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Advantest Corp (JP:6857)
:6857
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Advantest
(OTC:6857)
Rating:80Outperform
Price Target:
¥12,318.00
▲(15.39%Upside)
Advantest (6857) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.88T
Dividend Yield0.37%
Average Volume (3M)21.52M
Price to Earnings (P/E)48.8
Beta (1Y)1.39
Revenue Growth60.27%
EPS Growth158.92%
CountryJP
Employees6,766
SectorTechnology
Sector Strength87
IndustrySemiconductors
Share Statistics
EPS (TTM)54.46
Shares Outstanding766,141,240
10 Day Avg. Volume17,157,460
30 Day Avg. Volume21,521,096
Financial Highlights & Ratios
PEG Ratio1.66
Price to Book (P/B)9.70
Price to Sales (P/S)0.00
P/FCF Ratio18.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥10,546.08Price Target Upside-1.21% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Advantest Business Overview & Revenue Model
Company DescriptionAdvantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. It operates through three segments: Semiconductor and Component Test System; Mechatronics System; and Services, Support and Others. The Semiconductor and Component Test System segment provides customers with test system products for the semiconductor industry and the electronic parts industry. This segment offers test systems for SoC semiconductor devices; and test systems for memory semiconductors devices. The Mechatronics System segment provides test handlers; mechatronic-applied products for handling semiconductor devices; and device interfaces, which serve as interfaces with the devices that are measured. This segment also engages in the operations related to nano-technology products. The Services, Support and Others segment provides customer solutions for the semiconductor and component test system and mechatronics system segments; and support services. This segment is also involved in the sale of consumables and used products; and equipment lease business and others. In addition, the company engages in the research and development activities measuring and testing technologies. Advantest Corporation serves fabless semiconductor companies, foundries, and test houses, as well as industrial, design, and manufacturing companies in Japan, rest of Asia, the United States, and Europe. Advantest Corporation has collaboration with STMicroelectronics on advanced automated test cell for IC Testing; and partnership with PDF Solutions Inc. for cloud-based software solutions. The company was founded in 1954 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyAdvantest makes money through the sale of its semiconductor test equipment and related services. The company's primary revenue streams come from the production and sale of automated test equipment (ATE) used in the testing of various semiconductor devices, including memory and logic integrated circuits, SoCs, and other electronic components. Advantest also generates revenue from providing maintenance and support services for its equipment, as well as from software solutions that enhance the testing process. Additionally, the company benefits from strategic partnerships and collaborations with semiconductor manufacturers and other industry players, which help drive sales and innovation in its product offerings.
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: 86.17%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
Advantest reported a strong financial performance in FY 2024 with record-high sales and profits, driven by robust demand for AI-related semiconductors. Despite some challenges including impairment losses and geopolitical uncertainties, the company maintains a positive outlook for FY 2025, expecting continued high demand and market presence.Q4-2024 Updates
Positive Updates
Record High Financial Performance
FY 2024 sales, operating income, and net income all posted record highs due to strong tester demand for AI-related high-performance semiconductors. The demand was driven by increasing semiconductor complexity and enhanced supply capabilities.
Profitability and Revenue Surpassing Guidance
Full year sales exceeded the guidance issued in January 2025 by approximately JPY 40 billion. Core operating income was JPY 249.7 billion with a margin of 32%, significantly surpassing guidance.
Strategic Supply Chain Management
Advantest enhanced its supply chain management, resulting in record-high sales booking and a clean balance sheet for FY 2025.
Market Expansion and Share
Advantest maintained a majority share in the semiconductor tester market, with a notable market share of approximately 58% overall and over 60% in the memory test market.
Positive Outlook for FY 2025
Advantest expects sustained high demand for AI-related SoC semiconductors, with FY 2025 sales projected to grow slightly year-over-year on a constant currency basis.
Negative Updates
Impairment Loss Impact
An impairment loss of approximately JPY 24.1 billion was booked for a portion of goodwill and intangible assets related to Essai's socket business, impacting the operating margin and net profit.
Higher Effective Tax Rate
The effective tax rate rose to approximately 28%, higher than expected due to impairment losses which are not deductible for tax purposes.
Soft Demand for Non-AI Semiconductors
Demand for semiconductors for applications other than AI remained soft throughout the fiscal year, affecting overall sales growth.
Geopolitical and Economic Uncertainties
Ongoing geopolitical risks and macroeconomic uncertainties, including potential tariff impacts, pose challenges for the business environment.
