Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥47.40B
• Dividend Yield: 2.14%
• Average Volume (3M): 108.64K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.93
• Revenue Growth: -0.46%
• EPS Growth: -25.32%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 63.71
• Shares Outstanding: 9,282,500
• 10 Day Avg. Volume: 73,870
• 30 Day Avg. Volume: 108,643
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,772.00
• Price Target Upside: 10.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥5,772.00 ▲(10.79% Upside)

Tera Probe, Inc. demonstrates strong financial performance with robust profitability and a stable balance sheet, contributing significantly to the overall score. Technical analysis indicates strong momentum, although caution is advised due to overbought signals. Valuation is fair, supporting the stock's attractiveness. The absence of earnings call and corporate events data does not impact the score.

Tera Probe, Inc. Business Overview & Revenue Model

Company Description

Tera Probe, Inc. engages in wafer testing, final testing, and test engineering business in Japan and internationally. The company provides testing and test related services for various semiconductor devices, including DRAM, SoC, CPU, image sensors, and analog devices; and test program cross-platform conversion services for debugging, as well as test patterns conversion services to work with testers. It also offers design and development support services, and mass production for various probe cards; and provides card evaluation and parallelism testing services. The company was founded in 2005 and is headquartered in Yokohama, Japan. Tera Probe, Inc. is a subsidiary of Powertech Technology Inc.

How the Company Makes Money

Tera Probe, Inc. generates revenue primarily through its comprehensive range of semiconductor testing services. The company charges semiconductor manufacturers for conducting wafer tests, package tests, and final functional tests on their semiconductor products. These services are critical for manufacturers to ensure the performance and quality of their semiconductors, thus making them a necessary step in the production process. Additionally, Tera Probe may form strategic partnerships with semiconductor manufacturers and other players in the semiconductor supply chain, enhancing its service offerings and creating additional revenue opportunities. The company's revenue is influenced by factors such as the demand for semiconductors, technological advancements, and the growth of industries relying on semiconductor components.

Tera Probe, Inc. Financial Statement Overview

Summary

Tera Probe, Inc. presents a solid financial profile with consistent revenue growth and strong profitability margins. The balance sheet is stable with manageable leverage levels, although the high debt level requires cautious management. Cash flow generation remains strong but shows signs of slowing, which could affect future investment and growth opportunities.

Income Statement

Tera Probe, Inc. demonstrates strong profitability with a stable gross profit margin of 25.9% and a solid net profit margin of 9.5% for 2024. The company has shown consistent revenue growth, with a growth rate of 4.8% from 2023 to 2024. Both EBIT and EBITDA margins are robust at 18.7% and 54.8% respectively, indicating efficient operations. However, there was a slight decline in net income from 2023, which could be an area of concern if continued.

Balance Sheet

The balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.37, suggesting moderate leverage. Return on equity improved to 9.4% in 2024, showcasing effective use of equity funds. The equity ratio stands at 49.6%, indicating a strong equity base. However, the total debt remains substantial, which could impact financial flexibility if not managed carefully.

Cash Flow

Cash flows are stable with an operating cash flow to net income ratio of 4.98, indicating strong cash generation relative to net income. Free cash flow has decreased by 36.5% from 2023 to 2024, which may limit reinvestment capabilities. The free cash flow to net income ratio is 0.77, suggesting that while cash flow covers net income, there is room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.41B	37.11B	35.40B	33.21B	25.94B	18.34B
Gross Profit	9.64B	9.60B	9.68B	9.38B	6.17B	2.08B
EBITDA	20.76B	21.53B	21.18B	19.61B	14.59B	9.76B
Net Income	3.30B	3.51B	4.09B	3.13B	1.79B	238.65M
Balance Sheet
Total Assets	71.54B	75.36B	69.44B	72.26B	62.96B	54.74B
Cash, Cash Equivalents and Short-Term Investments	9.62B	11.69B	11.80B	15.69B	11.22B	11.11B
Total Debt	13.45B	13.77B	14.13B	20.99B	19.49B	19.36B
Total Liabilities	19.50B	21.43B	20.43B	30.06B	26.40B	23.70B
Stockholders Equity	35.94B	37.40B	34.12B	29.58B	26.19B	23.25B
Cash Flow
Free Cash Flow	0.00	2.71B	4.26B	3.93B	1.56B	2.28B
Operating Cash Flow	0.00	17.47B	18.33B	17.03B	11.42B	9.70B
Investing Cash Flow	0.00	-14.61B	-14.66B	-12.19B	-9.65B	-5.36B
Financing Cash Flow	0.00	-3.56B	-9.62B	-382.90M	-2.01B	-2.98B

Tera Probe, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5210.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6627, the sentiment is Positive. The current price of 5210 is above the 20-day moving average (MA) of 4771.00, above the 50-day MA of 3965.10, and above the 200-day MA of 3181.01, indicating a bullish trend. The MACD of 334.66 indicates Negative momentum. The RSI at 76.36 is Negative, neither overbought nor oversold. The STOCH value of 70.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6627.

Tera Probe, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	81 Outperform	47.27B	9.61	13.29%	3.13%	7.19%	45.73%
6627	79 Outperform	¥47.40B	15.64		2.14%	-0.46%	-25.32%
6855	78 Outperform	44.21B	12.35	12.37%	1.86%	32.53%	182.70%
6625	58 Neutral	46.76B	-263.83	0.35%	4.33%	-61.35%	-104.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%