Advantest Corp (ATEYY)
OTHER OTC:ATEYY
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Advantest
(OTC:ATEYY)
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Rating:77Outperform
Price Target:
$154.00
▲(20.69% Upside)
Action:UpgradedDate:02/01/26
Score is driven by strong financial performance (high margins, strong ROE, low leverage) and a clearly positive technical trend (price above key moving averages with positive MACD). The main constraint is valuation, with a high P/E and very low dividend yield, alongside inherent semiconductor cyclicality that can drive earnings and cash-flow volatility.
Positive Factors
High profitability & ROE
Sustained high gross and operating margins plus very strong ROE indicate durable pricing power and efficient capital use in ATE equipment. These margins support reinvestment in R&D, service capabilities, and long-term product leadership, cushioning returns across cycles.
Negative Factors
Cyclical revenue/earnings
Dependence on semiconductor capital cycles creates material revenue and earnings swings despite strong margins. This cyclicality can compress utilization and margins during downturns, complicate capacity planning, and produce volatile near-term cash flows and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & ROE
Sustained high gross and operating margins plus very strong ROE indicate durable pricing power and efficient capital use in ATE equipment. These margins support reinvestment in R&D, service capabilities, and long-term product leadership, cushioning returns across cycles.
Read all positive factors
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$95.67B
Dividend Yield0.18%
Average Volume (3M)71.71K
Price to Earnings (P/E)44.9
Beta (1Y)2.01
Revenue Growth64.87%
EPS Growth153.13%
CountryUS
Employees6,766
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.71
Shares Outstanding732,000,000
10 Day Avg. Volume84,024
30 Day Avg. Volume71,714
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)9.63
Price to Sales (P/S)6.26
P/FCF Ratio18.30
Enterprise Value/Market Cap166.85
Enterprise Value/Revenue15.31
Enterprise Value/Gross Profit24.55
Enterprise Value/Ebitda36.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.21
Revenue Forecast (FY)$8.93B
Advantest Business Overview & Revenue Model
Company Description
Advantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. It operates through three segments: Semiconductor and Component Test System; Mechatronics System; and Services, Suppor...
How the Company Makes Money
Advantest primarily makes money by selling semiconductor test systems and related test-cell components to chipmakers and semiconductor manufacturing service providers. The core revenue stream is the shipment of ATE hardware platforms that perform ...
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Apr 27, 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
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04T | 779.71B | 486.51B | 560.19B | 416.90B | 312.79B |
| Gross Profit | 650.10B | 445.08B | 246.03B | 319.06B | 235.91B | 168.29B |
| EBITDA | 440.57B | 257.13B | 108.98B | 189.08B | 129.70B | 83.25B |
| Net Income | 291.33B | 161.18B | 62.29B | 130.40B | 87.30B | 69.79B |
Balance Sheet | ||||||
| Total Assets | 1.02T | 854.21B | 671.23B | 600.22B | 494.70B | 422.64B |
| Cash, Cash Equivalents and Short-Term Investments | 329.55B | 262.54B | 106.70B | 85.54B | 116.58B | 149.16B |
| Total Debt | 102.42B | 93.50B | 94.44B | 50.84B | 43.46B | 11.85B |
| Total Liabilities | 346.45B | 347.67B | 240.05B | 231.53B | 200.07B | 142.27B |
| Stockholders Equity | 674.76B | 506.54B | 431.18B | 368.69B | 294.62B | 280.37B |
Cash Flow | ||||||
| Free Cash Flow | 308.76B | 266.54B | 12.13B | 46.64B | 60.67B | 54.55B |
| Operating Cash Flow | 339.38B | 285.97B | 32.67B | 70.22B | 78.89B | 67.83B |
| Investing Cash Flow | -47.24B | -42.19B | -27.94B | -26.71B | -46.91B | -16.83B |
| Financing Cash Flow | -122.63B | -82.82B | 10.76B | -77.43B | -68.74B | -30.41B |
Advantest Technical Analysis
Negative
127.60
Price Trends
159.47
Negative
144.78
Negative
117.66
Positive
Market Momentum
-6.62
Positive
42.59
Neutral
46.37
Neutral
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 127.6 is below the 20-day moving average (MA) of 145.90, below the 50-day MA of 159.47, and above the 200-day MA of 117.66, indicating a neutral trend. The MACD of -6.62 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEYY.
Advantest Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $95.67B | 44.89 | 48.79% | 0.18% | 64.87% | 153.13% | |
77 Outperform | $49.38B | 54.64 | 19.88% | 0.24% | 4.56% | -15.44% | |
64 Neutral | $25.02B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $49.38B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $36.38B | 246.12 | -1.42% | 2.79% | -23.36% | -131.15% | |
56 Neutral | $29.87B | ― | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
ATEYY
Advantest
138.95
102.97
286.18%
ASX
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22.55
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MCHP
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67.22
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ON
ON Semiconductor
63.49
28.41
80.99%
STM
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35.44
16.75
89.62%
TER
Teradyne
315.43
242.83
334.48%
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.