AdvantestATEYY +2.33%87 Return-on-Tangible-Equity is 77.23% as of Mar. 2026, which is 107% above its 10-year median of 37.25. GuruFocus rates ATEYY with a GF Score™ of 87/100 and a GF Value™ of $96.12 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 985 Semiconductors companies, Advantest ranks better than 96.24% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Advantest's annualized net income for the quarter that ended in Mar. 2026 was $3,197 Mil. Advantest's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,140 Mil. Therefore, Advantest's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 77.23%.
The historical rank and industry rank for Advantest's Return-on-Tangible-Equity or its related term are showing as below:
ATEYY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.71 Med: 37.25 Max: 67.97
Current: 67.97
During the past 13 years, Advantest's highest Return-on-Tangible-Equity was 67.97%. The lowest was 16.71%. And the median was 37.25%.
ATEYY's Return-on-Tangible-Equity is ranked better than 96.24% of 985
companies
in the Semiconductors industry
Industry Median: 5.19
vs ATEYY: 67.97
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Advantest Return-on-Tangible-Equity Related Terms
Advantest Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Advantest's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ATEYY vs AMAT, LRCX, KLAC: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Advantest's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advantest Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advantest's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Advantest's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 77.23% mean?
Advantest (ATEYY) has a Return-on-Tangible-Equity of 77.23% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Advantest and its competitors. This is 107% above median its historical median of 37.25. Over the past decade, Advantest's Return-on-Tangible-Equity has ranged from 16.71 to 67.97. According to the industry distribution chart, Advantest ranks #37 out of 985 companies in the Semiconductors industry, placing it in the top 3.8%.
Is Advantest's Return-on-Tangible-Equity too high?
Advantest's current Return-on-Tangible-Equity of 77.23% is 107% above median its 10-year median of 37.25. Over the past 10 years, this metric has ranged from a low of 16.71 to a high of 67.97. The Semiconductors industry median Return-on-Tangible-Equity is 5.19. Advantest's value of 77.23% is 1388.1% above this industry median. Based on the distribution chart, Advantest ranks #37 out of 985 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Advantest has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advantest's Return-on-Tangible-Equity compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Advantest ranks #37 out of 985 companies for Return-on-Tangible-Equity. This places Advantest in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.19. Advantest's value of 77.23% is 1388.1% above this benchmark. Historically, Advantest's own Return-on-Tangible-Equity has ranged from 16.71 to 67.97 over the past decade. While the company's 10-year median is 37.25 vs. the industry median of 5.19, Advantest has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.19, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advantest's current Return-on-Tangible-Equity of 77.23% is 1388.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Advantest and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advantest's current Return-on-Tangible-Equity is 77.23%, which is 107% above median its own 10-year median of 37.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advantest stock overvalued right now?
Based on GuruFocus' analysis, Advantest (ATEYY) is currently considered Significantly Overvalued. The stock's GF Value™ is $96.12, compared to a current price of $205.42 — trading 113.7% above its estimated fair value. The current Return-on-Tangible-Equity is 77.23%, which is 107% above median its 10-year median of 37.25 and 1388.1% above the Semiconductors industry median of 5.19. Advantest's overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Advantest (ATEYY), the current Return-on-Tangible-Equity is 77.23% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advantest (ATEYY) Overvalued in 2026?
Based on GuruFocus' analysis, Advantest stock appears to be overvalued.
The current stock price of $205.42 is trading 113.7% above its estimated GF Value™ of $96.12.
GuruFocus considers Advantest to be Significantly Overvalued.
Key valuation signals for ATEYY:
Return-on-Tangible-Equity: 77.23% (107% above median its 10-year median of 37.25)
GF Value™: $96.12 vs. price of $205.42 (113.7% above fair value)
Industry Position: 1388.1% above the Semiconductors median (#37 of 985)
No single metric tells the full story. See the ATEYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1954 and headquartered in Tokyo, Advantest specializes in semiconductor test systems and is a well-known leader in automated test equipment, or ATE. Advantest also has a high market share in test systems for nonmemory semiconductors, including application processors for mobile phones. The company is also involved in peripheral businesses, such as semiconductor device transport equipment. Following its acquisition of Verigy in July 2011, Advantest holds a market share of over 50% in the ATE market.
87GF Score
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