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Tomen Devices Corp. (2737) AI Stock Analysis

JP:2737

Tomen Devices Corp.

(TSE/TYO:2737)

Select Model
Rating:54Neutral
Price Target:JPY 25,959.00â–²(7.94% Upside)
Action:reiterated
Date:10/29/26

Recent earnings growth and attractive valuation are the main strengths, but elevated leverage, poor cash conversion, and weak technical momentum significantly constrain the score.

Positive Factors
Strong FY2026 Revenue GrowthThe sharp FY2026 revenue increase indicates strong recent demand for the company’s electronics and semiconductor distribution activities. Higher sales can improve operating scale, strengthen customer relationships, and provide a larger base for earnings growth if volume and product demand remain durable.
Negative Factors
Sharp Leverage IncreaseThe sharp increase in leverage materially raises financial risk and reduces balance-sheet flexibility. A debt load near twice equity can constrain investment and capital allocation, while making the company more vulnerable to weaker demand or an adverse turn in the electronics distribution cycle.

Tomen Devices Corp. (2737) vs. iShares MSCI Japan ETF (EWJ)

-100%0%100%200%300%400%JP:2737+150.85%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 163.56B
Dividend Yield
2.25%
Average Volume (3M)
205.49K
Price to Earnings (P/E)
5.4
Beta (1Y)
1.46
Revenue Growth
157.17%
EPS Growth
378.49%
Country
Japan
Employees
202
Sector
General
Sector Strength
55
Industry
Technology Distributors

Tomen Devices Corp. Business Overview & Revenue Model

Company Description

Tomen Devices Corporation engages in the trading of semiconductors and electronic components in Japan and internationally. It offers memory semiconductors, including dynamic random access memory (DRAM), flash memory, solid state drive (SSD), and mult...

How the Company Makes Money

Tomen Devices Corp. primarily makes money through distribution/trading margins earned by sourcing electronic components and related products from manufacturers and selling them to downstream customers (e.g., electronics makers and other industrial us...

Tomen Devices Corp. Financial Statement Overview

Summary

Strong recent revenue and profit growth support the score, but aggressive debt expansion and weak, volatile cash generation materially offset the income-statement improvement.

Income Statement

74Positive

Balance Sheet

48Neutral

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue926.86B633.67B421.67B370.68B417.62B462.82B
Gross Profit45.15B24.20B14.50B13.61B15.96B14.21B
EBITDA35.91B15.65B9.51B4.22B8.15B8.73B
Net Income23.27B10.02B5.59B2.10B4.91B6.38B
Balance Sheet
Total Assets407.85B344.96B114.01B130.24B107.33B117.07B
Cash, Cash Equivalents and Short-Term Investments10.11B7.83B13.17B20.86B12.14B8.22B
Total Debt141.37B118.57B14.20B29.75B20.73B9.50B
Total Liabilities337.34B285.72B64.39B84.73B63.13B77.70B
Stockholders Equity70.51B59.24B49.62B45.51B43.21B38.59B
Cash Flow
Free Cash Flow0-97.56B9.20B4.41B-5.17B5.75B
Operating Cash Flow0-97.47B9.21B4.42B-4.96B5.90B
Investing Cash Flow0-362.00M-21.00M494.00M-263.00M-183.00M
Financing Cash Flow095.97B-16.85B2.90B8.58B-7.60B

Tomen Devices Corp. Technical Analysis

Technical Analysis SentimentNegative
Last Price24050.00

Price Trends

50DMA34552.20Negative
100DMA26825.20Negative
200DMA19891.60Positive

Market Momentum

MACD-2444.82Positive
RSI30.00Neutral
STOCH2.82Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2737, the sentiment is Negative. The current price of 24050.00 is below the 20-day moving average (MA) of 34486.50, below the 50-day MA of 34552.20, and above the 200-day MA of 19891.60, indicating a neutral trend. The MACD of -2444.82 indicates Positive momentum. The RSI at 30.00 is Neutral, neither overbought nor oversold. The STOCH value of 2.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2737.

Tomen Devices Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:2737 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3445JP:344575OutperformJPY 129.66B13.40―0.92%18.13%2.01%
JP:6855JP:685573OutperformJPY 90.56B12.47―1.78%38.30%75.21%
JP:8084JP:808470OutperformJPY 101.40B18.206.65%3.22%12.73%-1.28%
JP:3132JP:313261NeutralJPY 687.54B20.50―1.94%25.16%50.89%
JP:6627JP:662761NeutralJPY 82.75B16.98―1.23%34.35%60.68%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:2737JP:273754NeutralJPY 163.57B5.39―2.25%157.17%378.49%

* General Sector Average

Performance Comparison

0%100%200%300%JP:2737JP:8084JP:3132JP:3445JP:6627JP:6855Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:2737 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2737Tomen Devices Corp.24050.0015017.48166.26%
JP:8084Ryoden Corporation2405.00864.8956.16%
JP:3132MACNICA HOLDINGS INC.3857.001710.5679.69%
JP:3445RS Technologies Co. Ltd.4875.001075.2128.30%
JP:6627Tera Probe, Inc.1790.00634.3454.89%
JP:6855Japan Electronic Materials Corporation6180.001862.4243.14%
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.

Date of analysis: Oct 29, 2026