Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥90.88B
• Dividend Yield: 1.85%
• Average Volume (3M): 93.21K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 2.03
• Revenue Growth: 3.60%
• EPS Growth: -17.45%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 131.29
• Shares Outstanding: 9,282,500
• 10 Day Avg. Volume: 113,350
• 30 Day Avg. Volume: 93,213
• PEG Ratio: -4.23
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.37
• P/FCF Ratio: -5.94
• 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
• EPS Forecast (FY): 351.8
• Revenue Forecast (FY): ¥47.00B

• Rating: 66 Neutral
• Price Target: ¥10,908.00 ▲(73.14% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily driven by solid operating performance and renewed revenue growth, but it is held back by increased financial risk from higher leverage and negative free cash flow. Technical momentum is strong but appears stretched, and valuation is on the expensive side with only a modest dividend yield.

Positive Factors

Revenue Growth

A ~12% revenue rebound in 2025 after near-flat 2024 indicates durable demand recovery and successful commercial execution. Sustained top-line expansion supports operating leverage, capacity utilization, and strategic reinvestment over the next several quarters.

Profitability

Maintained healthy operating and net margins imply the business retains pricing power and cost control even as it scales. Strong margins underpin cash generation potential and provide buffer to fund R&D and capex without immediately eroding core profitability.

Operating Cash Generation

Consistent positive operating cash flow shows the core semiconductor probe business converts sales into cash, supporting working capital and capital expenditure funding. This reduces reliance on external financing for ongoing operations over a multi-quarter horizon.

Negative Factors

Rising Leverage

A sharp rise in debt-to-equity weakens financial flexibility and increases interest and refinancing risk. Higher leverage amplifies earnings volatility in a cyclic sector and reduces ability to fund opportunistic investments or weather downturns without costly external financing.

Negative Free Cash Flow

Negative FCF despite positive operating cash flow signals elevated capex or working-capital strain, increasing funding needs. Persistent or recurring FCF deficits would force additional borrowing or equity raises, diluting returns and pressuring long-term capital allocation.

Margin Trend & Mix Pressure

A declining net margin and slight income slip despite revenue growth point to cost or product-mix pressures that can erode long-term profitability. If structural, these trends reduce cash available for reinvestment and weaken competitive resilience over multiple quarters.

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 through the sale of its semiconductor testing equipment and related software services. The company primarily makes money by providing automated test equipment to semiconductor manufacturers, which includes not only the initial sale of the hardware but also ongoing revenue from maintenance contracts, software updates, and technical support services. Key revenue streams include direct sales to major semiconductor firms, partnerships with electronics manufacturers for tailored testing solutions, and the licensing of its proprietary testing technology. Additionally, Tera Probe benefits from long-term contracts with established clients, which provide a steady flow of income and contribute to its overall financial stability.

Tera Probe, Inc. Financial Statement Overview

Summary

Profitability remains strong and revenue growth improved in 2025, but risk increased due to a sharp rise in leverage (higher debt-to-equity) and a swing to negative free cash flow despite positive operating cash flow.

Income Statement

Revenue growth improved materially in 2025 (annual revenue up ~12% vs. near-flat growth in 2024), and profitability remains strong with healthy operating and net margins. However, net margin has trended down from 2023 to 2025, and net income slipped slightly in 2025 despite higher revenue—suggesting some cost or mix pressure even as the business scales.

Balance Sheet

The balance sheet shows solid equity support and growing asset base, but leverage moved in the wrong direction in 2025, with debt-to-equity rising sharply versus 2024. This reduces financial flexibility and increases sensitivity to any downturn, partially offsetting the otherwise stable capital position seen in prior years.

Cash Flow

Cash generation from core operations is strong, but the quality of cash conversion weakened in 2025: free cash flow turned negative despite positive operating cash flow, indicating heavier investment or working-capital pressure. In contrast, 2022–2024 delivered positive free cash flow, so the latest year introduces greater volatility and execution risk around cash needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.25B	41.75B	37.11B	35.40B	33.21B	25.94B
Gross Profit	9.48B	11.51B	9.60B	9.68B	9.38B	6.17B
EBITDA	19.92B	22.46B	21.53B	21.18B	19.61B	14.59B
Net Income	2.98B	3.37B	3.51B	4.09B	3.13B	1.79B
Balance Sheet
Total Assets	85.75B	100.57B	75.36B	69.44B	72.26B	62.96B
Cash, Cash Equivalents and Short-Term Investments	14.66B	14.37B	11.69B	11.80B	15.69B	11.22B
Total Debt	18.47B	29.05B	13.77B	14.13B	20.99B	19.49B
Total Liabilities	30.12B	40.64B	21.43B	20.43B	30.06B	26.40B
Stockholders Equity	38.33B	40.48B	37.40B	34.12B	29.58B	26.19B
Cash Flow
Free Cash Flow	0.00	-9.64B	2.71B	4.26B	3.93B	1.56B
Operating Cash Flow	0.00	20.14B	17.47B	18.33B	17.03B	11.42B
Investing Cash Flow	0.00	-28.68B	-14.61B	-14.66B	-12.19B	-9.65B
Financing Cash Flow	0.00	11.84B	-3.56B	-9.62B	-382.90M	-2.01B

Tera Probe, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 6300 is below the 20-day moving average (MA) of 8685.50, below the 50-day MA of 7482.59, and above the 200-day MA of 5095.21, indicating a bullish trend. The MACD of 662.30 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 66.95 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	80 Outperform	¥63.60B	12.98	―	2.87%	10.24%	61.61%
6855	71 Outperform	¥100.07B	20.87	―	1.72%	36.31%	101.77%
6871	71 Outperform	¥478.98B	39.16	―	1.02%	29.60%	24.39%
6627	66 Neutral	¥90.88B	26.44	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	60 Neutral	¥46.88B	305.61	―	4.32%	-44.89%	-97.21%