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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:
$143.00
▲(12.07% Upside)
Advantest's strong financial performance is the most significant factor, showcasing robust revenue growth and efficient operations. Technical analysis supports a positive outlook with short-term bullish momentum. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.
Positive Factors
Revenue Growth
Advantest's robust revenue growth reflects its strong market position and ability to meet increasing demand in the semiconductor industry, supporting long-term expansion.
Cash Flow Management
Efficient cash flow management ensures liquidity and financial flexibility, enabling Advantest to invest in growth opportunities and withstand market fluctuations.
Balance Sheet Health
A strong balance sheet with low leverage risk enhances Advantest's financial stability, allowing it to sustain operations and invest in innovation without excessive debt burden.
Negative Factors
High P/E Ratio
A high P/E ratio suggests potential overvaluation, which could limit future stock price appreciation and make the stock less attractive to value-focused investors.
Low Dividend Yield
A low dividend yield may not appeal to income-focused investors, potentially reducing the stock's attractiveness compared to peers offering higher returns.
Absence of Earnings Call Data
The lack of recent earnings call data limits transparency and investor insight into management's strategic direction and future performance expectations.
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.58B
Dividend Yield0.18%
Average Volume (3M)86.51K
Price to Earnings (P/E)54.0
Beta (1Y)2.12
Revenue Growth64.87%
EPS Growth153.13%
CountryUS
Employees6,766
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.72
Shares Outstanding766,141,240
10 Day Avg. Volume63,302
30 Day Avg. Volume86,508
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 Cap0.76
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.13
Enterprise Value/Ebitda0.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.49
Revenue Forecast (FY)$6.18B
Advantest Business Overview & Revenue Model
Company DescriptionAdvantest Corporation (ATEYY) is a leading provider of automatic test equipment (ATE) used in the semiconductor industry. Founded in 1954 and headquartered in Tokyo, Japan, Advantest specializes in high-performance testing solutions for integrated circuits (ICs), system-on-chips (SoCs), and other electronic components. The company operates primarily in the semiconductor test sector, offering a diverse portfolio of products including test systems, software, and related services designed to ensure the reliability and performance of electronic devices across various applications such as mobile communications, automotive, and consumer electronics.
How the Company Makes MoneyAdvantest generates revenue primarily through the sale of its semiconductor test equipment, systems, and software solutions. The company has a diversified revenue model that includes direct sales to semiconductor manufacturers, as well as ongoing support and maintenance services for its equipment. Key revenue streams include the sale of new test systems, upgrades and retrofits to existing systems, and software licensing. Advantest also benefits from strategic partnerships with major semiconductor companies, which can lead to long-term contracts and stable revenue flows. Additionally, the company's focus on innovation and development of cutting-edge testing technologies positions it to capture market share in emerging sectors, contributing to its overall earnings growth.
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 04, 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.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's financial performance is robust with strong revenue and profit growth, efficient operations, and a solid balance sheet. The company exhibits excellent cash flow management, ensuring liquidity and financial flexibility. These strengths position Advantest well for continued growth and resilience in the competitive semiconductor industry.Income Statement
Advantest demonstrates strong revenue growth with a 16.04% increase in TTM, supported by robust gross and net profit margins of 59.67% and 25.15%, respectively. The EBIT and EBITDA margins are also impressive at 35.69% and 38.58%, indicating efficient operations and profitability. The consistent upward trajectory in revenue and profitability metrics highlights the company's strong market position and operational efficiency.92
Very Positive
Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.16, reflecting prudent financial management and low leverage risk. The return on equity is notably high at 44.32%, indicating effective use of equity to generate profits. The equity ratio of 64.54% suggests a strong capital structure with significant equity financing, enhancing financial stability.85
Very Positive
Cash Flow
Cash flow metrics are strong, with a 6.44% growth in free cash flow and a high operating cash flow to net income ratio of 1.10, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio of 0.94 further underscores the company's ability to convert earnings into cash, supporting future growth and investment opportunities.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
127.60
Price Trends
123.86
Positive
102.51
Positive
78.32
Positive
Market Momentum
1.94
Positive
53.87
Neutral
69.83
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 127.6 is above the 20-day moving average (MA) of 127.49, above the 50-day MA of 123.86, and above the 200-day MA of 78.32, indicating a bullish trend. The MACD of 1.94 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 69.83 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $94.58B | 54.02 | 47.37% | 0.18% | 64.87% | 153.13% | |
73 Outperform | $22.69B | 72.07 | 3.87% | ― | -16.13% | -81.06% | |
71 Outperform | $31.79B | 73.88 | 15.77% | 0.24% | 4.56% | -15.44% | |
69 Neutral | $33.61B | 30.74 | 11.17% | 2.17% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $23.06B | 45.50 | 3.00% | 1.27% | -17.33% | -76.71% | |
54 Neutral | $36.40B | ― | -2.85% | 2.68% | -23.36% | -131.15% |
* Technology Sector Average
ATEYY
Advantest
131.60
75.01
132.55%
ASX
ASE Technology Holding Co
16.43
6.68
68.51%
MCHP
Microchip
67.90
8.26
13.85%
ON
ON Semiconductor
55.10
-12.87
-18.93%
STM
STMicroelectronics
26.32
0.36
1.39%
TER
Teradyne
204.01
84.33
70.46%
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.