Tokyo Electron Ltd.

Tokyo Electron is a supplier of semiconductor production equipment ("SPE") and flat panel display ("FPD") selling through global network that spans Japan, the U.S., Europe and Asia. Co.'s principal products are coater/developers, plasma etch systems, thermal processing systems, single wafer deposition systems, cleaning systems (auto wet station, single wafer cleaning system, pre-clean system and scrubber system), wafer prober, FPD coater/developers and FPD plasma etch/ash systems. In addition, Co., through its subsidiaries, is engaged in the provision of transportation services, insurance services, as well as the support services for Co.'s photovoltaic cell ("PV") production equipment.
  • Ticker8035
  • ISINJP3571400005
  • SectorTechnology Hardware & Equipment
  • CountryJapan

Analysts

TOKYO ELECTRON LTD. with less fundamental stars is reduced to Neutral

TOKYO ELECTRON LTD. (JP), a company active in the Semiconductors industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date November 5, 2019, the closing price was JPY 22,205.00 and its expected value was estimated at J...

Dave Nicoski ...
  • Ross LaDuke

Int'l Macro Vision: Sector Synopsis

After numerous trade war escalations and setbacks, it is easy to become resigned to the belief that there will be no end to the trade war. We have come to expect the unexpected when it comes to President Trump's tactics, so the best course of action may be to assume nothing. Last week's “Phase 1” US-China trade agreement is certainly a step in the right direction, and for now we are taking the truce at face value as a positive development while also knowing that the risk of setbacks/escalations remains high. Despite positive trade developments last week, the markets and the technicals are tell...

Dave Nicoski ...
  • Ross LaDuke

Int'l Insights: Bullish Developed Markets Stocks

Favor EAFE over EM The U.S. dollar remains elevated and as long as this remains the case we believe developed international equities (EAFE) will continue to outperform relative to emerging markets (MSCI EM)... see charts below. Below we highlight attractive and actionable themes within developed international: • Australia. Australia's All Ordinaries index exhibits bullish price and RS trends, a rarity when it comes to global markets considering most country-specific indexes display neutral or negative price trends. We highlight several Australian names, and would use recent broad market weak...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Fed cut, now what? The Fed's 25 bps cut and Powell's evasiveness in committing to a new easing cycle was seen as more hawkish than expected. In our opinion Powell was essentially saying the Fed will act as appropriate moving forward, and we can't blame him considering this was largely an “insurance cut” as opposed to a rescue attempt to avoid recession, and we may or may not need additional insurance moving forward. Overall the weight of the evidence supports further consolidation - i.e., no breakouts for now - on the broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM), and considering...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Not too bullish, not too bearish Despite several indexes recently touching new 52+ week highs, broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) remain near logical resistance, and indicators continue to send mixed signals. As a result we are hesitant to get too bullish or bearish. Instead we want to focus on Sector/Group/industry themes where we bottoming price and RS, or attractive pullback opportunities within established price and RS uptrends. Below we highlight some of these themes along with indicators that support our overall constructive -- yet tempered -- outlook. • Positiv...

Abhinav Davuluri

Morningstar | Tokyo Electron Facing Similar Headwinds as Peers; We Expect Memory Spending to Improve in 2020

Tokyo Electron completed its fiscal 2019 with results consistent with management’s forecast, leading to full-year revenue growth of 13%. Nevertheless, the firm expects wafer fab equipment spending to decline 15% to 20% in calendar 2019, which is aligned with our forecast, stemming from a “temporary adjustment in memory investment on a softening in demand,” according to management. Specifically, DRAM and NAND spending in 2019 is expected to be down 30% and 50%, respectively, partially offset by 25% growth in logic and foundry. Coupled with capital spending for OLED panels poised to be weaker, f...

Abhinav Davuluri

Morningstar | Tokyo Electron Facing Similar Headwinds as Peers; We Expect Memory Spending to Improve in 2020

Tokyo Electron is a key vendor of semiconductor fabrication tools, operating primarily in the etch, deposition, and clean segments, which involve adding and removing materials to and from semiconductor wafers, respectively. We believe Tokyo Electron's relatively diverse product portfolio will allow it to comfortably weather business cycles over time, allowing the firm to maintain its current research and development levels and experience decent growth over the long term, thus justifying a narrow economic moat.Chipmakers that pursue the tenets prescribed by Moore’s law have endured significant ...

