Advantest (ATEYY) AI Stock Analysis

• Market Cap: $85.93B
• Dividend Yield: 0.19%
• Average Volume (3M): 93.21K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 1.96
• Revenue Growth: 72.61%
• EPS Growth: 198.85%
• Country: US
• Employees: 6,766
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.83
• Shares Outstanding: 766,141,240
• 10 Day Avg. Volume: 70,899
• 30 Day Avg. Volume: 93,213
• PEG Ratio: 0.19
• Price to Book (P/B): 9.63
• Price to Sales (P/S): 6.26
• P/FCF Ratio: 18.30
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.10
• Enterprise Value/Ebitda: 0.15
• 1Y Price Target: $117.00
• Price Target Upside: 7.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $117.00 ▲(7.03% Upside)

Advantest's strong financial performance and positive technical indicators are the primary drivers of its overall score. The robust revenue and profit growth, along with efficient operations and solid cash flow management, highlight the company's strength in the semiconductor industry. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

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, 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 Money

Advantest generates revenue primarily through the sale of its semiconductor test systems, which are critical for manufacturers to ensure the performance and reliability of their electronic components. The company earns money through direct sales of test equipment, as well as through ongoing maintenance and support services for these systems. Additionally, Advantest has a significant revenue stream from software solutions that enhance the testing process. The company also benefits from partnerships with major semiconductor manufacturers and technology firms, which can lead to long-term contracts and increased sales volume. Overall, Advantest's revenue model is supported by its innovation in test technology and its ability to adapt to the evolving needs of the semiconductor industry.

Advantest Financial Statement Overview

Summary

Advantest demonstrates a strong financial standing across all key areas. Exceptional revenue and profit growth, coupled with efficient cost management, drive its high income statement performance. The balance sheet is well-capitalized with prudent leverage, while the cash flow statement highlights the company's capacity to generate and manage cash effectively. Advantest's financials reflect a well-managed, growth-oriented company with a solid foundation and promising future outlook, ideal for navigating competitive industry landscapes.

Income Statement

Advantest shows robust financial performance with a consistent upward trajectory in revenue and net income. The Gross Profit Margin stands strong, indicating efficient cost management. The company has exhibited remarkable revenue growth, particularly evident from the most recent year, showcasing its market strength. High EBIT and EBITDA margins further underline operational efficiency and profitability. Overall, the income statement reflects a highly stable and profitable business model with excellent growth prospects.

Balance Sheet

The balance sheet is solid, characterized by a strong equity position, with an Equity Ratio indicating a healthy capital structure. The company maintains a low Debt-to-Equity Ratio, suggesting prudent leverage practices. Return on Equity is impressive, highlighting effective utilization of shareholder funds to generate profits. These factors contribute to a stable financial foundation, though there remains a need for vigilance in managing liabilities as the business scales.

Cash Flow

Advantest's cash flow statement is very positive, with significant Free Cash Flow generation indicating strong cash profitability. The Operating Cash Flow to Net Income Ratio suggests effective conversion of net income into cash flow. Free Cash Flow has witnessed substantial growth, underscoring the company's ability to fund operations and growth initiatives without relying heavily on external financing. This robust cash position enhances financial flexibility and operational resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	904.76B	779.71B	486.51B	560.19B	416.90B	312.79B
Gross Profit	539.83B	445.08B	246.03B	319.06B	235.91B	168.29B
EBITDA	347.44B	257.13B	108.98B	189.08B	129.70B	83.25B
Net Income	227.55B	161.18B	62.29B	130.40B	87.30B	69.79B
Balance Sheet
Total Assets	889.87B	854.21B	671.23B	600.22B	494.70B	422.64B
Cash, Cash Equivalents and Short-Term Investments	273.41B	262.54B	106.70B	85.54B	116.58B	149.16B
Total Debt	91.78B	93.50B	94.44B	50.84B	43.46B	11.85B
Total Liabilities	315.65B	347.67B	240.05B	231.53B	200.07B	142.27B
Stockholders Equity	574.22B	506.54B	431.18B	368.69B	294.62B	280.37B
Cash Flow
Free Cash Flow	285.86B	266.54B	12.13B	46.64B	60.67B	54.55B
Operating Cash Flow	305.14B	285.97B	32.67B	70.22B	78.89B	67.83B
Investing Cash Flow	-37.28B	-42.19B	-27.94B	-26.71B	-46.91B	-16.83B
Financing Cash Flow	-99.19B	-82.82B	10.76B	-77.43B	-68.74B	-30.41B

Advantest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEYY, the sentiment is Positive. The current price of 109.32 is above the 20-day moving average (MA) of 105.19, above the 50-day MA of 88.01, and above the 200-day MA of 64.56, indicating a bullish trend. The MACD of 7.80 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.

Advantest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TER	80 Outperform	$21.01B	45.81	16.85%	0.36%	4.83%	-9.47%
ATEYY	75 Outperform	$85.93B	52.48	44.94%	0.19%	72.61%	198.85%
STM	68 Neutral	$24.86B	39.52	3.72%	1.28%	-22.97%	-78.58%
ASX	67 Neutral	$25.41B	22.58	10.97%	3.21%	4.86%	6.44%
ON	62 Neutral	$18.71B	42.68	5.72%	―	-17.93%	-75.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MCHP	51 Neutral	$32.60B	84.25	-2.24%	3.01%	-35.70%	-113.08%