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Advantest
(OTC:ATEYY)
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Rating:81Outperform
Price Target:
$214.00
▲(67.71% Upside)
Action:Reiterated
Date:07/02/26
The score is driven primarily by very strong financial performance (margin expansion, low leverage, and improving cash generation), supported by positive technical trend/momentum. These positives are partially offset by a rich valuation (high P/E and low dividend yield) and the noted cyclicality risk typical of semiconductor-linked demand.
Positive Factors
Margin Expansion
Sustained materially higher gross and operating margins indicate strong pricing power and product mix advantage in ATE markets. Higher margins support reinvestment in R&D, service capability and buffer earnings through cycles, enabling durable profitability and cash flow generation over multiple quarters.
Negative Factors
Cyclicality Risk
Revenue and earnings are structurally tied to semiconductor capital expenditure and new device ramps. Protracted soft phases can compress orders, delay system shipments, and reverse margin gains. This exposes long-term growth visibility to cyclical swings across customer segments.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained materially higher gross and operating margins indicate strong pricing power and product mix advantage in ATE markets. Higher margins support reinvestment in R&D, service capability and buffer earnings through cycles, enabling durable profitability and cash flow generation over multiple quarters.
Read all positive factors
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$125.81B
Dividend Yield0.18%
Average Volume (3M)200.60K
Price to Earnings (P/E)57.9
Beta (1Y)2.09
Revenue Growth45.93%
EPS Growth137.01%
CountryUS
Employees6,766
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)521.85
Shares Outstanding732,000,000
10 Day Avg. Volume407,423
30 Day Avg. Volume200,601
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)19.65
Price to Sales (P/S)13.13
P/FCF Ratio49.02
Enterprise Value/Market Cap171.33
Enterprise Value/Revenue18.84
Enterprise Value/Gross Profit29.28
Enterprise Value/Ebitda40.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.46
Revenue Forecast (FY)$9.42B
Advantest Business Overview & Revenue Model
Company Description
Advantest Corporation, a Japanese entity founded in Tokyo in 1954, specializes in the development and distribution of semiconductor and component testing equipment, alongside various mechatronics solutions. Its operations are broadly categorized i...
How the Company Makes Money
Advantest primarily makes money by selling semiconductor test equipment and related solutions to customers across the semiconductor supply chain (including integrated device manufacturers, foundries, and outsourced semiconductor assembly and test ...
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
Advantest Corporation reported a strong financial performance in FY 2024 with record-high sales and profits, and a positive outlook for continued demand in AI-related semiconductor testing for FY 2025. However, challenges such as impairment losses, increased tax rates, and market competition present some risks.Positive Updates
Record-High Financial Performance in FY 2024
Advantest Corporation achieved record highs in sales, operating income, and net income for FY 2024, driven by strong demand for AI-related high-performance semiconductors and effective supply chain management.
Negative Updates
Impairment Loss and Increased Tax Rate
The company recorded an impairment loss of approximately JPY24.1 billion related to Essai's socket business, resulting in a higher effective tax rate of approximately 28%.
Read all updates
Q4-2024 Updates
Positive
Negative
Record-High Financial Performance in FY 2024
Advantest Corporation achieved record highs in sales, operating income, and net income for FY 2024, driven by strong demand for AI-related high-performance semiconductors and effective supply chain management.
Read all positive updates
Company Guidance
In the financial briefing call for Advantest Corporation's fiscal 2024, the company reported record-high sales, operating income, and net income, driven by strong demand for AI-related high-performance semiconductors. The fiscal year 2024 sales exceeded the guidance by approximately JPY40 billion, primarily due to higher-than-expected deliveries, particularly of SoC testers. The core operating income margin reached 32%, significantly surpassing guidance. Despite an impairment loss affecting operating margin and net profit, the effective tax rate rose to approximately 28%. Advantest expects continued strong demand for tester products in FY 2025, with sales forecasted at JPY755 billion and operating income at JPY242 billion. The company maintains a robust position in the high-end SoC market, with an overall market share of approximately 58%, although facing increased competition from local suppliers in China. The fiscal 2025 outlook includes a dividend forecast and share repurchase program, aiming for a cumulative total return ratio of 50% or more over the three years of the third midterm management plan.Advantest Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.20T | 779.71B | 486.51B | 560.19B | 416.90B |
| Gross Profit | 769.90B | 445.08B | 246.03B | 319.06B | 235.91B |
| EBITDA | 526.42B | 257.13B | 108.98B | 189.08B | 129.70B |
| Net Income | 397.99B | 161.18B | 62.29B | 130.40B | 87.30B |
Balance Sheet | |||||
| Total Assets | 1.18T | 854.21B | 671.23B | 600.22B | 494.70B |
| Cash, Cash Equivalents and Short-Term Investments | 341.44B | 262.54B | 106.70B | 85.54B | 116.58B |
| Total Debt | 20.28B | 93.50B | 94.44B | 50.84B | 43.46B |
| Total Liabilities | 377.72B | 347.67B | 240.05B | 231.53B | 200.07B |
| Stockholders Equity | 799.18B | 506.54B | 431.18B | 368.69B | 294.62B |
Cash Flow | |||||
| Free Cash Flow | 320.39B | 266.54B | 12.13B | 46.64B | 60.67B |
| Operating Cash Flow | 355.40B | 285.97B | 32.67B | 70.22B | 78.89B |
| Investing Cash Flow | -36.64B | -42.19B | -27.94B | -26.71B | -46.91B |
| Financing Cash Flow | -244.45B | -82.82B | 10.76B | -77.43B | -68.74B |
Advantest Technical Analysis
Positive
127.60
Price Trends
180.22
Positive
170.29
Positive
151.21
Positive
Market Momentum
1.89
Positive
50.07
Neutral
31.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEYY, the sentiment is Positive. The current price of 127.6 is below the 20-day moving average (MA) of 189.35, below the 50-day MA of 180.22, and below the 200-day MA of 151.21, indicating a neutral trend. The MACD of 1.89 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 31.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.
Advantest Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $125.81B | 57.91 | 56.56% | 0.18% | 45.93% | 137.01% | |
78 Outperform | $56.79B | 65.94 | 29.72% | 0.24% | 30.33% | 51.65% | |
63 Neutral | $38.09B | 67.61 | 7.45% | ― | -9.04% | -4.21% | |
62 Neutral | $92.50B | 62.40 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $47.93B | 333.17 | 3.05% | 2.79% | 7.08% | ― | |
62 Neutral | $63.83B | 417.09 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
ATEYY
Advantest
184.34
107.56
140.09%
ASX
ASE Technology Holding Co
42.66
32.33
312.85%
MCHP
Microchip
88.59
16.00
22.04%
ON
ON Semiconductor
95.96
36.23
60.66%
STM
STMicroelectronics
71.46
39.48
123.44%
TER
Teradyne
359.60
262.80
271.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.