19.28% | -44.00% | |
67 Neutral | $48.20B | 19.32 | 28.16% | 2.13% | -4.99% | -9.18% | |
65 Neutral | $163.51B | 34.58 | 28.25% | 2.96% | -10.72% | -26.60% | |
57 Neutral | $20.89B | 10.40 | -13.99% | 2.52% | 4.47% | -23.34% |
* Technology Sector Average
Performance Comparison
TTDKY
TDK
10.13
0.33
3.37%
ADI
Analog Devices
199.18
7.01
3.65%
AVGO
Broadcom
168.52
33.85
25.14%
NXPI
NXP Semiconductors
190.00
-49.66
-20.72%
QCOM
Qualcomm
153.05
-17.44
-10.23%
TXN
Texas Instruments
177.99
12.29
7.42%
TDK Earnings Call Summary
Earnings Call Date: Nov 1, 2024 | % Change Since: -16.28% | Next Earnings Date: Apr 28, 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.Highlights
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.
Lowlights
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.