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Advantest Corporation (ATEYY)
OTHER OTC:ATEYY
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Advantest
(OTC:ATEYY)
81Outperform
Advantest (ATEYY) vs. S&P 500 (SPY)
Market Cap
$29.15B
Dividend Yield0.41%
Average Volume (3M)250.12K
Price to Earnings (P/E)32.3
Beta (1Y)1.91
Revenue Growth52.66%
EPS Growth147.90%
CountryUS
Employees6,766
SectorTechnology
Sector Strength66
IndustrySemiconductors
Share Statistics
EPS (TTM)0.38
Shares Outstanding766,141,240
10 Day Avg. Volume340,349
30 Day Avg. Volume250,122
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.22
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 by selling its advanced semiconductor testing equipment and related services to semiconductor manufacturers worldwide. The company generates revenue through the sale of its test systems, which are crucial for ensuring the quality and performance of semiconductors before they are integrated into electronic devices. Key revenue streams include sales of new testing systems, upgrades, and maintenance services. Additionally, Advantest benefits from long-term partnerships with major semiconductor companies, which provide ongoing business opportunities and stable revenue. The company's earnings are also influenced by the global demand for semiconductors, technological advancements in the industry, and the constant need for more sophisticated testing solutions to match the evolving complexity of semiconductor devices.
Advantest Financial Statement Overview
Summary
Advantest demonstrates a strong financial position with impressive revenue growth, high profitability, and robust cash flow generation. The company's solid balance sheet metrics further support its ability to invest and withstand economic fluctuations.Income Statement
Advantest demonstrates strong financial performance with a consistent upward trajectory in revenue, highlighted by a significant 40.4% TTM revenue growth rate. The company maintains robust profitability metrics with a TTM gross profit margin of 54.9% and a net profit margin of 20.0%. Additionally, the EBIT and EBITDA margins are impressive at 28.2% and 32.7%, respectively, indicating excellent operational efficiency. Overall, the income statement reflects a high level of stability and growth potential.―
Balance Sheet
The balance sheet of Advantest is solid, with a favorable equity ratio of 62.6%, suggesting a strong reliance on equity financing. The debt-to-equity ratio is low at 0.19, indicating prudent financial leverage. The return on equity (ROE) is commendable at 27.4%, showcasing effective utilization of shareholders' equity to generate profits. The company's balance sheet is well-positioned to support continued growth and withstand economic fluctuations.88
Cash Flow
Advantest's cash flow statement highlights robust cash generation, with a substantial TTM free cash flow growth rate of 1,449.7%. The operating cash flow to net income ratio is 1.51, reflecting strong cash conversion efficiency. The free cash flow to net income ratio stands at 1.38, indicating healthy free cash flow generation relative to net income. The company exhibits excellent cash flow management, providing a solid foundation for future investments and shareholder returns.―
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 486.51B | 560.19B | 416.90B | 312.79B | 275.89B | Gross Profit |
| 246.03B | 319.06B | 235.91B | 168.29B | 156.50B | EBIT |
| 81.63B | 167.69B | 114.73B | 70.73B | 58.71B | EBITDA |
| 108.98B | 189.08B | 129.70B | 83.25B | 70.64B | Net Income Common Stockholders |
| 62.29B | 130.40B | 87.30B | 69.79B | 53.53B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 106.70B | 85.54B | 116.58B | 149.16B | 127.70B | Total Assets |
| 671.23B | 600.22B | 494.70B | 422.64B | 355.78B | Total Debt |
| 94.44B | 50.84B | 113.81B | 11.85B | 11.29B | Net Debt |
| -12.26B | -34.69B | -2.77B | -137.31B | -116.42B | Total Liabilities |
| 240.05B | 231.53B | 200.07B | 142.27B | 124.33B | Stockholders Equity |
| 431.18B | 368.69B | 294.62B | 280.37B | 231.45B |
| Cash Flow | Free Cash Flow | |||
| 12.13B | 46.64B | 60.67B | 54.55B | 57.59B | Operating Cash Flow |
| 32.67B | 70.22B | 78.89B | 67.83B | 66.47B | Investing Cash Flow |
| -27.94B | -26.71B | -46.91B | -16.83B | -38.82B | Financing Cash Flow |
| 10.76B | -77.43B | -68.74B | -30.41B | -17.92B |
Advantest Technical Analysis
Negative
44.28
Price Trends
47.65
Negative
53.23
Negative
51.03
Negative
Market Momentum
-1.22
Negative
53.54
Neutral
91.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEYY, the sentiment is Negative. The current price of 44.28 is above the 20-day moving average (MA) of 39.98, below the 50-day MA of 47.65, and below the 200-day MA of 51.03, indicating a neutral trend. The MACD of -1.22 indicates Negative momentum. The RSI at 53.54 is Neutral, neither overbought nor oversold. The STOCH value of 91.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEYY.
