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TDK Corporation
(6762)
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Rating:69Neutral
Price Target:
¥2,874.00
▼(-6.60% Downside)
Action:Reiterated
Date:10/06/26
The score is driven by solid financial strength (healthy profitability and improving leverage) but held back by weaker cash conversion and a recent step-down in free cash flow. Technicals show strong uptrend but an overbought condition increases near-term risk, while valuation is a headwind given the higher P/E and modest yield. Earnings call tone remains constructive, though cash flow and conservative guidance temper confidence.
Positive Factors
Strong operating growth
The sharp increase in quarterly sales and operating profit shows broad operating momentum across TDK’s businesses. If supported beyond one reporting period, stronger scale and demand can improve earnings power, fund investment, and reinforce the company’s position with major electronics and industrial customers.
Negative Factors
Weak cash conversion
The large decline in free cash flow and low conversion from accounting earnings weaken the quality of recent profit growth. Persistently weaker cash generation could constrain internal funding for capacity, research, and acquisitions, while increasing the importance of disciplined working-capital and investment management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating growth
The sharp increase in quarterly sales and operating profit shows broad operating momentum across TDK’s businesses. If supported beyond one reporting period, stronger scale and demand can improve earnings power, fund investment, and reinforce the company’s position with major electronics and industrial customers.
Read all positive factors
TDK Corporation (6762) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.98T
Dividend Yield1.52%
Average Volume (3M)10.88M
Price to Earnings (P/E)21.2
Beta (1Y)1.80
Revenue Growth21.98%
EPS Growth57.54%
CountryJP
Employees109,289
SectorGeneral
Sector StrengthN/A
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)123.70
Shares Outstanding1,943,859,900
10 Day Avg. Volume10,558,980
30 Day Avg. Volume10,883,520
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)1.71
Price to Sales (P/S)1.49
P/FCF Ratio17.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,250.00Price Target Upside38.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)140.2
Revenue Forecast (FY)¥2.96T
TDK Corporation Business Overview & Revenue Model
Company Description
TDK Corporation, together with its subsidiaries, engages in the manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Pro...
How the Company Makes Money
TDK makes money primarily by manufacturing and selling electronic components and related devices to OEMs and other manufacturers. Its revenue is driven by (1) sales of passive components used in electronic circuits—such as capacitors, inductors, a...
TDK Corporation Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported record Q1 net sales (+38.3% YoY) and operating profit (+53% YoY) with strong segment-level performance driven by AI data center demand, HDD strength, and recovery across passive, sensor and energy businesses. However, several notable concerns temper the outlook — significantly negative free cash flow (JPY 79.4bn), increased R&D/SG&A spending, declines in some battery shipments, exposure to memory market volatility, and reliance on one-time gains for part of the profit improvement. Management maintained conservative full-year guidance despite the beat, highlighting caution around demand trends and FX. On balance, the operational and top-line strengths outweigh the financial and cash-flow headwinds, but investors should monitor cash generation and demand sustainability closely.Positive Updates
Record Quarterly Revenue and Profit
Net sales of JPY 741.0 billion, up JPY 205.3 billion (+38.3% YoY). Operating profit JPY 86.3 billion, up JPY 29.9 billion (+53% YoY). Profit before tax JPY 94.5 billion (+64% YoY) and profit attributable to owners JPY 80.6 billion (+94.4% YoY). Quarterly EPS JPY 42.45.
Negative Updates
Negative Free Cash Flow and Operating Cash Outflow
Operating cash flow was negative JPY 19.2 billion; investing cash flow including Linergy acquisition was JPY 60.2 billion, resulting in free cash flow of negative JPY 79.4 billion for the quarter. Management attributes this to increased capex, acquisitions and working capital.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Revenue and Profit
Net sales of JPY 741.0 billion, up JPY 205.3 billion (+38.3% YoY). Operating profit JPY 86.3 billion, up JPY 29.9 billion (+53% YoY). Profit before tax JPY 94.5 billion (+64% YoY) and profit attributable to owners JPY 80.6 billion (+94.4% YoY). Quarterly EPS JPY 42.45.
