# Tokyo Electron (8035.JP)

Canonical: https://gigainvestors.com/s/8035.JP

Analysis as of: 2026-10-15T07:11:38.076Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 10,365.00 per share; close as of 2026-10-15.

Estimated value: low JPY 3,251.32 per share, central JPY 4,558.98 per share, high JPY 5,320.43 per share. Buy at or below the central value JPY 4,558.98 per share. Valuation as of 2026-10-15T07:11:38.076Z; scenarios are not confidence intervals.

Expected annual return: 6.1% at the stated quote. About 6.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.25×

- FY2019: 0.24×

- FY2020: 0.21×

- FY2021: 0.23×

- FY2022: 0.30×

- FY2023: 0.28×

- FY2024: 0.25×

- FY2025: 0.29×

- FY2026: 0.26×

### moat: pass

- ROIC, median of available years: 38.7%

- ROIC, second-lowest year: 31.2%

- Typical minus recent gross margin: -2.1 pp

- Typical gross margin (annual median): 43.3%

- Recent gross margin (lower of latest and 3-year median): 45.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 35.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 36.7%

- FY2018: 53.1%

- FY2019: 49.1%

- FY2020: 37.4%

- FY2021: 35.0%

- FY2022: 45.5%

- FY2023: 41.8%

- FY2024: 27.5%

- FY2025: 40.0%

- FY2026: 31.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 2.16T

- Net income, five-year total: JPY 2.39T

- Return on incremental invested capital: 29.7%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 15.1 pp

- Working capital / revenue, final three-year average: 49.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.99×

- FY2024: 0.80×

- FY2025: 0.97×

- FY2026: 0.76×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 49.1% vs 31.2%

- Per-share earnings: 234.09 to 1182.40 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: JPY 3.01T

- Cumulative retained earnings: JPY 1.58T

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 22.4%

- Per-share value change: JPY 948.31

- Per-share value, starting three-year median: JPY 234.09

- Per-share value, ending three-year median: JPY 1K

- Buybacks concentrated in cheaper years (correlation): -0.15

- Average buyback yield: 4.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 29B

- Cumulative net income, 10 years: JPY 3.39T

- ROIC, first three-year median: 49.1%

- ROIC, last three-year median: 31.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 234.09

- FY2018: JPY 415.16

- FY2019: JPY 504.53

- FY2020: JPY 390.19

- FY2021: JPY 520.73

- FY2022: JPY 935.95

- FY2023: JPY 1K

- FY2024: JPY 783.75

- FY2025: JPY 1K

- FY2026: JPY 1K

### accounting: pass

- Sloan accruals: 1.2%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.94×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.3%

- FY2018: 1.5%

- FY2019: 4.7%

- FY2020: -5.3%

- FY2021: 6.8%

- FY2022: 8.1%

- FY2023: 2.0%

- FY2024: -2.9%

- FY2025: -1.4%

- FY2026: 1.2%

## Holders

## Price story

Down 33% since Jun 2026 · sales +0.5%

Story as of 2026-10-16T10:00:14.701Z; price observation 2026-10-15.

Price needs cash profits to grow 17.3% a year for ten years

### Sales · FY2025–2026

sales +0.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf; observed 2026-06-22.

- FY2017: JPY 800B 

- FY2018: JPY 1.13T 

- FY2019: JPY 1.28T 

- FY2020: JPY 1.13T 

- FY2021: JPY 1.40T 

- FY2022: JPY 2.00T 

- FY2023: JPY 2.21T 

- FY2024: JPY 1.83T 

- FY2025: JPY 2.43T 

- FY2026: JPY 2.44T 

### Gross margin · FY2026

gross margin 45.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf; observed 2026-06-22.

