Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥30.75B
• Dividend Yield: 3.25%
• Average Volume (3M): 55.57K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.81
• Revenue Growth: 3.61%
• EPS Growth: -14.91%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 78.31
• Shares Outstanding: 9,282,500
• 10 Day Avg. Volume: 41,510
• 30 Day Avg. Volume: 55,566
• PEG Ratio: -1.51
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,253.00
• Price Target Upside: 1.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥3,639.00 ▲(13.01%Upside)

Tera Probe, Inc. presents a solid financial position with strong profitability and revenue growth. The technical analysis suggests a bullish trend, but caution is needed due to overbought signals. The stock's valuation is attractive, supported by a low P/E ratio and a healthy dividend yield. Overall, the company is well-positioned but needs to manage its debt and cash flow proactively.

Tera Probe, Inc. Business Overview & Revenue Model

Company Description

Tera Probe, Inc. (6627) is a Japan-based company that operates in the semiconductor industry, specializing in semiconductor testing services. The company's core services include wafer testing, final testing, and package testing, primarily catering to semiconductor manufacturers. Tera Probe utilizes advanced testing technologies and methodologies to ensure the quality and reliability of semiconductor products before they reach the market.

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. demonstrates strong profitability with consistent revenue growth and robust margins. The balance sheet is stable with manageable leverage, but high debt requires cautious management. Cash flow generation is strong but shows signs of slowing, which could affect future 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.11B	35.40B	33.21B	25.94B	18.34B
Gross Profit	9.60B	9.68B	9.38B	6.17B	2.08B
EBITDA	21.53B	21.18B	19.61B	14.59B	9.76B
Net Income	3.51B	4.09B	6.02B	3.28B	597.75M
Balance Sheet
Total Assets	75.36B	69.44B	72.26B	62.96B	54.74B
Cash, Cash Equivalents and Short-Term Investments	11.69B	11.80B	15.69B	11.22B	11.11B
Total Debt	13.77B	14.13B	20.99B	19.49B	19.36B
Total Liabilities	21.43B	20.43B	30.06B	26.40B	23.70B
Stockholders Equity	37.40B	34.12B	29.58B	26.19B	23.25B
Cash Flow
Free Cash Flow	2.71B	4.26B	3.93B	1.56B	2.28B
Operating Cash Flow	17.47B	18.33B	17.03B	11.42B	9.70B
Investing Cash Flow	-14.61B	-14.66B	-12.19B	-9.65B	-5.36B
Financing Cash Flow	-3.56B	-9.62B	-382.90M	-2.01B	-2.98B

Tera Probe, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 3220 is below the 20-day moving average (MA) of 3235.50, above the 50-day MA of 3025.10, and above the 200-day MA of 2949.91, indicating a bullish trend. The MACD of 72.07 indicates Positive momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.92 is Negative, 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	¥39.66B	8.89		3.73%	7.88%	39.72%
6855	77 Outperform	¥30.10B	8.71		2.10%	36.47%	454.90%
6627	75 Outperform	¥30.75B	9.32		3.25%	3.61%	-14.91%
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
6625	57 Neutral	¥36.08B	524.94		5.61%	-46.16%	-98.25%