Ateam Inc. (3662) AI Stock Analysis

• Market Cap: ¥17.87B
• Dividend Yield: 1.85%
• Average Volume (3M): 56.64K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.80
• Revenue Growth: 0.63%
• EPS Growth: -1.84%
• Country: JP
• Employees: 813
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 15.89
• Shares Outstanding: 18,811,134
• 10 Day Avg. Volume: 50,120
• 30 Day Avg. Volume: 56,636
• PEG Ratio: 2.84
• Price to Book (P/B): 2.78
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 14.85
• 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: 70 Outperform
• Price Target: ¥1,092.00 ▼(-13.88% Downside)
• Action: Upgraded Date: 10/30/25
• Date: Action: Upgraded 10/30/25

Ateam Inc.'s overall stock score is driven by its strong financial performance, characterized by solid profitability and a robust balance sheet. The technical analysis suggests potential short-term bearish trends, while the valuation indicates the stock is fairly valued with a reasonable P/E ratio and a modest dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Very high gross margins

Ateam's gross margin above 85% indicates durable product/service economics with significant pricing power or low variable costs. That structural margin cushion supports sustained profitability, funds R&D or marketing, and helps absorb fixed-cost or demand shocks over the next 2-6 months.

Very low financial leverage

Ateam’s minimal debt burden and strong equity ratio provide lasting financial flexibility. Low leverage reduces interest expense risk, preserves access to capital for strategic investments or M&A, and increases resilience to cyclical downswings over the medium term.

Strong free cash flow generation

Meaningful free cash flow growth and a high FCF-to-net-income ratio signal durable cash conversion ability. Reliable cash generation supports reinvestment, dividends or buybacks and reduces dependence on external financing, strengthening long-term capital allocation options.

Negative Factors

Stagnant revenue growth

Top-line stagnation constrains the company’s ability to expand earnings despite high gross margins. With limited revenue traction, long-term margin gains must rely on cost cuts or share gains; sluggish top-line limits scalability and raises execution pressure on management.

Low operating margins

Relatively low EBIT/EBITDA and single-digit net margins expose profit to cost inflation and competitive pricing. Even with strong gross margins, weak operating leverage limits retained earnings for reinvestment and makes profitability more sensitive to SG&A or R&D expense swings.

Volatile historical cash flows

While recent FCF improved, prior cash-flow volatility undermines predictability of funding for growth investments and distributions. Fluctuating cash generation complicates planning, increases reliance on reserves, and raises execution risk for multi-quarter initiatives.

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

Ateam Inc. demonstrates strong profitability with high gross profit margins and improved net profit margins. The balance sheet is solid, with low leverage and a strong equity base. Cash flow generation is robust, although historical volatility in cash flows warrants attention. Overall, the company is financially stable with potential for growth, but operational efficiency improvements could enhance profitability further.

Income Statement

Ateam Inc. has shown a strong gross profit margin of over 85% in the latest year, indicating efficient cost management. The net profit margin has improved to 4.33%, reflecting better profitability compared to previous years. However, revenue growth has been stagnant, with a slight increase of 1.59% in the latest year. The EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.086, indicating a strong equity position and low financial leverage. Return on equity has improved to 11.44%, showcasing effective use of equity to generate profits. The equity ratio is robust, reflecting a solid financial structure with a high proportion of equity financing.

Cash Flow

Ateam Inc. has experienced significant growth in free cash flow, with a notable increase in the latest year. The operating cash flow to net income ratio is moderate, suggesting a reasonable conversion of income into cash. The free cash flow to net income ratio is high, indicating strong cash generation relative to net income. However, historical fluctuations in cash flow growth present potential risks.

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	994.00M	1.31B	1.00B	-314.00M	1.15B
Net Income	1.04B	953.00M	143.00M	-1.34B	877.00M
Balance Sheet
Total Assets	15.21B	16.29B	13.86B	14.76B	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	6.04B	6.02B	4.15B	4.88B	4.17B
Stockholders Equity	9.06B	10.27B	9.70B	9.88B	11.58B
Cash Flow
Free Cash Flow	1.70B	751.00M	602.00M	-509.00M	130.00M
Operating Cash Flow	1.71B	808.00M	656.00M	-302.00M	451.00M
Investing Cash Flow	295.00M	-992.00M	420.00M	332.00M	440.00M
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 1018.90, above the 50-day MA of 1125.31, and above the 200-day MA of 1142.99, indicating a bearish trend. The MACD of -31.09 indicates Negative momentum. The RSI at 41.02 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, 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
3662	70 Outperform	¥17.87B	17.51	―	1.85%	0.63%	-1.84%
3679	70 Outperform	¥46.29B	13.16	―	1.54%	10.84%	5.13%
3981	67 Neutral	¥7.80B	10.26	―	1.76%	-10.62%	44.02%
4644	65 Neutral	¥10.45B	9.39	―	4.52%	4.97%	-24.20%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2489	57 Neutral	¥10.99B	40.80	―	1.09%	-5.70%	-215.73%
3845	52 Neutral	¥5.49B	354.44	―	―	-32.32%	-69.96%