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Tokyo Electron
(OTC:TOELY)
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Rating:77Outperform
Price Target:
$227.00
▲(74.29% Upside)
Action:Reiterated
Date:06/23/26
The score is driven primarily by high-quality financials (strong profitability and a fortress balance sheet) and a supportive earnings outlook with strong near-term guidance. Offsetting factors are a technically stretched setup (RSI/Stoch overbought) and a rich valuation (high P/E with low yield), which increase downside risk if the cycle or margins soften.
Positive Factors
Balance Sheet Strength
Near-zero debt and a conservative balance sheet provide durable financial resilience through semiconductor cycles. This capital structure preserves liquidity for R&D, CapEx and buybacks, lowers refinancing risk, and supports long-term customer support and capacity investments regardless of short-term order volatility.
Negative Factors
Cyclicality & Visibility
Material dependence on customer capex cycles and large order variability reduces multi-quarter visibility, complicating capacity planning and margin forecasting. Geopolitical risks can abruptly shift order timing or supply chains, making revenue and utilization volatile across 2–6 month horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Near-zero debt and a conservative balance sheet provide durable financial resilience through semiconductor cycles. This capital structure preserves liquidity for R&D, CapEx and buybacks, lowers refinancing risk, and supports long-term customer support and capacity investments regardless of short-term order volatility.
Read all positive factors
Tokyo Electron (TOELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$182.08B
Dividend Yield0.86%
Average Volume (3M)130.60K
Price to Earnings (P/E)51.8
Beta (1Y)1.40
Revenue Growth1.50%
EPS Growth6.72%
CountryUS
Employees20,236
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)633.41
Shares Outstanding936,065,500
10 Day Avg. Volume139,306
30 Day Avg. Volume130,597
Financial Highlights & Ratios
PEG Ratio2.35
Price to Book (P/B)8.54
Price to Sales (P/S)6.86
P/FCF Ratio50.65
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.99
Revenue Forecast (FY)$20.44B
Tokyo Electron Business Overview & Revenue Model
Company Description
Tokyo Electron Limited, together with its global subsidiaries, is a leading provider specializing in the development, manufacturing, and sale of advanced equipment for semiconductor fabrication and flat panel display (FPD) production. Its extensiv...
How the Company Makes Money
Tokyo Electron primarily makes money by selling high-value capital equipment to semiconductor manufacturers and, to a smaller extent, to flat panel display manufacturers. Its core revenue stream is tool sales (new equipment) across major wafer-fab...
Tokyo Electron Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: record revenue, record net income, record free cash flow, strong shareholder returns, completed capacity expansion and robust near-term demand with aggressive first-half FY2027 guidance and multiple product-level growth drivers (coater/developer, etch, advanced packaging). However, there are meaningful headwinds around rising parts/materials costs, higher labor and logistics expenses, foreign-exchange-driven fixed-cost increases, some sales mix/timing issues (etch sales conversion and China proportion shifts), and limited visibility for the second half due to large customer order variability and geopolitical risk. On balance, the strong demand, record cash generation and confident H1 guidance outweigh the margin and visibility concerns.Positive Updates
Record Full-Year Revenue
Net sales for fiscal year ended March 2026 were JPY 2,443.5 billion, a 0.5% year-over-year increase and a record high.
Negative Updates
Margin Pressure and Rising Costs
Full-year gross profit margin declined 1.8 percentage points YoY to 45.3% due to soaring parts/material costs and product mix; operating profit margin fell 3.1 percentage points YoY to 25.6%, impacted by higher R&D and other fixed costs.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Full-Year Revenue
Net sales for fiscal year ended March 2026 were JPY 2,443.5 billion, a 0.5% year-over-year increase and a record high.
