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

• Market Cap: ¥4.91B
• Dividend Yield: 2.27%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.50
• 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: -3.22
• 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

Very low leverage / strong balance sheet

Minimal leverage (D/E 0.01) and a high equity ratio provide a durable solvency buffer, reducing refinancing and bankruptcy risk. This balance-sheet strength supports sustained capex, selective M&A, and operational resilience through cycles, preserving long-term optionality.

Material improvement in cash generation

FCF turning positive to ¥551M and an OCF-to-net-income ratio of 4.5 indicate durable cash-conversion improvement. Strong free cash flow reduces reliance on external funding, enables reinvestment or debt reduction, and signals higher quality earnings over the medium term.

Niche product focus with healthy gross margin

Specialization in road-marking and coating products with a 25.7% gross margin and steady revenue growth (~4.5%) points to efficient production and niche pricing power. Durable product demand from infrastructure supports predictable sales and margin sustainability.

Negative Factors

Low net profitability / weak ROE

A net margin of 1.9% and ROE of 2.2% show limited bottom-line returns despite healthy gross margins. Persistently low profitability constrains retained earnings, limits internal funding for growth or innovation, and reduces long-term shareholder return potential.

Modest operating margins limit resilience

EBIT at 2.8% and EBITDA at 6.0% leave a thin buffer against input-cost inflation or competitive pricing pressure. Limited operating leverage hampers the company's ability to scale profitably and reduces capacity to self-fund strategic investments over time.

Moderate growth and limited scale

Revenue growth around 4.5% combined with a small workforce (281 employees) suggests constrained scale and gradual expansion. Slower organic growth limits economies of scale and could require M&A for step-change growth, increasing execution and integration risk.

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	3.16B	2.90B	3.12B	3.36B
EBITDA	838.38M	761.42M	724.50M	496.51M	751.96M	963.02M
Net Income	281.02M	228.84M	239.12M	81.78M	378.49M	379.50M
Balance Sheet
Total Assets	14.78B	15.03B	15.19B	14.47B	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	197.77M	179.01M	203.15M	269.71M	341.23M
Total Liabilities	4.45B	4.67B	5.00B	4.49B	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	-139.61M	133.93M	494.27M	1.09B
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 857.10, below the 50-day MA of 807.82, and above the 200-day MA of 708.26, indicating a bullish trend. The MACD of 21.68 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.65 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	¥4.91B	12.52	―	2.27%	1.79%	31.63%
4623	72 Outperform	¥6.59B	7.93	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥7.76B	8.04	―	2.51%	2.26%	51.04%
4624	66 Neutral	¥5.75B	6.39	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4616	51 Neutral	¥1.87B	29.11	―	2.34%	-2.27%	-12.76%
4615	44 Neutral	¥4.25B	-15.17	―	―	8.66%	-239.07%