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TDK Corporation

TTDKY
39
Hardware, Equipment & Parts · Technology
Price
$18.52
-0.10 (-0.56%)
Market Cap
$35.16B
Exchange
Other OTC
Winston Score
39
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+400.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 379.9M (2022) → 1.90B (2026)

TDK Corporation is a Japanese electronics company that makes components used inside everyday devices like smartphones, cars, and computers. Its core products include capacitors, inductors, sensors, and rechargeable batteries — small parts that most people never see but that nearly every electronic device needs. TDK is one of the world's largest makers of electronic components and also owns the well-known energy storage brand Amperex Technology Limited (ATL), a major supplier of lithium-ion batteries.

TDK earns money by selling these components and batteries to manufacturers, meaning its customers are mostly other businesses — phone makers, automakers, and industrial equipment companies. The company operates globally, with major sales in Asia, Europe, and North America, and generates roughly $14–15 billion in annual revenue. Its main competitive advantage is deep engineering expertise and long-standing customer relationships, but its biggest risk is heavy dependence on the smartphone and consumer electronics market, which can slow sharply during economic downturns.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+23.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+133.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$307.1B/ year

Rising (+18364% vs prior year)

11.6% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$1.1T cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

TDK Corporation is a rare growth stock that's already generating positive cash flow while growing at 23%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
28.5%
Modest — 28.5% gross margin
Operating Margin
4.8%
Thin — 4.8% operating margin
ROCE
1.1%
Weak — 1.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+16.9%
Fast-growing sales (16.9% YoY)
EPS YoY
-3.2%
Earnings shrinking (-3.2% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
328%
Turns 328% of profit into real cash
FCF Margin
9.0%
Modest free cash flow (9.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.25
Conservative — low debt load (0.25)
Interest Cover
7.70x
Adequate interest coverage (7.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
0.2x
Attractive valuation — P/E 0.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.1
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
1.06%
Small dividend — 1.06% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-47.0%
Dividend cut (-47.0% YoY) — warning sign

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