Advantest Corporation

6857.T

Semiconductors · Technology

Price

¥35940.00

+1390.00 (+4.02%)

Market Cap

¥26.02T

Exchange

Tokyo Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 13, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Exceptional

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Share count falling — buybacks

−6.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 780.8M (2022) → 731.3M (2026)

Winston Score History

The full picture

Advantest Corporation is a Japanese company that makes machines used to test semiconductors — the tiny chips found in smartphones, computers, and AI servers. Its main products are automated test equipment (ATE), which chip manufacturers use to check that chips work correctly before they ship to customers. Advantest is one of the two dominant players in the global chip testing equipment market, alongside Teradyne.

Advantest earns money by selling and servicing these testing machines to major chipmakers and chip packaging companies around the world, including customers like TSMC and SK Hynix. The company is headquartered in Tokyo but generates most of its revenue from Asia, with significant sales in the United States and Europe as well. Its strong competitive position comes from deep technical expertise and long customer relationships that are hard to replace. The biggest growth driver is rising demand for AI chips, which require more complex and expensive testing than standard chips.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+41.2% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+220.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.1%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$411.9B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Advantest Corporation is growing revenue at 41% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

69.5%

Premium pricing power — 69.5% gross margin

Operating Margin

51.5%

Excellent — 51.5% operating margin

ROCE

16.7%

Strong — 16.7% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY

+36.2%

Fast-growing sales (+36.2% YoY)

EPS YoY

+104.7%

Earnings growing fast (+104.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

93%

Modest — 93% of profit becomes cash

FCF Margin

31.5%

Converts sales into free cash efficiently (31.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.09

Conservative — low debt load (0.09)

Interest Cover

547.15x

Comfortably covers interest (547.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

56.8x

Expensive — P/E 56.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+26.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (56.8 → 29.8)

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Dividends

Dividend Yield

0.16%

Small dividend — 0.16% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-42.1%

Dividend cut (-42.1% YoY) — warning sign

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