ATE  Advantest Corporation (Kabushi...

Exchange

NYSE

Sector

Technology

Industry

Semiconductors

Market Cap.

1.71B

Vuru Grade

42.27/100

Current Price

$9.81
+0.00 (+0.00%)

Growth Price

$19.02
Undervalued by 93.85%

Stability Price

$9.82
Fairly valued

Company Metrics

  • P/E 28.256
  • P/S 1.168
  • P/B 1.314
  • EPS 0.35
  • Cash ROIC 0.02%
  • Cash Ratio 1.96
  • Dividend 0.16 / 0%
  • Avg. Vol. 20,286.00
  • Shares 174.31M
  • Market Cap. 1.71B

Company Description

Advantest Corporation and its subsidiaries manufacture and sell semiconductor and component test system products, and mechatronics-related products. It operates in three segments: Semiconductor and Component Test System; Mechatronics System; and Services, Support, and Others. The Semiconductor and Component Test System segment provides test systems for memory semiconductors for memory semiconducto... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Advantest Corp. ADR
MarketWatch - Apr 24, 2016
Check out the returns on our 8 Lazy Portfolios that are made up of low-cost buy-and-hold index funds. • How to create your own Lazy Portfolio.
A statement released earlier today by Zacks Investment Research about ...
Breaking Finance News - Feb 28, 2017
Zacks Investment Research bumped up the target of Advantest Corp (ADR) (NASDAQ:ATEYY) to $19.00 stating a potential upside of 0.10%.
'Merger Mania' In Semiconductor Space: Who's Up To Bat And Who's Struck Out
Benzinga - Nov 25, 2015
However, organic growth prospects within its own space are somewhat limited, as the market share split between Advantest Corp (ADR) (NYSE: ATE) and Teradyne “appears stable and unlikely to change much.” Having said this, Teradyne still looks like an ...
News Teradyne Inc.TER
Wall Street Journal - Feb 12, 2011
+0.11% +0.01, 36.41. ATEYY · Advantest Corp. ADR. +3.01% +0.50, 30.93. More information on TER; Competitor Data Provided By: capital cube · Profile TER.
Most Asia markets up on techs, China developers
MarketWatch - Apr 25, 2012
(SEU)Among developers, Gemdale Corp. (600383) jumped 4% in Shanghai and China Vanke Co. CVKEY, +0.00% climbed 2.9% in Shenzhen; in Hong Kong, China Overseas Land & Investment Ltd.
Camtek Ltd. CAMT (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
+0.23% +0.05, 18.46. ATEYY · Advantest Corp. ADR. -3.46% -0.60, 30.02. NJDCY · Nidec Corp. ADR. +0.62% +0.14, 29.30.
News Rudolph Technologies Inc.RTEC
Wall Street Journal - Feb 13, 2011
+0.11% +0.01, 36.41. ATEYY · Advantest Corp. ADR. +3.01% +0.50, 30.93. More information on RTEC; Competitor Data Provided By: capital cube · Profile RTEC.
Aehr Test Systems AEHR (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
ATEYY · Advantest Corp. ADR. +3.01% +0.50, 30.93. More information on AEHR; Competitor Data Provided By: capital cube · Profile AEHR.
FormFactor Inc. FORM (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
+14.70% +0.26, -. ATEYY · Advantest Corp. ADR. -3.46% -0.60, 30.02. More information on FORM; Competitor Data Provided By: capital cube · Profile FORM.
InPlay from Briefing.com
Yahoo Finance - Jan 18, 2015
The joint venture will offer one of the broadest multistage completions portfolios in the market combined with one of the largest hydraulic fracturing fleets in the industry.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ATE to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ATE's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$9.81 Current Price

$19.02 Growth Price (DCF)

Undervalued by 93.85%


Growth Rate Assumed by Market: -128.91%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.82 Stability Price (EPV)

