Atomix Co., Ltd. (4625) AI Stock Analysis

• Market Cap: ¥4.64B
• Dividend Yield: 2.27%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.47
• Revenue Growth: 1.79%
• EPS Growth: 31.63%
• Country: JP
• Employees: 281
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 14.66
• Shares Outstanding: 7,242,000
• 10 Day Avg. Volume: 6,230
• 30 Day Avg. Volume: 3,890
• PEG Ratio: -3.20
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 5.79
• 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: ¥1,026.00 ▲(39.78% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is primarily supported by strong financial fundamentals—especially minimal leverage and markedly improved free cash flow—alongside solid revenue growth. Technicals are bullish but look overheated (high RSI/Stoch), which tempers the outlook. Valuation appears reasonable with a moderate P/E and a modest dividend yield.

Positive Factors

Balance sheet strength

Extremely low leverage and a high equity ratio give the company durable financial flexibility. This reduces refinancing and solvency risk, supports investment or cyclical cushions, and enables management to prioritize long-term strategic moves rather than short-term cash preservation.

Improved free cash flow

Turning free cash flow positive with strong operating cash conversion indicates sustainable internal funding capacity. Persistent cash generation supports capex, working capital, dividends or buybacks, and reduces reliance on external financing over the medium term.

Stable revenue and gross margin

Consistent top-line growth combined with healthy gross margins signals competitive pricing or efficient production. This structural margin buffer supports operating profitability through cost cycles and provides room to invest in product quality or market coverage.

Negative Factors

Low net profitability

A low net margin leaves little retained profit after costs and taxes, constraining the ability to build reserves or fund growth internally. Over time this reduces resilience to demand shocks and limits funding available for strategic initiatives without external capital.

Modest return on equity

ROE near the low single digits indicates capital is not being deployed for strong shareholder returns. Persistently low ROE can hamper capital allocation flexibility, make it harder to attract investor capital, and signal a need for strategy or efficiency improvements.

Concentrated product/end-market exposure

Heavy reliance on road-marking and surface coating end-markets creates concentration risk tied to infrastructure spending cycles and regional construction demand. Lack of broad product diversification can amplify revenue volatility and limit long-term growth unless new markets are developed.

Atomix Co., Ltd. Business Overview & Revenue Model

Company Description

Atomix Co.,Ltd. manufactures and sells paints in Japan. The company offers road paints; and building paints, such as floors, roofs, waterproofing, household paints, and concrete structures. It also develops and sells software related to the maintenance and management of traffic safety and living environment infrastructure; purchases and sells paint-related products and home care products; manufactures construction machines for road paints; and provides logistics services. In addition, the company engages in the contracting construction business. Atomix Co.,Ltd. was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Atomix Co., Ltd. generates revenue primarily through the sale of its electronic components and systems to various industries. Key revenue streams include direct sales of semiconductors, sensors, and connectivity solutions to manufacturers and OEMs (Original Equipment Manufacturers). Additionally, the company may engage in long-term contracts and partnerships with major players in the automotive and telecommunications sectors, providing custom solutions that contribute to stable revenue. Furthermore, Atomix may also benefit from research and development collaborations, government contracts, and grants that support innovation in technology, thus expanding its earnings potential.

Atomix Co., Ltd. Financial Statement Overview

Summary

Strong overall financial quality driven by a robust balance sheet (very low debt-to-equity of 0.01; high equity ratio of 68.9%) and materially improved cash generation (free cash flow turned positive to ¥551M; operating cash flow to net income 4.5). Revenue growth was solid (+4.5%) with a strong gross margin (25.7%), but profitability remains modest (net margin 1.9%, ROE 2.2%).

Income Statement

Atomix Co., Ltd. demonstrated solid revenue growth with an increase of 4.5% in the latest year. The gross profit margin was strong at 25.7%, indicating efficient production and cost management. The net profit margin was 1.9%, showing room for improvement in profitability. EBIT and EBITDA margins were moderate at 2.8% and 6.0% respectively, reflecting stable operational performance.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal leverage risk. The return on equity (ROE) was 2.2%, suggesting moderate returns for shareholders. The equity ratio was high at 68.9%, showcasing strong financial stability and a solid asset base.

Cash Flow

Atomix reported a significant improvement in free cash flow, which turned positive to ¥551 million from a negative position last year. The operating cash flow to net income ratio was 4.5, indicating strong cash generation relative to earnings. The free cash flow to net income ratio was 2.4, reflecting effective cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.41B	12.35B	12.12B	11.39B	11.06B	11.12B
Gross Profit	3.37B	3.18B	3.27B	2.99B	3.20B	3.44B
EBITDA	802.50M	742.66M	750.12M	480.75M	902.03M	913.80M
Net Income	280.35M	228.84M	239.12M	81.78M	378.49M	379.50M
Balance Sheet
Total Assets	14.78B	15.03B	15.19B	14.39B	14.54B	14.55B
Cash, Cash Equivalents and Short-Term Investments	2.57B	2.83B	2.59B	2.94B	3.19B	2.82B
Total Debt	186.94M	100.00M	115.00M	175.00M	235.00M	298.61M
Total Liabilities	4.45B	4.67B	5.00B	4.41B	4.57B	4.88B
Stockholders Equity	10.32B	10.35B	10.19B	9.98B	9.97B	9.67B
Cash Flow
Free Cash Flow	0.00	551.29M	-200.48M	-67.63M	313.45M	923.54M
Operating Cash Flow	0.00	1.02B	493.90M	283.47M	694.82M	1.21B
Investing Cash Flow	0.00	-652.58M	-651.36M	-350.70M	-149.76M	-289.06M
Financing Cash Flow	0.00	-131.64M	-183.13M	-185.30M	-180.89M	-856.71M

Atomix Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 734.00
• 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:4625, the sentiment is Positive. The current price of 734 is below the 20-day moving average (MA) of 822.40, below the 50-day MA of 778.34, and above the 200-day MA of 691.94, indicating a bullish trend. The MACD of 36.01 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4625.

Atomix Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	80 Outperform	¥4.64B	13.73	―	2.27%	1.79%	31.63%
4623	72 Outperform	¥6.67B	10.85	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥8.22B	9.17	―	2.51%	2.26%	51.04%
4624	66 Neutral	¥6.28B	12.02	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4616	51 Neutral	¥2.01B	27.74	―	2.34%	-2.27%	-12.76%
4615	44 Neutral	¥4.29B	-10.53	―	―	8.66%	-239.07%