Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to JP¥4,540, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Electronic industry in Japan. Total returns to shareholders of 52% over the past three years. New Risk • Jul 31
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.4% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.4% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (483% cash payout ratio). Share price has been volatile over the past 3 months (7.1% average weekly change). Reported Earnings • Jul 30
First quarter 2027 earnings released: EPS: JP¥89.96 (vs JP¥41.21 in 1Q 2026) First quarter 2027 results: EPS: JP¥89.96 (up from JP¥41.21 in 1Q 2026). Revenue: JP¥60.3b (up 34% from 1Q 2026). Net income: JP¥2.65b (up 118% from 1Q 2026). Profit margin: 4.4% (up from 2.7% in 1Q 2026). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Declared Dividend • Jul 25
Final dividend of JP¥39.00 announced Shareholders will receive a dividend of JP¥39.00. Ex-date: 29th September 2026 Payment date: 30th November 2026 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (21% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 41% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Jul 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Outside Director Makiko Hamabe was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Annuncio • Jun 27
Tokyo Electron Device Limited to Report Q1, 2027 Results on Jul 29, 2026 Tokyo Electron Device Limited announced that they will report Q1, 2027 results on Jul 29, 2026 Buy Or Sell Opportunity • Jun 24
Now 21% undervalued Over the last 90 days, the stock has risen 25% to JP¥3,980. The fair value is estimated to be JP¥5,052, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.1% over the last 3 years. Earnings per share has declined by 7.9%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Buy Or Sell Opportunity • Jun 08
Now 22% undervalued Over the last 90 days, the stock has risen 20% to JP¥3,935. The fair value is estimated to be JP¥5,074, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.1% over the last 3 years. Earnings per share has declined by 7.9%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Board Change • Jun 02
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Seiji Osaka was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Buy Or Sell Opportunity • May 19
Now 21% undervalued Over the last 90 days, the stock has risen 12% to JP¥4,075. The fair value is estimated to be JP¥5,126, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.1% over the last 3 years. Earnings per share has declined by 7.9%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 12% per annum over the same time period. Reported Earnings • Apr 28
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥266 (down from JP¥296 in FY 2025). Revenue: JP¥203.7b (down 5.8% from FY 2025). Net income: JP¥7.84b (down 12% from FY 2025). Profit margin: 3.8% (down from 4.1% in FY 2025). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.3%. Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Annuncio • Apr 28
Tokyo Electron Device Limited, Annual General Meeting, Jun 19, 2026 Tokyo Electron Device Limited, Annual General Meeting, Jun 19, 2026. Annuncio • Apr 21
Tokyo Electron Device Limited to Report Fiscal Year 2026 Results on Apr 27, 2026 Tokyo Electron Device Limited announced that they will report fiscal year 2026 results on Apr 27, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥64.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 01 June 2026. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Feb 03
Third quarter 2026 earnings released: EPS: JP¥83.34 (vs JP¥42.12 in 3Q 2025) Third quarter 2026 results: EPS: JP¥83.34 (up from JP¥42.12 in 3Q 2025). Revenue: JP¥50.5b (flat on 3Q 2025). Net income: JP¥2.45b (up 93% from 3Q 2025). Profit margin: 4.9% (up from 2.5% in 3Q 2025). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Annuncio • Dec 26
Tokyo Electron Device Limited to Report Q3, 2026 Results on Feb 02, 2026 Tokyo Electron Device Limited announced that they will report Q3, 2026 results on Feb 02, 2026 New Risk • Dec 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (61% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Declared Dividend • Nov 29
First half dividend of JP¥64.00 announced Shareholders will receive a dividend of JP¥64.00. Ex-date: 30th March 2026 Payment date: 1st June 2026 Dividend yield will be 3.1%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 44% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 30
Second quarter 2026 earnings released: EPS: JP¥46.04 (vs JP¥60.16 in 2Q 2025) Second quarter 2026 results: EPS: JP¥46.04 (down from JP¥60.16 in 2Q 2025). Revenue: JP¥51.1b (down 7.3% from 2Q 2025). Net income: JP¥1.36b (down 25% from 2Q 2025). Profit margin: 2.7% (down from 3.3% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Annuncio • Sep 30
Catchment Capital, L.P. along with management of Fidus Systems, Inc. entered into a share transfer agreement to acquire an unknown majority stake in Fidus Systems, Inc. from Tokyo Electron Device Limited (TSE:2760) and others for ¥1.6 billion. Catchment Capital, L.P. along with management of Fidus Systems, Inc. entered into a share transfer agreement to acquire an unknown majority stake in Fidus Systems, Inc. from Tokyo Electron Device Limited (TSE:2760) and others for ¥1.6 billion on September 29, 2025. A cash consideration of ¥1.6 billion will be paid by Catchment Capital, L.P. As part of consideration, ¥1.6 billion is paid towards common equity of Fidus Systems, Inc. As a result of this share transfer, Tokyo Electron Device expects to record extraordinary income (gain on sale of shares of subsidiaries and associates) of approximately ¥0.9 billion in the third quarter of the fiscal year ending March 31, 2026.
