Fact based stock research
Tokyo Electron (TSE:8035)

JP3571400005

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Tokyo Electron stock research in summary

tel.co.jp

ANALYSIS: With an Obermatt Combined Rank of 41 (worse than 59% compared with investment alternatives), Tokyo Electron (Semiconductor Equipment, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Tokyo Electron are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives), show below-average growth (Growth Rank of 31), and are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 41, is a hold recommendation based on Tokyo Electron's financial characteristics. As the company Tokyo Electron's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 27), low growth (Obermatt Growth Rank of 31), and risky financing practices (Obermatt Safety Rank of 28), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	27
Growth Rank	31
Safety Rank	28
Combined Rank	41

Country	Japan
Industry	Semiconductor Equipment
Index	TOPIX 100, Nikkei 225
Size class	X-Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Tokyo Electron

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	11	15	31	27
GROWTH
GROWTH	61	47	21	31
SAFETY
SAFETY	97	97	28	28
SENTIMENT
SENTIMENT	11	31	83	^new
360° VIEW
360° VIEW	19	3	43	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Tokyo Electron is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	11	15	31	27
GROWTH
GROWTH	61	47	21	31
SAFETY
SAFETY	97	97	28	28
COMBINED
COMBINED	55	55	41	41

Last update of combined financial performance: 4-Jul-2024. Stock analysis on combined financial performance: The higher the rank of Tokyo Electron the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), Tokyo Electron shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Tokyo Electron. Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than 72% of comparable companies, indicating a low value concerning Tokyo Electron's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 19, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Tokyo Electron. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 47 and Dividend Yield, which is lower than 52% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on Tokyo Electron's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Tokyo Electron? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Tokyo Electron? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Tokyo Electron may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	18	20	27	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	25	31	45	47
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	9	17	17	19
DIVIDEND YIELD
DIVIDEND YIELD	38	43	56	48
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	11	15	31	27

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Tokyo Electron; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Tokyo Electron shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Tokyo Electron. Sales Growth has a below market rank of 37, which means that, currently, professionals expect the company to grow less than 63% of its competitors. The same is valid for Capital Growth, with a rank of 22, and Profit Growth, with a rank of 41. Currently, professionals expect the company to grow its profits less than 59% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 65, which means that the stock returns have recently been above 65% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Tokyo Electron, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	28	51	13	37
PROFIT GROWTH
PROFIT GROWTH	50	44	67	41
CAPITAL GROWTH
CAPITAL GROWTH	51	24	45	22
STOCK RETURNS
STOCK RETURNS	81	75	31	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	47	21	31

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Tokyo Electron.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Tokyo Electron has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Tokyo Electron is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Tokyo Electron and the other two below average. Leverage is at a rank of 80 meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% of its competitors.Refinancing is at a rank of 21, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 79% of its competitors. Liquidity is at a rank of 11, meaning that the company generates less profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Tokyo Electron has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Tokyo Electron are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Tokyo Electron and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	88	88	89	80
REFINANCING
REFINANCING	21	21	23	21
LIQUIDITY
LIQUIDITY	100	100	11	11
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	97	97	28	28

Last update of Safety Rank: 4-Jul-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Tokyo Electron and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	61	72	^new
OPINIONS CHANGE
OPINIONS CHANGE	48	72	81	^new
PRO HOLDINGS
PRO HOLDINGS	30	36	98	^new
MARKET PULSE
MARKET PULSE	3	12	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	11	31	83	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Tokyo Electron.
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