Fairly valued


Discount Rate: 15.0%

$2.26 NCA Price

Overvalued by 76.92%

$0.15 Book Price

Overvalued by 98.50%


Poor Cash Return on Invested Capital over the past 5 years

ATE has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ATE has only created $0.02 of cash for every $100 invested.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Free Cash Flow -3.83B 6.04B -14.04B -10.12B 20.77B
divided by
Invested Capital 67.83B 100.64B 151.95B 134.25B 125.78B
Cash ROIC -5.65% 6.00% -9.24% -7.54% 16.52%

Very Poor Return on Equity over the past 5 years

ATE has shown an inability to deliver results for shareholders. This could be due to poor management, ATE operating in a highly competitive industry, or having a weak business in general.

ATE has generated a $4.69 loss for every $100 of Shareholders' Equity.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Net Income 3.16B -2.20B -3.82B -35.54B 12.95B
divided by
Stockholders' Equity 138.13B 131.55B 141.24B 116.25B 140.94B
Return on Equity 2.29% -1.67% -2.71% -30.57% 9.19%

Poor Business Performance over the past 5 years

ATE's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ATE has been losing money for the majority of the past 10 years.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Free Cash Flow -3.83B 6.04B -14.04B -10.12B 20.77B

Strong Balance Sheet

ATE is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Cash 87.97B 58.22B 45.67B 69.00B 97.57B
Current Assets 137.17B 118.70B 112.79B 124.82B 164.80B
Total Assets 180.31B 219.23B 225.52B 229.86B 273.04B
Current Liabilities 24.51B 60.37B 27.90B 26.61B 49.69B
Total Liabilities 42.18B 87.67B 84.27B 113.60B 132.10B
Stockholder' Equity 138.13B 131.55B 141.24B 116.25B 140.94B
Current Ratio 5.60 1.97 4.04 4.69 3.32
TL-to-TA 0.23 0.40 0.37 0.49 0.48

Low or No Reinvestment of Profits over the past 5 years

ATE has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ATE operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Retained Earnings 183.01B 179.08B 170.63B 130.74B 141.10B
Retained Earnings Growth - -2.15% -4.72% -23.38% 7.93%

Loss Making Entity over the past 5 years

ATE has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$5.02 of every $100 of Revenue have been a loss, on average over the past 5 years.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Net Income 3.16B -2.20B -3.82B -35.54B 12.95B
divided by
Revenue 99.63B 141.05B 132.90B 111.88B 163.33B
Net Profit Margin 3.17% -1.56% -2.88% -31.77% 7.93%

Strong Pricing Power over the past 5 years

ATE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$49.74 of every $100 worth of sales have been Gross Profit, on average over the past 5 years.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Gross Profit 48.47B 68.75B 68.92B 49.33B 90.43B
divided by
Revenue 99.63B 141.05B 132.90B 111.88B 163.33B
Gross Margin 48.65% 48.74% 51.86% 44.10% 55.36%

High Capital Intensity over the past 5 years

ATE spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

63.92% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Capital Expenditure 3.14B 6.26B 11.83B 6.34B 3.71B
divided by
Net Income 3.16B -2.20B -3.82B -35.54B 12.95B
Capital Expenditure Ratio 99.21% -285.19% -309.58% -17.84% 28.63%

Good Dividend History over the past 5 years

ATE has distributed dividends for the past 5 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Dividend Paid 1.76B 1.73B 3.46B 3.47B 1.74B
divided by
Shares Outstanding 175.50M 173.27M 173.48M 174.13M 192.54M
Dividend Paid Per Share 0.12 0.12 0.24 0.24 0.11
Price at Year End 9.46 15.39 12.40 12.44 8.35
Dividend Yield 1.28% 0.78% 1.94% 1.94% 1.31%

History of Stock Buybacks over the past 5 years

ATE has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in JPY. Fiscal year ends in March
20112012201320142015
Shares Outstanding 175.50M 173.27M 173.48M 174.13M 192.54M
Stock Bought Back - 1.28% -0.12% -0.38% -9.56%
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