- FY2017: 40.3% 

- FY2018: 42.0% 

- FY2019: 41.2% 

- FY2020: 40.1% 

- FY2021: 40.4% 

- FY2022: 45.5% 

- FY2023: 44.6% 

- FY2024: 45.4% 

- FY2025: 47.1% 

- FY2026: 45.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 2.4 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf (filed 2026-06-22); FY2026: revenue 2443533000000; grossProfit 1107880000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 45.3% to 47.1% during 2024–26; it earns 38.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: grossProfit / revenue = 45.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: grossProfit / revenue = 47.1%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf (filed 2026-06-22); FY2026: grossProfit / revenue = 45.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); 10-year return on capital observations [[2017,0.36717938678183404],[2018,0.5309437865394356],[2019,0.4912445336847886],[2020,0.37358344118946246],[2021,0.3503391632216598],[2022,0.45541058546844726],[2023,0.4183062710001663],[2024,0.27525955154197673],[2025,0.39991079885074526],[2026,0.3115660779909]]; median 0.38674712002010386. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.5% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2017: growth capex 801000000; upkeep 17872000000; owner earnings 115208000000. Growth capex / owner earnings = 0.006952642177626553.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2018: growth capex 21131000000; upkeep 20619000000; owner earnings 204371000000. Growth capex / owner earnings = 0.1033952958100709.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2019: growth capex 18418863209.46293; upkeep 29661136790.53707; owner earnings 242889863209.46292. Growth capex / owner earnings = 0.0758321609888631.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2020: growth capex 0; upkeep 52752000000; owner earnings 161561000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2021: growth capex 27087000000; upkeep 33843000000; owner earnings 242941000000. Growth capex / owner earnings = 0.11149620689797111.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2022: growth capex 28376000000; upkeep 36727000000; owner earnings 437076000000. Growth capex / owner earnings = 0.06492234760087491.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2023: growth capex 26372896126.479057; upkeep 49940103873.52094; owner earnings 464570896126.47906. Growth capex / owner earnings = 0.05676829165660661.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: growth capex 0; upkeep 124980000000; owner earnings 291322000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: growth capex 88394989267.90247; upkeep 79644010732.09753; owner earnings 526636989267.90247. Growth capex / owner earnings = 0.1678480453695127.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf (filed 2026-06-22); FY2026: growth capex 1999948753.0479126; upkeep 217441051246.9521; owner earnings 437994948753.0479. Growth capex / owner earnings = 0.004566145702688301.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Dividend observations: [[2017,39371000000],[2018,82203000000],[2019,124754000000],[2020,95513000000],[2021,109542000000],[2022,166252000000],[2023,252988000000],[2024,202457000000],[2025,236276000000],[2026,271618000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf (filed 2026-06-22); FY2026: cash repurchases 150010000000 JPY.

### What the price says

The price assumes cash profits grow 17.3% yearly over ten years; actual growth was 19%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Ten-year compound average after fade. Initial solved rate 0.23802643385393601. Price 10365; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 168.01804958210835 → FY2026 956.5523485903332. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 698.33 per share

