ATLED CORP. (3969) AI Stock Analysis

• Market Cap: ¥11.16B
• Dividend Yield: 2.28%
• Average Volume (3M): 6.14K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.44
• Revenue Growth: 3.30%
• EPS Growth: -6.27%
• Country: JP
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 24.10
• 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)

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

ATLED CORP. demonstrates strong financial health with steady revenue growth, high profitability, and a robust balance sheet with no debt. The balance sheet is particularly strong, showcasing a high equity ratio and significant cash reserves. However, the absence of current cash flow data slightly impacts the overall assessment.

Income Statement

ATLED CORP. shows strong financial performance with steady revenue growth from 2020 to TTM 2024. The Gross Profit Margin for TTM 2024 is 66.95%, and Net Profit Margin is 25.73%, indicating high profitability. The EBIT Margin of 37.61% and EBITDA Margin of 46.38% for TTM 2024 reflect efficient operations. Revenue growth has been consistent, with a notable increase of 11.02% from 2023 to 2024 TTM. Overall, the income statement reflects a robust upward trajectory, though slight fluctuations in margins are observed.

Balance Sheet

ATLED CORP.'s balance sheet is strong, with a significant equity base and no debt, resulting in a Debt-to-Equity Ratio of 0 for TTM 2024. The Equity Ratio is high at 82.83% for TTM 2024, indicating a solid financial position with minimal leverage risk. Return on Equity is impressive at 14.44% for TTM 2024, reflecting effective use of shareholder funds. The company maintains substantial cash reserves, enhancing its stability and ability to invest in growth opportunities.

Cash Flow

While ATLED CORP. maintains a positive cash flow position, cash flow metrics show some volatility. Free Cash Flow to Net Income Ratio is unavailable for TTM 2024, and Operating Cash Flow to Net Income Ratio could not be calculated due to missing data. Historically, the company has demonstrated growth in Free Cash Flow, with a 30.96% increase from 2022 to 2023. Despite these strengths, the absence of operating cash flow data in TTM 2024 presents a challenge in assessing cash flow robustness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 1438.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3969, the sentiment is Positive. The current price of 1438 is below the 20-day moving average (MA) of 1461.15, above the 50-day MA of 1434.94, and below the 200-day MA of 1438.10, indicating a bullish trend. The MACD of 15.29 indicates Negative momentum. The RSI at 69.34 is Neutral, neither overbought nor oversold. The STOCH value of 86.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥11.16B	16.11	―	2.28%	3.30%	-6.27%
4299	76 Outperform	¥15.39B	12.58	―	3.56%	3.96%	-3.68%
4397	68 Neutral	¥8.61B	23.27	―	―	11.32%	―
4193	63 Neutral	¥11.20B	36.02	―	2.81%	12.49%	-57.87%
4762	63 Neutral	¥12.43B	12.48	―	3.16%	0.11%	20.93%
4011	62 Neutral	¥11.92B	67.94	―	―	34.56%	4.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.