Tokyo Electron (TELWY) AI Stock Analysis

Tokyo Electron

(Other OTC:TELWY)

Select Model

Rating:83Outperform

Price Target:$35.00▲(9.99% Upside)

Action:reiterated

Date:10/08/26

The overall score is driven primarily by Tokyo Electron’s strong financial profile and clear technical uptrend, while an elevated valuation and modest yield temper the rating by increasing sensitivity to any future slowdown in growth or profitability.

Positive Factors

Strong profitability and recent growthTokyo Electron combines healthy recent revenue growth with strong gross, net, and operating margins. This profitability provides resources for research, product development, customer support, and investment through semiconductor cycles, while indicating a durable position in critical fabrication equipment.

Negative Factors

Exposure to semiconductor capital-expenditure cyclesBecause customers purchase Tokyo Electron tools during fab buildouts and technology-node upgrades, revenue remains tied to semiconductor capital spending. Foundry, logic, or memory investment slowdowns can therefore pressure equipment demand and create uneven results over the medium term.

Tokyo Electron (TELWY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $27.96B
Dividend Yield: 0.90%
Average Volume (3M): 729.39K
Price to Earnings (P/E): 7.0
Beta (1Y): 1.28
Revenue Growth: 11.49%
EPS Growth: 174.24%
Country: US
Employees: 20,236
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Tokyo Electron Business Overview & Revenue Model

Company Description

Tokyo Electron Ltd. engages in the development, manufacture, and sale of semiconductor production equipment and industrial electronics products for flat panel display manufacturing equipment. It operates through the Semiconductor Production Equipment...

How the Company Makes Money

Tokyo Electron makes money primarily by selling capital equipment used to manufacture semiconductors and by providing ongoing support for that installed base. Its largest revenue stream is the shipment of semiconductor production tools (e.g., deposit...

Tokyo Electron Financial Statement Overview

Summary

High score reflects strong revenue growth, high profitability, very low leverage, and solid free cash flow, with only moderate margin and cash flow variability as minor concerns.

Income Statement

88Very Positive

Balance Sheet

94Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
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	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

Technical Analysis SentimentNegative

Last Price31.82

Price Trends

50DMA34.51Negative

100DMA37.49Negative

200DMA32.83Negative

Market Momentum

MACD-1.50Positive

RSI36.46Neutral

STOCH52.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELWY, the sentiment is Negative. The current price of 31.82 is below the 20-day moving average (MA) of 34.05, below the 50-day MA of 34.51, and below the 200-day MA of 32.83, indicating a bearish trend. The MACD of -1.50 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 52.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELWY.

Tokyo Electron Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

TELWY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TELWY	83Outperform	$140.23B	7.00	33.75%	0.90%	11.49%	174.24%
ASML	82Outperform	$602.71B	40.34	63.91%	0.59%	28.99%	52.09%
LRCX	80Outperform	$298.69B	35.42	71.75%	0.46%	33.36%	48.32%
TER	76Outperform	$42.90B	31.29	42.04%	0.19%	74.93%	218.54%
AMAT	73Outperform	$309.57B	33.43	40.44%	0.51%	7.77%	38.45%
KLAC	73Outperform	$205.75B	39.25	87.02%	0.53%	15.80%	25.58%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

TELWY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TELWY	Tokyo Electron	31.12	8.62	38.29%
AMAT	Applied Materials, Inc.	374.53	145.61	63.61%
ASML	Asml Holding N.V.	1526.14	501.35	48.92%
KLAC	Kla Corporation	153.11	34.40	28.98%
LRCX	Lam Research Corp	227.56	72.50	46.75%
TER	Teradyne	261.01	85.70	48.88%

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 08, 2026

Tokyo Electron AI Stock Analysis