One-glance verdict
Within fair range
$21.74 our estimate vs market $18.28
Wall Street consensus: $26.45 (21.7% higher than our fair-value estimate)
16% below our estimate
Fundamentals snapshot
TDK Corporation
TTDKY · PNK · Technology · Electronic Components
Current price
$18.28
52-week range
$11.92 - $26.73
Market cap
$34.70B
Balance sheet
Healthy
8.33x Adequate
Net cash $681.31M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 13.6% last year.
- Reward Returns 11.6% on equity, ahead of 40% of its peers.
- Risk Stock trades 21772.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
TDK Corporation
TDK Corporation is a Japanese company that makes the tiny, essential electronic parts inside many products you use every day, from smartphones and cars to medical equipment. The company's main business is selling components like rechargeable batteries, magnets, and sensors to other large manufacturers. This is important because as the world relies more on technology and electric power, the demand for these fundamental building blocks continues to grow.
How the company got here
TDK was founded in 1935 in Tokyo, Japan, to be the first company in the world to sell a magnetic material called ferrite. This invention was a key component in early radios and communication equipment. While many people might remember TDK for its cassette tapes and blank CDs, the company has a long history of creating the tiny, essential electronic parts that make larger devices work. Over the years, it expanded from Japan to having offices and factories around the world, growing by developing new materials and acquiring other companies to broaden its technological expertise.
What it actually does
TDK is a behind-the-scenes company that makes the crucial electronic components inside many products you use every day, from smartphones and cars to industrial robots and home appliances. Think of them as a supplier of the tiny building blocks that allow complex electronics to function. While you might not see the TDK logo on your phone, their parts are likely inside, helping it store data, sense motion, or manage power. They sell these components to other large manufacturers, not directly to everyday consumers.
Passive Components
This is TDK's largest business area, making fundamental electronic parts that are essential for any electronic circuit to work. These include capacitors (which store and release electricity), inductors (which manage the flow of electric current), and other protective components. These are the foundational building blocks for everything from cars and smartphones to factory equipment. Companies that build any kind of electronic device buy these components in massive quantities.
Sensor Application Products
This division creates tiny sensors that can detect changes in the physical world, like temperature, pressure, or motion. For example, a magnetic sensor in a car can help with automated driving features, while a motion sensor is key for virtual reality (VR) headsets. Manufacturers of cars, smartphones, and industrial machinery pay TDK for these sensors to make their products smarter and more aware of their surroundings.
Magnetic Application Products
Returning to its roots in magnetic materials, this segment produces things like the tiny heads that read and write data on hard disk drives (HDDs) found in data centers. It also makes high-performance magnets that are critical for electric vehicle (EV) motors and other industrial equipment. Companies that build large-scale data storage systems or electric motors are the main customers for this business.
Energy Application Products
This part of the company focuses on storing and managing power. It produces rechargeable batteries, especially the small lithium-ion batteries used in smartphones and other portable gadgets. It also makes power supplies that convert electricity to the right voltage for industrial machinery and other complex equipment. Electronics manufacturers and industrial companies buy these products to power their devices.
What management is betting on now
TDK's leadership is focused on shifting the company towards more valuable and faster-growing areas, especially in electric vehicles, industrial automation, and renewable energy. They aim to be a critical supplier for the world's transition to a more electrified and data-driven society. The company is also investing heavily in digital transformation (the process of using digital technology to create new or modify existing business processes, culture, and customer experiences) to make its own operations more efficient and data-driven. This strategy involves not just selling more components, but selling more advanced parts for demanding applications where reliability and performance are key.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $21.74 vs current price $18.28
Wall Street consensus is the average analyst price target: $26.45 (21.7% higher than our fair-value estimate).
Our most-likely fair value is $21.74 a share — about 18.9% away from today's price of $18.28, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $681.3M - more cash than debt. Interest coverage 8.3x.
Net debt
$-681.31M
Interest coverage
8.33x
TDK Corporation's profit covers its interest bill about 8.3 times over.
Healthy
Worse cushion
Baseline
Better cushion
TTDKY
BASELINE
TDK Corporation
Total debt $4.92B Interest coverage 8.33x This is the baseline the peer rows are being compared against.
Total debt $356.70M Interest coverage 88.38x +961% vs TTDKY Carries about 10.6x more debt cushion than TTDKY.
Total debt $18.81B Interest coverage 16.24x +95% vs TTDKY Carries about 1.9x more debt cushion than TTDKY.
Total debt $5.82B Interest coverage 43.95x +428% vs TTDKY Carries about 5.3x more debt cushion than TTDKY.
Total debt $1.10B Interest coverage 1.47x -82% vs TTDKY Carries about 5.7x less debt cushion than TTDKY.
What you should know
The case for and against TTDKY
3 Rewards
2 Risks
Rewards
-
Revenue grew 13.6% last year.
-
Returns 11.6% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 21772.7% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
27.28x
Forward P/E
23.74x
P/B
2.40x
P/S
0.01x
EV/EBITDA
-0.10x
PEG ratio
0.90x
Profitability
How much profit each dollar creates
Gross margin
31.1%
Operating margin
11.6%
Net margin
8.7%
ROE
11.6%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.33x
Current ratio
1.47x
Quick ratio
0.99x
Total debt
$4.92B
Total cash
$5.60B
Growth
How the business has been compounding
Revenue TTM
$17.45B
Revenue 5Y CAGR
4.7%
EPS TTM
0.67
EPS 5Y CAGR
14.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.27B
Free CF TTM
$1.35B
FCF margin
7.7%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
34.0%
Last ex-div date
2026-03-31