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Advantest Corp (ATEYY)
:ATEYY
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Advantest
(OTC:ATEYY)
Select Model
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Rating:75Outperform
Price Target:
$117.00
▲(0.64% Upside)
Advantest's strong financial performance and positive technical indicators are the primary drivers of its overall score. The robust revenue and profit growth, along with efficient operations and solid cash flow management, highlight the company's strength in the semiconductor industry. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$84.83B
Dividend Yield0.18%
Average Volume (3M)86.08K
Price to Earnings (P/E)55.0
Beta (1Y)1.96
Revenue Growth72.61%
EPS Growth198.85%
CountryUS
Employees6,766
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.83
Shares Outstanding766,141,240
10 Day Avg. Volume75,381
30 Day Avg. Volume86,079
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 Cap0.63
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit0.10
Enterprise Value/Ebitda0.15
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Advantest Business Overview & Revenue Model
Company DescriptionAdvantest Corporation is a leading global provider of automatic test equipment (ATE) for the semiconductor industry. Established in 1954, the company specializes in designing and manufacturing test systems used for the testing and verification of semiconductors, electronic devices, and high-performance computing applications. Advantest's core product offerings include semiconductor test systems, memory test systems, system-on-chip (SoC) test solutions, and various software tools for testing and data analysis, catering to sectors such as telecommunications, automotive, consumer electronics, and industrial applications.
How the Company Makes MoneyAdvantest generates revenue primarily through the sale of its semiconductor test systems, which are critical for manufacturers to ensure the performance and reliability of their electronic components. The company earns money through direct sales of test equipment, as well as through ongoing maintenance and support services for these systems. Additionally, Advantest has a significant revenue stream from software solutions that enhance the testing process. The company also benefits from partnerships with major semiconductor manufacturers and technology firms, which can lead to long-term contracts and increased sales volume. Overall, Advantest's revenue model is supported by its innovation in test technology and its ability to adapt to the evolving needs of the semiconductor industry.
Advantest Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
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.Q4-2024 Updates
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.
Exceeded Sales Guidance
FY 2024 sales exceeded initial guidance by approximately JPY40 billion, primarily due to greater-than-expected deliveries, particularly in SoC testers.
Strong Market Position and Product Launches
Advantest maintained a majority share in the semiconductor tester market and launched several new test solutions, including a new power supply for HPC applications and memory test systems.
Positive Outlook for FY 2025
The company expects continued high demand for AI-related SoC semiconductors, with sales and profits projected to grow slightly year-over-year on a constant currency basis.
Shareholder Returns and Strategic Initiatives
Announced a share repurchase program of up to JPY70 billion as part of a strategy to enhance shareholder returns and capital efficiency.
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%.
Limited Visibility in Second Half of FY 2025
Advantest expressed uncertainty about the second half of FY 2025, citing potential macroeconomic and geopolitical risks that could affect demand.
Slight Decline in SoC Market Share
Estimated market share in the SoC tester market decreased by about 3 percentage points due to increased competition from local suppliers in China.
