ScoreWhy is TDK Corp. ?
1
Strong Long Term Fundamental Strength with a 10.10% CAGR growth in Net Sales
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 18.89
- The company has been able to generate a Return on Capital Employed (avg) of 10.51% signifying high profitability per unit of total capital (equity and debt)
2
Flat results in Jun 25
- INTEREST(Q) At JPY 6,015 MM has Grown at 150.94%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,606.73
3
With ROCE of 11.77%, it has a very attractive valuation with a 1.69 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 13.04%, its profits have risen by 35.1%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 13.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to TDK Corp. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TDK Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
TDK Corp.
13.04%
48.36
43.83%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.10%
EBIT Growth (5y)
11.31%
EBIT to Interest (avg)
18.89
Debt to EBITDA (avg)
0.24
Net Debt to Equity (avg)
-0.08
Sales to Capital Employed (avg)
0.92
Tax Ratio
28.34%
Dividend Payout Ratio
34.05%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
10.51%
ROE (avg)
9.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.63
EV to EBIT
14.32
EV to EBITDA
7.12
EV to Capital Employed
1.69
EV to Sales
1.26
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.77%
ROE (Latest)
9.47%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 1.82% (YoY
CASH AND EQV(HY)
Highest at JPY 1,407,711 MM
-9What is not working for the Company
INTEREST(Q)
At JPY 6,015 MM has Grown at 150.94%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,606.73
Here's what is working for TDK Corp.
Cash and Eqv
Highest at JPY 1,407,711 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by 1.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for TDK Corp.
Interest
At JPY 6,015 MM has Grown at 150.94%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,606.73
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at JPY 6,015 MM
in the last five periods and Increased by 150.94% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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