Advantest (ATEYY) AI Stock Analysis

• Market Cap: $42.53B
• Dividend Yield: 0.35%
• Average Volume (3M): 128.23K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.89
• Revenue Growth: 52.66%
• EPS Growth: 147.90%
• Country: US
• Employees: 6,766
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 0.38
• Shares Outstanding: 766,141,240
• 10 Day Avg. Volume: 135,814
• 30 Day Avg. Volume: 128,232
• PEG Ratio: 0.32
• Price to Book (P/B): 6.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.30
• 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: 81 Outperform
• Price Target: ―

Advantest is in a strong financial position with impressive revenue growth and profitability, bolstered by a positive earnings outlook. While technical indicators suggest caution, the company's strategic initiatives and shareholder returns enhance its overall appeal. The elevated P/E ratio is a consideration, but the robust fundamentals and positive earnings outlook support a favorable view.

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 by selling its advanced semiconductor testing equipment and related services to semiconductor manufacturers worldwide. The company generates revenue through the sale of its test systems, which are crucial for ensuring the quality and performance of semiconductors before they are integrated into electronic devices. Key revenue streams include sales of new testing systems, upgrades, and maintenance services. Additionally, Advantest benefits from long-term partnerships with major semiconductor companies, which provide ongoing business opportunities and stable revenue. The company's earnings are also influenced by the global demand for semiconductors, technological advancements in the industry, and the constant need for more sophisticated testing solutions to match the evolving complexity of semiconductor devices.

Advantest Financial Statement Overview

Summary

Advantest demonstrates a strong financial position with impressive revenue growth, high profitability, and robust cash flow generation. The company's solid balance sheet metrics further support its ability to invest and withstand economic fluctuations.

Income Statement

Advantest demonstrates strong financial performance with a consistent upward trajectory in revenue, highlighted by a significant 40.4% TTM revenue growth rate. The company maintains robust profitability metrics with a TTM gross profit margin of 54.9% and a net profit margin of 20.0%. Additionally, the EBIT and EBITDA margins are impressive at 28.2% and 32.7%, respectively, indicating excellent operational efficiency. Overall, the income statement reflects a high level of stability and growth potential.

Balance Sheet

The balance sheet of Advantest is solid, with a favorable equity ratio of 62.6%, suggesting a strong reliance on equity financing. The debt-to-equity ratio is low at 0.19, indicating prudent financial leverage. The return on equity (ROE) is commendable at 27.4%, showcasing effective utilization of shareholders' equity to generate profits. The company's balance sheet is well-positioned to support continued growth and withstand economic fluctuations.

Cash Flow

Advantest's cash flow statement highlights robust cash generation, with a substantial TTM free cash flow growth rate of 1,449.7%. The operating cash flow to net income ratio is 1.51, reflecting strong cash conversion efficiency. The free cash flow to net income ratio stands at 1.38, indicating healthy free cash flow generation relative to net income. The company exhibits excellent cash flow management, providing a solid foundation for future investments and shareholder returns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
683.17B	486.51B	560.19B	416.90B	312.79B	275.89B
	Gross Profit
375.53B	246.03B	319.06B	235.91B	168.29B	156.50B
	EBIT
192.50B	81.63B	167.69B	114.73B	70.73B	58.71B
	EBITDA
223.69B	108.98B	189.08B	129.70B	83.25B	70.64B
	Net Income Common Stockholders
136.39B	62.29B	130.40B	87.30B	69.79B	53.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
196.04B	106.70B	85.54B	116.58B	149.16B	127.70B
	Total Assets
793.85B	671.23B	600.22B	494.70B	422.64B	355.78B
	Total Debt
92.95B	94.44B	50.84B	113.81B	11.85B	11.29B
	Net Debt
-103.09B	-12.26B	-34.69B	-2.77B	-137.31B	-116.42B
	Total Liabilities
296.90B	240.05B	231.53B	200.07B	142.27B	124.33B
	Stockholders Equity
496.95B	431.18B	368.69B	294.62B	280.37B	231.45B
Cash Flow		Free Cash Flow
187.93B	12.13B	46.64B	60.67B	54.55B	57.59B
	Operating Cash Flow
205.82B	32.67B	70.22B	78.89B	67.83B	66.47B
	Investing Cash Flow
-22.45B	-27.94B	-26.71B	-46.91B	-16.83B	-38.82B
	Financing Cash Flow
-66.92B	10.76B	-77.43B	-68.74B	-30.41B	-17.92B

Advantest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 58.91 is above the 20-day moving average (MA) of 52.54, above the 50-day MA of 46.41, and above the 200-day MA of 52.49, indicating a bullish trend. The MACD of 3.07 indicates Negative momentum. The RSI at 73.68 is Negative, neither overbought nor oversold. The STOCH value of 91.81 is Negative, 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
ATEYY	81 Outperform	$42.53B	41.07	34.01%	0.35%	52.66%	147.90%
UMC	78 Outperform	$20.12B	14.73	11.65%	5.71%	2.22%	-22.39%
TER	75 Outperform	$13.78B	23.52	21.55%	0.56%	9.61%	28.34%
ASX	70 Outperform	$21.35B	20.52	11.47%	0.10%	1.32%	4.86%
ON	65 Neutral	$21.64B	36.75	7.85%	―	-18.28%	-70.98%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
GFS	60 Neutral	$20.96B	28.15	-1.69%	―	-4.42%	-120.96%