OTCPK:TOEL.Y

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

3.5%

TOEL.Y

1.7%

US Semiconductor

1.0%

US Market


1 Year Return

55.2%

TOEL.Y

19.8%

US Semiconductor

6.7%

US Market

Return vs Industry: TOEL.Y exceeded the US Semiconductor industry which returned 19.8% over the past year.

Return vs Market: TOEL.Y exceeded the US Market which returned 6.7% over the past year.


Share holder returns

TOEL.YIndustryMarket
7 Day3.5%1.7%1.0%
30 Day4.0%-1.5%-1.8%
90 Day32.5%4.9%-1.8%
1 Year55.2%55.2%22.1%19.8%9.1%6.7%
3 Year142.2%142.2%80.8%70.1%46.1%36.6%
5 Year240.2%240.2%143.0%118.0%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TOEL.Y ($50.59) is trading below our estimate of fair value ($52.99)

Significantly Undervalued: TOEL.Y is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: TOEL.Y is good value based on its PE Ratio (15.7x) compared to the Semiconductor industry average (27.9x).

PE vs Market: TOEL.Y is good value based on its PE Ratio (15.7x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: TOEL.Y is overvalued based on its PB Ratio (4.2x) compared to the US Semiconductor industry average (2.6x).


Next Steps

Future Growth

How is Tokyo Electron expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TOEL.Y's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).

Earnings vs Market: TOEL.Y's earnings (9.1% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TOEL.Y's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TOEL.Y's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TOEL.Y's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Tokyo Electron performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TOEL.Y has become profitable over the past 5 years, growing earnings by 38.5% per year.

Accelerating Growth: TOEL.Y's earnings growth over the past year (2.5%) is below its 5-year average (38.5% per year).

Earnings vs Industry: TOEL.Y earnings growth over the past year (2.5%) exceeded the Semiconductor industry -6.2%.


Return on Equity

High ROE: TOEL.Y's Return on Equity (27.4%) is considered high.


Return on Assets

ROA vs Industry: TOEL.Y has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: TOEL.Y has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tokyo Electron's financial position?


Financial Position Analysis

Short Term Liabilities: TOEL.Y's short term assets (¥871.3B) exceeds its short term liabilities (¥265.2B)

Long Term Liabilities: TOEL.Y's short term assets (871.3B) exceeds its long term liabilities (64.8B)


Debt to Equity History and Analysis

Debt Level: TOEL.Y is debt free.

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

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

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


Balance Sheet

Inventory Level: TOEL.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if TOEL.Y's debt is covered by short term assets.


Next Steps

Dividend

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

2.81%

Expected Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TOEL.Y's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TOEL.Y's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.3%), TOEL.Y's dividend payments are 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

What is the CEO of Tokyo Electron's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Toshiki Kawai (56yo)

3.8yrs

Tenure

JP¥431,000,000

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: TOEL.Y's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: TOEL.Y's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Kiyoshi Sunohara

    SVP, GM of Field Solution Business Division and Business Innovation Project & Corporate Director

    • Tenure: 0yrs
  • Yoshikazu Nunokawa

    EVP, GM of Global Bus. Platform

    • Tenure: 0.3yrs
  • Tetsuro Hori

    Senior VP & GM of Business Innovation Project

    • Tenure: 0yrs
    • Compensation: JP¥326.00m
  • Takeshi Okubo

    Senior VP & GM of Global Sales Division

    • Tenure: 1.8yrs
  • Toshiki Kawai (56yo)

    President

    • Tenure: 3.8yrs
    • Compensation: JP¥431.00m
  • Tatsuya Nagakubo

    SVP, GM of HR & General Affairs

    • Tenure: 0yrs
    • Compensation: JP¥186.00m
  • Sadao Sasaki

    Executive VP

    • Tenure: 0yrs
    • Compensation: JP¥328.00m
  • Ken Sasagawa

    Vice President of Accounting & Finance Department

    • Tenure: 2yrs
  • Koichi Yatsuda

    Investor Relations Officer

    • Tenure: 0yrs
  • Shoko Kimijima

    Chief Compliance Officer & VP of Compliance Dept

    • Tenure: 0.3yrs

Board Members

  • Charles Lake (57yo)

    Outside Director

    • Tenure: 3.3yrs
  • Tetsuo Tsuneishi (67yo)

    Chairman

    • Tenure: 4.3yrs
    • Compensation: JP¥339.00m
  • Kiyoshi Sunohara

    SVP, GM of Field Solution Business Division and Business Innovation Project & Corporate Director

    • Tenure: 0yrs
  • Yoshikazu Nunokawa

    EVP, GM of Global Bus. Platform

    • Tenure: 0.3yrs
  • Michio Sasaki (62yo)

    Outside Director

    • Tenure: 1.3yrs
  • Yoh Ikeda

    Senior VP

    • Tenure: 0.3yrs
  • Toshiki Kawai (56yo)

    President

    • Tenure: 3.8yrs
    • Compensation: JP¥431.00m
  • Tatsuya Nagakubo

    SVP, GM of HR & General Affairs

    • Tenure: 0yrs
    • Compensation: JP¥186.00m
  • Yoshinobu Mitano

    Senior VP

    • Tenure: 0.3yrs
  • Sadao Sasaki

    Executive VP

    • Tenure: 0yrs
    • Compensation: JP¥328.00m

Company Information

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


Key Information

  • Name: Tokyo Electron Limited
  • Ticker: TOEL.Y
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥3.389t
  • Listing Market Cap: JP¥31.225b
  • Shares outstanding: 157.61m
  • 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 Analysis2019/10/14 02:34
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.

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