Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥50.76B
• Dividend Yield: 1.98%
• Average Volume (3M): 93.21K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.88
• Revenue Growth: 3.60%
• EPS Growth: -17.45%
• Country: JP
• Employees: 1,042
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 96.92
• Shares Outstanding: 9,282,500
• 10 Day Avg. Volume: 113,350
• 30 Day Avg. Volume: 93,213
• PEG Ratio: -0.52
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 9.72
• 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): 291.3
• Revenue Forecast (FY): ¥40.52B

• Rating: 72 Outperform
• Price Target: ¥5,883.00 ▲(3.03% Upside)

Tera Probe, Inc. scores well due to its strong financial performance and reasonable valuation. The technical analysis suggests some short-term weakness, but the long-term outlook remains positive. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Tera Probe's consistent revenue growth indicates a strong market position and successful product adoption, supporting long-term stability.

Profitability

Strong profitability margins reflect efficient operations and a competitive advantage in cost management, enhancing long-term viability.

Balance Sheet Health

A healthy balance sheet with moderate leverage provides financial stability and flexibility for future investments and growth opportunities.

Negative Factors

High Debt Levels

High debt levels can constrain cash flow and limit the company's ability to invest in growth, posing a risk to long-term financial health.

Declining Free Cash Flow

A decline in free cash flow may limit the company's ability to reinvest in its business, affecting future growth and operational flexibility.

Earnings Decline

A decline in net income could signal potential challenges in maintaining profitability, impacting long-term earnings growth if not addressed.

Tera Probe, Inc. Business Overview & Revenue Model

Company Description

Tera Probe, Inc. (6627) is a technology company that specializes in the development and manufacturing of advanced semiconductor testing equipment. Operating primarily within the semiconductor and electronics sectors, Tera Probe focuses on delivering high-performance testing solutions that enhance the reliability and efficiency of semiconductor devices. Its core products include automated test equipment (ATE) and related software solutions designed to optimize the testing process and reduce costs for semiconductor manufacturers.

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

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	37.25B	37.11B	35.40B	33.21B	25.94B	18.34B
Gross Profit	9.48B	9.60B	9.68B	9.38B	6.17B	2.08B
EBITDA	19.92B	21.53B	21.18B	19.61B	14.59B	9.76B
Net Income	2.98B	3.51B	4.09B	3.13B	1.79B	238.65M
Balance Sheet
Total Assets	85.75B	75.36B	69.44B	72.26B	62.96B	54.74B
Cash, Cash Equivalents and Short-Term Investments	14.66B	11.69B	11.80B	15.69B	11.22B	11.11B
Total Debt	18.47B	13.77B	14.13B	20.99B	19.49B	19.36B
Total Liabilities	30.12B	21.43B	20.43B	30.06B	26.40B	23.70B
Stockholders Equity	38.33B	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: 5710.00
• 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 5710 is above the 20-day moving average (MA) of 5674.50, above the 50-day MA of 5441.60, and above the 200-day MA of 3744.94, indicating a neutral trend. The MACD of 51.64 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 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	¥49.01B	9.44	―	3.02%	10.24%	61.61%
6627	72 Outperform	¥50.76B	16.33	―	1.98%	3.60%	-17.45%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
6871	64 Neutral	¥346.47B	35.21	―	1.09%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	60 Neutral	¥38.56B	-217.53	―	4.29%	-44.89%	-97.21%