Adtec Plasma Technology (TSE:6668) - Share price, News & Analysis

Q: What is the Fair Price of 6668 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6668 (¥1780) is trading below our estimate of [[fair value]] (¥5515.65)

6668 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	6/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

6668 Stock Overview

Adtec Plasma Technology Co., Ltd. engages in the design, manufacture, sale, and technical support of RF plasma generators, matching units, and digital RF power tracers in Japan.

Rewards

Trading at 67.7% below our estimate of its fair value

Earnings are forecast to grow 22.95% per year

Earnings grew by 112% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Volatile share price over the past 3 months

Adtec Plasma Technology Competitors

Asterisk

TSE:6522

JP¥11.0b

Chino

TSE:6850

JP¥14.4b

Santec

TSE:6777

JP¥24.2b

Dkk-Toa

TSE:6848

JP¥16.9b

Price History & Performance

Summary of all time highs, changes and price drops for Adtec Plasma Technology
Historical stock prices
Current Share Price	JP¥1,780.00
52 Week High	JP¥3,335.00
52 Week Low	JP¥1,426.00
Beta	1.67
1 Month Change	-0.28%
3 Month Change	-12.87%
1 Year Change	17.18%
3 Year Change	144.84%
5 Year Change	-2.47%
Change since IPO	-5.82%

Shareholder Returns

	6668	JP Electronic	JP Market
7D	3.1%	3.8%	2.5%
1Y	17.2%	-3.3%	1.9%

Return vs Industry: 6668 exceeded the JP Electronic industry which returned -3.3% over the past year.

Return vs Market: 6668 exceeded the JP Market which returned 1.9% over the past year.

Price Volatility

Is 6668's price volatile compared to industry and market?
6668 volatility
6668 Average Weekly Movement	6.1%
Electronic Industry Average Movement	4.0%
Market Average Movement	3.8%
10% most volatile stocks in JP Market	7.8%
10% least volatile stocks in JP Market	2.0%

Stable Share Price: 6668 is more volatile than 75% of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6668's weekly volatility (6%) has been stable over the past year, but is still higher than 75% of JP stocks.

About the Company

Founded	Employees	CEO	Website
1985	421	Hidenori Morishita	https://www.adtec-rf.com

Adtec Plasma Technology Co., Ltd. engages in the design, manufacture, sale, and technical support of RF plasma generators, matching units, and digital RF power tracers in Japan. The company offers automatic impedance matching boxes, measuring devices, DC power supply products, and microwaves. Its products are installed on tools for LCD panels and semiconductor processes.

Adtec Plasma Technology Fundamentals Summary

How do Adtec Plasma Technology's earnings and revenue compare to its market cap?
6668 fundamental statistics
Market Cap	JP¥15.39b
Earnings (TTM)	JP¥1.78b
Revenue (TTM)	JP¥11.06b

8.6x

P/E Ratio

1.4x

P/S Ratio

Is 6668 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6668 income statement (TTM)
Revenue	JP¥11.06b
Cost of Revenue	JP¥6.28b
Gross Profit	JP¥4.79b
Other Expenses	JP¥3.00b
Earnings	JP¥1.78b

Last Reported Earnings

May 31, 2022

Next Earnings Date

Oct 14, 2022

Earnings per share (EPS)	207.90
Gross Margin	43.26%
Net Profit Margin	16.12%
Debt/Equity Ratio	88.8%

How did 6668 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

9%

Payout Ratio

Does 6668 pay a reliable dividends?

See 6668 dividend history and benchmarks

When do you need to buy 6668 by to receive an upcoming dividend?
Adtec Plasma Technology dividend dates
Ex Dividend Date	Aug 30 2022
Dividend Pay Date	Nov 29 2022
Days until Ex dividend	13 days
Days until Dividend pay date	104 days

Does 6668 pay a reliable dividends?

See 6668 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6668 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6668?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6668. This is calculated by dividing 6668's market cap by their current preferred multiple.
What is 6668's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JP¥15.39b

6668 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	7.4x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 6668's PE Ratio compare to its peers?

