Tokyo Electron Limited
Tokyo Electron Limited Fundamental Analysis
Tokyo Electron Limited (TOELY) shows strong financial fundamentals with a PE ratio of 36.97, profit margin of 21.08%, and ROE of 26.11%. The company generates $2397.1B in annual revenue with strong year-over-year growth of 32.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze TOELY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTOELY demonstrates superior asset utilization.
Valuation Score
ModerateTOELY shows balanced valuation metrics.
Growth Score
ExcellentTOELY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTOELY maintains a strong and stable balance sheet.
Profitability Score
ExcellentTOELY achieves industry-leading margins.
Key Financial Metrics
Is TOELY Expensive or Cheap?
P/E Ratio
TOELY trades at 36.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TOELY's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Tokyo Electron Limited at 9.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.30 times EBITDA. This signals the market has high growth expectations.
How Well Does TOELY Make Money?
Net Profit Margin
For every $100 in sales, Tokyo Electron Limited keeps $21.08 as profit after all expenses.
Operating Margin
Core operations generate 25.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.11 in profit for every $100 of shareholder equity.
ROA
Tokyo Electron Limited generates $19.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tokyo Electron Limited produces operating cash flow of $599.21B, showing steady but balanced cash generation.
Free Cash Flow
Tokyo Electron Limited generates strong free cash flow of $403.86B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $440.51 in free cash annually.
FCF Yield
TOELY converts 2.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How TOELY Stacks Against Its Sector Peers
| Metric | TOELY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.97 | 35.62 | Neutral |
| ROE | 26.11% | 1161.00% | Weak |
| Net Margin | 21.08% | -126170.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 3.13 | 5.83 | Strong Liquidity |
| ROA | 19.16% | -308589.00% (disorted) | Strong |
TOELY outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tokyo Electron Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.48%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
203.03%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
137.23%
Industry Style: Growth, Innovation, High Beta
High Growth