Adtec Plasma Technology Co., Ltd. (6668) AI Stock Analysis

• Market Cap: ¥16.92B
• Dividend Yield: 1.66%
• Average Volume (3M): 113.04K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.12
• Revenue Growth: 12.23%
• EPS Growth: 65.42%
• Country: JP
• Employees: 506
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 12.00
• Shares Outstanding: 8,586,000
• 10 Day Avg. Volume: 119,330
• 30 Day Avg. Volume: 113,036
• PEG Ratio: 0.08
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 3.43
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,193.00 ▲(74.46% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is driven primarily by solid financial performance (strong margins, improving leverage, and better cash generation) and attractive valuation (low P/E). These positives are balanced by technical risk: the stock is in a strong uptrend but appears overextended (very high RSI/Stoch), and recent revenue decline plus historical cash-flow volatility add fundamental caution.

Positive Factors

Strong margins & ROE

Sustained gross margins near 38–43% and a 15.2% ROE indicate durable pricing power and operational efficiency in plasma equipment. These margins support reinvestment in product development and buffer cyclical semiconductor demand, underpinning long-term cash generation and profitability.

Improving leverage

A meaningful reduction in debt-to-equity improves financial flexibility and lowers interest burden, enhancing the firm’s ability to fund capex, service working capital, and pursue strategic initiatives. Stronger capital structure reduces refinancing risk across cycles in capital-intensive industries.

Partnerships & R&D-driven demand

Established partnerships with major semiconductor players and ongoing R&D create durable competitive advantages: they secure long-term contracts, recurring service and consumable revenues, and continuous product improvement that sustains share gains in specialized plasma equipment markets.

Negative Factors

Recent revenue decline

A recent negative revenue trend weakens top-line momentum and can limit economies of scale. If prolonged, it pressures margins as fixed costs in manufacturing and R&D remain, reduces free cash flow potential, and makes long-term planning for capacity and product investment harder.

Cash-flow volatility

Past swings and episodes of negative free cash flow complicate capital allocation and heighten liquidity risk. Volatile cash generation can force reliance on external funding in downturns, constrain steady investment in R&D or maintenance, and reduce predictability of shareholder returns.

Elevated total debt level

Despite improved leverage ratios, overall debt remains elevated and could increase interest expense or refinancing pressures if market rates rise. Higher absolute debt limits strategic flexibility for M&A or counter-cyclical investments and raises downside risk during semiconductor demand troughs.

Adtec Plasma Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Adtec Plasma Technology Co., Ltd. engages in the design, manufacture, sale, and technical support of RF plasma generators, matching units, and digital RF power tracers in Japan. The company offers radio frequency plasma generator, automatic impedance matching boxes, digital power tracer, DC power supply products, and microwaves. Its products are installed on tools for LCD panels and semiconductor processes. The company was formerly known as Adtec Co. and changed its name to Adtec Plasma Technology Co., Ltd. in December 2000. Adtec Plasma Technology Co., Ltd. was incorporated in 1985 and is headquartered in Fukuyama, Japan.

How the Company Makes Money

Adtec Plasma Technology generates revenue through the sale of its plasma equipment and systems, which are utilized in semiconductor fabrication and material processing industries. Key revenue streams include direct sales of plasma machines, maintenance services, and consumables associated with the operation of its equipment. The company also benefits from significant partnerships with major players in the semiconductor industry, which help to secure long-term contracts and enhance its market presence. Additionally, Adtec invests in research and development to innovate and improve its product offerings, ensuring consistent demand and competitiveness in the market.

Adtec Plasma Technology Co., Ltd. Financial Statement Overview

Summary

Strong profitability (gross margin ~38–43%, net margin up to 15.8%) and solid ROE (15.2%) support the score. Leverage has improved (debt-to-equity down to 0.93), but total debt remains a risk. Cash flow has improved (FCF to net income 0.92), yet historical cash-flow volatility and recent revenue decline temper the outlook.

Income Statement

Adtec Plasma Technology Co., Ltd. has demonstrated strong profitability with a consistent gross profit margin around 38% to 43% over the years. The net profit margin has improved to 15.8% in the latest year, indicating effective cost management. However, the revenue growth rate has been negative recently, which could be a concern for future expansion. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio has improved from 1.34 to 0.93, indicating a reduction in leverage and a stronger equity position. Return on equity remains solid at 15.2%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the high level of total debt remains a potential risk.

Cash Flow

Adtec Plasma Technology has shown improvement in free cash flow, with a positive free cash flow to net income ratio of 0.92. The operating cash flow to net income ratio is also positive, indicating good cash generation relative to profits. However, historical volatility in cash flows and previous negative free cash flow figures highlight potential liquidity risks.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	12.68B	11.30B	12.50B	12.34B	8.00B
Gross Profit	4.82B	4.20B	5.11B	5.40B	3.16B
EBITDA	2.33B	2.23B	2.69B	3.36B	1.41B
Net Income	2.01B	1.21B	1.68B	2.17B	875.22M
Balance Sheet
Total Assets	27.22B	26.65B	27.25B	20.83B	12.91B
Cash, Cash Equivalents and Short-Term Investments	8.28B	6.39B	5.93B	4.28B	2.91B
Total Debt	12.29B	13.22B	14.61B	9.40B	4.82B
Total Liabilities	14.04B	14.55B	16.38B	11.68B	6.07B
Stockholders Equity	13.18B	12.10B	10.87B	9.14B	6.83B
Cash Flow
Free Cash Flow	3.10B	2.10B	-3.43B	-3.28B	-382.03M
Operating Cash Flow	3.36B	3.03B	-1.50B	-1.58B	-185.49M
Investing Cash Flow	-259.00M	-937.00M	-1.94B	-1.71B	-226.14M
Financing Cash Flow	-1.10B	-1.67B	5.00B	4.21B	169.62M

Adtec Plasma Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1257.00
• 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:6668, the sentiment is Positive. The current price of 1257 is below the 20-day moving average (MA) of 1895.10, below the 50-day MA of 1580.43, and below the 200-day MA of 1366.65, indicating a bullish trend. The MACD of 119.46 indicates Positive momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 74.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6668.

Adtec Plasma Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6647	76 Outperform	¥3.78B	5.14	―	2.20%	14.26%	280.42%
5819	75 Outperform	¥14.17B	12.16	―	3.02%	3.43%	3.75%
7711	72 Outperform	¥41.80B	50.21	―	0.67%	10.13%	24.53%
6668	70 Outperform	¥16.92B	9.82	―	1.66%	12.23%	65.42%
6748	70 Outperform	¥10.83B	8.70	―	2.23%	―	―
6882	65 Neutral	¥15.24B	173.69	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%