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TDK Corporation

TTDKF
52
Hardware, Equipment & Parts · Technology
Price
$18.86
-0.24 (-1.28%)
Market Cap
$35.79B
Exchange
Other OTC
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Strong
Stability
Strong
Valuation
Strong
Dividends
Weak

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)

Winston Score History

The full picture

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 largest electronic components makers in the world and owns the well-known battery brand Energizer's former parent operations, as well as the EPCOS brand for passive components.

TDK earns money by selling these components to manufacturers, meaning its customers are mostly large companies like Apple, automotive makers, and industrial equipment producers. It operates globally, with major manufacturing in Japan, China, and Europe, generating roughly $14–15 billion in annual revenue. TDK's main competitive advantage is its deep materials science expertise built over decades, which is hard for rivals to copy quickly. Its biggest growth driver is rising demand for electric vehicle batteries and sensors, while its main risk is heavy dependence on the health of the global consumer electronics market.

Growth Profile

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

Revenue Growth

+21.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+130.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥291.5B/ year

Rising (+15% vs prior year)

11.6% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

2.9%ownership

Rising

Insiders increasing their stake — aligned with shareholders

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 22%. 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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
30.7%
Modest — 30.7% gross margin
Profit after running costs
Operating Margin
10.0%
Modest — 10.0% operating margin
Return on the money invested
ROCE
8.9%
Below par — 8.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+22.4%
Fast-growing sales (+22.4% YoY)
Profit growth
EPS YoY
+57.7%
Earnings growing fast (+57.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
184%
Turns 184% of profit into real cash
Spare cash per sale
FCF Margin
4.0%
Thin free cash flow (4.0%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.31
Conservative — low debt load (0.31)
Covers its interest
Interest Cover
7.10x
Adequate interest coverage (7.1x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
24.6x
Growth-priced — P/E 24.6

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+6.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (24.6 → 17.6)

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Dividends

Dividend
Dividend Yield
1.20%
Small dividend — 1.20% yield

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

Dividend record
Dividend Growth
-52.6%
Dividend cut (-52.6% YoY) — warning sign

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