TSE:6762

Stock Analysis Report

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Executive Summary

TDK Corporation, together with its subsidiaries, manufactures and sells electronic components in Japan, Europe, China, Asia, the Americas, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has TDK's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6762 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6762's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

6762

3.0%

JP Electronic

1.3%

JP Market


1 Year Return

47.8%

6762

43.9%

JP Electronic

28.5%

JP Market

Return vs Industry: 6762 exceeded the JP Electronic industry which returned 43.8% over the past year.

Return vs Market: 6762 exceeded the JP Market which returned 28.5% over the past year.


Shareholder returns

6762IndustryMarket
7 Day-0.9%3.0%1.3%
30 Day-3.5%-3.1%-0.06%
90 Day3.9%5.8%7.3%
1 Year50.6%47.8%46.2%43.9%31.7%28.5%
3 Year64.8%56.6%39.7%33.2%18.1%9.9%
5 Year136.6%117.1%122.4%104.9%55.7%38.4%

Long-Term Price Volatility Vs. Market

How volatile is TDK's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TDK undervalued compared to its fair value and its price relative to the market?

33.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6762 (¥15110) is trading above our estimate of fair value (¥13782.43)

Significantly Below Fair Value: 6762 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6762 is poor value based on its PE Ratio (33.8x) compared to the JP Electronic industry average (16.6x).

PE vs Market: 6762 is poor value based on its PE Ratio (33.8x) compared to the JP market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6762 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 6762 is overvalued based on its PB Ratio (2.1x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is TDK forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6762's forecast earnings growth (20.8% per year) is above the savings rate (0%).

Earnings vs Market: 6762's earnings (20.8% per year) are forecast to grow faster than the JP market (17.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6762's revenue (6% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 6762's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6762's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has TDK performed over the past 5 years?

-6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6762 has high quality earnings.

Growing Profit Margin: 6762's current net profit margins (4.1%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 6762's earnings have declined by 6.5% per year over the past 5 years.

Accelerating Growth: 6762's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6762 had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Electronic industry average (-5.3%).


Return on Equity

High ROE: 6762's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is TDK's financial position?


Financial Position Analysis

Short Term Liabilities: 6762's short term assets (¥1,141.0B) exceed its short term liabilities (¥904.5B).

Long Term Liabilities: 6762's short term assets (¥1,141.0B) exceed its long term liabilities (¥400.5B).


Debt to Equity History and Analysis

Debt Level: 6762's debt to equity ratio (55.6%) is considered high.

Reducing Debt: 6762's debt to equity ratio has increased from 47.1% to 55.6% over the past 5 years.

Debt Coverage: 6762's debt is well covered by operating cash flow (46.9%).

Interest Coverage: 6762 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is TDK current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6762's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.25%).

High Dividend: 6762's dividend (1.19%) is low compared to the top 25% of dividend payers in the JP market (2.87%).


Stability and Growth of Payments

Stable Dividend: 6762's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6762's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.3%), 6762's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Shigenao Ishiguro (63 yo)

4.75yrs

Tenure

JP¥143,000,000

Compensation

Mr. Shigenao Ishiguro has been the Chief Executive Officer, President and General Manager of Humidifier Countermeasures Head Quarters at TDK Corporation since June 29, 2016 and served as its General Manage...


CEO Compensation Analysis

Compensation vs Market: Shigenao's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD1.91M).

Compensation vs Earnings: Insufficient data to compare Shigenao's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Shigenao Ishiguro
CEO, President4.75yrsJP¥143.00m0.0043%
¥ 83.0m
Tetsuji Yamanishi
EVP, Global Chief Compliance Officer4.75yrsno data0.0024%
¥ 45.2m
Dai Matsuoka
GM of Technology & Intellectual Property HQ and Corporate Officer3.75yrsno datano data
Sumio Marukawa
General Manager of Corporate Communications Group of Strategy Hqno datano datano data
Andreas Keller
Corporate Officer & GM of Human Resources HQ3.17yrsno datano data
Atsuo Kobayashi
Senior VP & Corporate Officer10.75yrsno datano data
Seiji Osaka
Executive VP3.75yrsno data0.0024%
¥ 45.2m
Noboru Saito
Corporate Officer & Senior VP7.92yrsno datano data
Joachim Zichlarz
Executive VP5.92yrsno datano data
Mitsuru Nagata
Corporate Officerno datano datano data
Kim Ong
Corporate Officer and CEO & GM of HDD Components Business Group of Magnetic Heads Business Co.4.75yrsno datano data
Shigeki Sato
Corporate Officer & CEO of Electronic Components Business Company and GM of Ceramic Capacitors2.17yrsno datano data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Management: 6762's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shigenao Ishiguro
CEO, President4.75yrsJP¥143.00m0.0043%
¥ 83.0m
Tetsuji Yamanishi
EVP, Global Chief Compliance Officer4.75yrsno data0.0024%
¥ 45.2m
Seiji Osaka
Executive VP3.75yrsno data0.0024%
¥ 45.2m
Kazunori Yagi
Independent Outside Director2.75yrsno datano data
Makoto Sumita
Chairman3.17yrsno datano data
Jun Ishii
Outside Audit & Supervisory Board Member1.75yrsno datano data
Kazuhiko Ishimura
Independent Outside Director5.75yrsno datano data
Takakazu Momozuka
Full Time Audit & Supervisory Board Member2.17yrsno data0.0024%
¥ 45.2m
Satoru Sueki
Full-Time Audit & Supervisory Board Member2.17yrsno data0.0023%
¥ 43.9m
Douglas K. Freeman
Outside Audit & Supervisory Board Member2.17yrsno datano data
Michiko Chiba
Outside Audit & Supervisory Board Member2.17yrsno datano data
Kozue Nakayama
Independent Outside Director0.75yrno datano data

2.5yrs

Average Tenure

62yo

Average Age

Experienced Board: 6762's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TDK Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TDK Corporation
  • Ticker: 6762
  • Exchange: TSE
  • Founded: 1935
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥1.909t
  • Shares outstanding: 126.32m
  • Website: https://www.jp.tdk.com

Number of Employees


Location

  • TDK Corporation
  • Shibaura Renasite Tower
  • 3-9-1 Shibaura
  • Tokyo
  • 108-0023
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TTDK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1978
6762TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJul 1978
TDKDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1978
TTDK.YOTCPK (Pink Sheets LLC)AMERN DEP SHUSUSDJan 1980

Biography

TDK Corporation, together with its subsidiaries, manufactures and sells electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Componen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 08:01
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.