Advantest (ATEYY) AI Stock Analysis

• Market Cap: $56.66B
• Dividend Yield: <0.01%
• Average Volume (3M): 145.76K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 1.85
• Revenue Growth: 52.66%
• EPS Growth: 147.90%
• Country: US
• Employees: 6,766
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 0.38
• Shares Outstanding: 766,141,240
• 10 Day Avg. Volume: 143,237
• 30 Day Avg. Volume: 145,758
• PEG Ratio: 2.85
• Price to Book (P/B): 16.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.46
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $83.00 ▲(10.52%Upside)

Advantest's strong financial performance, positive earnings call, and upward technical momentum contribute significantly to its overall stock score. However, the high valuation and potential overbought conditions temper the score. The outlook remains favorable, driven by growth in AI-related semiconductor demand.

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, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry. This segment offers test systems for SoC semiconductor devices; and test systems for memory semiconductors devices. The Mechatronics System segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured. This segment also engages in the operations related to nano-technology products. The Services, Support and Others segment provides customer solutions for the semiconductor and component test system and mechatronics system segments; and support services. This segment is also involved in the sale of consumables and used products; and equipment lease business and others. In addition, the company engages in the research and development activities measuring and testing technologies. Advantest Corporation serves fabless semiconductor companies, foundries, and test houses, as well as industrial, design, and manufacturing companies in Japan, rest of Asia, the United States, and Europe. Advantest Corporation has collaboration with STMicroelectronics on advanced automated test cell for IC Testing; and partnership with PDF Solutions Inc. for cloud-based software solutions. The company was founded in 1954 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Advantest makes money primarily by designing, manufacturing, and selling its semiconductor and component test systems. The company's revenue model is largely driven by the demand for its automatic test equipment, which is essential for semiconductor manufacturers to verify the quality and performance of their products before mass production. Key revenue streams include the sale of test systems and related services, such as maintenance, support, and software upgrades. Advantest also benefits from partnerships with leading semiconductor companies, which leverage its testing solutions to enhance their manufacturing processes. Additionally, the company invests in research and development to continuously innovate and expand its product offerings, thereby sustaining its competitive edge and profitability in a rapidly evolving market.

Advantest Financial Statement Overview

Summary

Advantest shows robust financial performance with strong revenue and profit growth, efficient cost management, and a solid financial foundation. The income statement, balance sheet, and cash flow statements all reflect a well-managed, growth-oriented company with a promising future outlook.

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.

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.

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	779.71B	486.51B	560.19B	416.90B	312.79B
Gross Profit	445.08B	246.03B	319.06B	235.91B	168.29B
EBITDA	257.13B	108.98B	189.08B	129.70B	83.25B
Net Income	161.18B	62.29B	130.40B	87.30B	69.79B
Balance Sheet
Total Assets	854.21B	671.23B	600.22B	494.70B	422.64B
Cash, Cash Equivalents and Short-Term Investments	262.54B	106.70B	85.54B	116.58B	149.16B
Total Debt	93.50B	94.44B	50.84B	113.81B	11.85B
Total Liabilities	347.67B	240.05B	231.53B	200.07B	142.27B
Stockholders Equity	506.54B	431.18B	368.69B	294.62B	280.37B
Cash Flow
Free Cash Flow	266.54B	12.13B	46.64B	60.67B	54.55B
Operating Cash Flow	285.97B	32.67B	70.22B	78.89B	67.83B
Investing Cash Flow	-42.19B	-27.94B	-26.71B	-46.91B	-16.83B
Financing Cash Flow	-82.82B	10.76B	-77.43B	-68.74B	-30.41B

Advantest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 75.1 is below the 20-day moving average (MA) of 76.04, above the 50-day MA of 64.39, and above the 200-day MA of 56.51, indicating a neutral trend. The MACD of 3.40 indicates Positive momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 56.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.

Advantest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	80 Outperform	$18.53B	13.28	11.65%	0.65%	2.22%	-22.39%
ATEYY	77 Outperform	$56.66B	53.37	34.01%	<0.01%	52.66%	147.90%
TER	77 Outperform	$14.65B	25.85	21.55%	0.53%	9.61%	28.34%
ASX	74 Outperform	$22.94B	21.58	11.47%	0.24%	1.32%	4.86%
ON	72 Outperform	$23.17B	39.48	7.85%	―	-18.28%	-70.98%
GFS	63 Neutral	$21.69B	28.15	-1.69%	―	-4.42%	-120.96%
Sector *	51 Neutral	AU$1.66B	2.26	-31.66%	3.53%	16.55%	-7.79%