Altech Corporation (4641) AI Stock Analysis

• Market Cap: ¥43.14B
• Dividend Yield: 3.3%
• Average Volume (3M): 19.83K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.69
• Revenue Growth: 8.57%
• EPS Growth: 14.45%
• Country: JP
• Employees: 6,206
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 66.10
• Shares Outstanding: 20,746,675
• 10 Day Avg. Volume: 20,750
• 30 Day Avg. Volume: 19,833
• PEG Ratio: 1.40
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 16.52
• 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): 206.25
• Revenue Forecast (FY): ¥55.40B

• Rating: 77 Outperform
• Price Target: ¥3,015.00 ▲(11.38% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial quality (very conservative balance sheet, solid profitability, and generally strong free-cash-flow conversion). Valuation is supportive with a moderate P/E and attractive dividend yield, while technical indicators are currently neutral-to-slightly-weak, limiting upside momentum in the near term.

Positive Factors

Balance sheet strength

Extremely low leverage and expanding equity provide durable financial flexibility. This limits solvency risk in downturns, supports capacity to fund dividends, M&A or capex from balance-sheet reserves, and underpins long-term stability of returns and capital allocation.

Free cash flow conversion

High FCF conversion versus reported earnings indicates earnings quality and reliable internal funding for operations and shareholder returns. Over time this supports reinvestment and dividend sustainability even if earnings fluctuate modestly.

Revenue growth and margins

A multi-year revenue uptrend plus consistent mid-high single digit net margins suggest an underlying business model with recurring demand and pricing power. This combination supports durable cash generation and scalability of profits over the medium term.

Negative Factors

Cash flow volatility

Material year-to-year swings in operating cash flow and free cash flow reduce predictability of internal funding. That volatility can complicate budgeting, capex and dividend planning and may reflect working-capital sensitivity or contract timing risks.

Margin compression

A sustained decline in operating margins versus prior peaks signals pressure on pricing or rising costs. Over months this can erode return on capital, limit reinvestment capacity, and make the business more vulnerable to cost shocks or competitive pressure.

Concentration of 2025 growth

A very large one-year revenue jump raises the risk that recent growth is episodic. If driven by non-recurring contracts or timing, future topline may revert, complicating forecasting and reducing confidence in sustained earnings and cash-flow expansion.

Altech Corporation Business Overview & Revenue Model

Company Description

Altech Corporation provides technical and engineer assignment services in Japan and internationally. The company offers staffing solutions, including assignment/contracting in technical/administrative fields; welfare solutions, such as the cultivation of nursing care staff, assignment/introduction of staff to nursing care facilities, and introduction of residents to nursing care facilities; and education solutions comprising working professional/technical training for new and mid-career employees. It also provides engineering solutions/technical support services comprising engineers staffing service; contracting/outsourcing services; contract partners/total business solutions; and software development, designing/manufacturing, and engineering solutions. In addition, the company designs, manufactures, and installs plant and factory equipment; and develops and sells robots. Further, it provides agriculture staffing services; home visit care services; installation and electric wiring services for transportation systems inside clean room factories; and staff assignment, staff introduction, and total staffing services. The company serves manufacturing companies of machinery, electricity and precision instrument, and information processing and communication businesses, as well as listed and blue-chip companies. Altech Corporation was founded in 1968 and is based in Yokohama, Japan.

How the Company Makes Money

Altech Corporation generates revenue primarily through the sale of its electronic components and systems to various industries including telecommunications, automotive, and consumer electronics. The company's revenue model is based on direct sales to manufacturers and distributors, as well as partnerships with major corporations in the technology sector. Key revenue streams include product sales, licensing agreements for proprietary technology, and long-term contracts with clients for custom solutions. Additionally, Altech benefits from strategic collaborations with R&D institutions and other tech firms, which help to enhance its product offerings and market reach.

Altech Corporation Financial Statement Overview

Summary

Strong overall fundamentals supported by an excellent, low-leverage balance sheet and consistently solid profitability. Free cash flow conversion is generally strong, but operating cash flow volatility and signs of margin compression temper the score.

