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Advantest Corp (ATEYY)
:ATEYY
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Advantest
(OTC:ATEYY)
61Neutral
Advantest (ATEYY) vs. S&P 500 (SPY)
Market Cap
$34.68B
Dividend Yield0.43%
Average Volume (3M)182.63K
Price to Earnings (P/E)37.1
Beta (1Y)1.76
Revenue Growth26.95%
EPS Growth61.32%
CountryUS
Employees6,766
SectorTechnology
Sector Strength43
IndustrySemiconductors
Share Statistics
EPS (TTM)1.22
Shares Outstanding766,141,240
10 Day Avg. Volume203,405
30 Day Avg. Volume182,626
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)N/A
Price to Sales (P/S)4.22
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Advantest Business Overview & Revenue Model
Company DescriptionAdvantest Corporation (ATEYY) is a leading Japanese manufacturer specializing in the development and production of automatic test equipment (ATE) for the semiconductor industry. The company operates primarily in the semiconductor and electronics sectors, providing advanced test solutions that ensure the quality and performance of semiconductor devices. Advantest's core products include test systems for semiconductor manufacturing, memory testers, and other related equipment, serving a global clientele that includes major semiconductor manufacturers.
How the Company Makes MoneyAdvantest makes money through the sale of its semiconductor test equipment and solutions to semiconductor manufacturers and electronics companies worldwide. The company's key revenue streams include the sale of automated test equipment for both memory and non-memory semiconductor devices, as well as system level test equipment. Advantest also generates income through services such as maintenance, support, and software updates for their testing systems. Additionally, the company may enter into significant partnerships and collaborations with other technology firms to enhance its product offerings and expand its market reach, although specific partnerships are not detailed in this context. Advantest's earnings are influenced by the cyclical nature of the semiconductor industry and the ongoing demand for advanced testing solutions as semiconductor technology continues to evolve.
Advantest Financial Statement Overview
Summary
Advantest shows strong gross margins and a solid balance sheet with low leverage, yet faces challenges with declining revenue and profitability. The significant drop in free cash flow is a concern, indicating potential liquidity issues and operational inefficiencies. The company must address these declining trends to sustain its financial health.Income Statement
The income statement shows a decline in total revenue from the previous year, with a revenue decrease of approximately 13.14%. Gross Profit Margin stands at 50.57%, indicating strong cost management. However, Net Profit Margin decreased significantly to 12.80%, suggesting declining profitability. EBIT Margin and EBITDA Margin are reasonably healthy at 16.78% and 22.40%, respectively, but showcase a downward trend in earnings.65
Positive
Balance Sheet
The balance sheet is strong with a Debt-to-Equity Ratio of 0.22, indicating low financial leverage. Return on Equity (ROE) is at 14.44%, reflecting decent profitability relative to shareholders' equity. The Equity Ratio is 64.23%, showing a solid equity base compared to total assets, suggesting financial stability and low risk of insolvency.75
Positive
Cash Flow
Cash flow metrics indicate a significant decline in Free Cash Flow by 74.02%, which poses a concern for liquidity and operational efficiency. The Operating Cash Flow to Net Income Ratio is 0.52, suggesting limited cash conversion. However, Free Cash Flow to Net Income Ratio stands at 0.19, highlighting potential issues in cash generation relative to net income.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 455.73B | 486.51B | 560.19B | 416.90B | 312.79B | 275.89B | Gross Profit |
| 260.08B | 246.03B | 319.06B | 235.91B | 168.29B | 156.50B | EBIT |
| 133.39B | 81.63B | 167.69B | 114.73B | 70.73B | 58.71B | EBITDA |
| 149.14B | 108.98B | 189.08B | 129.70B | 83.25B | 70.64B | Net Income Common Stockholders |
| 104.45B | 62.29B | 130.40B | 87.30B | 69.79B | 53.53B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 124.78B | 106.70B | 85.54B | 116.58B | 149.16B | 127.70B | Total Assets |
| 296.59B | 671.23B | 600.22B | 494.70B | 422.64B | 355.78B | Total Debt |
| 5.89B | 94.44B | 50.84B | 113.81B | 11.85B | 11.29B | Net Debt |
| -118.89B | -12.26B | -34.69B | -2.77B | -137.31B | -116.42B | Total Liabilities |
| 108.45B | 240.05B | 231.53B | 200.07B | 142.27B | 124.33B | Stockholders Equity |
| 188.14B | 431.18B | 368.69B | 294.62B | 280.37B | 231.45B |
| Cash Flow | Free Cash Flow | ||||
| 48.89B | 12.13B | 46.64B | 60.67B | 54.55B | 57.59B | Operating Cash Flow |
| 68.31B | 32.67B | 70.22B | 78.89B | 67.83B | 66.47B | Investing Cash Flow |
| -48.13B | -27.94B | -26.71B | -46.91B | -16.83B | -38.82B | Financing Cash Flow |
| -66.65B | 10.76B | -77.43B | -68.74B | -30.41B | -17.92B |
Advantest Technical Analysis
Negative
45.23
Price Trends
56.58
Negative
57.88
Negative
50.81
Negative
Market Momentum
-2.12
Positive
28.72
Positive
5.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEYY, the sentiment is Negative. The current price of 45.23 is below the 20-day moving average (MA) of 52.75, below the 50-day MA of 56.58, and below the 200-day MA of 50.81, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 28.72 is Positive, neither overbought nor oversold. The STOCH value of 5.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEYY.
