TDK (TTDKY) AI Stock Analysis

• Market Cap: $32.24B
• Dividend Yield: 0.56%
• Average Volume (3M): 5.43K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.05
• Revenue Growth: 4.40%
• EPS Growth: -11.79%
• Country: US
• Employees: 105,067
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 1,943,859,900
• 10 Day Avg. Volume: 5,138
• 30 Day Avg. Volume: 5,427
• PEG Ratio: 0.50
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 2.48
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $18.50 ▲(17.09% Upside)

TDK's overall stock score reflects strong financial performance and technical momentum, which are the most significant factors. The company's robust revenue and profit growth, along with a stable balance sheet, support a positive outlook. However, the high valuation and mixed earnings call results, including challenges in the automotive market and foreign exchange impacts, introduce some risks. Investors should be cautious of the stock's current valuation and potential overbought technical indicators.

TDK Business Overview & Revenue Model

Company Description

TDK Corporation (TTDKY) is a global leader in electronic components and materials, known for its innovative solutions across various sectors, including automotive, industrial, and consumer electronics. The company's core product offerings include capacitors, inductors, magnetic sensors, and energy devices, which are essential for a wide range of applications such as power management, data storage, and wireless communication. With a strong emphasis on research and development, TDK strives to enhance its product portfolio and maintain its competitive edge in the rapidly evolving technology landscape.

How the Company Makes Money

TDK generates revenue primarily through the sale of electronic components and materials to original equipment manufacturers (OEMs) and other businesses across multiple industries. Key revenue streams include the production of passive components like capacitors and inductors, which are critical for various electronic devices. Additionally, TDK earns income from its magnetic and sensor technologies, as well as energy devices, which are increasingly in demand due to the rise of electric vehicles and renewable energy solutions. The company also engages in strategic partnerships and collaborations with technology firms and research institutions, enhancing its innovation capabilities and market reach. Factors contributing to TDK's earnings include global demand for advanced electronic components, a focus on high-growth sectors, and ongoing investments in R&D to develop next-generation products.

TDK Financial Statement Overview

Summary

TDK demonstrates strong financial health with robust profitability and cash generation. The company maintains prudent leverage management and a stable equity base, although slightly higher liabilities could pose long-term risks. Overall, TDK is well-positioned for future challenges and opportunities.

Income Statement

TDK shows strong profitability with a TTM gross profit margin of 31.44% and a net profit margin of 7.71%. Revenue growth is evident with a 2.45% increase from the previous year. The EBIT margin stands at 10.27%, indicating efficient core operations. EBITDA margin is robust at 19.05%, reflecting strong operational cash generation.

Balance Sheet

The debt-to-equity ratio of 0.36 suggests prudent leverage management. Return on Equity (ROE) is healthy at 8.78%, indicating effective use of equity. The equity ratio of 50.00% shows a balanced asset financing structure. The company's solid equity base provides stability, though slightly higher liabilities could pose long-term risks.

Cash Flow

Free cash flow has grown by 13.09% over the year, showcasing efficient cash management. The operating cash flow to net income ratio is strong at 2.91, indicating excellent cash conversion. The free cash flow to net income ratio of 1.56 further underscores the company's robust cash-generating ability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.22T	2.10T	2.18T	1.90T	1.90T	1.48T
Gross Profit	690.41B	603.02B	584.52B	563.85B	563.85B	434.32B
EBITDA	417.12B	355.47B	394.28B	357.37B	273.10B	222.85B
Net Income	149.00B	124.69B	114.19B	131.30B	131.30B	79.34B
Balance Sheet
Total Assets	3.62T	3.42T	3.15T	3.15T	3.04T	2.40T
Cash, Cash Equivalents and Short-Term Investments	710.40B	650.00B	558.33B	558.33B	506.28B	446.33B
Total Debt	669.82B	685.74B	752.16B	752.16B	679.81B	521.61B
Total Liabilities	1.83T	1.70T	1.68T	1.68T	1.74T	1.40T
Stockholders Equity	1.78T	1.71T	1.46T	1.46T	1.30T	1.00T
Cash Flow
Free Cash Flow	189.28B	228.42B	-12.94B	-12.94B	-112.35B	10.46B
Operating Cash Flow	432.26B	447.01B	262.77B	262.77B	178.99B	222.81B
Investing Cash Flow	-251.99B	-216.59B	-234.40B	-234.40B	-281.55B	-231.49B
Financing Cash Flow	-89.74B	-146.37B	14.95B	14.95B	113.74B	29.19B

TDK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.80
• 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 TTDKY, the sentiment is Positive. The current price of 15.8 is above the 20-day moving average (MA) of 15.45, above the 50-day MA of 14.39, and above the 200-day MA of 11.91, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 71.34 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTDKY.

TDK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	―	$7.22B	29.00	11.58%	―	5.87%	20.66%
TTDKY	―	$32.24B	32.11	8.36%	0.56%	4.40%	-11.79%
FLEX	―	$24.81B	29.03	17.45%	―	0.77%	―
TTMI	―	$6.40B	49.45	8.12%	―	17.88%	91.41%
TRMB	―	$18.89B	67.79	5.06%	―	-3.72%	-80.83%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	―	$23.66B	37.53	40.43%	0.14%	3.18%	-46.01%

TDK Corporate Events

TDK Corporation Reports Mixed Q1 FY2026 Results

TDK Corporation is a leading global electronics company headquartered in Japan, specializing in electronic components, sensors, and energy application products. It operates primarily in the technology and electronics sector, known for its innovative solutions and extensive product range.

TDK Corporation’s Earnings Call: Mixed Sentiments Amid Challenges

Despite a rise in net sales and growth in specific segments such as sensor and energy application products, TDK Corporation’s latest earnings call conveyed a cautious sentiment. The company faces significant challenges, including a decline in overall operating and net profit, primarily driven by foreign exchange losses and a slowdown in the automotive market. While there are optimistic projections for the second quarter, the negative impacts from the current quarter and ongoing uncertainties weigh heavily on the overall sentiment.