Read all positive updates
Company Guidance
Management guided a strong start to FY2027 with first‑half targets of net sales JPY 1,570 billion, gross profit JPY 715 billion and operating income JPY 431 billion (all half‑year records), and said H1 SPE new‑equipment sales are expected to rise 41% YoY to JPY 1,200 billion; management also plans full‑year R&D of JPY 330 billion, CapEx of JPY 190 billion and an interim dividend of JPY 361 per share, will shift to H1 guidance going forward, and views the WFE market at roughly $150–170 billion in calendar 2026–27 (20%+ growth from CY2025). For context FY2026 results included net sales JPY 2,443.5 billion (+0.5% YoY), gross profit JPY 1,107.8 billion (GPM 45.3%, -1.8pp YoY), operating income JPY 624.9 billion (OPM 25.6%, -3.1pp), R&D JPY 277.8 billion (+11.1%), net income JPY 574.4 billion (+5.6%) including JPY 115.4 billion extraordinary income, Field Solutions JPY 626.0 billion (+16.3%), CapEx JPY 216.0 billion, depreciation JPY 80.9 billion (+30.3%), free cash flow Q4 +JPY 239.0 billion and FY +JPY 433.2 billion (record highs), total returns JPY 437.4 billion, and balance‑sheet metrics of total assets JPY 2,860.9 billion, cash JPY 506.2 billion, AR JPY 525.8 billion and inventories JPY 713.1 billion; product‑area guidance highlights coater/developer +50%+ YoY, etch nearly +30% YoY, Advanced Packaging +60%+ YoY (prober >JPY 100 billion; bonding-related cumulative market ~JPY 500 billion to 2030).Tokyo Electron Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.59T | 2.43T | 1.83T | 2.21T | 2.00T |
| Gross Profit | 1.17T | 1.15T | 830.27B | 984.41B | 911.82B |
| EBITDA | 748.88B | 759.59B | 508.68B | 660.82B | 636.20B |
| Net Income | 609.10B | 544.13B | 363.96B | 471.58B | 437.08B |
Balance Sheet | |||||
| Total Assets | 2.87T | 2.63T | 2.46T | 2.31T | 1.89T |
| Cash, Cash Equivalents and Short-Term Investments | 508.45B | 496.24B | 472.55B | 473.10B | 371.27B |
| Total Debt | 38.51B | 0.00 | 13.32B | 13.22B | 4.36B |
| Total Liabilities | 794.43B | 770.77B | 696.28B | 712.07B | 547.41B |
| Stockholders Equity | 2.08T | 1.86T | 1.76T | 1.60T | 1.35T |
Cash Flow | |||||
| Free Cash Flow | 350.69B | 414.13B | 309.74B | 349.96B | 218.28B |
| Operating Cash Flow | 572.28B | 582.17B | 434.72B | 426.27B | 283.39B |
| Investing Cash Flow | -102.31B | -169.61B | -125.15B | -41.76B | -55.63B |
| Financing Cash Flow | -451.01B | -388.84B | -325.01B | -256.53B | -167.26B |
Tokyo Electron Technical Analysis
Positive
130.24
Price Trends
195.91
Positive
164.65
Positive
138.93
Positive
Market Momentum
2.98
Positive
44.33
Neutral
16.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TOELY, the sentiment is Positive. The current price of 130.24 is below the 20-day moving average (MA) of 222.69, below the 50-day MA of 195.91, and below the 200-day MA of 138.93, indicating a neutral trend. The MACD of 2.98 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TOELY.
Tokyo Electron Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $420.53B | 49.18 | 39.78% | 0.69% | 3.35% | 29.52% | |
78 Outperform | $808.39B | 163.50 | 8.08% | ― | 34.97% | 123.87% | |
78 Outperform | $391.80B | 57.66 | 65.79% | 0.56% | 26.53% | 47.73% | |
77 Outperform | $182.08B | 51.84 | 28.89% | 1.78% | 1.50% | 6.72% | |
77 Outperform | $670.21B | 58.74 | 52.37% | 0.63% | 17.87% | 23.14% | |
77 Outperform | $958.80B | 19.31 | 40.84% | 0.20% | 166.98% | 701.44% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TOELY
Tokyo Electron
200.26
105.80
112.00%
AMD
Advanced Micro Devices
503.57
346.57
220.75%
AMAT
Applied Materials
525.70
334.49
174.94%
ASML
ASML Holding
1,739.02
1,024.11
143.25%
LRCX
Lam Research
306.76
205.58
203.18%
MU
Micron
865.46
752.41
665.57%
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.