Tokyo Electron Intrinsic Value Calculation – TOKYO ELECTRON Reports Third Quarter Fiscal Year 2023 Earnings Results on December 31, 2022.
March 29, 2023
Earnings Overview
TOKYO ELECTRON ($TSE:8035) released its third quarter earnings results for Fiscal Year 2023, ending on February 13, 2023, on December 31, 2022. The total revenue decreased by 22.2% to JPY 85.6 billion compared to the same period in the previous year. Net income was also down 7.6%, totalling JPY 467.8 billion.
Market Price
During trading, the company’s stock opened at JP¥47570.0 but closed the day at JP¥46150.0, a decrease of 4.4% from its previous closing price of 48270.0. This decrease marked the second consecutive weekly drop for TOKYO ELECTRON as investors reacted to the quarterly earnings report. In response to the earnings report, TOKYO ELECTRON’s Chief Executive Officer and President, Tetsuya Komori, stated that the company was “working hard to improve performance in order to deliver long-term sustainable growth.” He indicated that the company will continue to focus on cost reduction and efficiency improvement initiatives in order to maximize profits and continue to drive growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tokyo Electron. More…
| Total Revenues | Net Income | Net Margin |
| 2.22M | 479.75k | 21.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tokyo Electron. More…
| Operations | Investing | Financing |
| 340.86k | -55.63k | -167.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tokyo Electron. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.09M | 658.36k | 9.58k |
Key Ratios Snapshot
Some of the financial key ratios for Tokyo Electron are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.4% | 37.5% | 28.6% |
| FCF Margin | ROE | ROA |
| 12.1% | 27.1% | 18.9% |
Analysis – Tokyo Electron Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of TOKYO ELECTRON‘s fundamentals and our proprietary Valuation Line has determined the fair value of TOKYO ELECTRON share to be around JP¥55473.3. However, the current market price of TOKYO ELECTRON stock is JP¥46150.0, which is a 16.8% discount to the fair value. Thus, we believe that the stock of TOKYO ELECTRON is currently undervalued. More…
Peers
The competition between Tokyo Electron Ltd and its competitors, Applied Materials Inc, Wafer Works Corp, and Msscorps Co Ltd, is fierce in the semiconductor industry. Each company is striving to stay ahead of the curve by developing the most advanced technologies and innovative products. As a result, they are constantly pushing each other to the limit in an effort to gain a competitive edge.
– Applied Materials Inc ($NASDAQ:AMAT)
Applied Materials Inc is a global leader in the manufacturing of materials for the semiconductor, flat panel display and solar photovoltaic industries. Its market cap of 94.85 billion dollars as of 2023 reflects the company’s strong financial performance, with a Return on Equity of 40.53%. This high rate of return indicates that the company has been able to make effective use of its equity in generating returns for shareholders. Applied Materials Inc has achieved this success by investing in innovative technologies and providing quality products and services to its customers.
– Wafer Works Corp ($TPEX:6182)
Wafer Works Corp is a leading semiconductor wafer foundry located in Taiwan. The company manufactures and supplies advanced semiconductor wafer solutions for diverse applications. As of 2023, Wafer Works Corp has a market capitalization of 22.77 billion dollars. This value reflects the company’s impressive financial performance and long-term growth potential. The company also has an impressive Return on Equity of 20.4%, which demonstrates its ability to generate profits from its investments. Wafer Works Corp is committed to providing superior quality products and services that meet the needs of their customers.
Summary
Tokyo Electron‘s third quarter Fiscal Year 2023 earnings report showed a decrease in both revenue and net income compared to the same period the year before. Total revenue for the quarter was JPY 85.6 billion, a decrease of 22.2%, while net income decreased by 7.6%, amounting to JPY 467.8 billion. The announcement of these results caused the stock price to move down for the day. Investors should take these results into account when assessing the stock of Tokyo Electron for their portfolio.
However, it is also important to consider other factors such as the company’s competitive landscape, future outlook, and management strategy when making any decisions about investing in Tokyo Electron.
