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Advantest
(OTC:ATEYY)
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Rating:80Outperform
Price Target:
$256.00
▲(18.34% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by exceptional recent financial performance (very high margins and returns with minimal leverage) and a strong earnings-call outlook (raised TAM, extended visibility, and capacity expansion). Technicals are supportive with a clear uptrend, while the biggest offset is valuation: the high P/E and low dividend yield leave less margin for error, especially given cyclicality and margin headwinds noted by management.
Positive Factors
Exceptional Profitability
Advantest’s high margins indicate differentiated products, pricing power, and strong operating leverage. Sustained profitability provides resources to fund product development and capacity expansion, although cyclical normalization remains a risk.
Negative Factors
Semiconductor Cycle and Earnings Volatility
Advantest remains exposed to semiconductor capital-spending cycles, customer inventory changes, and uneven technology ramps. Prior revenue and cash-flow volatility shows that strong current results may not translate into consistently stable performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Profitability
Advantest’s high margins indicate differentiated products, pricing power, and strong operating leverage. Sustained profitability provides resources to fund product development and capacity expansion, although cyclical normalization remains a risk.
Read all positive factors
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$147.80B
Dividend Yield0.17%
Average Volume (3M)86.56K
Price to Earnings (P/E)52.3
Beta (1Y)2.16
Revenue Growth31.38%
EPS Growth95.51%
CountryUS
Employees7,241
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)642.50
Shares Outstanding732,000,000
10 Day Avg. Volume68,623
30 Day Avg. Volume86,562
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)19.65
Price to Sales (P/S)13.13
P/FCF Ratio49.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.66
Revenue Forecast (FY)$10.82B
Advantest Business Overview & Revenue Model
Company Description
Advantest Corporation, a Japanese entity founded in Tokyo in 1954, specializes in the development and distribution of semiconductor and component testing equipment, alongside various mechatronics solutions. Its operations are broadly categorized i...
How the Company Makes Money
Advantest primarily makes money by selling semiconductor test equipment and related solutions to customers across the semiconductor supply chain (including integrated device manufacturers, foundries, and outsourced semiconductor assembly and test ...
Advantest Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented strong demand momentum, a meaningful upward revision to SoC tester TAM (~$1.9B, ~21%), clear market-share leadership (66% SoC in 2025, path to 70%+), broadened customer visibility (~18 months), and accelerated capacity expansion (5,000 run-rate achieved; 10,000 target being pulled in). Offsetting risks include margin pressure from DRAM/memory pricing, near-term memory share/transition challenges, some uncertainty on exact timing for the 10,000-unit capacity target, and supply-chain/BOM inflationary risks. On balance the company expressed high confidence in addressing these challenges with product roadmaps, customer commitments, contract manufacturer expansion and platform advantages.Positive Updates
Revised SoC Tester TAM Upward
Management revised the SoC tester TAM midpoint from $9.1B to $11B (an increase of ~$1.9B, ~21%); company commentary described this as roughly a $2B upward revision driven primarily by inferencing and compute demand.
Negative Updates
Margin Uncertainty and Headwinds
Q1 showed very high margins, but management flagged a conservative full-year margin outlook due to inflationary bill-of-materials pressures—most notably elevated DRAM/memory pricing used heavily in testers—and one-time benefits (inventory obsolescence reversal) that are unlikely to repeat.
Read all updates
Q1-2026 Updates
Positive
Negative
Revised SoC Tester TAM Upward
Management revised the SoC tester TAM midpoint from $9.1B to $11B (an increase of ~$1.9B, ~21%); company commentary described this as roughly a $2B upward revision driven primarily by inferencing and compute demand.
Read all positive updates
Company Guidance
The company updated its SoC tester outlook, raising the TAM midpoint from $9.1B to $11B (+$2B), citing strong demand driven by inferencing/compute across GPU, custom ASIC and CPU and rising test content (longer test times and additional insertions from 3D packaging); they expect SoC volumes and CPU inferencing demand to be sustainable into next year. Capacity plans are being accelerated: 5,000 93000 units is expected to be reached by March 2027 (they say they’ll “flow right through” 5,000) and a prior 10,000-unit target (end‑2028/early‑2029) is being pulled in with further upside possible; a contract manufacturer is adding a second factory in Southeast Asia. Visibility has lengthened to ~18 months (vs. historical ~6 months), SoC mix was ~80–85% of sales in Q1 (memory ~15%), China represented ~19% of sales, and the company reported a 66% SoC share in 2025 with a path toward 70%+. Margin guidance: Q1 margins were unusually high (partly from an inventory-obsolescence reversal), but full‑year guidance is conservative due to DRAM/memory pricing and BOM inflation; the memory business may see a near‑term dip but management expects recovery as new memory products and fabs ramp.Advantest Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25T | 1.20T | 779.71B | 486.51B | 560.19B | 416.90B |
| Gross Profit | 823.37B | 769.90B | 445.08B | 246.03B | 319.06B | 235.91B |
| EBITDA | 602.67B | 526.42B | 257.13B | 108.98B | 189.08B | 129.70B |
| Net Income | 467.39B | 397.99B | 161.18B | 62.29B | 130.40B | 87.30B |
Balance Sheet | ||||||
| Total Assets | 1.50T | 1.18T | 854.21B | 671.23B | 600.22B | 494.70B |
| Cash, Cash Equivalents and Short-Term Investments | 410.40B | 341.44B | 262.54B | 106.70B | 85.54B | 116.58B |
| Total Debt | 107.45B | 20.28B | 93.50B | 94.44B | 50.84B | 43.46B |
| Total Liabilities | 468.89B | 377.72B | 347.67B | 240.05B | 231.53B | 200.07B |
| Stockholders Equity | 1.04T | 799.18B | 506.54B | 431.18B | 368.69B | 294.62B |
Cash Flow | ||||||
| Free Cash Flow | 395.88B | 320.39B | 266.54B | 12.13B | 46.64B | 60.67B |
| Operating Cash Flow | 433.52B | 355.40B | 285.97B | 32.67B | 70.22B | 78.89B |
| Investing Cash Flow | -135.54B | -36.64B | -42.19B | -27.94B | -26.71B | -46.91B |
| Financing Cash Flow | -169.27B | -244.45B | -82.82B | 10.76B | -77.43B | -68.74B |
Advantest Technical Analysis
Positive
216.32
Price Trends
199.40
Positive
188.87
Positive
167.73
Positive
Market Momentum
2.99
Positive
54.26
Neutral
44.11
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 216.32 is below the 20-day moving average (MA) of 218.63, above the 50-day MA of 199.40, and above the 200-day MA of 167.73, indicating a neutral trend. The MACD of 2.99 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 44.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.
Advantest Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $147.80B | 52.25 | 58.91% | 0.17% | 31.38% | 95.51% | |
76 Outperform | $8.12B | 70.20 | 10.96% | ― | 18.01% | 161.14% | |
72 Outperform | $55.82B | 48.71 | 38.04% | 0.14% | 57.91% | 153.54% | |
66 Neutral | $13.15B | 100.00 | 6.50% | ― | 8.08% | -33.87% | |
63 Neutral | $2.40B | -61.03 | -4.91% | 1.11% | 32.66% | 55.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $2.81B | -375.04 | -4.66% | ― | -15.21% | -81.50% |
* Technology Sector Average
ATEYY
Advantest
217.58
135.95
166.57%
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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.