Atect Corporation (4241) AI Stock Analysis

• Market Cap: ¥3.97B
• Dividend Yield: 1.87%
• Average Volume (3M): 5.11K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.83
• Revenue Growth: 1.62%
• EPS Growth: N/A
• Country: JP
• Employees: 109
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 8.18
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,031.00 ▲(93.43% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong technical momentum and an improving profitability trend, tempered by sharply weaker operating/free cash flow and a relatively expensive valuation (high P/E with a low dividend yield).

Positive Factors

Stable revenue & gross margin

Atect's top line shows steady growth (about 4.2% Y/Y) while maintaining a high gross margin (~40%). That combination supports durable product pricing power and resilience to input cost swings, enabling consistent contribution to profits even if operating efficiency needs work.

Return to net profitability

The move from a negative margin to a positive net margin indicates the company has shifted to sustainable profitability. Over 2–6 months, this trend can rebuild retained earnings, improve access to capital markets, and reduce reliance on one-off measures to drive reported earnings.

Satisfactory equity position

Atect's balance sheet shows moderate leverage but a tangible equity base and improving ROE. This provides some financial resilience to fund operations and absorb shocks without immediate recapitalization, supporting stability while management addresses cash flow generation.

Negative Factors

Sharply weaker operating cash flow

Operating cash flow deterioration is a structural concern: a large drop reduces internal funding for capex, working capital and dividends, increasing dependency on external financing. Persistently low OCF would strain liquidity and limit reinvestment into the business.

Low operating (EBIT) margin

Atect's modest EBIT margin signals limited operating efficiency and thin buffers to absorb cost inflation or demand shocks. Over months, low operating profitability constrains ability to scale margins, reduces cash generation potential, and limits competitive reinvestment.

Moderate leverage risk

While not extreme, the company's D/E of 1.37 with a moderate equity ratio reduces financial flexibility. In combination with weakening cash flow, this leverage level increases refinancing and interest rate risk, potentially forcing conservative capital allocation or higher financing costs.

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

Financial performance is solid but mixed: revenue edged up (¥3.18B to ¥3.20B) and profitability improved with net margin turning positive (1.25%), but EBIT margin remains low (2.52%). Balance sheet leverage is moderate (debt-to-equity 1.37; equity ratio 36.58%). Cash flow is the key weakness, with operating cash flow falling sharply (¥462.87M to ¥132.98M) and weaker free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 533.00
• 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 533 is below the 20-day moving average (MA) of 752.10, below the 50-day MA of 630.12, and above the 200-day MA of 480.62, indicating a bullish trend. The MACD of 84.27 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 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
4241	73 Outperform	¥3.97B	30.00	―	1.87%	1.62%	―
5355	72 Outperform	¥4.49B	9.99	―	2.79%	3.32%	18.84%
6554	69 Neutral	¥9.90B	10.30	―	3.90%	13.59%	52.99%
3306	67 Neutral	¥3.12B	5.31	―	0.59%	-27.54%	253.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥8.82B	1.89	―	2.23%	3.47%	1062.58%
7066	60 Neutral	¥4.42B	9.29	―	3.64%	-1.69%	-18.95%