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

• Market Cap: ¥3.61B
• Dividend Yield: 2.47%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.43
• Revenue Growth: 1.79%
• EPS Growth: 31.63%
• Country: JP
• Employees: 281
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 23.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥783.00 ▲(13.81% Upside)

Atomix Co., Ltd. scores well due to its strong financial performance, characterized by robust cash flow and a solid balance sheet. The technical analysis supports a positive trend, and the valuation metrics indicate the stock is attractively priced with a good dividend yield. These factors collectively contribute to a favorable overall stock score.

Positive Factors

Strong Cash Flow

The shift to positive free cash flow indicates improved financial health and operational efficiency, enhancing the company's ability to invest in growth opportunities and weather economic fluctuations.

Minimal Leverage

Minimal leverage provides Atomix with financial flexibility and reduces risk, allowing for strategic investments and stability in volatile markets, enhancing long-term sustainability.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, positioning Atomix well for continued expansion and competitive advantage in its industry.

Negative Factors

Low Net Profit Margin

A low net profit margin suggests challenges in converting revenue into profit, potentially limiting reinvestment capabilities and shareholder returns if not addressed.

Moderate Operational Margins

Moderate operational margins indicate limited efficiency in operations, which could hinder profitability improvements and affect competitive positioning if not optimized.

Moderate Return on Equity

A moderate ROE indicates that Atomix may not be fully leveraging its equity base to generate high returns, which could impact investor perceptions and capital allocation strategies.

Atomix Co., Ltd. Business Overview & Revenue Model

Company Description

Atomix Co., Ltd. (4625) is a leading company in the technology sector, specializing in the development and manufacturing of advanced electronic components and systems. With a focus on innovation, Atomix provides a range of products including semiconductors, sensors, and connectivity solutions that cater to various industries such as automotive, telecommunications, and consumer electronics. The company is committed to enhancing performance and efficiency through its cutting-edge technologies and solutions.

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

Atomix Co., Ltd. exhibits a stable financial position with strong cash flow generation and minimal leverage. The company shows consistent revenue growth and robust cost management, although profitability ratios suggest opportunities for enhancement. Overall, Atomix is well-positioned in the specialty chemicals industry with a solid balance sheet and effective cash management strategies.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 688.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 688 is above the 20-day moving average (MA) of 683.50, above the 50-day MA of 684.14, and above the 200-day MA of 638.80, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 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	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4623	72 Outperform	¥6.55B	9.21	―	3.49%	-8.27%	-3.23%
4616	71 Outperform	¥2.42B	20.17	―	1.24%	-2.27%	-12.76%
4629	70 Outperform	¥7.25B	9.19	―	2.47%	2.26%	51.04%
4624	66 Neutral	¥5.25B	11.57	―	1.43%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%