Ateam Inc. (3662) AI Stock Analysis

• Market Cap: ¥16.14B
• Dividend Yield: 1.85%
• Average Volume (3M): 56.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 0.63%
• EPS Growth: -1.84%
• Country: JP
• Employees: 813
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -3.54
• Shares Outstanding: 18,811,134
• 10 Day Avg. Volume: 50,120
• 30 Day Avg. Volume: 56,636
• PEG Ratio: 2.55
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 13.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥946.00 ▼(-25.39% Downside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is supported primarily by improving financial performance (stronger balance sheet, renewed profitability, and solid recent cash flow), but is held back by weak technical momentum (trading below key moving averages with negative MACD) and mixed valuation signals due to a negative P/E despite an attractive dividend yield.

Positive Factors

High gross profit margin

An >85% gross margin indicates the business earns substantial revenue over direct costs, typical of scalable digital service models. This pricing power and low incremental cost structure support durable profitability and cash generation, sustaining returns as scale grows.

Low financial leverage

A very low debt-to-equity ratio and strong equity base give the company financial flexibility to invest, fund operations, and weather downturns without heavy interest burdens. This reduces default risk and supports long-term strategic moves and steady capital allocation.

Strong free cash flow growth

Notable free cash flow growth and high FCF-to-net-income conversion mean the company generates cash beyond accounting profits. Durable cash generation funds reinvestment, dividends or buybacks and validates earnings quality, offering long-term financial resilience.

Negative Factors

Stagnant revenue growth

Nearly flat top-line growth constrains the firm’s ability to scale operating leverage and translate high gross margins into substantially higher profits. Over months this limits market-share gains and reduces optionality for pricing, investment returns, and sustainable margin expansion.

Low operating margins

Despite very high gross margins, muted EBIT/EBITDA margins indicate operational inefficiencies or elevated overhead. This narrows the buffer for reinvestment or shocks, and implies that improving cost structure or scaling SG&A is necessary for durable profitability gains.

Historical cash flow volatility

Past swings in cash flow growth reduce predictability of funding for capex, dividends, or M&A. Even with recent FCF gains, inconsistent cash generation can force short-term financing or curtail investment, raising execution risk over a 2-6 month horizon.

Ateam Inc. Business Overview & Revenue Model

Company Description

Ateam Inc. engages in entertainment, lifestyle support, and e-commerce businesses worldwide. The Entertainment Business segment plans, develops, and operates games and tool applications for smartphones and tablets. Its Lifestyle Support Business segment plans, develops, and operates comparison, information, e-commerce, and other websites primarily for daily living. The company's E-Commerce Business segment plans, develops, and operates e-commerce websites that handle various products, including an online bicycle store under the cyma name. Ateam Inc. was founded in 1997 and is headquartered in Nagoya, Japan.

How the Company Makes Money

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Ateam Inc. Financial Statement Overview

Summary

Financials are improving versus the 2022 downturn: profitability has returned with strong gross margins and net income, cash generation is strong in 2025 with good cash conversion, and leverage is low with a conservative balance sheet. Offsetting this, prior revenue declines and thin operating/EBITDA margins suggest the recovery still needs to prove durability.

Income Statement

Profitability has improved meaningfully versus the 2022 loss year, with 2025 showing solid gross margins (~86%) and a return to steady positive net income. However, growth has been inconsistent: revenue declined in 2023 and 2024, and while 2025 shows a very strong rebound in the provided growth figure, operating profitability remains modest (low single-digit operating and EBITDA margins). Overall, earnings quality is improving, but the topline trajectory and thin operating margins keep the score in the middle range.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity improved to ~0.09 in 2025 (down from ~0.25 in 2024), and equity remains sizable relative to assets. Returns on equity have also recovered to low double-digits in 2025 after being weak/negative in earlier periods, indicating better capital efficiency. The main watch-out is the historical volatility in profitability (which can pressure equity over time), but current leverage appears very manageable.

