Advantest Corp (ATEYY)

Price$216.47Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares demand unusually strong growth for years, leaving little room for disappointment.

The Tokyo-listed shares trade at about 38 times management’s newly raised full-year earnings forecast and about 67 times the prior year’s earnings. The depositary receipt represents one ordinary share, so the U.S. security carries essentially the same underlying valuation. At roughly ¥25 trillion of equity value, even the latest ¥660 billion profit forecast implies only about a 2.6% earnings yield. For a cyclical equipment supplier, that price requires exceptional artificial-intelligence testing demand and near-record profitability to persist well beyond the current boom.

Big pictureToday’s boom is extraordinary, but Advantest’s older record shows semiconductor testing can swing violently.

The supplied SEC-derived history shows why normalized earnings matter. Between fiscal years ending March 2010 and March 2015, revenue ranged from about ¥53 billion to ¥163 billion, while operating results moved from an ¥11.6 billion loss to a ¥14.6 billion profit and included a ¥36.4 billion loss. Cash generation also alternated between sizable inflows and outflows. Current conditions are dramatically stronger: fiscal 2025 sales reached ¥1.13 trillion and operating profit ¥499 billion. The bear case is therefore not business weakness; it is paying a peak-like price for potentially peak-like economics.

Business strengthProfits, cash generation, and the balance sheet are exceptionally strong despite the demanding valuation.

Fiscal 2025 operating cash flow reached ¥335 billion, versus ¥286 billion a year earlier; after about ¥36 billion of property and intangible spending, roughly ¥299 billion remained as free cash flow, meaning cash left after running and investing in the business. First-quarter operating cash flow then rose to ¥137 billion. Cash reached ¥413 billion and shareholder equity ¥1.04 trillion, equal to 68.8% of assets. Advantest also spent heavily on shareholders, including ¥114 billion of fiscal 2025 buybacks and ¥36 billion of dividends.

What could change the storySustained artificial-intelligence test demand could justify more upside, while normalization would expose the valuation.

The strongest bull case is that semiconductor testing has structurally changed: management now forecasts ¥1.71 trillion of sales and ¥846 billion of operating profit, up 52% and 70%, with a 49.4% operating margin. Continued growth near those rates would make today’s multiple less extreme. The counterweight is capital allocation and dilution. Advantest completed nearly ¥150 billion of repurchases, but also raised ¥100 billion through convertible bonds with stock-acquisition rights and uses share compensation. If growth slows while margins retreat toward historical levels, buybacks are unlikely to protect a valuation near 38 times forecast earnings.

AI: News

Forecast raised sharplySurging artificial-intelligence chip testing pushed quarterly profits higher and triggered a major full-year forecast increase.

On July 29, Advantest reported first-quarter sales of ¥367.5 billion, up 39%, and operating profit of ¥190.0 billion, up 53%. Management lifted its full-year operating-profit forecast from ¥627.5 billion to ¥846.0 billion and net-income guidance from ¥465.5 billion to ¥660.0 billion, citing much stronger inference artificial-intelligence semiconductor testing demand. The Tokyo shares rose about 11% the following session according to Reuters reporting, a reaction consistent with investors materially raising future earnings expectations.

Buyback program completedAdvantest finished a large share repurchase, returning cash while modestly reducing the share count.

Advantest announced on August 20 that it had completed the repurchase authorized in October 2025. It bought 5.759 million shares for almost ¥150 billion, including 405,700 shares for about ¥14.0 billion during August. The authorization originally allowed as many as 18 million shares, or 2.5% of the then outstanding shares excluding treasury stock. The completed purchase supports earnings per share by shrinking the effective share count, although its roughly 0.8% size relative to the current share base is modest beside the company’s valuation.

