Advantest Corp. (6857) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nissan Chemical Corp.

Advantest Corp.

Yokogawa Electric Corp.

Nitto Denko Corp.

Dexerials Corp.

Amano Corp.

KEYENCE Corp.

Lasertec Corp.

Azbil Corp.

ULVAC, Inc.

Toshiba Tec Corp.

Why is Advantest Corp. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 27.23%

Healthy long term growth as Net Sales has grown by an annual rate of 23.09% and Operating profit at 33.56%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 56.89

With a growth in Operating Profit of 56.22%, the company declared Outstanding results in Dec 25

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at JPY 334,160 MM
NET PROFIT(HY) At JPY 158,346 MM has Grown at 62.68%
ROCE(HY) Highest at 49.26%

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 179.14% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Advantest Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Advantest Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Advantest Corp.

179.14%

1216.22

68.60%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.09%

EBIT Growth (5y)

33.56%

EBIT to Interest (avg)

56.89

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

1.16

Tax Ratio

28.29%

Dividend Payout Ratio

17.83%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

50.31%

ROE (avg)

27.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.73

EV to EBIT

23.07

EV to EBITDA

20.81

EV to Capital Employed

17.78

EV to Sales

7.39

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

77.07%

ROE (Latest)

31.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 334,160 MM

NET PROFIT(HY)

At JPY 158,346 MM has Grown at 62.68%

ROCE(HY)

Highest at 49.26%

DEBT-EQUITY RATIO (HY)

Lowest at -35.31 %

DEBTORS TURNOVER RATIO(HY)

Highest at 8.1 times

RAW MATERIAL COST(Y)

Fallen by -14.02% (YoY

CASH AND EQV(HY)

Highest at JPY 627,518 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.79 times

NET SALES(Q)

Highest at JPY 273,804 MM

PRE-TAX PROFIT(Q)

At JPY 113,832 MM has Grown at 61.36%

-5What is not working for the Company

INTEREST(Q)

At JPY 444 MM has Grown at inf%

Here's what is working for Advantest Corp.

Operating Cash Flow

Highest at JPY 334,160 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Profit

At JPY 158,346 MM has Grown at 62.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debt-Equity Ratio

Lowest at -35.31 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 8.1 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at JPY 273,804 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 273,804 MM has Grown at 25.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 113,832 MM has Grown at 61.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Cash and Eqv

Highest at JPY 627,518 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -14.02% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Advantest Corp.

Interest

At JPY 444 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)