ATLED CORP. (3969) AI Stock Analysis

• Market Cap: ¥10.65B
• Dividend Yield: 2.28%
• Average Volume (3M): 6.14K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.42
• Revenue Growth: 3.30%
• EPS Growth: -6.27%
• Country: JP
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 25.37
• Shares Outstanding: 7,487,400
• 10 Day Avg. Volume: 4,500
• 30 Day Avg. Volume: 6,143
• PEG Ratio: 7.20
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 3.88
• P/FCF Ratio: 9.36
• 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: 80 Outperform
• Price Target: ¥1,676.00 ▲(16.55% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance—rapid recent growth, high margins, robust cash conversion, and a very conservative debt-free balance sheet. Valuation is reasonable with a supportive dividend yield, while technicals are moderately positive but not strongly bullish given the price remains below the 100-day average.

Positive Factors

Revenue Growth

The significant acceleration in revenue growth indicates strong demand momentum and market expansion, which can drive long-term business success.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and resilience against economic downturns.

Cash Generation

Strong cash generation indicates the company’s ability to fund operations and investments internally, enhancing financial stability and growth potential.

Negative Factors

Margin Compression

Declining margins suggest rising costs or changes in product mix, which could pressure profitability and require strategic adjustments to maintain earnings.

Profit Decline

Decreasing profits despite revenue growth may indicate inefficiencies or increased competition, potentially impacting long-term profitability.

Volatility in Free Cash Flow

Volatile free cash flow can complicate financial planning and investment, posing risks to consistent capital allocation and shareholder returns.

ATLED CORP. Business Overview & Revenue Model

Company Description

ATLED CORP. engages in the development and sale of software solutions in Japan. It offers X-point Cloud, a cloud-based workflow system; and Agile Works, a workflow system for organizational restructuring and business changes. The company also provides cloud services. Its workflow systems are used in public works, school corporations, distribution and service businesses, and communication business. The company was incorporated in 2007 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ATLED CORP. generates revenue through the sale of its electronic equipment and components to a diverse customer base across different industries. The company's key revenue streams include direct sales to manufacturers and distributors in the industrial and automotive sectors, as well as to consumer electronics companies. Additionally, ATLED CORP. may engage in strategic partnerships or collaborations that enhance its market reach and product offerings, thereby contributing to its earnings. The company's financial performance is driven by its ability to innovate and provide high-quality, reliable products that meet the evolving needs of its clients.

ATLED CORP. Financial Statement Overview

Summary

Strong financial profile supported by sharply accelerating revenue growth (2025 ~51% vs. 2024 ~15%), high profitability (2025 gross margin ~65%, operating margin ~38%), and a debt-free balance sheet. Key risks are gradual margin compression versus earlier years and historical volatility in free cash flow growth.

Income Statement

Revenue growth accelerated meaningfully in the most recent year (2025: ~51% vs. 2024: ~15%), showing strong demand momentum. Profitability is also a standout, with very high gross and operating margins (2025 gross margin ~65% and operating margin ~38%), supporting healthy earnings power. The main watch-out is that margins have drifted down from earlier years (gross and operating margins were higher in 2021–2024), suggesting either higher costs or mix shifts as the business scales.

Balance Sheet

The balance sheet looks exceptionally conservative with zero debt across the period and a steadily expanding equity base, which lowers financial risk and increases flexibility. Returns on equity remain solid (mid-teens in recent years), indicating the company is generating good profits relative to shareholder capital. A minor negative is that return on equity has eased versus earlier peaks, which can happen as equity grows faster than earnings or profitability normalizes.

Cash Flow

Cash generation is strong and high-quality: operating cash flow exceeds net income in recent years (2024–2025 operating cash flow to net income ~1.10), implying earnings are well supported by cash. Free cash flow is also robust, with 2025 free cash flow roughly matching net income (~1.0x), improving from weaker conversion in 2023–2024. The key weakness is volatility in free cash flow growth historically (notably a sharp decline in 2023), which points to periodic swings in working capital or investment timing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.82B	2.77B	2.50B	2.17B	2.11B	1.92B
Gross Profit	1.85B	1.80B	1.78B	1.67B	1.61B	1.46B
EBITDA	1.39B	1.44B	1.33B	1.22B	1.09B	946.61M
Net Income	730.37M	728.34M	713.76M	670.29M	604.33M	535.52M
Balance Sheet
Total Assets	6.20B	6.27B	5.73B	5.03B	4.59B	4.04B
Cash, Cash Equivalents and Short-Term Investments	5.05B	4.99B	4.51B	4.07B	3.77B	3.16B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.03B	1.13B	1.12B	966.95M	1.05B	962.87M
Stockholders Equity	5.17B	5.14B	4.60B	4.06B	3.54B	3.08B
Cash Flow
Free Cash Flow	0.00	1.15B	632.51M	483.00M	785.70M	486.93M
Operating Cash Flow	0.00	1.15B	1.08B	829.80M	985.13M	675.57M
Investing Cash Flow	0.00	-454.46M	-450.82M	-356.36M	-218.66M	-188.34M
Financing Cash Flow	0.00	-217.08M	-187.15M	-171.02M	-155.95M	-134.59M

ATLED CORP. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1438.00
• 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:3969, the sentiment is Negative. The current price of 1438 is above the 20-day moving average (MA) of 1426.35, below the 50-day MA of 1458.88, and below the 200-day MA of 1449.51, indicating a bearish trend. The MACD of -16.62 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 43.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3969.

ATLED CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3969	80 Outperform	¥10.65B	14.38	―	2.28%	3.30%	-6.27%
4397	68 Neutral	¥7.04B	17.46	―	―	11.32%	―
4168	67 Neutral	¥9.81B	10.50	―	0.70%	9.78%	-23.98%
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
5588	62 Neutral	¥9.83B	47.92	―	0.12%	37.21%	129.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%

ATLED CORP. Corporate Events

ATLED CORP. Reports Mixed Financial Results for Q2

ATLED CORP. reported a slight increase in net sales by 2.1% for the second quarter of the fiscal year ending March 2026, compared to the same period last year. However, the company experienced a decline in operating profit by 8.8%, ordinary profit by 8.0%, and overall profit by 8.9%, indicating potential challenges in maintaining profitability despite revenue growth.