Wintest Corp. (6721) AI Stock Analysis

• Market Cap: ¥5.85B
• Dividend Yield: N/A
• Average Volume (3M): 319.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -35.81%
• EPS Growth: -99.72%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -4.41
• Shares Outstanding: 53,641,000
• 10 Day Avg. Volume: 265,900
• 30 Day Avg. Volume: 319,653
• PEG Ratio: -0.05
• Price to Book (P/B): 6.88
• Price to Sales (P/S): 11.54
• P/FCF Ratio: -7.25
• 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: 47 Neutral
• Price Target: ¥107.00 ▲(0.94% Upside)

The score is held down primarily by weak financial performance (ongoing losses and negative cash flow). Technicals provide a partial offset with improving near-term momentum, but valuation remains unattractive/unclear due to a negative P/E and no stated dividend yield.

Positive Factors

Recurring Revenue Model

The subscription-based model for software solutions ensures a steady stream of recurring revenue, enhancing financial stability and predictability.

Strategic Partnerships

Collaborative projects and joint ventures with industry leaders strengthen market position and drive steady earnings growth.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates inefficiencies in operations and challenges in sustaining business activities without external funding.

Declining Profitability

Ongoing losses and declining margins highlight operational inefficiencies, threatening long-term viability and investor confidence.

Revenue Decline

Significant revenue decline undermines growth prospects and may impact the company's ability to invest in future innovations or expansions.

Wintest Corp. Business Overview & Revenue Model

Company Description

Wintest Corp. designs, develops, and sells automatic test equipment for semiconductor integrated circuits and flat panel displays for image sensor tester, LCD driver tester, and logic tester markets primarily in Japan. It offers LCD/OLED high speed driver test equipment, LCD/PDP/OLED driver IC test systems, standard logic IC test systems, digital output CIS test systems, high-end CCD/CIS test systems, LCD/OLED/LCOS array/CCD/CIS test systems, compact analog mixed signal IC test systems, and analog and mixed signal IC test systems, as well as automatic machines and handlers. In addition, the company is involved in the design and construction, inspection, maintenance, and assurance to solar power generation systems; solar panel monitoring agency business; sales and maintenance of environmental equipment; and design and manufacture of AOI test systems. Further, it offers cleaning and coating, insurance handling, and consulting services. Wintest Corp. was incorporated in 1993 and is headquartered in Yokohama, Japan. Wintest Corp. opeartes as a subsidiary of Wuhan Jingce Electronic Group Co.,Ltd.

How the Company Makes Money

Wintest Corp. generates revenue through several key streams. The primary source of income comes from the sale of automated test equipment (ATE), which is essential for semiconductor testing and quality assurance in electronics manufacturing. In addition to hardware sales, the company also earns significant revenue from software solutions that assist clients in managing test data and analytics. These software products are typically offered on a subscription basis, providing recurring revenue. Furthermore, Wintest Corp. engages in service contracts and maintenance agreements for its products, ensuring ongoing revenue from existing customers. Strategic partnerships with major semiconductor manufacturers and electronics companies enhance its market presence and contribute to steady earnings through collaborative projects and joint ventures.

Wintest Corp. Financial Statement Overview

Summary

Wintest Corp. is facing significant financial challenges, with negative profitability indicators and a weak cash position. The company has a low debt-to-equity ratio, but declining revenue and ongoing losses present serious risks.

Income Statement

Wintest Corp. has experienced a persistent decline in profitability, with a negative gross profit margin and net profit margin over the past few years. Revenue growth is erratic, and EBIT has worsened significantly, indicating operational inefficiencies. The company has not generated EBITDA in the latest period, further reflecting financial distress.

Balance Sheet

The debt-to-equity ratio is relatively low, suggesting manageable leverage, but the declining equity ratio indicates increasing liabilities or shrinking equity. Return on equity is negative due to consistent net losses, which is a significant concern for investors.

Cash Flow

Wintest Corp.'s cash flow situation is concerning, with negative operating cash flow and free cash flow reflecting poor cash generation from operations. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income to cash. There has been no positive free cash flow growth, indicating a need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	328.32M	417.09M	407.00M	210.31M	307.58M	1.93B
Gross Profit	-474.06M	-338.84M	151.00M	62.16M	18.06M	949.51M
EBITDA	-1.24B	-1.09B	-546.66M	-679.04M	-629.72M	96.23M
Net Income	-1.29B	-1.11B	-554.00M	-686.24M	-629.18M	76.09M
Balance Sheet
Total Assets	1.22B	1.20B	1.97B	1.90B	1.90B	2.40B
Cash, Cash Equivalents and Short-Term Investments	323.55M	90.70M	361.00M	278.48M	219.11M	925.00M
Total Debt	127.25M	244.19M	169.20M	358.47M	110.50M	52.00M
Total Liabilities	309.61M	495.37M	309.00M	549.53M	305.78M	280.00M
Stockholders Equity	907.32M	699.93M	1.66B	1.35B	1.59B	2.07B
Cash Flow
Free Cash Flow	0.00	-664.21M	-558.30M	-613.48M	-858.30M	-1.23B
Operating Cash Flow	0.00	-662.30M	-558.27M	-613.48M	-856.09M	-1.16B
Investing Cash Flow	0.00	-1.91M	-300.00K	3.88M	21.85M	-139.89M
Financing Cash Flow	0.00	171.22M	641.00M	667.98M	68.62M	2.56B

Wintest Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6721, the sentiment is Positive. The current price of 106 is above the 20-day moving average (MA) of 103.70, above the 50-day MA of 103.98, and below the 200-day MA of 110.70, indicating a neutral trend. The MACD of 2.42 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6721.

Wintest Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6859	75 Outperform	¥74.50B	13.31	―	3.12%	2.78%	-5.32%
6853	72 Outperform	¥19.14B	18.58	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥22.98B	10.14	―	2.84%	8.78%	16.25%
6858	69 Neutral	¥7.43B	13.14	―	2.45%	15.66%	-69.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥35.51B	32.83	―	1.95%	6.10%	―
6721	47 Neutral	¥5.85B	-3.89	―	―	-35.81%	-99.72%