Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥27.12B
• Dividend Yield: 3.69%
• Average Volume (3M): 59.92K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.77
• Revenue Growth: 3.61%
• EPS Growth: -14.91%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 78.31
• Shares Outstanding: 9,282,500
• 10 Day Avg. Volume: 58,390
• 30 Day Avg. Volume: 59,916
• PEG Ratio: -1.01
• Price to Book (P/B): 0.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥3,253.00 ▲(9.12%Upside)

Tera Probe, Inc. scores highly due to its attractive valuation and strong financial performance. The stock's technical indicators support a positive short-term outlook, while competitive P/E and dividend yield ratios suggest it is undervalued. However, potential risks in cash flow and leverage must be monitored.

Tera Probe, Inc. Business Overview & Revenue Model

Company Description

Tera Probe, Inc. (6627) is a leading provider in the semiconductor industry, specializing in semiconductor testing services. The company offers a comprehensive suite of services including wafer probing and final testing, which are critical processes in the semiconductor manufacturing supply chain. Tera Probe serves a broad array of sectors including consumer electronics, automotive, telecommunications, and industrial applications, ensuring the functionality and reliability of semiconductor devices before they are integrated into end products.

How the Company Makes Money

Tera Probe, Inc. generates revenue primarily through its semiconductor testing services offered to semiconductor manufacturers and designers. The company's key revenue streams include wafer probing services, where it tests individual semiconductor wafers, and final testing services, which involve testing packaged semiconductor devices. Tera Probe's earnings are significantly influenced by its partnerships with major semiconductor companies and its strategic positioning in the semiconductor supply chain, allowing it to capitalize on the increasing demand for reliable and efficient semiconductor testing solutions. Additionally, the company's investment in advanced testing technologies and equipment contributes to its competitive edge and ability to secure long-term service contracts.

Tera Probe, Inc. Financial Statement Overview

Summary

Tera Probe, Inc. presents a solid financial profile with consistent revenue growth and strong profitability margins, characteristic of a well-positioned semiconductor company. 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. Overall, the company is on a positive trajectory but needs to maintain its momentum to address potential risks in cash flow and leverage.

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
	EBIT
6.95B	7.19B	6.84B	4.16B	429.02M
	EBITDA
21.53B	21.18B	19.61B	14.59B	9.76B
	Net Income Common Stockholders
3.51B	4.09B	6.02B	3.28B	597.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.69B	11.80B	15.69B	11.22B	11.11B
	Total Assets
75.36B	69.44B	72.26B	62.96B	54.74B
	Total Debt
13.77B	14.13B	20.99B	19.49B	19.36B
	Net Debt
2.08B	5.03B	5.30B	8.26B	8.25B
	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: 2981.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 2981 is above the 20-day moving average (MA) of 2809.25, above the 50-day MA of 2615.70, and below the 200-day MA of 3031.20, indicating a neutral trend. The MACD of 76.00 indicates Negative momentum. The RSI at 63.31 is Neutral, neither overbought nor oversold. The STOCH value of 80.41 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	¥40.50B	9.08		3.74%	7.88%	39.72%
6627	80 Outperform	¥27.12B	7.94		3.69%	3.61%	-14.91%
6855	74 Outperform	¥26.89B	7.53		1.88%	36.47%	454.91%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
6625	57 Neutral	¥34.40B	498.77		5.88%	-46.16%	-98.31%