Advantest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $29.15B | 32.33 | 34.01% | 0.41% | 52.66% | 147.90% | |
79 Outperform | $19.28B | 13.33 | 11.65% | 4.76% | 2.22% | -22.39% | |
73 Outperform | $12.20B | 21.48 | 21.55% | 0.63% | 9.58% | 28.34% | |
72 Outperform | $20.32B | 18.58 | 11.47% | 2.52% | 1.32% | 4.86% | |
68 Neutral | $17.69B | 11.53 | 18.97% | ― | -14.19% | -27.42% | |
60 Neutral | $10.94B | 10.48 | -7.04% | 2.99% | 7.55% | -12.20% | |
59 Neutral | $20.13B | 28.15 | -2.42% | ― | -8.69% | -125.98% |
* Technology Sector Average
Performance Comparison
ATEYY
Advantest
44.28
10.00
29.17%
ASX
ASE Technology Holding Co
9.10
-1.17
-11.39%
ON
ON Semiconductor
41.91
-27.76
-39.84%
TER
Teradyne
75.88
-45.58
-37.53%
UMC
United Micro
7.35
-0.44
-5.65%
GFS
GlobalFoundries Inc
36.40
-13.33
-26.80%
Advantest Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q4-2024)
| % Change Since: 6.83%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
Advantest Corporation reported a strong financial performance in FY 2024 with record-high sales and profits, and a positive outlook for continued demand in AI-related semiconductor testing for FY 2025. However, challenges such as impairment losses, increased tax rates, and market competition present some risks.Q4-2024 Updates
Positive Updates
Record-High Financial Performance in FY 2024
Advantest Corporation achieved record highs in sales, operating income, and net income for FY 2024, driven by strong demand for AI-related high-performance semiconductors and effective supply chain management.
Exceeded Sales Guidance
FY 2024 sales exceeded initial guidance by approximately JPY40 billion, primarily due to greater-than-expected deliveries, particularly in SoC testers.
Strong Market Position and Product Launches
Advantest maintained a majority share in the semiconductor tester market and launched several new test solutions, including a new power supply for HPC applications and memory test systems.
Positive Outlook for FY 2025
The company expects continued high demand for AI-related SoC semiconductors, with sales and profits projected to grow slightly year-over-year on a constant currency basis.
Shareholder Returns and Strategic Initiatives
Announced a share repurchase program of up to JPY70 billion as part of a strategy to enhance shareholder returns and capital efficiency.
Negative Updates
Impairment Loss and Increased Tax Rate
The company recorded an impairment loss of approximately JPY24.1 billion related to Essai's socket business, resulting in a higher effective tax rate of approximately 28%.
Limited Visibility in Second Half of FY 2025
Advantest expressed uncertainty about the second half of FY 2025, citing potential macroeconomic and geopolitical risks that could affect demand.
Slight Decline in SoC Market Share
Estimated market share in the SoC tester market decreased by about 3 percentage points due to increased competition from local suppliers in China.
Company Guidance
In the financial briefing call for Advantest Corporation's fiscal 2024, the company reported record-high sales, operating income, and net income, driven by strong demand for AI-related high-performance semiconductors. The fiscal year 2024 sales exceeded the guidance by approximately JPY40 billion, primarily due to higher-than-expected deliveries, particularly of SoC testers. The core operating income margin reached 32%, significantly surpassing guidance. Despite an impairment loss affecting operating margin and net profit, the effective tax rate rose to approximately 28%. Advantest expects continued strong demand for tester products in FY 2025, with sales forecasted at JPY755 billion and operating income at JPY242 billion. The company maintains a robust position in the high-end SoC market, with an overall market share of approximately 58%, although facing increased competition from local suppliers in China. The fiscal 2025 outlook includes a dividend forecast and share repurchase program, aiming for a cumulative total return ratio of 50% or more over the three years of the third midterm management plan.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.