ATE  Advantest Corporation (Kabushi...

Exchange

NYSE

Sector

Technology

Industry

Semiconductors

Market Cap.

1.71B

Vuru Grade

21.42/100

Current Price

$9.81
+0.16 (+1.71%)

Growth Price

$0.49
Overvalued by 94.99%

Company Metrics

  • P/E 28.256
  • P/S 1.168
  • P/B 1.314
  • EPS 0.35
  • Cash ROIC 3.96%
  • Cash Ratio 0.18
  • Dividend 0.16 / 0%
  • Avg. Vol. 20,286.00
  • Shares 33.66M
  • 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

16.83
MarketWatch - Apr 24, 2016
Advantest Corp. ADR. Advantest Corp. engages in the manufacture and sale of mechatronic products. It operates through the following business segments: Semiconductor and Components Test Systems, Mechatronic, and Service and Others.
Advantest Corp (ADR) (ATEYY) Analysts See $0.23 EPS
Finance News Daily - Jul 19, 2017
Wall Street await Advantest Corp (ADR) (OTCMKTS:ATEYY) to release earnings on July, 26. Analysts forecast EPS of $0.23, down exactly $0.01 or 4.17 % from 2014's $0.24 EPS.
EPS for Advantest Corp (ADR) (ATEYY) Expected At $0.23
KL Daily - Jul 25, 2017
Analysts expect Advantest Corp (ADR) (OTCMKTS:ATEYY) to report $0.23 EPS on July, 26.They anticipate $0.01 EPS change or 4.17 % from last quarter's $0.24 EPS.
Advantest Corp (ADR) (NASDAQ:ATEYY) has been downgraded to Sell in a statement ...
Breaking Finance News - Aug 13, 2017
Having a price of $16.68, Advantest Corp (ADR) (NASDAQ:ATEYY) traded 0.30% higher on the day. With the last close up 0.00% from the two hundred day average, compared with the S&P 500 Index which has increased 0.05% over the same period.
Zacks: Advantest Corp (NASDAQ:ATEYY) Receives Average Recommendation of “Hold ...
BNB Daily (blog) - Jul 11, 2017
Advantest Corp logo Shares of Advantest Corp (NASDAQ:ATEYY) have received a consensus broker rating score of 3.00 (Hold) from the one brokers that provide coverage for the stock, Zacks Investment Research reports.
Analysts See $0.36 EPS for AU Optronics Corp (ADR) (AUO)
Press Telegraph - Jul 19, 2017
Wall Street await AU Optronics Corp (ADR) (NYSE:AUO) to release earnings on July, 26. Analysts forecast earnings per share of $0.36, up exactly $0.38 or 1,900.00 % from 2014's $-0.02 EPS.
Can ADVANTEST CORPORATION (OTCMKTS:ADTTF)'s Tomorrow be Different? The Stock ...
BZ Weekly - Jul 3, 2017
The stock of ADVANTEST CORPORATION (OTCMKTS:ADTTF) registered an increase of 12.69% in short interest. ADTTF's total short interest was 5.03 million shares in August as published by FINRA.
Advantest Corp (NASDAQ:ATEYY) Upgraded at Zacks Investment Research
Community Financial News - Jul 5, 2017
Advantest Corp (NASDAQ:ATEYY) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, June 27th.
Storage Technology Corp (NYSE:STK) Institutional Investors Sentiment
Finance News Daily - Jul 10, 2017
Storage Technology Corp (NYSE:STK) institutional sentiment decreased to 0.9 in 2016 Q4. Its down -0.60, from 1.5 in 2016Q3.
Is Buying 52-Week Stock Like HSBC Holdings plc (ADR) (HSBC) a Winning Strategy?
Press Telegraph - Jul 13, 2017
The stock of HSBC Holdings plc (ADR) (NYSE:HSBC) hit a new 52-week high and has $51.92 target or 8.00 % above today's $48.07 share price.
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

$0.49 Growth Price (DCF)

Overvalued by 94.99%


Growth Rate Assumed by Market: 91.25%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.07 NCA Price

