Atect Corporation (4241) AI Stock Analysis

• Market Cap: ¥2.61B
• Dividend Yield: 1.87%
• Average Volume (3M): 5.11K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.80
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥649.00 ▲(21.76% Upside)

The score is driven primarily by improving profitability and generally stable financial statements, but tempered by sharply weaker operating/free cash flow and moderate leverage. Technically, the stock shows a constructive uptrend above key moving averages. Valuation is a headwind due to a relatively high P/E and only a modest dividend yield.

Positive Factors

Profitability Turnaround

Atect's shift back to positive net profit and an improving ROE indicate durable operational improvement and better capital efficiency. Sustained profitability provides internal funding for reinvestment, reduces reliance on external capital and improves long-term resilience versus prior losses.

Steady Revenue and Strong Gross Margin

Modest revenue growth combined with a robust gross margin signals stable demand and favorable product mix or cost structure at the gross level. This structural margin strength supports long-term profitability potential if operating expense control and scale improvements follow.

Satisfactory Equity Position

Atect's equity ratio and manageable leverage provide a reasonable capital base to support operations and borrowing capacity. This balance sheet profile offers structural flexibility to finance working capital or strategic investments without immediate solvency concerns if leverage is prudently managed.

Negative Factors

Weak Cash Generation

Substantial declines in operating and free cash flow reduce the company's ability to self-fund investments, dividends or debt servicing over the medium term. If persistent, weak cash conversion forces greater reliance on external financing and constrains strategic flexibility and risk tolerance.

Moderate Leverage

Atect's moderate leverage raises structural financial risk, limiting cushion against revenue shocks and increasing interest expense sensitivity. With a relatively modest equity base, the company may face constraints funding growth or absorbing downturns without raising equity or cutting investment.

Low Operating Margins

Thin operating and net margins imply limited buffer to absorb cost inflation or competitive price pressure. Sustained margin compression would hinder cash generation and reduce returns on invested capital, making long-term improvement in operational efficiency or pricing power imperative.

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

Financials are stable with slight revenue growth and a clear return to positive net profitability (net margin 1.25% vs. negative prior year). However, operating and free cash flow declined materially, and leverage is moderate (debt-to-equity 1.37), limiting the score despite improving ROE (2.34%).

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: 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 568.85, above the 50-day MA of 528.50, and above the 200-day MA of 445.74, indicating a bullish trend. The MACD of 28.10 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.86 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	¥144.10B	12.73	―	2.66%	-1.63%	67.13%
8070	74 Outperform	¥25.13B	8.41	―	3.66%	-18.88%	42.17%
5355	72 Outperform	¥4.31B	11.83	―	2.79%	3.32%	18.84%
4241	70 Outperform	¥2.61B	26.43	―	1.87%	1.62%	―
3306	67 Neutral	¥3.11B	4.88	―	0.59%	-27.54%	253.34%
3512	67 Neutral	¥15.15B	30.23	―	2.41%	-4.23%	-5.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%