TDK Corporation (6762) AI Stock Analysis

• Market Cap: ¥4.51T
• Dividend Yield: 1.16%
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.43
• Revenue Growth: 4.83%
• EPS Growth: -12.18%
• Country: JP
• Employees: 105,067
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 36.85
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 7,555,660
• 30 Day Avg. Volume: 8,133,680
• PEG Ratio: 0.52
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 13.32
• 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: ¥2,360.00
• Price Target Upside: -11.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ¥3,007.00 ▲(12.50% Upside)

TDK Corporation's overall stock score is driven by strong financial performance and bullish technical indicators. However, high valuation metrics and mixed earnings call sentiment, particularly the decline in profits and negative free cash flow, pose risks. The stock's overbought technical indicators suggest caution in the short term.

Positive Factors

Revenue Growth

The increase in net sales indicates robust demand and market expansion, particularly in the ICT and industrial equipment markets, supporting long-term growth.

Energy Application Products Growth

Strong growth in energy application products, driven by demand for small capacity batteries, highlights TDK's competitive position in the ICT market.

Conservative Leverage Position

A conservative leverage position enhances financial stability and provides TDK with flexibility to invest in growth opportunities.

Negative Factors

Decline in Operating Profit

The decline in operating profit, impacted by currency fluctuations and automotive market challenges, may pressure margins and profitability.

Significant Decrease in Net Profit

A significant drop in net profit due to foreign exchange losses and lack of tax reversals could impact TDK's ability to reinvest in growth.

Negative Free Cash Flow

Negative free cash flow, due to higher investment outflows, could constrain TDK's liquidity and limit future investment capacity.

TDK Corporation Business Overview & Revenue Model

Company Description

TDK Corporation (6762) is a leading global electronics company headquartered in Japan, specializing in the design and manufacturing of electronic components, modules, and systems. The company operates primarily in three segments: Passive Components, Magnetic Application Products, and Energy Devices, offering a wide range of products including capacitors, inductors, ferrite cores, and power supplies. TDK serves various industries such as automotive, telecommunications, consumer electronics, and industrial equipment, emphasizing innovation and quality in its product offerings.

How the Company Makes Money

TDK Corporation generates revenue primarily through the sale of electronic components and systems. Its key revenue streams include passive components, which account for a significant portion of sales, particularly capacitors and inductors, as well as magnetic products and energy devices. The company has established partnerships with major players in various sectors, enabling it to leverage demand for advanced technologies such as electric vehicles, renewable energy solutions, and IoT devices. Additionally, TDK invests in research and development to create innovative products that meet the evolving needs of its clients, thus driving growth and enhancing profitability.

TDK Corporation Financial Statement Overview

Summary

TDK Corporation demonstrates strong revenue growth and profitability, supported by efficient operations and a solid balance sheet. The company maintains a conservative leverage position, enhancing financial stability. However, declining free cash flow growth presents a potential risk to future investments and liquidity.

Income Statement

TDK Corporation shows strong revenue growth with a TTM increase of 76.9%, indicating robust demand and market expansion. The gross profit margin is healthy at 31.2%, and the net profit margin stands at 7.6%, reflecting efficient cost management. EBIT and EBITDA margins are solid at 10.0% and 18.9%, respectively, showcasing operational efficiency. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 0.34, indicating a conservative leverage position, which is favorable for financial stability. Return on equity is decent at 9.2%, suggesting effective use of shareholder funds. The equity ratio of 49.1% reflects a strong capital structure, though the slight decrease in stockholders' equity compared to total assets may need monitoring.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 0.41, indicating good cash generation relative to net income. However, free cash flow has declined by 14.2% TTM, which could impact future investments. The free cash flow to net income ratio of 0.49 suggests moderate cash conversion efficiency, but the negative growth trend in free cash flow is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.22T	2.20T	2.10T	2.18T	1.90T	1.48T
Gross Profit	690.41B	688.04B	603.02B	584.52B	563.85B	434.32B
EBITDA	424.78B	420.42B	384.71B	385.25B	355.08B	271.40B
Net Income	149.00B	167.16B	124.69B	114.19B	131.30B	74.68B
Balance Sheet
Total Assets	3.62T	3.54T	3.42T	3.15T	3.04T	2.36T
Cash, Cash Equivalents and Short-Term Investments	710.40B	697.31B	650.00B	506.19B	439.34B	380.39B
Total Debt	669.82B	608.40B	685.74B	752.16B	679.81B	525.68B
Total Liabilities	1.83T	1.73T	1.70T	1.68T	1.74T	1.40T
Stockholders Equity	1.78T	1.80T	1.71T	1.46T	1.30T	958.93B
Cash Flow
Free Cash Flow	189.28B	220.55B	228.42B	-12.94B	-112.35B	18.66B
Operating Cash Flow	432.26B	445.84B	447.01B	262.77B	178.99B	230.85B
Investing Cash Flow	-251.99B	-244.84B	-216.59B	-234.40B	-281.66B	-237.37B
Financing Cash Flow	-89.74B	-143.33B	-146.37B	14.95B	113.86B	27.04B