6668 PE Ratio vs Peers

The above table shows the PE ratio for 6668 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.3x
6522 Asterisk	72.8x	n/a	JP¥11.0b
6850 Chino	12x	n/a	JP¥14.4b
6777 Santec	11.5x	1.9%	JP¥24.2b
6848 Dkk-Toa	13.2x	n/a	JP¥16.9b
6668 Adtec Plasma Technology	8.6x	22.9%	JP¥15.4b

Price-To-Earnings vs Peers: 6668 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the peer average (27.3x).

Price to Earnings Ratio vs Industry

How does 6668's PE Ratio compare vs other companies in the JP Electronic Industry?

Price-To-Earnings vs Industry: 6668 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the JP Electronic industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is 6668's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6668 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.6x
Fair PE Ratio	17.7x

Price-To-Earnings vs Fair Ratio: 6668 is good value based on its Price-To-Earnings Ratio (8.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

Share Price vs Fair Value

What is the Fair Price of 6668 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6668 (¥1780) is trading below our estimate of fair value (¥5515.65)

Significantly Below Fair Value: 6668 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Future Growth

How is Adtec Plasma Technology forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6668's forecast earnings growth (22.9% per year) is above the savings rate (0.04%).

Earnings vs Market: 6668's earnings (22.9% per year) are forecast to grow faster than the JP market (8.6% per year).

High Growth Earnings: 6668's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6668's revenue (22.6% per year) is forecast to grow faster than the JP market (4.3% per year).

High Growth Revenue: 6668's revenue (22.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6668's Return on Equity is forecast to be very high in 3 years time (67.2%).

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Past Performance

How has Adtec Plasma Technology performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.08%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6668 has high quality earnings.

Growing Profit Margin: 6668's current net profit margins (16.1%) are higher than last year (10.8%).

Past Earnings Growth Analysis

Earnings Trend: 6668's earnings have declined by 0.08% per year over the past 5 years.

Accelerating Growth: 6668's earnings growth over the past year (112%) exceeds its 5-year average (-0.08% per year).

Earnings vs Industry: 6668 earnings growth over the past year (112%) exceeded the Electronic industry 28.2%.

Return on Equity

High ROE: 6668's Return on Equity (21.5%) is considered high.

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Financial Health

How is Adtec Plasma Technology's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6668's short term assets (¥15.6B) exceed its short term liabilities (¥6.3B).

Long Term Liabilities: 6668's short term assets (¥15.6B) exceed its long term liabilities (¥3.3B).

Debt to Equity History and Analysis

Debt Level: 6668's net debt to equity ratio (40.7%) is considered high.

Reducing Debt: 6668's debt to equity ratio has increased from 81.9% to 88.8% over the past 5 years.

Debt Coverage: 6668's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6668's interest payments on its debt are well covered by EBIT (65.6x coverage).

Balance Sheet

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Dividend

What is Adtec Plasma Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.67%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6668's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 6668's dividend (0.67%) is low compared to the top 25% of dividend payers in the JP market (3.61%).

Stability and Growth of Payments

Stable Dividend: 6668 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6668 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6668 is not paying a notable dividend for the JP market.

Cash Payout to Shareholders

Cash Flow Coverage: 6668 is paying a dividend but the company has no free cash flows.

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Management

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

9.9yrs

Average management tenure

CEO

Hidenori Morishita (51 yo)

no data

Tenure

Mr. Hidenori Morishita served as a Manager of Sales Department at Adtec Plasma Technology Co., Ltd. Mr. Morishita served as Manager of Sales Department at Adtec Plasma Technology Co., Ltd. since November 2...

Leadership Team

Experienced Management: 6668's management team is seasoned and experienced (9.9 years average tenure).

Board Members

Experienced Board: 6668's board of directors are considered experienced (9.8 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/05/31
Annual Earnings	2021/08/31