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Tokyo Electron
(8035)
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Rating:74Outperform
Price Target:
¥12,886.00
▼(-76.74% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by strong financial quality—high margins, strong ROE, and a very conservative balance sheet. Offsetting factors are mixed technical momentum (negative MACD and near-term stretched signals) and a high P/E valuation, partially supported by a strong dividend yield.
Positive Factors
Strong profitability and scale
Tokyo Electron combines substantial revenue scale with strong gross, operating, and net margins. This profitability indicates valuable process-equipment capabilities and provides resources for research, customer support, and continued investment through the semiconductor cycle.
Negative Factors
Uneven cash conversion
Although reported profits are strong, cash conversion is less robust because operating cash flow trails net income and free cash flow represents a smaller portion of earnings. Working-capital needs or investment can therefore reduce internally available cash during parts of the cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and scale
Tokyo Electron combines substantial revenue scale with strong gross, operating, and net margins. This profitability indicates valuable process-equipment capabilities and provides resources for research, customer support, and continued investment through the semiconductor cycle.
Read all positive factors
Tokyo Electron (8035) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥28.96T
Dividend Yield3.81%
Average Volume (3M)13.58M
Price to Earnings (P/E)42.4
Beta (1Y)1.16
Revenue Growth8.25%
EPS Growth16.50%
CountryJP
Employees20,236
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)271.78
Shares Outstanding2,340,163,600
10 Day Avg. Volume14,508,719
30 Day Avg. Volume13,581,373
Financial Highlights & Ratios
PEG Ratio4.86
Price to Book (P/B)8.24
Price to Sales (P/S)6.98
P/FCF Ratio51.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥15,822.07Price Target Upside-71.45% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)329.91
Revenue Forecast (FY)¥3.42T
Tokyo Electron Business Overview & Revenue Model
Company Description
Tokyo Electron Limited, operating globally with its subsidiaries, is actively engaged in the engineering, fabrication, and international sales of advanced equipment for both semiconductor and flat panel display (FPD) production. Its extensive mark...
How the Company Makes Money
Tokyo Electron primarily makes money by selling capital equipment used to manufacture semiconductors and, to a lesser extent, display panels. Its core revenue stream is new tool sales: customers (chipmakers and foundries) place orders for TEL proc...
Tokyo Electron Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook driven by strong financial performance, record growth projections, and advancements in AI technology. Despite challenges such as cash flow issues, China market volatility, and regulatory hurdles, the company remains confident in its strategic initiatives and technological advancements.Positive Updates
Strong Financial Performance
Net sales reached ¥654.5 billion, a 15.5% increase from the previous quarter. Gross profit was ¥311.7 billion, a 19.9% increase, and operating income reached ¥199.6 billion, a 34.7% increase. Net income attributable to owners of parent was ¥157.2 billion, a 33.6% increase.
Negative Updates
Cash Flow Challenges
The third quarter saw a free cash outflow of ¥64.1 billion due to transient increase in receivables and tax payments, though improvement is expected in the fourth quarter.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance
Net sales reached ¥654.5 billion, a 15.5% increase from the previous quarter. Gross profit was ¥311.7 billion, a 19.9% increase, and operating income reached ¥199.6 billion, a 34.7% increase. Net income attributable to owners of parent was ¥157.2 billion, a 33.6% increase.
