TSE:6857

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Advantest Corporation manufactures and sells semiconductor and component test system products and mechatronics-related products. More Details

Rewards

Earnings are forecast to grow 10.97% per year

Risk Analysis

No risks detected for 6857 from our risk checks.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Advantest's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6857 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6857's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.1%

6857

6.3%

JP Semiconductor

-0.08%

JP Market


1 Year Return

46.3%

6857

55.4%

JP Semiconductor

7.4%

JP Market

Return vs Industry: 6857 underperformed the JP Semiconductor industry which returned 55.4% over the past year.

Return vs Market: 6857 exceeded the JP Market which returned 7.4% over the past year.


Shareholder returns

6857IndustryMarket
7 Day6.1%6.3%-0.08%
30 Day21.5%18.7%3.6%
90 Day63.4%47.3%13.8%
1 Year48.8%46.3%58.3%55.4%10.0%7.4%
3 Year316.0%286.7%53.6%44.5%6.6%-0.9%
5 Year914.0%815.0%297.7%265.2%53.3%36.1%

Long-Term Price Volatility Vs. Market

How volatile is Advantest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Advantest undervalued compared to its fair value and its price relative to the market?

34.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6857 (¥8940) is trading above our estimate of fair value (¥3442.14)

Significantly Below Fair Value: 6857 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6857 is poor value based on its PE Ratio (34.6x) compared to the JP Semiconductor industry average (29.8x).

PE vs Market: 6857 is poor value based on its PE Ratio (34.6x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6857 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 6857 is overvalued based on its PB Ratio (7.5x) compared to the JP Semiconductor industry average (2.3x).


Next Steps

Future Growth

How is Advantest forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6857's forecast earnings growth (11% per year) is above the savings rate (0%).

Earnings vs Market: 6857's earnings (11% per year) are forecast to grow slower than the JP market (17.6% per year).

High Growth Earnings: 6857's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6857's revenue (7.2% per year) is forecast to grow faster than the JP market (5.6% per year).

High Growth Revenue: 6857's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6857's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Advantest performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6857 has high quality earnings.

Growing Profit Margin: 6857's current net profit margins (18.2%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: 6857's earnings have grown significantly by 38.5% per year over the past 5 years.

Accelerating Growth: 6857's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6857 had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Semiconductor industry average (8.9%).


Return on Equity

High ROE: 6857's Return on Equity (21.8%) is considered high.


Next Steps

Financial Health

How is Advantest's financial position?


Financial Position Analysis

Short Term Liabilities: 6857's short term assets (¥237.1B) exceed its short term liabilities (¥68.8B).

Long Term Liabilities: 6857's short term assets (¥237.1B) exceed its long term liabilities (¥56.9B).


Debt to Equity History and Analysis

Debt Level: 6857 is debt free.

Reducing Debt: 6857 has no debt compared to 5 years ago when its debt to equity ratio was 31.4%.

Debt Coverage: 6857 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6857 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Advantest current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6857's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.22%).

High Dividend: 6857's dividend (0.92%) is low compared to the top 25% of dividend payers in the JP market (2.97%).


Stability and Growth of Payments

Stable Dividend: 6857's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6857's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), 6857's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Yoshiaki Yoshida (62 yo)

4yrs

Tenure

JP¥149,000,000

Compensation

Mr. Yoshiaki Yoshida has been the Chief Executive Officer and President at Advantest Corporation since January 26, 2017 and also has been its Representative Director since April 2013. He served as an Execu...


CEO Compensation Analysis

Compensation vs Market: Yoshiaki's total compensation ($USD1.44M) is about average for companies of similar size in the JP market ($USD2.02M).

Compensation vs Earnings: Yoshiaki's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yoshiaki Yoshida
CEO, President & Representative Director4yrsJP¥149.00m0.024%
¥ 429.1m
Soichi Tsukakoshi
Executive VP of Production Group3.58yrsJP¥101.00m0.0025%
¥ 43.8m
Atsushi Fujita
CFO, EVP of Corporate Administration Group1.58yrsno data0.0011%
¥ 19.6m
Kimiya Sakamoto
Executive VP of Sales Group & Managing Executive Officer2yrsno datano data
Keith Hardwick
Global HR Executive VP & Managing Executive Officerno datano datano data
Makoto Nakahara
Senior VP of Sales Group & Executive Officer9.58yrsno datano data
Toshiyuki Okayasu
Executive VP of New Concept Product Initiative & Managing Executive Officer2yrsno datano data
Kazuhiro Yamashita
Managing Executive Officer8.58yrsno datano data
Isao Sasaki
Executive VP of Quality Assurance Group & Managing Executive Officer6.58yrsno datano data
Koichi Tsukui
Managing Executive Officer & Director0.58yrno data0.00092%
¥ 16.1m
Douglas Lefever
Managing Executive Officer & Director0.58yrno datano data
Michael Stichlmair
Executive Officer & Senior VP of Sales Group3.58yrsno datano data

3.8yrs

Average Tenure

59yo

Average Age

Experienced Management: 6857's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshiaki Yoshida
CEO, President & Representative Director4yrsJP¥149.00m0.024%
¥ 429.1m
Soichi Tsukakoshi
Executive VP of Production Group3.58yrsJP¥101.00m0.0025%
¥ 43.8m
Atsushi Fujita
CFO, EVP of Corporate Administration Group1.58yrsno data0.0011%
¥ 19.6m
Koichi Tsukui
Managing Executive Officer & Director0.58yrno data0.00092%
¥ 16.1m
Douglas Lefever
Managing Executive Officer & Director0.58yrno datano data
Shinichiro Kuroe
Senior Executive Advisor7.58yrsno datano data
Yuichi Kurita
Director5.58yrsno data0.0058%
¥ 101.8m
Osamu Karatsu
Independent Outside Director8.58yrsno data0.0015%
¥ 26.8m
Toshimitsu Urabe
Independent Outside Director1.58yrsno data0.000050%
¥ 876.5k
Nicholas Benes
Independent Outside Director1.58yrsno data0.0010%
¥ 17.9m
Kouichi Nanba
Independent Outside Director1.58yrsno data0.000050%
¥ 876.5k
Sayaka Sumida
Outside Independent Director0.58yrno datano data

1.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 6857's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Advantest Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Advantest Corporation
  • Ticker: 6857
  • Exchange: TSE
  • Founded: 1954
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥1.753t
  • Shares outstanding: 196.08m
  • Website: https://www.advantest.com

Number of Employees


Location

  • Advantest Corporation
  • Shin Marunouchi Center Building
  • 1-6-2, Marunouchi
  • Tokyo
  • 100-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6857TSE (The Tokyo Stock Exchange)YesOrdinary SharesJPJPYJan 1992
ADTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
VANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
ATEY.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDSep 2001
VANADB (Deutsche Boerse AG)SPON ADR NEWDEEURSep 2001

Biography

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;...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 08:05
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.