Abhinav Davuluri

Tokyo Electron Facing Similar Headwinds as Peers; We Expect Memory Spending to Improve in 2020

Tokyo Electron completed its fiscal 2019 with results consistent with management’s forecast, leading to full-year revenue growth of 13%. Nevertheless, the firm expects wafer fab equipment spending to decline 15% to 20% in calendar 2019, which is aligned with our forecast, stemming from a “temporary adjustment in memory investment on a softening in demand,” according to management. Specifically, DRAM and NAND spending in 2019 is expected to be down 30% and 50%, respectively, partially offset by ...

Abhinav Davuluri

Tokyo Electron Facing Similar Headwinds as Peers; We Expect Memory Spending to Improve in 2020

Tokyo Electron reported fiscal third-quarter results consistent with our expectations, while reiterating its fiscal 2019 revenue growth forecast of 13%. During last quarter’s results, management had revised this full-year growth rate down from 24% due to slowing NAND equipment demand. For calendar 2019, wafer fab equipment spending is expected to be down 15% to 20% as memory weakness persists along with U.S.-China trade tensions. We note this outlook is consistent with our model as well as fello...

Abhinav Davuluri

Morningstar | Tokyo Electron's 2019 Outlook Mimics Peers as Memory Spending Slows; Shares Undervalued

Tokyo Electron reported fiscal third-quarter results consistent with our expectations, while reiterating its fiscal 2019 revenue growth forecast of 13%. During last quarter’s results, management had revised this full-year growth rate down from 24% due to slowing NAND equipment demand. For calendar 2019, wafer fab equipment spending is expected to be down 15% to 20% as memory weakness persists along with U.S.-China trade tensions. We note this outlook is consistent with our model as well as fellow-etch supplier Lam Research. All in, our positive thesis for narrow-moat Tokyo Electron and close p...

TOKYO ELECTRON LTD. with less fundamental stars is reduced to Neutral

TOKYO ELECTRON LTD. (JP), a company active in the Semiconductors industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date November 5, 2019, the closing price was JPY 22,205.00 and its expected value was estimated at J...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

PSA Technology: In Semiconductors, Is "Poor" Good Enough?

Pelham Smithers discusses the strength in the SPE sector despite the industry data remaining poor.

Dave Nicoski ...
  • Ross LaDuke

Int'l Macro Vision: Sector Synopsis

After numerous trade war escalations and setbacks, it is easy to become resigned to the belief that there will be no end to the trade war. We have come to expect the unexpected when it comes to President Trump's tactics, so the best course of action may be to assume nothing. Last week's “Phase 1” US-China trade agreement is certainly a step in the right direction, and for now we are taking the truce at face value as a positive development while also knowing that the risk of setbacks/escalations remains high. Despite positive trade developments last week, the markets and the technicals are tell...

Dave Nicoski ...
  • Ross LaDuke

Int'l Insights: Bullish Developed Markets Stocks

Favor EAFE over EM The U.S. dollar remains elevated and as long as this remains the case we believe developed international equities (EAFE) will continue to outperform relative to emerging markets (MSCI EM)... see charts below. Below we highlight attractive and actionable themes within developed international: • Australia. Australia's All Ordinaries index exhibits bullish price and RS trends, a rarity when it comes to global markets considering most country-specific indexes display neutral or negative price trends. We highlight several Australian names, and would use recent broad market weak...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Fed cut, now what? The Fed's 25 bps cut and Powell's evasiveness in committing to a new easing cycle was seen as more hawkish than expected. In our opinion Powell was essentially saying the Fed will act as appropriate moving forward, and we can't blame him considering this was largely an “insurance cut” as opposed to a rescue attempt to avoid recession, and we may or may not need additional insurance moving forward. Overall the weight of the evidence supports further consolidation - i.e., no breakouts for now - on the broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM), and considering...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Not too bullish, not too bearish Despite several indexes recently touching new 52+ week highs, broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) remain near logical resistance, and indicators continue to send mixed signals. As a result we are hesitant to get too bullish or bearish. Instead we want to focus on Sector/Group/industry themes where we bottoming price and RS, or attractive pullback opportunities within established price and RS uptrends. Below we highlight some of these themes along with indicators that support our overall constructive -- yet tempered -- outlook. • Positiv...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

Add exposure to Technology, Communications We view weakness over the past week as correcting a significant amount of the excess optimism that was baked-in to global equities. As a result, we recommend taking advantage of the pullback by adding exposure to our favorite areas - namely Technology. Our overall outlook on global equities (both the MSCI ACWI and ACWI ex-US) remains positive and we continue to expect higher equity prices going forward. • Index overviews: MSCI ACWI ex-US, MSCI EM, STOXX Europe 50, and the TOPIX indexes are analyzed from both a price and RS perspective... see page 2...

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