Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥81.97B
• Dividend Yield: 1.85%
• Average Volume (3M): 93.21K
• Price to Earnings (P/E): 24.3
• 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

Renewed Revenue Growth

A sustained ~12% revenue increase in 2025 after near-flat growth implies recovering end-market demand and better product traction. Durable top-line momentum supports scale economics, funds investment in R&D and capacity, and reduces reliance on one-off measures to drive earnings over the next several quarters.

Strong Profitability

Consistently healthy operating and net margins indicate the business earns attractive returns on sales, reflecting pricing power or cost efficiency. That margin base gives management flexibility to invest, withstand cyclical downturns, and maintain earnings quality over a multi-quarter horizon.

Solid Equity Base and Asset Growth

A growing asset base and solid equity provide a durable capital buffer to absorb semiconductor-cycle volatility and fund capex or expansion without immediate dilution. This structural balance-sheet strength supports long-term operations and supply-chain commitments.

Negative Factors

Rising Leverage

A sharp rise in debt-to-equity increases financial fragility: higher interest and principal obligations reduce flexibility to invest or weather industry downturns. Elevated leverage raises refinancing and covenant risk and makes returns more sensitive to cyclical swings in semiconductor demand.

Negative Free Cash Flow in 2025

Negative free cash flow despite positive operating cash flow suggests heavier capex or working-capital strain. That reduces internal funding for debt reduction, dividends, or strategic investment and raises the likelihood of external financing, increasing long-term execution and liquidity risk.

Margin and Earnings Pressure

A multi-year decline in net margin and a slip in net income despite higher sales point to structural cost, mix, or pricing pressures. Weakening earnings quality undermines the company's ability to convert revenue into sustainable profits and constrains cash available for growth or deleveraging.

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: Positive
• 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 8921.00, below the 50-day MA of 7628.04, and above the 200-day MA of 5161.99, indicating a bullish trend. The MACD of 597.52 indicates Positive momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 58.08 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	¥61.33B	12.45	―	2.87%	10.24%	61.61%
6855	71 Outperform	¥96.65B	19.83	―	1.72%	36.31%	101.77%
6871	71 Outperform	¥441.72B	36.92	―	1.02%	29.60%	24.39%
6627	66 Neutral	¥81.97B	24.34	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	60 Neutral	¥45.08B	287.00	―	4.32%	-44.89%	-97.21%