Tokyo Electron Device Ltd

Tokyo Electron Device Ltd maintains a debt-to-equity ratio of 1.07, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.87, suggesting it can cover its short-term obligations but with limited excess capacity. Free cash flow is reported at 208 million JPY, which is significantly lower than operating cash flow of 6.11 billion JPY, indicating capital expenditures are consuming a large portion of operating cash.

Profitability metrics show a return on equity of 5.46% and a return on assets of 1.54%, both below the industry median for visualization semiconductors. Gross profit of 9.196 billion JPY represents 16.25% of revenue, which is in line with the industry average, but operating income of 4.252 billion JPY (7.51% of revenue) is below the median for the sector.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and sector-specific downturns. The capital expenditure of -320 million JPY indicates ongoing investment in infrastructure, but the negative value suggests a net outflow of cash for the period.

Looking ahead, the company is expected to see a slight decline in revenue, with actual revenue of 230.75 billion JPY compared to the mean analyst estimate of 225 billion JPY. Earnings per share (EPS) are also expected to decrease, with an actual EPS of 265.91 JPY versus a mean estimate of 288.60 JPY. These figures suggest a challenging near-term outlook, with potential pressure on both top and bottom lines.

Risk factors include a negative net cash position after subtracting total debt, which could limit the company's ability to respond to unexpected financial demands. The dilution risk is assessed as low, with no significant dilution expected in the near term. However, the company's reliance on a single business segment and geographic concentration increases vulnerability to market-specific risks.

Recent events include the publication of the latest financial results, which show a decline in both revenue and EPS compared to analyst estimates. No major regulatory or operational events were disclosed in the most recent filings, but the company's exposure to the semiconductor manufacturing equipment market remains subject to global supply chain dynamics and demand fluctuations.

Free cash flow surged 26.3% year-over-year to JPY 5.6 billion, highlighting strong cash generation capabilities.

Cash conversion ratio of 2.45 ranks in the top quartile, exceeding the cohort median of 0.91.

Net income CAGR of 11.4% over four years reflects consistent long-term earnings growth trajectory.

Debt-to-equity ratio of 1.07 places the company in the bottom quartile, reflecting high leverage risk.

High credit risk flag suggests potential vulnerabilities in the company's financial stability or debt servicing.

Revenue ¥57.03B, +5,1% YoY; Operating income +9,8% YoY.

• ▍Revenue ¥57.03B, +5,1% YoY
• ▍Operating income +9,8% YoY
• ▍Net income −14,8% YoY
• ▍Free cash flow −14,6% YoY
• ▍Net margin 4.9%

Revenue ¥50.47B, +0,2% YoY; Operating income +7,0% YoY.

• ▍Revenue ¥50.47B, +0,2% YoY
• ▍Operating income +7,0% YoY
• ▍Net income +93,3% YoY
• ▍Free cash flow +384,0% YoY
• ▍Net margin 4.9%

Revenue ¥51.11B, −7,2% YoY; Operating income +3,2% YoY.

• ▍Revenue ¥51.11B, −7,2% YoY
• ▍Operating income +3,2% YoY
• ▍Net income −24,7% YoY
• ▍Free cash flow +31,2% YoY
• ▍Net margin 2.7%

Revenue ¥45.14B, −20,3% YoY; Operating income −65,8% YoY.

• ▍Revenue ¥45.14B, −20,3% YoY
• ▍Operating income −65,8% YoY
• ▍Net income −51,2% YoY
• ▍Free cash flow −365,9% YoY
• ▍Net margin 2.7%

Revenue ¥54.28B; Operating income ¥3.59B.

• ▍Revenue ¥54.28B
• ▍Operating income ¥3.59B
• ▍Net margin 6.1%

Revenue ¥50.38B; Operating income ¥2.56B.

• ▍Revenue ¥50.38B
• ▍Operating income ¥2.56B
• ▍Net margin 2.5%

Revenue ¥55.10B; Operating income ¥2.04B.

• ▍Revenue ¥55.10B
• ▍Operating income ¥2.04B
• ▍Net margin 3.3%

Revenue ¥56.61B; Operating income ¥4.25B.

• ▍Revenue ¥56.61B
• ▍Operating income ¥4.25B
• ▍Net margin 4.4%

Revenue ¥203.75B, −5,8% YoY; Operating income −17,7% YoY.

• ▍Revenue ¥203.75B, −5,8% YoY
• ▍Operating income −17,7% YoY
• ▍Net income −11,6% YoY
• ▍Free cash flow +26,3% YoY
• ▍Net margin 3.8%

Revenue ¥216.38B, −10,9% YoY; Operating income −19,1% YoY.

• ▍Revenue ¥216.38B, −10,9% YoY
• ▍Operating income −19,1% YoY
• ▍Net income −11,1% YoY
• ▍Free cash flow −26,7% YoY
• ▍Net margin 4.1%

Revenue ¥242.89B, +1,1% YoY; Operating income +8,2% YoY.

• ▍Revenue ¥242.89B, +1,1% YoY
• ▍Operating income +8,2% YoY
• ▍Net income +13,8% YoY
• ▍Free cash flow −10,6% YoY
• ▍Net margin 4.1%

Revenue ¥240.35B, +33,6% YoY; Operating income +63,6% YoY.

• ▍Revenue ¥240.35B, +33,6% YoY
• ▍Operating income +63,6% YoY
• ▍Net income +72,7% YoY
• ▍Free cash flow +70,8% YoY
• ▍Net margin 3.7%