Loading local price history

Revenue

2008

2009

2010

2011

2012

2013

2014

2023

2024

2025

2026

Net income

2008

2009

2010

2011

2012

2013

2014

2023

2024

2025

2026

Free cash flow

2008

2009

2010

2011

2012

2013

2014

2023

2024

2025

2026

Total cash / debt

CashTotal debt

2008

2009

2010

2011

2012

2013

2014

2023

2024

2025

2026

Financial statements

	2026	2025	2024	2023	2014	2013	2012	2011	2010	2009	2008
Revenue	¥1.13T	¥779.71B	¥486.51B	¥560.19B	¥163.33B	¥111.88B	¥132.90B	¥141.05B	¥99.63B	¥53.23B	¥76.65B
Gross profit	¥726.11B	¥445.08B	¥246.03B	¥319.06B	¥90.43B	¥49.33B	¥68.92B	¥68.75B	¥48.47B	¥25.93B	¥19.82B
Gross margin	64.34%	57.08%	50.57%	56.96%	55.36%	44.10%	51.86%	48.74%	48.65%	48.71%	25.85%
Research & development	—	—	—	—	¥29.88B	¥32.67B	¥33.06B	¥30.30B	¥21.20B	¥17.90B	¥23.71B
Operating expenses	¥226.99B	¥216.92B	¥164.40B	¥151.37B	¥75.81B	¥85.70B	¥68.84B	¥67.91B	¥42.36B	¥37.57B	¥69.27B
Operating income	¥499.12B	¥228.16B	¥81.63B	¥167.69B	¥14.62B	−¥36.37B	¥80.0M	¥837.0M	¥6.11B	−¥11.64B	−¥49.46B
Operating margin	44.22%	29.26%	16.78%	29.93%	8.95%	−32.51%	0.06%	0.59%	6.13%	−21.87%	−64.52%
EBITDA	¥545.09B	¥257.13B	¥108.98B	¥193.54B	¥19.68B	−¥28.10B	¥8.14B	¥7.67B	¥10.32B	−¥7.33B	−¥40.74B
EBITDA margin	48.30%	32.98%	22.40%	34.55%	12.05%	−25.12%	6.13%	5.44%	10.36%	−13.76%	−53.15%
Net income	¥375.35B	¥161.18B	¥62.29B	¥130.40B	¥12.95B	−¥35.54B	−¥3.82B	−¥2.19B	¥3.16B	−¥11.45B	−¥74.90B
Net profit margin	33.26%	20.67%	12.80%	23.28%	7.93%	−31.77%	−2.88%	−1.56%	3.17%	−21.52%	−97.72%
Basic EPSper basic share	¥515.15	¥218.67	¥84.45	¥174.35	¥74.31	-¥204.10	-¥22.03	-¥12.67	¥18.03	-¥64.09	-¥419.09
Diluted EPSper diluted share	¥513.30	¥218.01	¥84.16	¥173.68	¥67.16	-¥204.10	-¥22.03	-¥12.67	¥18.03	-¥64.09	-¥419.09

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 18 reported holders of ATEYY
Holder	Shares held
Boston Common Asset Management, LLC	32.44K
RHUMBLINE ADVISERS	17.52K
Ativo Capital Management LLC	13.64K
GAMMA Investing LLC	5.68K
Canopy Partners, LLC	3.77K
DIVERSIFIED TRUST CO	3.1K
YOUSIF CAPITAL MANAGEMENT, LLC	2.27K
Calydon Capital	1.43K
Enterprise Financial Services Corp	1.21K
Westside Investment Management, Inc.	800
PNC Financial Services Group, Inc.	704
Salomon & Ludwin, LLC	445
ATLAS CAPITAL ADVISORS INC.	270
First Command Advisory Services, Inc.	167
IMA Advisory Services, Inc.	127
HUNTINGTON NATIONAL BANK	56
Gleason Group, Inc.	26
Horrell Capital Management, Inc.	13

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about ATEYY yet. Start the conversation.

Write the first post

Advantest Corp (ATEYY)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.