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

• Market Cap: ¥15.75B
• Dividend Yield: 1.66%
• Average Volume (3M): 113.04K
• Price to Earnings (P/E): 9.0
• 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: ¥2,168.00 ▲(72.47% 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 profitability and margins

Consistently high gross margins (~38–43%) and an improved net margin (15.8%) with ROE ~15.2% indicate durable operational economics. These margins provide scope to fund R&D, absorb cyclical weakness, and sustain profit generation across multiple quarters, underpinning long-term competitiveness.

Improving leverage profile

A move from D/E 1.34 to 0.93 reflects meaningful deleveraging, reducing interest burden and increasing financial flexibility. Lower leverage improves capacity for strategic investments, supports credit metrics over the medium term, and reduces balance-sheet vulnerability during semiconductor cycles.

Improved cash generation

A free cash flow to net income ratio near 0.92 and positive operating cash conversion show the company now converts earnings into cash effectively. Reliable cash generation supports maintenance capex, service contracts and R&D funding, enabling steadier execution of strategic initiatives over months.

Negative Factors

Recent revenue decline

Recent negative revenue growth signals demand or market-share headwinds. Persistent top-line weakness erodes scale benefits, pressures margins and limits internally generated funds for R&D or customer support, making sustained profitability and growth harder to maintain over the medium term.

Historical cash-flow volatility

Past variability and episodes of negative free cash flow create uncertainty in funding cadence for capex, dividends and debt service. Even with recent improvement, volatility complicates multi-quarter planning, increases reliance on external financing, and raises execution risk during downturns.

High absolute debt level remains

Although leverage ratios have improved, the company’s elevated absolute debt level still poses refinancing and interest-rate sensitivity risks. High total debt can constrain strategic optionality, increase fixed charges, and requires consistent cash generation to avoid balance-sheet stress across several quarters.

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: Neutral
• 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 Neutral. The current price of 1257 is below the 20-day moving average (MA) of 1920.19, below the 50-day MA of 1607.34, and below the 200-day MA of 1373.37, indicating a neutral trend. The MACD of 95.79 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 31.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥3.87B	5.27	―	2.20%	14.26%	280.42%
5819	75 Outperform	¥13.65B	11.51	―	3.02%	3.43%	3.75%
7711	72 Outperform	¥39.97B	47.49	―	0.67%	10.13%	24.53%
6668	70 Outperform	¥15.75B	9.04	―	1.66%	12.23%	65.42%
6748	70 Outperform	¥10.73B	8.58	―	2.23%	―	―
6882	65 Neutral	¥14.75B	162.69	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%