Read all positive updates
Company Guidance
During the third quarter of the fiscal year ending March 2025, Tokyo Electron reported robust financial performance, with net sales reaching ¥654.5 billion, marking a 15.5% increase from the previous quarter. The company achieved a gross profit of ¥311.7 billion, representing a 19.9% rise, and an improved gross profit margin of 47.6%, up by 1.7 percentage points. Operating income surged by 34.7% to ¥199.6 billion, with an operating profit margin of 30.5%, up by 4.3 percentage points. Income before income taxes increased by 30.3% to ¥200.1 billion, and net income attributable to owners stood at ¥157.2 billion, a 33.6% rise. The company reported capital expenditures of ¥50.2 billion, focusing on future growth investments. The balance sheet showed total assets at ¥2,501.9 billion, with a notable decline in cash and cash equivalents by ¥230.0 billion due to dividends, share repurchase, and tax payments. Free cash outflow was reported at ¥64.1 billion, with expectations for positive figures in the fourth quarter. The ongoing strategic share repurchase program saw the acquisition of 2,024,200 shares at ¥46.9 billion, completed in January 2025.Tokyo Electron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.63T | 2.44T | 2.43T | 1.83T | 2.21T | 2.00T |
| Gross Profit | 1.20T | 1.11T | 1.15T | 830.27B | 984.41B | 911.82B |
| EBITDA | 894.31B | 829.52B | 768.38B | 508.68B | 660.82B | 636.20B |
| Net Income | 620.99B | 574.45B | 544.13B | 363.96B | 471.58B | 437.08B |
Balance Sheet | ||||||
| Total Assets | 2.96T | 2.86T | 2.63T | 2.46T | 2.31T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 409.61B | 506.25B | 496.24B | 472.55B | 473.10B | 371.27B |
| Total Debt | 67.65B | 0.00 | 21.40B | 13.32B | 13.22B | 4.36B |
| Total Liabilities | 812.50B | 791.00B | 770.77B | 696.28B | 712.07B | 547.41B |
| Stockholders Equity | 2.14T | 2.07T | 1.86T | 1.76T | 1.60T | 1.35T |
Cash Flow | ||||||
| Free Cash Flow | 391.25B | 330.75B | 423.80B | 317.73B | 359.37B | 227.23B |
| Operating Cash Flow | 583.52B | 539.73B | 582.17B | 434.72B | 426.27B | 283.39B |
| Investing Cash Flow | -80.83B | -96.49B | -169.61B | -125.15B | -41.76B | -55.63B |
| Financing Cash Flow | -452.70B | -425.36B | -388.84B | -325.01B | -256.53B | -167.26B |
Tokyo Electron Technical Analysis
Neutral
55410.00
Price Trends
11154.17
Positive
12034.26
Negative
10093.65
Positive
Market Momentum
341.87
Negative
49.68
Neutral
42.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8035, the sentiment is Neutral. The current price of 55410 is above the 20-day moving average (MA) of 11360.77, above the 50-day MA of 11154.17, and above the 200-day MA of 10093.65, indicating a bullish trend. The MACD of 341.87 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 42.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8035.
Tokyo Electron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥29.03T | 63.80 | 58.91% | 0.16% | 36.20% | 104.76% | |
77 Outperform | ¥3.09T | 33.97 | 18.49% | 0.94% | -5.60% | -10.68% | |
74 Outperform | ¥28.96T | 42.41 | 30.21% | 3.81% | 8.25% | 16.50% | |
73 Outperform | ¥845.48B | 30.08 | 14.14% | 1.55% | 13.77% | 3.10% | |
69 Neutral | ¥4.38T | 54.17 | 34.29% | 0.71% | -8.35% | -8.08% | |
67 Neutral | ¥6.67T | 43.52 | 26.19% | 0.93% | 15.20% | 17.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:8035
Tokyo Electron
11,555.00
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101.98%
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96.86%
Tokyo Electron Corporate Events
Tokyo Electron Completes ¥150 Billion Share Buyback Under Board Mandate
Aug 3, 2026
Tokyo Electron Limited has completed a share repurchase of 2,236,800 common shares for approximately 138.5 billion yen between July 1 and July 31, 2026, via market purchases on the Tokyo Stock Exchange under a discretionary trading contract. This ...
Tokyo Electron Extends Global Stock-Based Incentive Schemes for 2026
Jul 30, 2026
Tokyo Electron’s board has approved the continuation in 2026 of its global stock delivering scheme for directors, corporate officers, executive officers, and senior and mid-level employees, as well as a non-performance-linked stock-based com...
Tokyo Electron Q1 Profit Slips but First-Half Outlook Raised
Jul 30, 2026
Tokyo Electron reported first-quarter consolidated net sales of ¥549.6 billion, down 1.0% year on year, with operating income falling 12.7% to ¥144.7 billion and net income attributable to owners of the parent decreasing 6.6% to ¥11...
Tokyo Electron Begins Execution of Large-Scale Share Buyback Program
Jul 1, 2026
Tokyo Electron has initiated a share repurchase program authorized by its board, buying back 207,100 shares of common stock for about 11.47 billion yen between June 1 and June 30, 2026 through market purchases on the Tokyo Stock Exchange. This ini...
Tokyo Electron Revises Figures in Executive Stock Option Plan
Jun 30, 2026
Tokyo Electron has corrected figures in its recently announced stock-based compensation plan, revising the total number of share subscription rights to be issued in the 25th and 26th rounds. The changes slightly reduce the number of rights and und...
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.