Advantest Corporation Fundamental Analysis (JPX: 6857.T)
Advantest Corporation (JPX: 6857.T) shows strong financial fundamentals with a PE ratio of 54.48, profit margin of 37.32%, and ROE of 58.91%. The company generates $1231.6B in annual revenue with strong year-over-year growth of 44.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 99.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze 6857.T's fundamental strength across five key dimensions:
Efficiency Score
Excellent6857.T demonstrates superior asset utilization.
Valuation Score
Moderate6857.T shows balanced valuation metrics.
Growth Score
Moderate6857.T shows steady but slowing expansion.
Financial Health Score
Excellent6857.T maintains a strong and stable balance sheet.
Profitability Score
Excellent6857.T achieves industry-leading margins.
Key Financial Metrics
Is 6857.T Expensive or Cheap?
P/E Ratio
6857.T trades at 54.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 6857.T's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values Advantest Corporation at 23.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 41.33 times EBITDA. This signals the market has high growth expectations.
How Well Does 6857.T Make Money?
Net Profit Margin
For every $100 in sales, Advantest Corporation keeps $37.32 as profit after all expenses.
Operating Margin
Core operations generate 45.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.91 in profit for every $100 of shareholder equity.
ROA
Advantest Corporation generates $30.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advantest Corporation generates strong operating cash flow of $425.23B, reflecting robust business health.
Free Cash Flow
Advantest Corporation generates strong free cash flow of $388.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $535.99 in free cash annually.
FCF Yield
6857.T converts 1.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
54.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
23.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
20.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.30
vs 25 benchmark
ROCE
Return on capital employed
0.48
vs 25 benchmark
How 6857.T Stacks Against Its Sector Peers
| Metric | 6857.T Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 54.48 | 34.93 | Worse (Expensive) |
| ROE | 58.91% | 750.00% | Weak |
| Net Margin | 37.32% | -3058.00% (disorted) | Strong |
| Debt/Equity | 0.10 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 2.67 | 6.21 | Strong Liquidity |
| ROA | 30.37% | 308.00% | Weak |
6857.T outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advantest Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
290.63%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
482.29%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
434.97%
Industry Style: Growth, Innovation, High Beta
High Growth