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Advantest Corp (ATEYY)
OTHER OTC:ATEYY
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Advantest (ATEYY) AI Stock Analysis

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ATEYY

Advantest

(OTC:ATEYY)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
$195.00
▲(13.58% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily supported by very strong financial performance (exceptional margins, high returns, and low leverage) but is held back by an expensive valuation (high P/E with a low dividend yield) and only mixed technical positioning (stronger long-term trend but weaker near-term averages).
Positive Factors
Exceptional Profitability
Sustained TTM margins at very high levels indicate strong pricing power and efficient operations in ATE. High profitability supports ongoing R&D, service investments and buffer against downturns, strengthening long-term competitive positioning and cash generation ability.
Negative Factors
Revenue Cyclicality
Historic revenue decline followed by rebound underscores exposure to semiconductor capital expenditure cycles. Dependence on customers' production ramps creates persistent top-line volatility that complicates multi-quarter planning and smooth growth trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Sustained TTM margins at very high levels indicate strong pricing power and efficient operations in ATE. High profitability supports ongoing R&D, service investments and buffer against downturns, strengthening long-term competitive positioning and cash generation ability.
Read all positive factors

Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)

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:Nov 03, 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
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
Strong overall fundamentals driven by exceptional TTM profitability (gross margin ~64%, EBIT margin ~46%, net margin ~33%), solid TTM revenue growth (~9.5%), very high ROE (~59%), and minimal leverage (debt-to-equity ~0.03). The main constraint is cyclicality/volatility—revenue declined in 2024 before rebounding, and cash conversion was weaker in 2024—suggesting results may fluctuate from current peak levels.
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.25T1.20T779.71B486.51B560.19B416.90B
Gross Profit823.37B769.90B445.08B246.03B319.06B235.91B
EBITDA602.67B526.42B257.13B108.98B189.08B129.70B
Net Income467.39B397.99B161.18B62.29B130.40B87.30B
Balance Sheet
Total Assets1.50T1.18T854.21B671.23B600.22B494.70B
Cash, Cash Equivalents and Short-Term Investments410.40B341.44B262.54B106.70B85.54B116.58B
Total Debt107.45B20.28B93.50B94.44B50.84B43.46B
Total Liabilities468.89B377.72B347.67B240.05B231.53B200.07B
Stockholders Equity1.04T799.18B506.54B431.18B368.69B294.62B
Cash Flow
Free Cash Flow395.88B320.39B266.54B12.13B46.64B60.67B
Operating Cash Flow433.52B355.40B285.97B32.67B70.22B78.89B
Investing Cash Flow-135.54B-36.64B-42.19B-27.94B-26.71B-46.91B
Financing Cash Flow-169.27B-244.45B-82.82B10.76B-77.43B-68.74B

Advantest Technical Analysis

Technical Analysis Sentiment
Positive
Last Price171.68
Price Trends
50DMA
182.14
Positive
100DMA
174.05
Positive
200DMA
158.38
Positive
Market Momentum
MACD
5.39
Negative
RSI
60.54
Neutral
STOCH
91.15
Negative
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 171.68 is below the 20-day moving average (MA) of 184.35, below the 50-day MA of 182.14, and above the 200-day MA of 158.38, indicating a bullish trend. The MACD of 5.39 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.

Advantest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$144.82B51.3258.91%0.22%31.38%95.51%
71
Outperform
$57.56B50.1629.72%0.14%57.91%153.54%
67
Neutral
$31.76B57.887.45%-9.04%-4.21%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
$40.34B279.713.05%2.31%7.08%
56
Neutral
$47.01B99.452.66%0.70%10.06%-27.68%
53
Neutral
$75.50B39.9014.45%1.13%18.30%82.12%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATEYY
Advantest
207.44
138.84
202.39%
ASX
ASE Technology Holding Co
37.25
27.41
278.71%
MCHP
Microchip
74.36
9.89
15.34%
ON
ON Semiconductor
78.33
30.74
64.59%
STM
STMicroelectronics
53.28
28.67
116.51%
TER
Teradyne
384.89
278.70
262.46%
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.Date of analysis: Jul 31, 2026