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
Advantest demonstrates a strong financial standing across all key areas. Exceptional revenue and profit growth, coupled with efficient cost management, drive its high income statement performance. The balance sheet is well-capitalized with prudent leverage, while the cash flow statement highlights the company's capacity to generate and manage cash effectively. Advantest's financials reflect a well-managed, growth-oriented company with a solid foundation and promising future outlook, ideal for navigating competitive industry landscapes.Income Statement
Advantest shows robust financial performance with a consistent upward trajectory in revenue and net income. The Gross Profit Margin stands strong, indicating efficient cost management. The company has exhibited remarkable revenue growth, particularly evident from the most recent year, showcasing its market strength. High EBIT and EBITDA margins further underline operational efficiency and profitability. Overall, the income statement reflects a highly stable and profitable business model with excellent growth prospects.92
Very Positive
Balance Sheet
The balance sheet is solid, characterized by a strong equity position, with an Equity Ratio indicating a healthy capital structure. The company maintains a low Debt-to-Equity Ratio, suggesting prudent leverage practices. Return on Equity is impressive, highlighting effective utilization of shareholder funds to generate profits. These factors contribute to a stable financial foundation, though there remains a need for vigilance in managing liabilities as the business scales.85
Very Positive
Cash Flow
Advantest's cash flow statement is very positive, with significant Free Cash Flow generation indicating strong cash profitability. The Operating Cash Flow to Net Income Ratio suggests effective conversion of net income into cash flow. Free Cash Flow has witnessed substantial growth, underscoring the company's ability to fund operations and growth initiatives without relying heavily on external financing. This robust cash position enhances financial flexibility and operational resilience.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 904.76B | 779.71B | 486.51B | 560.19B | 416.90B | 312.79B |
| Gross Profit | 539.83B | 445.08B | 246.03B | 319.06B | 235.91B | 168.29B |
| EBITDA | 347.44B | 257.13B | 108.98B | 189.08B | 129.70B | 83.25B |
| Net Income | 227.55B | 161.18B | 62.29B | 130.40B | 87.30B | 69.79B |
Balance Sheet | ||||||
| Total Assets | 889.87B | 854.21B | 671.23B | 600.22B | 494.70B | 422.64B |
| Cash, Cash Equivalents and Short-Term Investments | 273.41B | 262.54B | 106.70B | 85.54B | 116.58B | 149.16B |
| Total Debt | 91.78B | 93.50B | 94.44B | 50.84B | 43.46B | 11.85B |
| Total Liabilities | 315.65B | 347.67B | 240.05B | 231.53B | 200.07B | 142.27B |
| Stockholders Equity | 574.22B | 506.54B | 431.18B | 368.69B | 294.62B | 280.37B |
Cash Flow | ||||||
| Free Cash Flow | 285.86B | 266.54B | 12.13B | 46.64B | 60.67B | 54.55B |
| Operating Cash Flow | 305.14B | 285.97B | 32.67B | 70.22B | 78.89B | 67.83B |
| Investing Cash Flow | -37.28B | -42.19B | -27.94B | -26.71B | -46.91B | -16.83B |
| Financing Cash Flow | -99.19B | -82.82B | 10.76B | -77.43B | -68.74B | -30.41B |
Advantest Technical Analysis
Positive
116.26
Price Trends
94.37
Positive
81.49
Positive
66.51
Positive
Market Momentum
6.26
Positive
59.08
Neutral
63.23
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 116.26 is above the 20-day moving average (MA) of 110.31, above the 50-day MA of 94.37, and above the 200-day MA of 66.51, indicating a bullish trend. The MACD of 6.26 indicates Positive momentum. The RSI at 59.08 is Neutral, neither overbought nor oversold. The STOCH value of 63.23 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $22.14B | 47.92 | 16.85% | 0.33% | 4.83% | -9.47% | |
75 Outperform | $84.83B | 54.99 | 44.94% | 0.18% | 72.61% | 198.85% | |
75 Outperform | $22.45B | 51.39 | 5.72% | ― | -17.93% | -75.83% | |
73 Outperform | $28.42B | 25.92 | 10.97% | 2.81% | 4.86% | 6.44% | |
72 Outperform | $26.98B | 42.64 | 3.72% | 1.13% | -22.97% | -78.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $36.20B | ― | -2.24% | 2.70% | -35.70% | -113.08% |
* Technology Sector Average
ATEYY
Advantest
114.85
64.06
126.13%
ASX
ASE Technology Holding Co
12.68
2.80
28.34%
MCHP
Microchip
64.50
-8.62
-11.79%
ON
ON Semiconductor
55.08
-12.89
-18.96%
STM
STMicroelectronics
30.54
2.96
10.73%
TER
Teradyne
138.84
14.99
12.10%
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.