Tokyo Electron Device Ltd. (2760) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kaga Electronics Co., Ltd.

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Tokyo Electron Device Ltd.

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Ryoyo Electro Corp.

Elematec Corp.

Ryosan Co., Ltd.

Why is Tokyo Electron Device Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 15.00%

Healthy long term growth as Net Sales has grown by an annual rate of 7.30% and Operating profit at 17.28%
Company has very low debt and has enough cash to service the debt requirements

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at JPY 1,129 MM
INTEREST(Q) Highest at JPY 76 MM

With ROCE of 13.72%, it has a very attractive valuation with a 1.97 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 67.42%, its profits have fallen by -11.5%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tokyo Electron Device Ltd. 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 Tokyo Electron Device Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyo Electron Device Ltd.

62.66%

0.05

44.57%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.30%

EBIT Growth (5y)

17.28%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.53

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

2.44

Tax Ratio

27.55%

Dividend Payout Ratio

40.24%

Pledged Shares

Institutional Holding

ROCE (avg)

15.84%

ROE (avg)

18.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.37

EV to EBIT

14.33

EV to EBITDA

12.97

EV to Capital Employed

1.97

EV to Sales

0.72

PEG Ratio

Dividend Yield

ROCE (Latest)

13.72%

ROE (Latest)

14.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING PROFIT(Q)

Highest at JPY 4,319 MM

PRE-TAX PROFIT(Q)

Highest at JPY 3,908 MM

RAW MATERIAL COST(Y)

Fallen by -8.5% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 52.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.72 times

NET SALES(Q)

Highest at JPY 60,322 MM

NET PROFIT(Q)

At JPY 2,651 MM has Grown at 117.65%

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at JPY 1,129 MM

INTEREST(Q)

Highest at JPY 76 MM

Here's what is working for Tokyo Electron Device Ltd.

Operating Profit

Highest at JPY 4,319 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 3,908 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 3,908 MM has Grown at 127.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Sales

Highest at JPY 60,322 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 60,322 MM has Grown at 33.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

At JPY 2,651 MM has Grown at 117.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at 52.56 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.72 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.5% (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 Tokyo Electron Device Ltd.

Interest

At JPY 76 MM has Grown at 20.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Cash Flow

Lowest at JPY 1,129 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (JPY MM)

Interest

Highest at JPY 76 MM

in the last five periods and Increased by 20.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)