| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3078.13 | -13 |
| Intrinsic value (DCF) | 1068.34 | -70 |
| Graham-Dodd Method | 1181.15 | -67 |
| Graham Formula | n/a |
Tokyo Electron Device Limited (TED) is a leading Japanese technology trading company specializing in electronic components and computer network solutions. Headquartered in Yokohama, TED operates globally, providing a comprehensive portfolio of semiconductor products, boards, software, and other critical electronic components. The company serves diverse industries with microprocessors, DSPs, memory ICs, FPGAs, and power supply ICs, alongside network, storage, and security solutions. TED's expertise spans from datacenter switches to hyper-converged infrastructure, making it a key player in Japan's technology hardware sector. Founded in 1986, TED has established itself as a trusted supplier in the semiconductor distribution market, leveraging strong partnerships with global manufacturers. With a market cap of ¥80.7 billion, TED combines technical innovation with distribution efficiency, catering to the growing demand for advanced electronics in IoT, AI, and telecommunications. Its dual focus on components and network infrastructure positions it strategically in the rapidly evolving tech ecosystem.
Tokyo Electron Device presents a stable investment opportunity with moderate growth potential, supported by its diversified product portfolio and established market presence. The company's low beta (0.43) suggests relative resilience to market volatility, appealing to risk-averse investors. With ¥216.4 billion in revenue and ¥8.9 billion net income, TED demonstrates consistent profitability, though its high total debt (¥42.6 billion) warrants caution. The dividend yield (~2.5% based on ¥117/share) adds income appeal. However, TED operates in a highly competitive semiconductor distribution sector with thin margins, and its growth depends on broader tech industry trends. Investors should weigh its stable cash flow (¥18.9 billion operating cash flow) against exposure to cyclical semiconductor demand and supply chain risks.
Tokyo Electron Device competes in the crowded semiconductor distribution and embedded systems market, differentiating through its integrated solutions combining hardware components with network/security software. Unlike pure-play distributors, TED's value-add lies in technical support and customization, particularly for Japanese manufacturers. Its competitive advantage stems from long-standing relationships with chipmakers and local OEMs, though it lacks the global scale of US/EU distributors. TED's focus on niche applications (e.g., energy harvesting, industrial sensors) provides some insulation from price wars in commoditized components. However, its reliance on third-party manufacturers limits margin control, and the rise of direct-to-customer sales by chipmakers (e.g., Intel, NVIDIA) poses structural challenges. TED's ¥80.7 billion market cap is modest compared to global peers, reflecting its regional focus. The company's strength in Japan's industrial and telecom sectors balances its limited presence in high-growth consumer electronics. Capital efficiency is adequate (ROE ~11%), but inventory management remains critical in this working-capital-intensive business.