The transaction is expected to close in October 2025, subject to customary closing conditions.
TD Cowen is serving as financial advisor to Catchment, and Blakes, Cassels & Graydon LLP and Alexander Fine, Matt Donnelly, Michael Collins, Lindsay Paulin, Partner Darius Mehraban and of counsel Jason Durschlag are advising on debt financing of Gibson, Dunn, & Crutcher LLP are serving as legal counsel. Sampford Advisors is serving as financial advisor to Fidus and LaBarge Weinstein LLP is serving as legal counsel. Annuncio • Sep 25
Tokyo Electron Device Limited to Report Q2, 2026 Results on Oct 29, 2025 Tokyo Electron Device Limited announced that they will report Q2, 2026 results on Oct 29, 2025 Reported Earnings • Jul 30
First quarter 2026 earnings released: EPS: JP¥41.05 (vs JP¥83.07 in 1Q 2025) First quarter 2026 results: EPS: JP¥41.05 (down from JP¥83.07 in 1Q 2025). Revenue: JP¥45.1b (down 20% from 1Q 2025). Net income: JP¥1.22b (down 51% from 1Q 2025). Profit margin: 2.7% (down from 4.4% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 14% per year. Declared Dividend • Jul 09
Final dividend of JP¥32.00 announced Shareholders will receive a dividend of JP¥32.00. Ex-date: 29th September 2025 Payment date: 1st December 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (45% earnings payout ratio) and cash flows (16% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 27
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥296 (down from JP¥333 in FY 2024). Revenue: JP¥216.4b (down 11% from FY 2024). Net income: JP¥8.87b (down 11% from FY 2024). Profit margin: 4.1% (in line with FY 2024). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 4.9%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 17% per year. Annuncio • Jun 25
Tokyo Electron Device Limited to Report Q1, 2026 Results on Jul 29, 2025 Tokyo Electron Device Limited announced that they will report Q1, 2026 results on Jul 29, 2025 Reported Earnings • Apr 29
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: JP¥296 (down from JP¥333 in FY 2024). Revenue: JP¥216.4b (down 11% from FY 2024). Net income: JP¥8.87b (down 11% from FY 2024). Profit margin: 4.1% (in line with FY 2024). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 4.9%. Revenue is forecast to grow 8.2% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 18% per year and the company’s share price has also increased by 18% per year. Annuncio • Apr 28
Tokyo Electron Device Limited, Annual General Meeting, Jun 20, 2025 Tokyo Electron Device Limited, Annual General Meeting, Jun 20, 2025. New Risk • Apr 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (85% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to JP¥2,452, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Electronic industry in Japan. Total returns to shareholders of 70% over the past three years. Buy Or Sell Opportunity • Apr 04
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.5% to JP¥2,766. The fair value is estimated to be JP¥3,647, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Annuncio • Mar 31
Tokyo Electron Device Limited Announces Executives Retirement Tokyo Electron Device Limited at its Board of Directors meeting held on March 31, 2025, announced Retiring Corporate Director: Yukio Saeki and Retiring Audit & Supervisory Board Member: Katsuyuki Matsui. Annuncio • Mar 25
Tokyo Electron Device Limited to Report Fiscal Year 2025 Results on Apr 28, 2025 Tokyo Electron Device Limited announced that they will report fiscal year 2025 results on Apr 28, 2025 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥65.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 May 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.7%). Higher than average of industry peers (1.7%). Reported Earnings • Feb 01
Third quarter 2025 earnings released: EPS: JP¥42.12 (vs JP¥84.05 in 3Q 2024) Third quarter 2025 results: EPS: JP¥42.12 (down from JP¥84.05 in 3Q 2024). Revenue: JP¥50.4b (down 16% from 3Q 2024). Net income: JP¥1.27b (down 50% from 3Q 2024). Profit margin: 2.5% (down from 4.2% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 20% per year. Annuncio • Jan 03
Tokyo Electron Device Limited to Report Q3, 2025 Results on Jan 31, 2025 Tokyo Electron Device Limited announced that they will report Q3, 2025 results on Jan 31, 2025 Declared Dividend • Nov 30
First half dividend of JP¥65.00 announced Shareholders will receive a dividend of JP¥65.00. Ex-date: 28th March 2025 Payment date: 30th May 2025 Dividend yield will be 3.8%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (39% earnings payout ratio) but not covered by cash flows (160% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 35% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (6.3% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (159% cash payout ratio). Share price has been volatile over the past 3 months (5.8% average weekly change). Reported Earnings • Nov 03
Second quarter 2025 earnings released: EPS: JP¥60.16 (vs JP¥78.96 in 2Q 2024) Second quarter 2025 results: EPS: JP¥60.16 (down from JP¥78.96 in 2Q 2024). Revenue: JP¥55.1b (down 9.2% from 2Q 2024). Net income: JP¥1.81b (down 23% from 2Q 2024). Profit margin: 3.3% (down from 3.9% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Annuncio • Sep 25
