OTCPK:TTDK.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record 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: TTDK.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

TTDK.F

-0.4%

US Electronic

-0.2%

US Market


1 Year Return

35.9%

TTDK.F

20.7%

US Electronic

16.1%

US Market

Return vs Industry: TTDK.F exceeded the US Electronic industry which returned 20.7% over the past year.

Return vs Market: TTDK.F exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

TTDK.FIndustryMarket
7 Day1.5%-0.4%-0.2%
30 Day13.5%2.5%3.7%
90 Day33.4%14.6%8.5%
1 Year35.9%35.9%22.0%20.7%18.7%16.1%
3 Yearn/a46.6%42.6%46.9%37.4%
5 Year74.7%74.7%76.9%68.2%61.8%44.0%

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?

16.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TTDK.F ($105.34) is trading above our estimate of fair value ($93.13)

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


Price To Earnings Ratio

PE vs Industry: TTDK.F is good value based on its PE Ratio (16x) compared to the Electronic industry average (20.3x).

PE vs Market: TTDK.F is good value based on its PE Ratio (16x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: TTDK.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TTDK.F is good value based on its PB Ratio (1.6x) compared to the US Electronic industry average (2x).


Next Steps

  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is TDK forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTDK.F's forecast earnings growth (13.5% per year) is above the savings rate (2.7%).

Earnings vs Market: TTDK.F's earnings (13.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: TTDK.F's revenue (5.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TTDK.F's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TTDK.F's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has TDK performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTDK.F has high quality earnings.

Growing Profit Margin: TTDK.F's current net profit margins (6.3%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: TTDK.F's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: TTDK.F's earnings growth over the past year (16.5%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: TTDK.F earnings growth over the past year (16.5%) underperformed the Electronic industry 56.3%.


Return on Equity

High ROE: TTDK.F's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TDK's financial position?


Financial Position Analysis

Short Term Liabilities: TTDK.F's short term assets (¥982.3B) exceeds its short term liabilities (¥694.3B)

Long Term Liabilities: TTDK.F's short term assets (¥982.3B) exceeds its long term liabilities (396.8B)


Debt to Equity History and Analysis

Debt Level: TTDK.F's debt to equity ratio (53.2%) is considered high.

Reducing Debt: TTDK.F's debt to equity ratio has increased from 38.6% to 53.2% over the past 5 years.

Debt Coverage: TTDK.F's debt is well covered by operating cash flow (42%).

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


Balance Sheet

Inventory Level: TTDK.F has a high level of physical assets or inventory.

Debt Coverage by Assets: TTDK.F's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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

1.65%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: TTDK.F's dividend (1.65%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TTDK.F's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), TTDK.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

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

5.5yrs

Average management tenure


CEO

Shigenao Ishiguro (62yo)

3.4yrs

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 ($USD1.32M) is below average for companies of similar size in the US market ($USD11.04M).

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


Management Age and Tenure

5.5yrs

Average Tenure

59yo

Average Age

Experienced Management: TTDK.F's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TTDK.F's board of directors are not considered experienced ( 2.1 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

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


Management Team

  • Seiji Osaka (61yo)

    Executive VP

    • Tenure: 2.4yrs
  • Atsuo Kobayashi (59yo)

    Senior Vice President

    • Tenure: 9.4yrs
  • Joachim Zichlarz (55yo)

    Executive VP

    • Tenure: 4.6yrs
  • Noboru Saito (53yo)

    Corporate Officer & Senior VP

    • Tenure: 6.6yrs
  • Shigenao Ishiguro (62yo)

    CEO, President

    • Tenure: 3.4yrs
    • Compensation: JP¥143.00m
  • Mitsuru Nagata

    Corporate Officer

    • Tenure: 0yrs
  • Tetsuji Yamanishi (59yo)

    Chief Compliance Officer

    • Tenure: 3.4yrs
  • Sumio Marukawa

    General Manager of Corporate Communications Group of Strategy Hq

    • Tenure: 0yrs
  • Dai Matsuoka

    GM of Technology & Intellectual Property HQ and Corporate Officer

    • Tenure: 2.4yrs
  • Andreas Keller

    Corporate Officer & GM of Human Resources HQ

    • Tenure: 1.8yrs

Board Members

  • Kazunori Yagi (70yo)

    Outside Director

    • Tenure: 1.4yrs
  • Makoto Sumita (65yo)

    Chairman

    • Tenure: 1.8yrs
  • Kazumasa Yoshida (61yo)

    Outside Director

    • Tenure: 5.4yrs
  • Seiji Osaka (61yo)

    Executive VP

    • Tenure: 2.4yrs
  • Jun Ishii (63yo)

    Outside Audit & Supervisory Board Member

    • Tenure: 0.8yrs
  • Kazuhiko Ishimura (65yo)

    Outside Director

    • Tenure: 4.4yrs
  • Takakazu Momozuka (61yo)

    Full Time Audit & Supervisory Board Member

    • Tenure: 0.8yrs
  • Shigenao Ishiguro (62yo)

    CEO, President

    • Tenure: 3.4yrs
    • Compensation: JP¥143.00m
  • Tetsuji Yamanishi (59yo)

    Chief Compliance Officer

    • Tenure: 3.4yrs
  • Satoru Sueki (61yo)

    Full-time Audit & Supervisory Board Member

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: TDK Corporation
  • Ticker: TTDK.F
  • Exchange: OTCPK
  • Founded: 1935
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥1.379t
  • Listing Market Cap: JP¥12.704b
  • Shares outstanding: 126.31m
  • Website: https://www.tdk.co.jp

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 Analysis2019/11/21 23:46
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.