Overvalued by 99.32%

$0.00 Book Price

Overvalued by 99.96%


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 $3.96 of cash for every $100 invested.
Figures in JPY. Fiscal year ends in December
20122013201420152016
Free Cash Flow 6.04B -14.04B -10.12B 20.77B 98.14M
divided by
Invested Capital 100.64B 151.95B 134.25B 125.78B 697.13M
Cash ROIC 6.00% -9.24% -7.54% 16.52% 14.08%

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 $2.24 loss for every $100 of Shareholders' Equity.
Figures in JPY. Fiscal year ends in December
20122013201420152016
Net Income -2.20B -3.82B -35.54B 12.95B 107.44M
divided by
Stockholders' Equity 131.55B 141.24B 116.25B 140.94B 738.75M
Return on Equity -1.67% -2.71% -30.57% 9.19% 14.54%

Mediocre Business Performance over the past 6 years

ATE isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

ATE has been unable to consistently create value for shareholders.
Figures in JPY. Fiscal year ends in December
201120122013201420152016
Free Cash Flow -3.83B 6.04B -14.04B -10.12B 20.77B 98.14M

Good Balance Sheet

ATE's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in JPY. Fiscal year ends in December
201120122013201420152016
Cash 87.97B 58.22B 45.67B 69.00B 97.57B 94.99M
Current Assets 137.17B 118.70B 112.79B 124.82B 164.80B 776.64M
Total Assets 180.31B 219.23B 225.52B 229.86B 273.04B 1.33B
Current Liabilities 24.51B 60.37B 27.90B 26.61B 49.69B 536.85M
Total Liabilities 42.18B 87.67B 84.27B 113.60B 132.10B 590.22M
Stockholder' Equity 138.13B 131.55B 141.24B 116.25B 140.94B 738.75M
Current Ratio 5.60 1.97 4.04 4.69 3.32 1.45
TL-to-TA 0.23 0.40 0.37 0.49 0.48 0.44

Low or No Reinvestment of Profits over the past 6 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 December
201120122013201420152016
Retained Earnings 183.01B 179.08B 170.63B 130.74B 141.10B 112.41M
Retained Earnings Growth - -2.15% -4.72% -23.38% 7.93% -99.92%

Loss Making Entity over the past 6 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.

$3.16 of every $100 of Revenue have been a loss, on average over the past 6 years.
Figures in JPY. Fiscal year ends in December
201120122013201420152016
Net Income 3.16B -2.20B -3.82B -35.54B 12.95B 107.44M
divided by
Revenue 99.63B 141.05B 132.90B 111.88B 163.33B 1.75B
Net Profit Margin 3.17% -1.56% -2.88% -31.77% 7.93% 6.15%

Strong Pricing Power over the past 6 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.

$44.96 of every $100 worth of sales have been Gross Profit, on average over the past 6 years.
Figures in JPY. Fiscal year ends in December
201120122013201420152016
Gross Profit 48.47B 68.75B 68.92B 49.33B 90.43B 368.61M
divided by
Revenue 99.63B 141.05B 132.90B 111.88B 163.33B 1.75B
Gross Margin 48.65% 48.74% 51.86% 44.10% 55.36% 21.08%

Medium Capital Intensity over the past 6 years

ATE has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

47.04% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in JPY. Fiscal year ends in December
201120122013201420152016
Capital Expenditure 3.14B 6.26B 11.83B 6.34B 3.71B 14.27M
divided by
Net Income 3.16B -2.20B -3.82B -35.54B 12.95B 107.44M
Capital Expenditure Ratio 99.21% -285.19% -309.58% -17.84% 28.63% 13.28%

Good Dividend History over the past 6 years

ATE has distributed dividends for the past 6 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 December
201120122013201420152016
Dividend Paid 1.76B 1.73B 3.46B 3.47B 1.74B 33.22M
divided by
Shares Outstanding 175.50M 173.27M 173.48M 174.13M 192.54M 33.66M
Dividend Paid Per Share 0.12 0.12 0.24 0.24 0.11 0.01
Price at Year End 9.46 15.39 12.40 12.44 8.35 9.81
Dividend Yield 1.28% 0.78% 1.94% 1.94% 1.31% 0.12%

History of Stock Buybacks over the past 6 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 December
201120122013201420152016
Shares Outstanding 175.50M 173.27M 173.48M 174.13M 192.54M 33.66M
Stock Bought Back - 1.28% -0.12% -0.38% -9.56% 471.92%
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