OTCPK:ATEY.Y

Stock Analysis Report

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Executive Summary

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


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: ATEY.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

ATEY.Y

3.5%

US Semiconductor

1.3%

US Market


1 Year Return

7.0%

ATEY.Y

44.9%

US Semiconductor

15.8%

US Market

Return vs Industry: ATEY.Y underperformed the US Semiconductor industry which returned 41.5% over the past year.

Return vs Market: ATEY.Y underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

ATEY.YIndustryMarket
7 Day-0.4%3.5%1.3%
30 Day1.8%-0.7%-4.1%
90 Day-16.2%12.9%8.4%
1 Year7.0%7.0%47.7%44.9%18.4%15.8%
3 Year148.1%146.5%84.0%74.4%38.2%29.0%
5 Year529.7%525.6%241.0%207.5%84.9%64.0%

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?

19.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATEY.Y ($47.55) is trading above our estimate of fair value ($33.17)

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


Price To Earnings Ratio

PE vs Industry: ATEY.Y is good value based on its PE Ratio (19.2x) compared to the US Semiconductor industry average (34.2x).

PE vs Market: ATEY.Y is poor value based on its PE Ratio (19.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ATEY.Y is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: ATEY.Y is overvalued based on its PB Ratio (4.3x) compared to the US Semiconductor industry average (3.1x).


Next Steps

Future Growth

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

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATEY.Y's forecast earnings growth (12.7% per year) is above the savings rate (2.2%).

Earnings vs Market: ATEY.Y's earnings (12.7% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: ATEY.Y's revenue (7.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ATEY.Y's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATEY.Y's Return on Equity is forecast to be low in 3 years time (19.8%).


Next Steps

Past Performance

How has Advantest performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATEY.Y has high quality earnings.

Growing Profit Margin: ATEY.Y's current net profit margins (18.8%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: ATEY.Y's earnings have grown significantly by 38.9% per year over the past 5 years.

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

Earnings vs Industry: ATEY.Y had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).


Return on Equity

High ROE: ATEY.Y's Return on Equity (22.2%) is considered high.


Next Steps

Financial Health

How is Advantest's financial position?


Financial Position Analysis

Short Term Liabilities: ATEY.Y's short term assets (¥240.8B) exceed its short term liabilities (¥68.3B).

Long Term Liabilities: ATEY.Y's short term assets (¥240.8B) exceed its long term liabilities (¥56.5B).


Debt to Equity History and Analysis

Debt Level: ATEY.Y is debt free.

Reducing Debt: ATEY.Y has no debt compared to 5 years ago when its debt to equity ratio was 31.1%.

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

Interest Coverage: ATEY.Y 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?

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ATEY.Y's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: ATEY.Y's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (4.94%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.3%), ATEY.Y'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?

3.5yrs

Average management tenure


CEO

Yoshiaki Yoshida (62 yo)

3.67yrs

Tenure

JP¥132,000,000

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. Mr. Yoshida served as ...


CEO Compensation Analysis

Compensation vs Market: Yoshiaki's total compensation ($USD1.25M) is below average for companies of similar size in the US market ($USD7.43M).

Compensation vs Earnings: Insufficient data to compare Yoshiaki's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yoshiaki Yoshida
CEO, President & Representative Director3.67yrsJP¥132.00m0.024%
¥ 2.3m
Atsushi Fujita
CFO, EVP of Corporate Administration Group1.25yrsno data0.0011%
¥ 105.5k
Kimiya Sakamoto
Executive VP of Sales Group & Managing Executive Officer1.67yrsno datano data
Keith Hardwick
Global HR Executive VP & Managing Executive Officerno datano datano data
Soichi Tsukakoshi
Executive VP of Production Group3.25yrsno data0.0025%
¥ 233.5k
Makoto Nakahara
Senior VP of Sales Group & Executive Officer9.25yrsno datano data
Toshiyuki Okayasu
Executive VP of New Concept Product Initiative & Managing Executive Officer1.67yrsno datano data
Kazuhiro Yamashita
Managing Executive Officer8.25yrsno datano data
Isao Sasaki
Executive VP of Quality Assurance Group & Managing Executive Officer6.25yrsno datano data
Koichi Tsukui
Managing Executive Officer0.25yrno data0.00091%
¥ 85.7k
Douglas Lefever
Managing Executive Officer & Director0.25yrno datano data
Michael Stichlmair
Executive Officer & Senior VP of Sales Group3.25yrsno datano data

3.5yrs

Average Tenure

59yo

Average Age

Experienced Management: ATEY.Y's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshiaki Yoshida
CEO, President & Representative Director3.67yrsJP¥132.00m0.024%
¥ 2.3m
Atsushi Fujita
CFO, EVP of Corporate Administration Group1.25yrsno data0.0011%
¥ 105.5k
Soichi Tsukakoshi
Executive VP of Production Group3.25yrsno data0.0025%
¥ 233.5k
Koichi Tsukui
Managing Executive Officer0.25yrno data0.00091%
¥ 85.7k
Douglas Lefever
Managing Executive Officer & Director0.25yrno datano data
Shinichiro Kuroe
Senior Executive Advisor7.25yrsno datano data
Yuichi Kurita
Director5.25yrsno data0.0058%
¥ 544.2k
Osamu Karatsu
Independent Outside Director8.25yrsno data0.0015%
¥ 143.1k
Toshimitsu Urabe
Independent Outside Director1.25yrsno data0.000050%
¥ 4.7k
Nicholas Benes
Independent Outside Director1.25yrsno data0.0010%
¥ 95.1k
Kouichi Nanba
Independent Outside Director1.25yrsno data0.000050%
¥ 4.7k
Sayaka Sumida
Director0.25yrno datano data

1.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ATEY.Y's board of directors are not considered experienced ( 1.3 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: ATEY.Y
  • Exchange: OTCPK
  • Founded: 1954
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥994.300b
  • Listing Market Cap: JP¥9.416b
  • Shares outstanding: 197.28m
  • 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 Analysis2020/09/28 23:35
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
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.