Tera Probe, Inc. (6627) AI Stock Analysis

• Market Cap: ¥79.78B
• Dividend Yield: 1.85%
• Average Volume (3M): 93.21K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.94
• 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: 65 Neutral
• Price Target: ¥8,858.00 ▲(40.60% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily driven by solid profitability and improved 2025 revenue growth, tempered by higher leverage and a shift to negative free cash flow. Technical indicators are mixed (not strongly bullish), and valuation appears reasonable but not compelling given the modest dividend yield.

Positive Factors

Profitability

Sustained healthy operating and net margins indicate the core business converts revenue into profit efficiently. Over a multi-quarter horizon this supports reinvestment in R&D and capacity, provides a buffer in cyclical semiconductor demand, and underpins long-term cash earnings resilience.

Revenue Growth

A material rebound to ~12% organic revenue growth signals improving market penetration or recovery in end markets. Durable top-line momentum enhances scale economics, supports margin maintenance, and gives management scope to invest in product development and competitive positioning over months.

Operating Cash Generation

Consistent positive operating cash flow shows the business generates liquidity from core activities, enabling funding of working capital and targeted capex without immediate reliance on external funding. This underpins operational stability and supports medium-term strategic initiatives.

Negative Factors

Rising Leverage

A marked increase in debt-to-equity reduces financial flexibility and raises interest and refinancing risk. In a cyclical industry like semiconductors higher leverage amplifies downside in weaker demand periods and constrains management's ability to pursue opportunistic investments or weather prolonged downturns.

Negative Free Cash Flow

Transition to negative free cash flow indicates heavier capex or working-capital strain relative to cash earnings. Persisting negative FCF can force external financing, dilute returns, or delay strategic projects; it increases execution risk and makes the business more sensitive to funding cost changes.

Margin Erosion / Profitability Pressure

A downtrend in net margin and a slip in net income despite higher revenue point to cost, pricing, or product-mix pressures. If structural, this can compress long-term profitability, limit free cash flow recovery, and require operational fixes or pricing power improvements to restore sustained margin levels.

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. Financial Statement Overview

Summary

Profitability remains healthy and revenue growth improved materially in 2025, but risk increased as debt-to-equity rose sharply and free cash flow turned negative 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 9197.50, below the 50-day MA of 8001.80, and above the 200-day MA of 5378.46, indicating a neutral trend. The MACD of 259.15 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.68 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
6857	77 Outperform	$16.50T	45.29	47.37%	0.25%	63.36%	149.43%
7729	77 Outperform	¥591.77B	24.84	12.66%	2.28%	9.53%	-11.17%
6315	71 Outperform	¥193.50B	51.88	10.10%	1.00%	-12.50%	-26.08%
6871	71 Outperform	¥413.68B	13.71	―	1.02%	29.60%	24.39%
6627	65 Neutral	¥79.78B	17.02	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6966	50 Neutral	¥117.14B	43.14	―	2.45%	4.60%	-21.64%