- 2016-12: JPY 736.33 per share

- 2017-01: JPY 780.67 per share

- 2017-02: JPY 747.33 per share

- 2017-03: JPY 810.33 per share

- 2017-04: JPY 864.33 per share

- 2017-05: JPY 1,046.00 per share

- 2017-06: JPY 1,010.67 per share

- 2017-07: JPY 1,038.33 per share

- 2017-08: JPY 1,030.67 per share

- 2017-09: JPY 1,152.00 per share

- 2017-10: JPY 1,317.00 per share

- 2017-11: JPY 1,384.00 per share

- 2017-12: JPY 1,360.00 per share

- 2018-01: JPY 1,364.00 per share

- 2018-02: JPY 1,404.00 per share

- 2018-03: JPY 1,334.33 per share

- 2018-04: JPY 1,403.67 per share

- 2018-05: JPY 1,360.00 per share

- 2018-06: JPY 1,268.00 per share

- 2018-07: JPY 1,277.00 per share

- 2018-08: JPY 1,258.33 per share

- 2018-09: JPY 1,040.67 per share

- 2018-10: JPY 1,045.67 per share

- 2018-11: JPY 1,058.33 per share

- 2018-12: JPY 834.33 per share

- 2019-01: JPY 1,042.33 per share

- 2019-02: JPY 1,010.00 per share

- 2019-03: JPY 1,066.67 per share

- 2019-04: JPY 1,176.33 per share

- 2019-05: JPY 986.00 per share

- 2019-06: JPY 1,008.00 per share

- 2019-07: JPY 1,246.33 per share

- 2019-08: JPY 1,267.00 per share

- 2019-09: JPY 1,371.00 per share

- 2019-10: JPY 1,471.67 per share

- 2019-11: JPY 1,506.67 per share

- 2019-12: JPY 1,595.00 per share

- 2020-01: JPY 1,633.33 per share

- 2020-02: JPY 1,488.33 per share

- 2020-03: JPY 1,357.00 per share

- 2020-04: JPY 1,529.33 per share

- 2020-05: JPY 1,433.33 per share

- 2020-06: JPY 1,762.67 per share

- 2020-07: JPY 1,920.00 per share

- 2020-08: JPY 1,810.00 per share

- 2020-09: JPY 1,822.00 per share

- 2020-10: JPY 1,860.00 per share

- 2020-11: JPY 2,364.67 per share

- 2020-12: JPY 2,560.00 per share

- 2021-01: JPY 2,654.00 per share

- 2021-02: JPY 2,903.33 per share

- 2021-03: JPY 3,119.33 per share

- 2021-04: JPY 3,221.33 per share

- 2021-05: JPY 3,244.00 per share

- 2021-06: JPY 3,205.33 per share

- 2021-07: JPY 2,994.67 per share

- 2021-08: JPY 3,149.33 per share

- 2021-09: JPY 3,311.33 per share

- 2021-10: JPY 3,523.33 per share

- 2021-11: JPY 3,989.33 per share

- 2021-12: JPY 4,418.67 per share

- 2022-01: JPY 3,648.67 per share

- 2022-02: JPY 3,718.00 per share

- 2022-03: JPY 4,216.67 per share

- 2022-04: JPY 3,698.67 per share

- 2022-05: JPY 3,932.00 per share

- 2022-06: JPY 2,953.33 per share

- 2022-07: JPY 3,067.33 per share

- 2022-08: JPY 2,944.00 per share

- 2022-09: JPY 2,380.00 per share

- 2022-10: JPY 2,632.67 per share

- 2022-11: JPY 3,006.00 per share

- 2022-12: JPY 2,592.00 per share

- 2023-01: JPY 3,011.33 per share

- 2023-02: JPY 3,114.00 per share

- 2023-03: JPY 3,208.00 per share

- 2023-04: JPY 3,099.00 per share

- 2023-05: JPY 3,863.00 per share

- 2023-06: JPY 4,112.00 per share

- 2023-07: JPY 4,249.00 per share

- 2023-08: JPY 4,315.00 per share

- 2023-09: JPY 4,088.00 per share

- 2023-10: JPY 3,951.00 per share

- 2023-11: JPY 4,805.00 per share

- 2023-12: JPY 5,051.00 per share

- 2024-01: JPY 5,573.00 per share

- 2024-02: JPY 7,374.00 per share

- 2024-03: JPY 7,916.00 per share

- 2024-04: JPY 7,024.00 per share

- 2024-05: JPY 6,726.00 per share

- 2024-06: JPY 6,980.00 per share

- 2024-07: JPY 6,204.00 per share

- 2024-08: JPY 5,161.00 per share

- 2024-09: JPY 5,058.00 per share

- 2024-10: JPY 4,680.00 per share

- 2024-11: JPY 4,662.00 per share

- 2024-12: JPY 4,837.00 per share

- 2025-01: JPY 5,241.00 per share

- 2025-02: JPY 4,425.00 per share

- 2025-03: JPY 4,022.00 per share

- 2025-04: JPY 4,245.00 per share

- 2025-05: JPY 4,600.00 per share

- 2025-06: JPY 5,536.00 per share

- 2025-07: JPY 5,466.00 per share

- 2025-08: JPY 4,133.00 per share

- 2025-09: JPY 5,272.00 per share

- 2025-10: JPY 6,836.00 per share

- 2025-11: JPY 6,360.00 per share

- 2025-12: JPY 6,864.00 per share

- 2026-01: JPY 8,262.00 per share

- 2026-02: JPY 8,802.00 per share

- 2026-03: JPY 7,446.00 per share

- 2026-04: JPY 8,878.00 per share

- 2026-05: JPY 10,484.00 per share

- 2026-06: JPY 15,430.00 per share

- 2026-07: JPY 11,100.00 per share

- 2026-08: JPY 11,288.00 per share

- 2026-09: JPY 11,815.00 per share

- 2026-10: JPY 11,645.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 4,405.10 per share, central JPY 4,920.71 per share, high JPY 5,607.11 per share

- FY2021: low JPY 6,299.52 per share, central JPY 7,084.29 per share, high JPY 8,128.97 per share

- FY2022: low JPY 9,186.23 per share, central JPY 10,355.02 per share, high JPY 11,910.93 per share

- FY2023: low JPY 13,112.18 per share, central JPY 18,338.27 per share, high JPY 21,381.44 per share

- FY2024: low JPY 10,243.98 per share, central JPY 14,231.50 per share, high JPY 16,553.44 per share

- FY2025: low JPY 16,079.60 per share, central JPY 22,553.30 per share, high JPY 26,322.95 per share

- FY2026: low JPY 16,256.58 per share, central JPY 22,794.88 per share, high JPY 26,602.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YEOO.pdf); period 2026-03-31, filed 2026-06-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.