Atect Corporation (4241) AI Stock Analysis

• Market Cap: ¥2.28B
• Dividend Yield: 1.87%
• Average Volume (3M): 5.11K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.91
• Revenue Growth: 1.62%
• EPS Growth: N/A
• Country: JP
• Employees: 109
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 5.45
• Shares Outstanding: 4,436,800
• 10 Day Avg. Volume: 5,770
• 30 Day Avg. Volume: 5,106
• PEG Ratio: -0.40
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 27.72
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥569.00 ▲(10.27% Upside)

Atect Corporation's stock is supported by strong technical momentum and stable financial performance, despite some valuation concerns. The lack of earnings call data and corporate events limits additional insights. Investors should monitor the overbought technical indicators and focus on the company's ability to improve cash flows and manage leverage.

Positive Factors

Revenue Growth

Consistent revenue growth indicates resilience and adaptability in a competitive industry, supporting long-term business sustainability.

Profitability Improvement

Improved profitability reflects a successful turnaround, enhancing the company's ability to reinvest in growth and innovation.

Strong Gross Profit Margin

A strong gross profit margin demonstrates effective cost management and pricing power, critical for maintaining competitive advantage.

Negative Factors

Declining Cash Flows

Decreasing cash flows may hinder the company's ability to fund operations and investments, potentially impacting long-term growth.

Moderate Leverage

Moderate leverage requires careful management to avoid financial strain, impacting the company's flexibility in strategic initiatives.

Low EBIT Margin

A low EBIT margin indicates potential inefficiencies, suggesting the need for operational improvements to enhance profitability.

Atect Corporation Business Overview & Revenue Model

Company Description

atect corporation engages in the sanitation inspection equipment, powder injection molding (PIM), and semiconductor material businesses. The company develops, sells, and services inspection and sanitation management goods that respond to the environment, including disposable inspection equipment for bio-products, foodstuffs, and medical supplies, as well as disposable petri dishes under the Full-Steri brand; and provides support services to its customers in bacteria cultures and detection. It is also involved in the development and manufacture of protective products and parts, which include spacer tapes used for TAB and COF in information electronic equipment parts and mold spacer tapes for PAT. In addition, the company produces sintered products for machines, electronic parts, and green devices in various industries; PIM binders; feedstock materials; and PIM for use in automotive heat sink, camera, medical endoscope part, implant device, and other precision equipment. atect corporation was founded in 1959 and is headquartered in Higashiomi, Japan.

How the Company Makes Money

Atect Corporation generates revenue through the sale of its electronic components and systems to various industries, including consumer electronics, automotive, and telecommunications. The company's primary revenue streams include direct sales to manufacturers, licensing agreements for proprietary technologies, and long-term contracts with major clients for bulk supply. Additionally, Atect benefits from strategic partnerships with other technology firms, which enhance its market reach and allow for collaborative development projects that can lead to new revenue opportunities. The company's focus on research and development also positions it to take advantage of emerging trends in technology, further driving its earnings potential.

Atect Corporation Financial Statement Overview

Summary

Atect Corporation shows steady revenue growth and improved profitability with a significant turnaround in net profit margin. However, declining cash flows and moderate leverage are concerns that need addressing to ensure long-term financial stability.

Income Statement

Atect Corporation's income statement shows steady revenue growth with a slight increase from ¥3.18 billion in 2024 to ¥3.20 billion in 2025, indicating resilience in a competitive industry. The gross profit margin remains robust at 40.22%, though it has decreased from previous years. The net profit margin improved significantly to 1.25% in 2025 from a negative margin in 2024, reflecting a turnaround in profitability. However, the EBIT margin is relatively low at 2.52%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a satisfactory equity position with a debt-to-equity ratio of 1.37, highlighting moderate leverage. The equity ratio stands at 36.58%, which is stable but indicates a need for careful debt management. Return on equity has improved to 2.34%, showcasing enhanced profitability compared to previous periods. Nonetheless, the company should focus on strengthening its equity base to mitigate financial risks.

Cash Flow

Atect's cash flow statements indicate a decrease in operating cash flow from ¥462.87 million in 2024 to ¥132.98 million in 2025, reflecting potential challenges in cash-generating activities. The free cash flow has also declined significantly, impacting the company's ability to fund operations without relying on external financing. The operating cash flow to net income ratio is healthy at 3.31, suggesting effective cash conversion despite decreased net income in prior years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.14B	3.20B	3.18B	2.96B	3.09B	2.86B
Gross Profit	1.27B	1.29B	1.38B	1.37B	1.58B	1.33B
EBITDA	376.93M	338.43M	15.08M	500.99M	548.89M	457.98M
Net Income	58.09M	40.18M	-244.35M	158.97M	169.79M	75.19M
Balance Sheet
Total Assets	4.78B	4.69B	5.13B	5.65B	5.79B	5.74B
Cash, Cash Equivalents and Short-Term Investments	556.55M	467.80M	656.96M	780.47M	973.37M	771.51M
Total Debt	2.32B	2.35B	2.54B	2.95B	3.15B	3.33B
Total Liabilities	3.03B	2.97B	3.37B	3.63B	3.89B	4.02B
Stockholders Equity	1.75B	1.71B	1.76B	2.01B	1.90B	1.72B
Cash Flow
Free Cash Flow	0.00	67.63M	298.11M	70.44M	342.47M	37.83M
Operating Cash Flow	0.00	132.97M	462.87M	361.11M	800.25M	457.24M
Investing Cash Flow	0.00	-122.89M	-163.96M	-426.30M	-421.59M	-407.77M
Financing Cash Flow	0.00	-229.63M	-437.51M	-263.69M	-179.66M	196.50M

Atect Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 516.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4241, the sentiment is Positive. The current price of 516 is above the 20-day moving average (MA) of 497.70, above the 50-day MA of 460.46, and above the 200-day MA of 425.03, indicating a bullish trend. The MACD of 13.89 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4241.

Atect Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3106	77 Outperform	¥137.69B	12.17	―	2.66%	-1.63%	67.13%
4241	74 Outperform	¥2.28B	23.12	―	1.87%	1.62%	―
8070	74 Outperform	¥26.74B	8.95	―	3.66%	-18.88%	42.17%
3512	73 Outperform	¥14.47B	32.92	―	2.41%	-4.23%	-5.96%
5355	72 Outperform	¥4.07B	11.16	―	2.79%	3.32%	18.84%
3306	67 Neutral	¥2.94B	4.62	―	0.59%	-27.54%	253.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%