Applied Technology Co., Ltd. (4356) AI Stock Analysis

• Market Cap: ¥9.76B
• Dividend Yield: 1.78%
• Average Volume (3M): 4.54K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.25
• Revenue Growth: 1.03%
• EPS Growth: 8.80%
• Country: JP
• Employees: 265
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 26.47
• Shares Outstanding: 5,716,800
• 10 Day Avg. Volume: 5,090
• 30 Day Avg. Volume: 4,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 76 Outperform
• Price Target: ―

Applied Technology Co., Ltd. demonstrates strong financial performance with robust growth and a stable balance sheet. The valuation is attractive given the reasonable P/E ratio and dividend yield. However, technical indicators suggest some caution in the short term due to a slight downward momentum. The absence of new earnings call data or corporate events leaves the financial and valuation analyses as the primary determinants of the score.

Applied Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Applied Technology Co., Ltd. (4356) is a company specializing in the development and provision of innovative technology solutions across various industries. The company is involved in sectors such as information technology, telecommunications, and software development, offering a range of products and services that include software applications, IT consulting, and system integration solutions. Applied Technology Co., Ltd. is dedicated to enhancing operational efficiency and driving digital transformation for its clients.

How the Company Makes Money

Applied Technology Co., Ltd. generates revenue primarily through the sale of its technology products and services. The company's key revenue streams include licensing fees from its software products, fees from IT consulting services, and income from system integration projects. Additionally, the company may engage in strategic partnerships with other technology firms to expand its service offerings and reach a wider customer base. These collaborations can lead to shared revenue opportunities and enhanced market presence, contributing significantly to the company's earnings. The company's focus on innovation and its ability to deliver customized solutions to meet the specific needs of its clients are also critical factors in its revenue generation.

Applied Technology Co., Ltd. Financial Statement Overview

Summary

Applied Technology Co., Ltd. presents a compelling financial profile with strong revenue and profit growth, robust profitability margins, and a low-risk balance sheet with no debt. The cash flow position is solid, with effective income to cash conversion despite minor fluctuations.

Income Statement

Applied Technology Co., Ltd. demonstrates strong profitability with stable gross profit and net profit margins over recent years. Gross profit margin was approximately 25.6%, and net profit margin was about 9.3% for the latest annual data. The company has shown consistent revenue growth, with a notable increase from JPY 4.8 billion in 2020 to JPY 7.8 billion in 2024, indicating a strong growth trajectory. EBIT and EBITDA margins also support a robust operating performance.

Balance Sheet

The company's balance sheet is very strong, with no debt, resulting in a debt-to-equity ratio of zero, and a high equity ratio of approximately 77.3% in the latest year. This suggests excellent financial stability and a low-risk profile. Return on equity was robust, indicating efficient use of shareholders' equity to generate profits.

Cash Flow

Applied Technology Co., Ltd. shows solid cash flow generation, with free cash flow growing significantly over the years. The operating cash flow to net income ratio is healthy, suggesting effective profit conversion into cash. The company maintains a strong free cash flow to net income ratio, indicating good cash flow management. However, free cash flow growth has shown some fluctuations, which should be monitored.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.84B	7.42B	7.08B	6.45B	4.80B
Gross Profit	2.01B	2.16B	2.02B	1.78B	1.42B
EBITDA	988.53M	1.03B	1.08B	1.08B	739.55M
Net Income	725.66M	716.06M	736.39M	711.04M	474.61M
Balance Sheet
Total Assets	7.13B	6.55B	5.74B	4.99B	4.00B
Cash, Cash Equivalents and Short-Term Investments	626.22M	489.31M	469.61M	486.15M	602.96M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.62B	1.60B	1.33B	1.41B	1.07B
Stockholders Equity	5.51B	4.95B	4.41B	3.58B	2.93B
Cash Flow
Free Cash Flow	707.37M	477.95M	499.36M	544.46M	350.79M
Operating Cash Flow	750.52M	530.71M	526.45M	582.12M	418.59M
Investing Cash Flow	-43.16M	-40.28M	-29.38M	-41.30M	-72.46M
Financing Cash Flow	-170.45M	-170.73M	-113.60M	-57.63M	-57.05M

Applied Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1681.00
• 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:4356, the sentiment is Positive. The current price of 1681 is above the 20-day moving average (MA) of 1622.10, above the 50-day MA of 1597.38, and above the 200-day MA of 1519.34, indicating a bullish trend. The MACD of 27.34 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 65.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4356.

Applied Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2391	80 Outperform	¥8.37B	18.88		3.44%	0.45%	-1.74%
4356	76 Outperform	¥9.76B	12.20		1.78%	1.03%	8.80%
4055	75 Outperform	¥8.78B	22.60		0.70%	―	―
4442	75 Outperform	¥9.83B	14.34		0.86%	7.43%	44.57%
9360	73 Outperform	¥8.96B	8.07		2.99%	10.18%	25.58%
Sector *	61 Neutral	$35.83B	9.00	-10.39%	1.87%	8.46%	-7.85%
5026	52 Neutral	¥9.39B	128.59		―	54.50%	24.27%