Advantest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $93.21B | 22.06 | 50.42% | 1.18% | 13.21% | 27.25% | |
77 Outperform | $89.51B | 28.33 | 96.81% | 0.94% | 12.19% | 20.80% | |
76 Outperform | $117.85B | 18.98 | 35.19% | 1.10% | 4.45% | -10.01% | |
76 Outperform | $264.00B | 32.39 | 48.13% | 0.85% | 2.53% | -3.33% | |
73 Outperform | $13.39B | 24.93 | 20.29% | 0.58% | 5.52% | 16.59% | |
61 Neutral | $34.68B | 37.10 | 29.94% | 0.43% | 26.95% | 61.32% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% |
* Technology Sector Average
Performance Comparison
ATEYY
Advantest
45.23
1.72
3.95%
AMAT
Applied Materials
145.06
-61.89
-29.91%
ASML
ASML Holding
674.58
-311.32
-31.58%
KLAC
KLA
673.60
-30.99
-4.40%
LRCX
Lam Research
72.61
-24.50
-25.23%
TER
Teradyne
82.78
-29.72
-26.42%
Advantest Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -16.80% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with signs of recovery and strong market positioning offset by challenges in sales recovery and manufacturing capacity. While there are positive forecasts for the future, current market conditions and delayed recovery in key segments present challenges.Highlights
Quarter-on-Quarter Sales Growth
All segments recorded an increase in sales quarter-on-quarter, with notable increases in memory tester sales driven by high-performance DRAM for generative AI.
Revised Sales and Operating Income Forecast
The full-year sales forecast was revised up by JPY 10 billion to JPY 480 billion due to increased demand for memory testers. The operating income forecast was also revised up by JPY 5 billion.
Strong Market Position
The company estimates its market share for both SoC testers and memory testers to be in the upper 50% range for calendar year 2023.
Future Demand Expectations
The company expects demand for high-performance semiconductors, including HPC and AI, to ramp up in the second half of 2024, with memory tester market size estimated to be between $1.3 billion to $1.6 billion.
Lowlights
Year-on-Year Decline in Sales
Despite quarter-on-quarter growth, sales are still trending negatively year-on-year, with a sluggish semiconductor market affecting recovery.
Delayed Recovery in SoC Tester Demand
The recovery of SoC tester demand is slower than expected, with a delay in demand due to weak smartphone-related business.
Challenges in Meeting Memory Tester Demand
While there is robust demand for memory testers, the company faces challenges in improving its manufacturing capacity to meet this demand.
Flat Year-on-Year SLT Business
The system-level test business is expected to be flat year-on-year due to specific customer investment trends and sluggish semiconductor market conditions.
Elevated Inventory Levels
Inventories remain at an elevated level, and the company is responding to requests for pushouts from some customers, impacting supply chain management.
Company Guidance
During the earnings call for 6857.T, the company provided several key metrics and guidance for both the third quarter of FY 2023 and the outlook for 2024. The third quarter saw sales increasing quarter-on-quarter across all segments, with Semiconductor and Component Test Systems reporting SoC tester sales of JPY 63.3 billion and memory tester sales of JPY 25 billion, an increase of JPY 6.2 billion from the previous quarter. Despite a year-on-year decline, signs of recovery were noted. The company revised its full-year sales forecast upwards by JPY 10 billion to JPY 480 billion, with an unchanged gross profit margin forecast of approximately 50%. Operating income is expected to increase by JPY 5 billion, and the company anticipates an SoC tester market size of $3.3 billion to $3.6 billion for 2024. Memory tester market size for 2024 is projected between $1.3 billion to $1.6 billion, driven by high-performance DRAM demand related to generative AI. The company expects its market share for both SoC and memory testers to remain in the upper 50% range.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.