OTCPK:TOEL.F

Stock Analysis Report

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Executive Summary

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, North America, Europe, South Korea, Taiwan, China, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TOEL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

TOEL.F

1.0%

US Semiconductor

0.09%

US Market


1 Year Return

n/a

TOEL.F

36.5%

US Semiconductor

12.6%

US Market

Return vs Industry: Insufficient data to determine how TOEL.F performed against the US Semiconductor industry.

Return vs Market: Insufficient data to determine how TOEL.F performed against the US Market.


Shareholder returns

TOEL.FIndustryMarket
7 Day1.6%1.0%0.09%
30 Day-5.7%-0.9%-1.6%
90 Day12.1%8.9%7.9%
1 Yearn/a39.0%36.5%15.2%12.6%
3 Year61.6%61.6%81.3%71.9%38.9%29.6%
5 Year404.5%404.5%243.8%210.0%87.6%66.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TOEL.F ($249.5) is trading above our estimate of fair value ($164.36)

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


Price To Earnings Ratio

PE vs Industry: TOEL.F is good value based on its PE Ratio (19.6x) compared to the US Semiconductor industry average (34.5x).

PE vs Market: TOEL.F is poor value based on its PE Ratio (19.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TOEL.F is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TOEL.F is overvalued based on its PB Ratio (4.8x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Tokyo Electron forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOEL.F's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TOEL.F's earnings (11.3% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: TOEL.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: TOEL.F's revenue (6.4% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: TOEL.F's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOEL.F's Return on Equity is forecast to be high in 3 years time (24.4%)


Next Steps

Past Performance

How has Tokyo Electron performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOEL.F has high quality earnings.

Growing Profit Margin: TOEL.F's current net profit margins (17.1%) are lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: TOEL.F's earnings have grown significantly by 21.9% per year over the past 5 years.

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

Earnings vs Industry: TOEL.F had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).


Return on Equity

High ROE: TOEL.F's Return on Equity (24.7%) is considered high.


Next Steps

Financial Health

How is Tokyo Electron's financial position?


Financial Position Analysis

Short Term Liabilities: TOEL.F's short term assets (¥940.3B) exceed its short term liabilities (¥364.3B).

Long Term Liabilities: TOEL.F's short term assets (¥940.3B) exceed its long term liabilities (¥66.0B).


Debt to Equity History and Analysis

Debt Level: TOEL.F is debt free.

Reducing Debt: TOEL.F had no debt 5 years ago.

Debt Coverage: TOEL.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TOEL.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Tokyo Electron current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOEL.F's dividend (2.51%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: TOEL.F's dividend (2.51%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.8%), TOEL.F'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?

2.8yrs

Average management tenure


CEO

Toshiki Kawai (57 yo)

4.67yrs

Tenure

JP¥924,000,000

Compensation

Mr. Toshiki Kawai has been the Chief Executive Officer, President at Tokyo Electron Limited since January 1, 2016 and served as its General Manager of Business Division from January 01, 2016 to 2018. Mr. K ...


CEO Compensation Analysis

Compensation vs Market: Toshiki's total compensation ($USD8.82M) is about average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Toshiki's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Toshiki Kawai
President4.67yrsJP¥924.00m0.0039%
¥ 1.5m
Tatsuya Nagakubo
SVP, GM of HR & General Affairsno dataJP¥535.00m0.0042%
¥ 1.7m
Tetsuro Hori
Senior VP & GM of Business Innovation Projectno dataJP¥358.00mno data
Sadao Sasaki
Rep. Director4.25yrsJP¥548.00m0.0051%
¥ 2.0m
Yoshikazu Nunokawa
EVP, GM of Global Bus. Platform1.25yrsno data0.0047%
¥ 1.8m
Ken Sasagawa
Vice President of Accounting & Finance Department2.92yrsno datano data
Koichi Yatsuda
Investor Relations Officerno datano datano data
Shoko Kimijima
Chief Compliance Officer & VP of Compliance Dept1.25yrsno datano data
Takeshi Okubo
Senior VP & GM of Global Sales Division2.67yrsno datano data
Kiyoshi Sunohara
SVP, GM of Field Solution Business Division and Business Innovation Project & Corporate Directorno datano data0.010%
¥ 3.9m
Kenji Washino
Senior VP & GM of Backend Process Business Division4.25yrsJP¥194.00mno data
Hideyuki Tsutsumi
Senior VP & Vice Division GM - Corporate Innovation Division1.67yrsno datano data

2.8yrs

Average Tenure

Experienced Management: TOEL.F's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toshiki Kawai
President4.67yrsJP¥924.00m0.0039%
¥ 1.5m
Tatsuya Nagakubo
SVP, GM of HR & General Affairsno dataJP¥535.00m0.0042%
¥ 1.7m
Yoshikazu Nunokawa
EVP, GM of Global Bus. Platform1.25yrsno data0.0047%
¥ 1.8m
Kiyoshi Sunohara
SVP, GM of Field Solution Business Division and Business Innovation Project & Corporate Directorno datano data0.010%
¥ 3.9m
Seisu Ikeda
Senior VP1.25yrsno data0.0027%
¥ 1.0m
Yoshinobu Mitano
Senior VP1.25yrsno data0.0014%
¥ 549.5k
Charles Lake
Independent Outside Director4.25yrsno datano data
Tetsuo Tsuneishi
Chairman5.25yrsJP¥731.00m0.0091%
¥ 3.5m
Yoshiteru Harada
Audit & Supervisory Board Memberno datano data0.0013%
¥ 502.7k
Michio Sasaki
Independent Outside Director2.25yrsno datano data
Kazushi Tahara
Audit & Supervisory Board Member1.25yrsno data0.0014%
¥ 526.1k
Makiko Eda
Independent Outside Director1.25yrsno datano data

1.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TOEL.F's board of directors are not considered experienced ( 1.3 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

Tokyo Electron Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tokyo Electron Limited
  • Ticker: TOEL.F
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥4.083t
  • Listing Market Cap: JP¥38.970b
  • Shares outstanding: 155.53m
  • Website: https://www.tel.com

Number of Employees


Location

  • Tokyo Electron Limited
  • Akasaka Biz Tower
  • 3-1 Akasaka 5-chome
  • Tokyo
  • 107-6325
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOEL.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
8035TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TKYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
TOEL.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, distributes, and sells semiconductor and flat panel display (FPD) production equipment in Japan, North America, Europe, South ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 05:50
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.