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

• Market Cap: ¥16.34B
• Dividend Yield: 1.66%
• Average Volume (3M): 113.04K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.10
• 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: ¥2,094.00 ▲(66.59% 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

High profitability margins

Sustained gross margins near 38–43% and a net margin up to 15.8% indicate structurally profitable core plasma equipment operations. Durable margin levels support reinvestment, service expansion and buffer against cyclicality, underpinning long-term free cash flow generation.

Improving leverage and solid ROE

The decline in debt-to-equity from 1.34 to 0.93 and a 15.2% ROE reflect tighter capital structure and effective use of equity. Improved leverage reduces interest vulnerability and increases financial flexibility to invest in product development and support customers over multi‑year cycles.

Stronger free cash flow conversion

A free cash flow-to-net-income ratio near 0.92 shows the business is converting accounting profits into cash, supporting debt reduction, service investments and operational resilience. Reliable cash conversion is a durable strength for capital allocation and shareholder returns.

Negative Factors

High absolute debt level

Despite ratio improvement, management notes a high absolute total debt level remains. Elevated debt can constrain investment choices, raise refinancing and interest risks during downturns, and limit agility to fund R&D or buffer prolonged demand weakness.

Historical cash-flow volatility

Past swings and episodes of negative free cash flow undermine predictability for capex and dividends. Even with recent improvement, lumpy cash generation complicates long-range planning, increases reliance on liquidity buffers, and raises execution risk in capex cycles.

Recent revenue decline

A recent negative revenue growth trend threatens scale advantages that support current margins. Sustained top-line weakness would pressure utilization, reduce operating leverage and could force margin tradeoffs or higher marketing/discounting to defend share in key semiconductor equipment markets.

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

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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	4.73B	4.11B	5.04B	5.34B	3.11B
EBITDA	2.38B	2.01B	2.56B	3.01B	1.30B
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	14.03B	14.55B	16.38B	11.68B	6.07B
Stockholders Equity	13.18B	12.10B	10.87B	9.15B	6.83B
Cash Flow
Free Cash Flow	3.10B	2.10B	-3.38B	-3.26B	-329.87M
Operating Cash Flow	3.36B	3.03B	-1.50B	-1.58B	-185.49M
Investing Cash Flow	-259.00M	-937.00M	-1.94B	-1.93B	-226.14M
Financing Cash Flow	-1.10B	-1.67B	5.00B	4.43B	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 1924.75, below the 50-day MA of 1761.26, and below the 200-day MA of 1414.44, indicating a neutral trend. The MACD of 40.40 indicates Positive momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 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
6946	77 Outperform	¥118.66B	17.71	19.52%	0.13%	28.27%	27.15%
6516	75 Outperform	¥175.15B	16.57	―	1.53%	3.37%	21.35%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6668	70 Outperform	¥16.34B	26.18	―	1.66%	12.23%	65.42%
5310	70 Outperform	¥116.82B	18.50	5.82%	2.50%	-8.00%	-17.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%