TDK Price To Earning vs. Cash And Equivalents

TDK Stock  EUR 12.74  0.16  1.27%   
Taking into consideration TDK's profitability measurements, TDK Corporation may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess TDK's ability to earn profits and add value for shareholders.
For TDK profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TDK to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TDK Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TDK's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TDK Corporation over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between TDK's value and its price as these two are different measures arrived at by different means. Investors typically determine if TDK is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TDK's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

TDK Corporation Cash And Equivalents vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining TDK's current stock value. Our valuation model uses many indicators to compare TDK value to that of its competitors to determine the firm's financial worth.
TDK Corporation is currently regarded as top stock in price to earning category among its peers. It also is currently regarded as top stock in cash and equivalents category among its peers creating about  193,768,997  of Cash And Equivalents per Price To Earning. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the TDK's earnings, one of the primary drivers of an investment's value.

TDK Cash And Equivalents vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

TDK

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
13.16 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

TDK

Cash

 = 

Bank Deposits

+

Liquidities

 = 
2.55 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

TDK Cash And Equivalents Comparison

TDK is currently under evaluation in cash and equivalents category among its peers.

TDK Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in TDK, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TDK will eventually generate negative long term returns. The profitability progress is the general direction of TDK's change in net profit over the period of time. It can combine multiple indicators of TDK, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
TDK Corporation, together with its subsidiaries, manufactures and sells electronic components in Japan, Europe, China, Asia, the Americas, and internationally. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan. TDK CORP operates under Electronic Components classification in Germany and is traded on Frankfurt Stock Exchange. It employs 105485 people.

TDK Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on TDK. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TDK position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TDK's important profitability drivers and their relationship over time.

Use TDK in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TDK position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TDK will appreciate offsetting losses from the drop in the long position's value.

TDK Pair Trading

TDK Corporation Pair Trading Analysis

The ability to find closely correlated positions to TDK could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TDK when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TDK - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TDK Corporation to buy it.
The correlation of TDK is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TDK moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TDK Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TDK can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your TDK position

In addition to having TDK in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Investor Favorites Thematic Idea Now

Investor Favorites
Investor Favorites Theme
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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Other Information on Investing in TDK Stock

To fully project TDK's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TDK Corporation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TDK's income statement, its balance sheet, and the statement of cash flows.
Potential TDK investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although TDK investors may work on each financial statement separately, they are all related. The changes in TDK's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on TDK's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.