Advantest Corp. (JP:6857)
:6857
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Advantest
(6857)
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Rating:77Outperform
Price Target:
¥25,799.00
▲(13.50% Upside)
Action:ReiteratedDate:01/30/26
The score is driven primarily by strong financial performance (high margins, low leverage, solid cash conversion) and supportive technical trend. This is tempered by a stretched technical setup (overbought signals) and a high valuation with minimal dividend yield.
Positive Factors
High Profitability
Sustained, elevated margins reflect structural product differentiation and pricing power in ATE and test services. High gross and operating margins support durable internal reinvestment, R&D funding and buffer profitability through product cycles, underpinning long-term competitiveness.
Negative Factors
Industry Cyclicality
Business is tightly linked to semiconductor capital expenditures and product cycles, causing material swings in revenue and margins. This structural cyclicality can compress earnings and cash flow during downturns, complicating planning and smoothing of returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained, elevated margins reflect structural product differentiation and pricing power in ATE and test services. High gross and operating margins support durable internal reinvestment, R&D funding and buffer profitability through product cycles, underpinning long-term competitiveness.
Read all positive factors
Advantest (6857) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.59T
Dividend Yield0.25%
Average Volume (3M)13.33M
Price to Earnings (P/E)45.3
Beta (1Y)1.55
Revenue Growth63.36%
EPS Growth149.43%
CountryJP
Employees6,766
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)108.41
Shares Outstanding732,000,000
10 Day Avg. Volume15,502,300
30 Day Avg. Volume13,331,246
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)9.42
Price to Sales (P/S)6.12
P/FCF Ratio17.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥28,754.98Price Target Upside26.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)463.58
Revenue Forecast (FY)¥1.08T
Advantest Business Overview & Revenue Model
Company Description
Advantest 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, Suppor...
How the Company Makes Money
Advantest primarily makes money by selling semiconductor test systems (ATE) and associated hardware and services to semiconductor manufacturers and outsourced semiconductor assembly and test (OSAT) providers. Its key revenue stream is the sale of ...
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
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.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.
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.
Read all updates
Q4-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.03T | 779.71B | 486.51B | 560.19B | 416.90B | 312.79B |
| Gross Profit | 644.22B | 445.08B | 246.03B | 319.06B | 235.91B | 168.29B |
| EBITDA | 437.54B | 257.13B | 105.63B | 193.38B | 131.59B | 83.25B |
| Net Income | 288.49B | 161.18B | 62.29B | 130.40B | 87.30B | 69.79B |
Balance Sheet | ||||||
| Total Assets | 1.02T | 854.21B | 671.23B | 600.22B | 494.70B | 422.64B |
| Cash, Cash Equivalents and Short-Term Investments | 329.32B | 262.54B | 106.70B | 85.54B | 116.58B | 149.16B |
| Total Debt | 102.35B | 93.50B | 94.44B | 50.84B | 43.46B | 11.85B |
| Total Liabilities | 346.22B | 347.67B | 240.05B | 231.53B | 200.07B | 142.27B |
| Stockholders Equity | 674.30B | 506.54B | 431.18B | 368.69B | 294.62B | 280.37B |
Cash Flow | ||||||
| Free Cash Flow | 304.00B | 268.56B | 12.13B | 46.64B | 60.67B | 54.55B |
| Operating Cash Flow | 334.16B | 285.97B | 32.67B | 70.22B | 78.89B | 67.83B |
| Investing Cash Flow | -50.09B | -42.19B | -27.94B | -26.71B | -46.91B | -16.83B |
| Financing Cash Flow | -150.39B | -82.82B | 10.76B | -77.43B | -68.74B | -30.41B |
Advantest Technical Analysis
Neutral
22730.00
Price Trends
24971.40
Negative
22574.25
Positive
17495.13
Positive
Market Momentum
-473.94
Positive
41.32
Neutral
35.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6857, the sentiment is Neutral. The current price of 22730 is below the 20-day moving average (MA) of 25048.50, below the 50-day MA of 24971.40, and above the 200-day MA of 17495.13, indicating a neutral trend. The MACD of -473.94 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6857.
Advantest Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.87T | 25.03 | 53.12% | 1.11% | 32.51% | 57.19% | |
79 Outperform | ¥17.93T | 33.18 | 26.01% | 1.79% | 16.74% | 16.03% | |
78 Outperform | ¥1.75T | 15.60 | 21.73% | 2.29% | 11.29% | 11.38% | |
77 Outperform | ¥15.59T | 45.29 | 47.37% | 0.25% | 63.36% | 149.43% | |
77 Outperform | ¥581.00B | 24.84 | 12.66% | 2.28% | 9.53% | -11.17% | |
75 Outperform | $7.08T | 35.55 | 25.78% | 0.79% | 13.45% | 20.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.