Tokyo Electron Device Limited to Report Q2, 2025 Results on Nov 01, 2024 Tokyo Electron Device Limited announced that they will report Q2, 2025 results on Nov 01, 2024 Upcoming Dividend • Sep 20
Upcoming dividend of JP¥52.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 02 December 2024. Payout ratio is a comfortable 39% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (1.5%). New Risk • Aug 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (6.7% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (166% cash payout ratio). Shareholders have been diluted in the past year (4.8% increase in shares outstanding). Reported Earnings • Aug 02
First quarter 2025 earnings released: EPS: JP¥83.07 (vs JP¥73.20 in 1Q 2024) First quarter 2025 results: EPS: JP¥83.07 (up from JP¥73.20 in 1Q 2024). Revenue: JP¥56.6b (down 4.1% from 1Q 2024). Net income: JP¥2.49b (up 14% from 1Q 2024). Profit margin: 4.4% (up from 3.7% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 26% per year. Declared Dividend • Jul 11
Final dividend of JP¥52.00 announced Shareholders will receive a dividend of JP¥52.00. Ex-date: 27th September 2024 Payment date: 2nd December 2024 Dividend yield will be 2.9%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by earnings (39% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annuncio • Jun 27
Tokyo Electron Device Limited to Report Q1, 2025 Results on Jul 31, 2024 Tokyo Electron Device Limited announced that they will report Q1, 2025 results on Jul 31, 2024 Reported Earnings • Jun 25
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: JP¥333 (up from JP¥295 in FY 2023). Revenue: JP¥242.9b (up 1.1% from FY 2023). Net income: JP¥9.99b (up 14% from FY 2023). Profit margin: 4.1% (up from 3.7% in FY 2023). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 33% per year. Reported Earnings • Jun 04
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: JP¥333 (up from JP¥295 in FY 2023). Revenue: JP¥242.9b (up 1.1% from FY 2023). Net income: JP¥9.99b (up 14% from FY 2023). Profit margin: 4.1% (up from 3.7% in FY 2023). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year and the company’s share price has also increased by 35% per year. Annuncio • May 10
Tokyo Electron Device Limited Revises Dividend Forecast for the Year-Ended March 31, 2024 Tokyo Electron Device Limited announced that the Company, at its Board of Directors Meeting held on April 30, 2024, decided to revise the year-end dividends forecast of ¥74 against ¥70 (increase) with a record date of March 31, 2024 as per the following. It should be noted that the amount of the dividends for this surplus are to be resolved at the Board of Directors to be held in May 2024. New Risk • May 04
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 0.6% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (0.6% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Buy Or Sell Opportunity • May 02
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to JP¥5,030. The fair value is estimated to be JP¥6,452, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 35%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 17% in the next 2 years. Reported Earnings • May 01
Full year 2024 earnings released: EPS: JP¥333 (vs JP¥295 in FY 2023) Full year 2024 results: EPS: JP¥333 (up from JP¥295 in FY 2023). Revenue: JP¥242.9b (up 1.1% from FY 2023). Net income: JP¥9.99b (up 14% from FY 2023). Profit margin: 4.1% (up from 3.7% in FY 2023). Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Annuncio • Mar 27
Tokyo Electron Device Limited to Report Fiscal Year 2024 Results on Apr 30, 2024 Tokyo Electron Device Limited announced that they will report fiscal year 2024 results on Apr 30, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥70.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 31 May 2024. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥6,590, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 481% over the past three years. Reported Earnings • Feb 04
Third quarter 2024 earnings released: EPS: JP¥84.05 (vs JP¥77.79 in 3Q 2023) Third quarter 2024 results: EPS: JP¥84.05 (up from JP¥77.79 in 3Q 2023). Revenue: JP¥60.1b (down 6.4% from 3Q 2023). Net income: JP¥2.52b (up 8.7% from 3Q 2023). Profit margin: 4.2% (up from 3.6% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 72% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥5,930, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Electronic industry in Japan. Total returns to shareholders of 466% over the past three years. Annuncio • Dec 24
Tokyo Electron Device Limited to Report Q3, 2024 Results on Feb 02, 2024 Tokyo Electron Device Limited announced that they will report Q3, 2024 results on Feb 02, 2024 Annuncio • Nov 11
Tokyo Electron Device Limited Resolves to Distribute Interim Dividend, Payable on December 1, 2023 Tokyo Electron Device Limited announced that its Board of Directors met on October 31, 2023 and resolved to distribute surplus as an interim dividend of JPY 183.00 per share with a record date of September 30, 2023 against JPY 145.00 per share paid a year ago. Total dividends is JPY 1,911 million. Effective date is December 1, 2023. Source of dividend is retained earnings. Reported Earnings • Nov 02