Read all positive updates
Company Guidance
The company reiterated its full-year earnings forecast for FY Mar 2027 while flagging an unchanged Q2 FX assumption of JPY150/USD, and provided quarter‑to‑quarter segment guidance (excluding FX): Passive Components +2% to +5%, Sensor Application Products +3% to +6%, Magnetic Application Products +5% to +8%, and Energy Application Products +9% to +12% (with smartphone production volumes peaking in Q2 and QoQ smartphone-related volumes ≈ +5%, small‑battery sales volumes ≈ +10%, and medium‑sized batteries also growing). Management also noted operating‑profit sensitivity of about JPY2.0 billion per JPY1 change vs. the U.S. dollar (≈ JPY300 million per JPY1 vs. the euro), said they expect Q2 sales to exceed beginning‑of‑year projections across all segments, and will monitor global developments, demand trends and exchange rates.TDK Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.71T | 2.50T | 2.20T | 2.10T | 2.18T | 1.90T |
| Gross Profit | 841.47B | 783.40B | 688.04B | 603.02B | 584.52B | 563.85B |
| EBITDA | 532.21B | 513.71B | 417.06B | 366.89B | 364.01B | 337.67B |
| Net Income | 234.78B | 195.66B | 167.16B | 124.69B | 114.19B | 131.30B |
Balance Sheet | ||||||
| Total Assets | 4.75T | 4.42T | 3.54T | 3.42T | 3.15T | 3.04T |
| Cash, Cash Equivalents and Short-Term Investments | 870.20B | 842.77B | 697.31B | 650.00B | 506.19B | 439.34B |
| Total Debt | 764.40B | 615.97B | 608.40B | 685.74B | 752.16B | 679.81B |
| Total Liabilities | 2.43T | 2.21T | 1.73T | 1.70T | 1.68T | 1.74T |
| Stockholders Equity | 2.30T | 2.19T | 1.80T | 1.71T | 1.46T | 1.30T |
Cash Flow | ||||||
| Free Cash Flow | 106.52B | 209.08B | 220.55B | 228.42B | -12.94B | -112.35B |
| Operating Cash Flow | 429.48B | 507.67B | 445.84B | 447.01B | 262.77B | 178.99B |
| Investing Cash Flow | -375.06B | -377.75B | -244.84B | -216.59B | -234.40B | -281.66B |
| Financing Cash Flow | -10.59B | -64.75B | -143.33B | -146.37B | 14.95B | 113.86B |
TDK Corporation Technical Analysis
Negative
3077.00
Price Trends
3009.72
Negative
3232.45
Negative
2788.15
Negative
Market Momentum
-63.25
Positive
34.72
Neutral
8.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6762, the sentiment is Negative. The current price of 3077 is below the 20-day moving average (MA) of 3080.02, above the 50-day MA of 3009.72, and above the 200-day MA of 2788.15, indicating a bearish trend. The MACD of -63.25 indicates Positive momentum. The RSI at 34.72 is Neutral, neither overbought nor oversold. The STOCH value of 8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6762.
TDK Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥4.98T | 21.22 | ― | 1.52% | 21.98% | 57.54% | |
68 Neutral | ¥402.64B | 15.78 | 5.95% | 3.12% | 2.28% | -22.89% | |
65 Neutral | ¥11.57T | 43.15 | 9.94% | 1.12% | 10.31% | 24.82% | |
63 Neutral | ¥37.67B | 17.28 | ― | 4.63% | 9.71% | 23.67% | |
63 Neutral | ¥1.11T | 57.59 | ― | 1.08% | 5.60% | ― | |
59 Neutral | ¥1.26T | 11.45 | 12.67% | 1.76% | 12.38% | 94.31% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6762
TDK Corporation
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3.04%
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TDK Corporation Corporate Events
TDK posts strong quarterly profits and lifts annual dividend outlook
Jul 31, 2026
TDK reported a sharp improvement in performance for the three months ended June 30, 2026, with net sales rising 38.3% year on year to ¥741.0 billion and operating profit jumping 53.0% to ¥86.3 billion. Profit before tax increased 64.0% t...
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.