Cash Flow

Cash generation is a clear strength recently: operating cash flow and free cash flow are both strongly positive in 2025, and free cash flow is roughly in line with net income (close to 1x), suggesting earnings are translating into cash. That said, the company has shown cash-flow volatility in the past (notably negative operating/free cash flow in 2022), and operating cash flow as a share of revenue remains relatively modest, so sustainability through the cycle is the key risk.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	23.92B	23.92B	27.55B	31.79B	31.25B
Gross Profit	20.52B	20.37B	22.49B	23.33B	23.06B
EBITDA	1.27B	711.00M	1.12B	122.00M	1.15B
Net Income	1.04B	953.00M	143.00M	-1.34B	877.00M
Balance Sheet
Total Assets	15.42B	16.39B	14.04B	15.05B	15.75B
Cash, Cash Equivalents and Short-Term Investments	6.30B	8.05B	5.99B	5.22B	6.04B
Total Debt	784.00M	2.54B	0.00	0.00	0.00
Total Liabilities	6.25B	6.11B	4.33B	5.17B	4.17B
Stockholders Equity	9.06B	10.27B	9.70B	9.88B	11.58B
Cash Flow
Free Cash Flow	1.70B	787.00M	805.00M	-191.00M	632.00M
Operating Cash Flow	1.71B	844.00M	828.00M	-166.00M	672.00M
Investing Cash Flow	295.00M	-1.03B	248.00M	196.00M	219.00M
Financing Cash Flow	-3.71B	2.22B	-324.00M	-867.00M	-1.34B

Ateam Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1268.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3662, the sentiment is Negative. The current price of 1268 is above the 20-day moving average (MA) of 991.30, above the 50-day MA of 1087.33, and above the 200-day MA of 1139.44, indicating a bearish trend. The MACD of -36.86 indicates Positive momentum. The RSI at 25.23 is Positive, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3662.

Ateam Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3679	70 Outperform	¥43.10B	13.16	―	1.54%	10.84%	5.13%
4644	65 Neutral	¥10.12B	9.39	―	4.52%	4.97%	-24.20%
3981	64 Neutral	¥7.54B	8.92	―	1.76%	-10.62%	44.02%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3662	59 Neutral	¥16.14B	-79.92	―	1.85%	0.63%	-1.84%
2489	57 Neutral	¥9.98B	40.80	―	1.09%	-5.70%	-215.73%
3845	44 Neutral	¥5.14B	354.44	―	―	-32.32%	-69.96%

Ateam Inc. Corporate Events

Ateam Subsidiary Paddle Books ¥387 Million Crypto Valuation Loss

Ateam Holdings has disclosed that its consolidated subsidiary, Paddle Inc., incurred a non-operating loss in the second quarter of the fiscal year ended July 31, 2026 due to crypto asset price declines. The loss stems from a 387 million yen valuation hit on crypto assets held by Paddle following a broad market downturn between late October 2025 and late January 2026.

This non-operating loss has already been incorporated into Ateam’s consolidated financial results for the six months ended January 31, 2026 under Japan GAAP. The company is maintaining its existing full-year earnings forecast for now, highlighting uncertainty around future crypto asset price movements and signaling that forecast revisions will be made only if market conditions materially alter performance expectations.

The most recent analyst rating on (JP:3662) stock is a Buy with a Yen1092.00 price target. To see the full list of analyst forecasts on Ateam Inc. stock, see the JP:3662 Stock Forecast page.

Ateam Holdings Posts Lower Sales but Higher Operating Profit, Affirms 2026 Outlook and Higher Dividend

Ateam Holdings reported consolidated revenue of ¥11.32 billion for the six months ended Jan. 31, 2026, down 1.9% year on year, while adjusted EBITDA fell 27.5% to ¥516 million. Despite weaker top-line and adjusted earnings, operating income surged to ¥590 million due to improved profitability measures, though ordinary income and net income attributable to shareholders dropped sharply amid higher non-operating costs.

Total assets were broadly flat at ¥15.29 billion and the equity ratio slipped slightly to 58.1%, indicating a still-solid financial base. The company plans to raise its full-year dividend to ¥28 per share, including an interim ¥14 payout, and left its full-year forecast unchanged, targeting modest revenue and EBITDA growth but expecting significant declines in ordinary and net income, while also reshaping its portfolio by adding SiGNITY, Inc. and deconsolidating Ateam Finergy Inc.

The most recent analyst rating on (JP:3662) stock is a Buy with a Yen1092.00 price target. To see the full list of analyst forecasts on Ateam Inc. stock, see the JP:3662 Stock Forecast page.