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: JP¥60.7b (flat on 2Q 2023). Net income: JP¥2.37b (up 12% from 2Q 2023). Profit margin: 3.9% (up from 3.4% in 2Q 2023). Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Electronic industry in Japan. Annuncio • Oct 24
Tokyo Electron Device Limited Revises Consolidated Earnings Guidance for the Six Months Ending September 30, 2023 Tokyo Electron Device Limited revised consolidated earnings guidance for the six months ending September 30, 2023. For the period, the company now expects net sales of JPY 119,680 million, net income attributable to owners of parent of JPY 4,550 million and basic net income per share of JPY 456.38 compared to the previous forecast for net sales of JPY 107,800 million, net income attributable to owners of parent of JPY 3,550 million and basic net income per share of JPY 356.84. New Risk • Oct 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.7% average weekly change). Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to JP¥4,350, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Electronic industry in Japan. Total returns to shareholders of 354% over the past three years. Annuncio • Oct 01
Tokyo Electron Device Limited (TSE:2760) agreed to acquire wafer inspection system business of Nippon Electro. Tokyo Electron Device Limited (TSE:2760) agreed to acquire wafer inspection system business of Nippon Electro on September 14, 2023.Transaction is expected to complete on October 2, 2023. Annuncio • Sep 27
Tokyo Electron Device Limited to Report Q2, 2024 Results on Oct 31, 2023 Tokyo Electron Device Limited announced that they will report Q2, 2024 results on Oct 31, 2023 Upcoming Dividend • Sep 21
Upcoming dividend of JP¥140 per share at 3.4% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 01 December 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 3.4%. Within top quartile of Japanese dividend payers (3.3%). Higher than average of industry peers (1.4%). New Risk • Aug 04
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.4% average weekly change). Reported Earnings • Aug 02
First quarter 2024 earnings released: EPS: JP¥220 (vs JP¥149 in 1Q 2023) First quarter 2024 results: EPS: JP¥220 (up from JP¥149 in 1Q 2023). Revenue: JP¥59.0b (up 16% from 1Q 2023). Net income: JP¥2.19b (up 48% from 1Q 2023). Profit margin: 3.7% (up from 2.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year whereas the company’s share price has increased by 48% per year. Reported Earnings • Jun 28
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥884 (up from JP¥511 in FY 2022). Revenue: JP¥240.4b (up 34% from FY 2022). Net income: JP¥8.78b (up 73% from FY 2022). Profit margin: 3.7% (up from 2.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 41% per year. Annuncio • Jun 26
Tokyo Electron Device Limited to Report Q1, 2024 Results on Aug 01, 2023 Tokyo Electron Device Limited announced that they will report Q1, 2024 results on Aug 01, 2023 Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥10,210, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Electronic industry in Japan. Total returns to shareholders of 307% over the past three years. Annuncio • May 16
Tokyo Electron Device Limited Revises Dividend Guidance for the Financial Year Ended March 31, 2023 Tokyo Electron Device Limited announces that the Company, at its Board of Directors Meeting held on May 15, 2023, decided to revise the year-end dividends forecast (increase) with a record date of March 31, 2023 as per the following. It should be noted that the amount of the dividends for this surplus are to be resolved at the Board of Directors to be held in May 2023. For the year ended March 31, 2023, the company expects to pay dividend of JPY 210.00 per share compared to previous guidance of JPY 165.00 per share. Reported Earnings • Apr 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: JP¥884 (up from JP¥511 in FY 2022). Revenue: JP¥240.4b (up 34% from FY 2022). Net income: JP¥8.78b (up 73% from FY 2022). Profit margin: 3.7% (up from 2.8% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.9%. Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 41% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥165 per share at 2.9% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 01 June 2023. Payout ratio is a comfortable 34% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.6%). Reported Earnings • Jan 31
Third quarter 2023 earnings released: EPS: JP¥233 (vs JP¥126 in 3Q 2022) Third quarter 2023 results: EPS: JP¥233 (up from JP¥126 in 3Q 2022). Revenue: JP¥64.1b (up 42% from 3Q 2022). Net income: JP¥2.32b (up 86% from 3Q 2022). Profit margin: 3.6% (up from 2.8% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Electronic industry in Japan. Over the last 3 years on average, earnings per share has increased by 41% per year whereas the company’s share price has increased by 44% per year.