Ateam Inc. (3662) AI Stock Analysis

• Market Cap: ¥16.50B
• 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: 70 Outperform
• Price Target: ¥1,018.00 ▼(-19.72% 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

High gross margins

An 85%+ gross margin indicates a scalable, high-margin digital business with structural pricing power and low direct costs. Over 2–6 months this provides a durable earnings buffer, funding product development and marketing while insulating operating profits from modest cost inflation.

Low financial leverage

Very low leverage and a strong equity base give the company long-term financial flexibility: less interest burden, capacity to fund investments or M&A from cash, and resilience during downturns. This structural strength supports stable operations and strategic optionality.

Strong free cash flow

Growing free cash flow and a high FCF-to-net-income ratio signal reliable cash generation capacity. That enables sustainable reinvestment, dividend funding, and reduced reliance on external financing, supporting durable capital allocation and operational continuity.

Negative Factors

Low operating profitability

Despite very high gross margins, low EBIT/EBITDA and a modest net margin indicate heavy operating costs or inefficiencies. Structurally, this limits how much revenue converts to shareholder returns and makes long-term earnings expansion dependent on sustained SG&A or overhead improvements.

Stagnant revenue growth

Near-flat top-line growth suggests product-market saturation or weak new-adoption dynamics. Over the medium term this constrains scalable margin expansion and EPS growth unless the company launches new offerings, enters new markets, or materially improves monetization.

Cash flow volatility

While recent free cash flow rose, historical swings in cash generation reduce predictability for capex, dividends, and M&A. Structural volatility increases execution risk and may force conservative capital allocation, limiting opportunistic investments or payouts over the coming quarters.

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	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
3662	70 Outperform	¥16.50B	-79.92	―	1.85%	0.63%	-1.84%
3679	70 Outperform	¥44.17B	13.16	―	1.54%	10.84%	5.13%
3981	67 Neutral	¥7.63B	10.26	―	1.76%	-10.62%	44.02%
4644	65 Neutral	¥10.27B	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	¥10.41B	40.80	―	1.09%	-5.70%	-215.73%
3845	52 Neutral	¥5.32B	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.