Company Guidance
During the financial briefing for Advantest Corporation's fiscal year 2024, several key metrics were highlighted. The company achieved record highs in sales, operating income, and net income due to strong demand for AI-related high-performance semiconductors. Full-year sales exceeded the guidance by approximately JPY40 billion, driven by better-than-expected deliveries, particularly for SoC testers. The core operating income was JPY249.7 billion, with a margin of 32%, significantly surpassing expectations. However, one-time items such as an impairment loss affected the operating margin and net profit. The effective tax rate rose to approximately 28% due to non-deductible impairment losses. The annual dividend forecast was JPY39. The company anticipates continued high demand for testers in FY 2025, projecting sales of JPY755 billion and operating income of JPY242 billion. The gross profit margin is expected to remain around 58%. Advantest's market share in the semiconductor tester market was approximately 58%, with a decrease in the SoC market share due to competition from local suppliers in China, while the memory test market share exceeded 60%. The company also plans a share repurchase program up to JPY70 billion to enhance shareholder returns.Advantest Financial Statement Overview
Summary
Advantest demonstrates strong financial performance across all metrics, with significant revenue growth, high profit margins, low leverage, and exceptional cash flow management, indicating robust operational efficiency and a solid financial base.Income Statement
Advantest shows exceptional revenue growth with a notable increase of 60.25% from 2024 to 2025. The company maintains robust profit margins, with a gross profit margin of 57.08% and a net profit margin of 20.68% in 2025. Both EBIT and EBITDA margins remain strong at 32.02% and 32.98%, respectively, indicating operational efficiency and profitability.94
Very Positive
Balance Sheet
The company demonstrates solid financial health, with a debt-to-equity ratio of 0.18, suggesting low leverage. The equity ratio stands at 59.28%, reflecting a strong equity base. Return on Equity (ROE) is impressive at 31.82%, highlighting effective utilization of equity to generate profits.87
Very Positive
Cash Flow
Advantest exhibits robust cash flow management with a significant free cash flow growth rate of 2114.63% from 2024 to 2025, driven by strong operating cash flows. The operating cash flow to net income ratio is 1.77, and the free cash flow to net income ratio is 1.67, indicating efficient cash conversion from net income.92
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 779.71B | 486.51B | 560.19B | 416.90B | 312.79B |
| Gross Profit | 445.08B | 246.03B | 319.06B | 235.91B | 168.29B |
| EBITDA | 257.13B | 116.73B | 189.08B | 129.70B | 81.56B |
| Net Income | 161.18B | 62.29B | 130.40B | 87.30B | 69.79B |
Balance Sheet | |||||
| Total Assets | 854.21B | 671.23B | 600.22B | 494.70B | 422.64B |
| Cash, Cash Equivalents and Short-Term Investments | 262.54B | 106.70B | 85.54B | 116.58B | 149.16B |
| Total Debt | 93.50B | 94.44B | 50.84B | 113.81B | 11.85B |
| Total Liabilities | 347.67B | 240.05B | 231.53B | 200.07B | 142.27B |
| Stockholders Equity | 506.54B | 431.18B | 368.69B | 294.62B | 280.37B |
Cash Flow | |||||
| Free Cash Flow | 268.56B | 12.13B | 46.64B | 60.67B | 54.55B |
| Operating Cash Flow | 285.97B | 32.67B | 70.22B | 78.89B | 67.83B |
| Investing Cash Flow | -42.19B | -27.94B | -26.71B | -46.91B | -16.83B |
| Financing Cash Flow | -82.82B | 10.76B | -77.43B | -68.74B | -30.41B |
Advantest Technical Analysis
Positive
10675.00
Price Trends
8006.38
Positive
7735.98
Positive
8063.63
Positive
Market Momentum
804.44
Negative
73.57
Negative
70.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6857, the sentiment is Positive. The current price of 10675 is above the 20-day moving average (MA) of 9683.10, above the 50-day MA of 8006.38, and above the 200-day MA of 8063.63, indicating a bullish trend. The MACD of 804.44 indicates Negative momentum. The RSI at 73.57 is Negative, neither overbought nor oversold. The STOCH value of 70.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6857.
Advantest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥7.88T | 48.82 | 34.01% | 0.37% | 60.27% | 158.92% | |
63 Neutral | $34.04B | 6.14 | -11.52% | 1.82% | 5.53% | -18.79% | |
| $8.12B | 12.15 | 24.78% | 0.02% | ― | ― | ||
| $30.43B | 38.36 | 27.22% | <0.01% | ― | ― | ||
| $11.78B | 25.93 | 44.53% | 1.77% | ― | ― | ||
| $23.30B | 21.65 | 7.22% | 1.35% | ― | ― | ||
| $86.64B | 23.64 | 29.69% | 2.26% | ― | ― |
* Technology Sector Average
Performance Comparison
JP:6857
Advantest
10,675.00
4,086.59
62.03%
DINRF
SCREEN Holdings Co
81.58
-16.61
-16.92%
DISPF
Disco
287.66
-101.00
-25.99%
LSRCF
Lasertec
132.18
-75.26
-36.28%
RNECF
Renesas Electronics
13.10
-7.29
-35.75%
TOELF
Tokyo Electron
183.38
-32.91
-15.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.