TDK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2673.00
• 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 JP:6762, the sentiment is Positive. The current price of 2673 is above the 20-day moving average (MA) of 2383.20, above the 50-day MA of 2157.12, and above the 200-day MA of 1755.79, indicating a bullish trend. The MACD of 136.69 indicates Negative momentum. The RSI at 73.72 is Negative, neither overbought nor oversold. The STOCH value of 90.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6762.

TDK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6479	―	$1.17T	20.56	7.69%	1.64%	4.71%	-11.61%
6762	―	¥4.51T	28.72	―	1.16%	4.83%	-12.18%
6981	―	$5.20T	24.17	8.66%	1.68%	2.58%	11.54%
6645	―	$832.00B	25.44	4.20%	2.41%	1.05%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4062	―	$1.40T	37.35	6.81%	0.32%	5.18%	3.36%
6976	―	¥464.67B	―	―	2.13%	4.21%	-135.36%

TDK Corporation Corporate Events

TDK Corporation Revises Financial Projections and Dividend Forecasts Amid Strong ICT Market Performance

TDK Corporation has revised its financial projections for the fiscal year ending March 31, 2026, due to strong performance in the ICT market, particularly in rechargeable batteries and HDDs, despite sluggish automotive production. The company has increased its interim and year-end dividend projections by 1 yen per share, reflecting the robust demand and improved financial outlook.

The most recent analyst rating on (JP:6762) stock is a Buy with a Yen2761.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.

TDK Corporation Reports Strong Q2 Financial Results and Strategic Share Split

TDK Corporation reported its consolidated financial results for the second quarter of FY March 2026, showing a significant increase in net sales and operating profit compared to the previous year. The company implemented a share split and adjusted its dividend policy, reflecting a strategic move to enhance shareholder value. These results indicate TDK’s strong market positioning and operational efficiency, with a positive outlook for the fiscal year, as evidenced by the revised projections.

The most recent analyst rating on (JP:6762) stock is a Buy with a Yen2761.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.

TDK Transfers Automotive Power Supply Business to Astemo

TDK Corporation has announced the transfer of its automotive power supply business to Astemo, Ltd. through a simplified absorption-type company split. This strategic move aligns with TDK’s Medium-Term Plan to optimize its business portfolio and focus on sustainable growth. The transfer is expected to have minimal impact on TDK’s financials, with the company continuing to fulfill existing customer orders while ceasing new project engagements in this segment.

The most recent analyst rating on (JP:6762) stock is a Buy with a Yen2600.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.

TDK Corporation Reports Q1 FY2026 Financial Results with Mixed Performance

TDK Corporation reported its consolidated financial results for the first quarter of FY March 2026, showing a slight increase in net sales by 3.3% compared to the previous year. However, the company experienced a decline in operating profit, profit before tax, and net profit, with significant decreases in net profit attributable to owners of the parent by 30.5%. The financial outlook for FY March 2026 anticipates a potential decrease in net sales and profits, reflecting challenges in the market environment.

The most recent analyst rating on (JP:6762) stock is a Buy with a Yen2100.00 price target. To see the full list of analyst forecasts on TDK Corporation stock, see the JP:6762 Stock Forecast page.