- Between increased semiconductor volume, driven by significant chip content growth in multiple markets, and increasing capex intensity, Tokyo Electron is looking at strong underlying market growth over the next decade.
- TEL enjoys strong market share in several key markets, but also has share growth opportunities in clean, etch, and deposition, as well as leverage to growing adoption of EUV lithography.
- Margin performance has been less than exemplary, and management really needs to buckle down on finding ways to improve gross margins.
- Double-digit revenue and FCF growth can support a mid-single-digit long-term annualized return, and the music may not stop for a while in the space, but the shares aren't cheap.
For further details see:
Tokyo Electron Leveraging Semiconductor Math, And Looking For Share Gain Opportunities