Tokyo Electron 8035.T
Tokyo Electron is a leading global manufacturer of semiconductor production equipment, such as lithography and etching machines, which it sells to the world's major chipmakers. Tokyo Electron shows solid fundamentals with 33.3% revenue growth and a 35.41% ROIC, but its valuation is demanding (P/E 45.09) and the context of rising rates in Japan and geopolitical tensions in semiconductors adds pressure.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Tokyo Electron is a leading global manufacturer of semiconductor production equipment, such as lithography and etching machines, which it sells to the world's major chipmakers. Tokyo Electron shows solid fundamentals with 33.3% revenue growth and a 35.41% ROIC, but its valuation is demanding (P/E 45.09) and the context of rising rates in Japan and geopolitical tensions in semiconductors adds pressure.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.3 |
| Quality / Moat | 7.8 |
| Valuation | 3.5 |
| Growth | 9.0 |
| Dividend | 6.1 |
| Momentum | 9.2 |
| Risk & Context | 4.4 |
OVERALL SCORE: 6.6/10
Context and risks
The company is exposed to US-China geopolitical tensions in the semiconductor sector, which could affect its access to the Chinese market. Additionally, renewed concerns about AI security are putting downward pressure on tech valuations.
News considered in the analysis
- European Chip Stocks Rise, Buoyed By Asian Peers — El repunte de los pares asiáticos de semiconductores apoya el sentimiento del sector, aunque el impacto directo en los fundamentales de Tokyo Electron es limitado.
- Nikkei 225 Jumps 3% as Chip Stocks Rally on Iran Deal Hopes — El repunte del Nikkei, impulsado por las esperanzas de un acuerdo con Irán, beneficia directamente a las acciones de semiconductores japonesas como Tokyo Electron, mejorando el sentimiento del mercado.
- Nikkei Falls 2.2%, Dragged by Chip Stocks — La caída del Nikkei por la debilidad de los chips refleja la volatilidad del sector, pero no altera los fundamentales a largo plazo de la empresa.
- European Equities Mixed in Muted Trade — Ruido de mercado sin información específica sobre la empresa.
- European Indexes Rise as Earnings Drive Markets — Movimiento general del mercado sin relevancia directa para Tokyo Electron.
Verdict: Hold; business quality is high, but the price already discounts a lot of growth.
Main risk: The main risk is the escalation of export restrictions on semiconductor equipment to China, which could limit access to a key market.
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