Income Statement

Revenue has grown steadily from 2021–2025, with a strong step-up in 2025 (growth ~303%), while profitability remains solid with net margins generally in the mid-to-high single digits. Operating profitability has softened versus 2020 (EBIT/EBITDA margins down from prior highs), but remains healthy and consistent. Key watch-out is margin compression over time and the unusually large 2025 growth rate, which could indicate one-off factors or volatility in the revenue base.

Balance Sheet

The balance sheet is very conservative: debt is minimal and has trended down materially since 2020, keeping leverage extremely low (debt-to-equity ~1% in 2024–2025). Equity has expanded meaningfully over the period, supporting asset growth. Returns on equity are consistently strong (~19–24%), though they have moderated from the 2020 peak; overall financial risk from leverage appears low.

Cash Flow

Cash generation is strong relative to earnings, with free cash flow close to net income across most years (roughly mid-90%+), indicating good earnings quality. However, operating cash flow is volatile year-to-year (notably lower in 2023 and 2025 versus 2024), and free cash flow growth has swung between positive and negative, suggesting working-capital or timing impacts that can create variability despite solid underlying profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.10B	52.65B	49.86B	46.22B	43.65B	39.26B
Gross Profit	11.94B	11.90B	11.59B	10.95B	10.49B	8.94B
EBITDA	5.91B	5.65B	5.80B	5.60B	5.04B	4.80B
Net Income	3.94B	3.98B	3.68B	3.70B	3.42B	3.10B
Balance Sheet
Total Assets	27.62B	29.31B	28.08B	25.03B	24.27B	22.55B
Cash, Cash Equivalents and Short-Term Investments	12.49B	14.12B	13.34B	11.43B	10.70B	9.99B
Total Debt	215.02M	210.73M	220.00M	245.28M	319.67M	893.90M
Total Liabilities	8.62B	8.87B	9.33B	8.16B	8.53B	7.91B
Stockholders Equity	18.94B	20.37B	18.69B	16.82B	15.69B	14.60B
Cash Flow
Free Cash Flow	0.00	3.22B	4.35B	2.99B	3.56B	3.07B
Operating Cash Flow	0.00	3.37B	4.58B	3.21B	3.66B	3.17B
Investing Cash Flow	0.00	-242.71M	-366.25M	138.62M	-125.93M	-222.03M
Financing Cash Flow	0.00	-2.47B	-2.49B	-2.68B	-2.88B	-1.73B

Altech Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2707.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4641, the sentiment is Negative. The current price of 2707 is above the 20-day moving average (MA) of 2638.25, above the 50-day MA of 2671.56, and above the 200-day MA of 2694.03, indicating a bearish trend. The MACD of -12.52 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4641.

Altech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4641	77 Outperform	¥43.14B	12.88	―	3.30%	8.57%	14.45%
6539	73 Outperform	¥26.40B	24.40	―	5.45%	21.90%	0.46%
6089	70 Outperform	¥29.27B	14.55	―	3.86%	1.18%	-5.05%
4433	64 Neutral	¥16.79B	25.83	―	3.66%	8.62%	―
6070	64 Neutral	¥32.79B	11.98	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4848	56 Neutral	¥56.86B	11.92	―	3.66%	3.47%	-0.05%

Altech Corporation Corporate Events

Altech Hikes Year-End Dividend and Overhauls Payout Policy to Boost Shareholder Returns

Altech Co., Ltd. has revised its basic dividend policy to strengthen shareholder returns and increase flexibility in response to changes in the management environment. The company now targets a consolidated payout ratio of at least 50% and has introduced a policy to maintain a minimum stable dividend of 10 yen per share annually, split equally between interim and year-end payments.

In line with this revised policy, Altech’s board approved a sharp increase in the year-end dividend for the fiscal year ending December 2025 to 61 yen per share, up from the previously forecast 47 yen and higher than the prior year’s 49 yen. By adding the entire amount of net income exceeding its plan to the dividend payout, the total annual dividend for 2025 will rise to 108 yen per share versus 93 yen in 2024, signaling a more shareholder-friendly stance ahead of the proposal at the upcoming annual general meeting.

The most recent analyst rating on (JP:4641) stock is a Hold with a Yen2849.00 price target. To see the full list of analyst forecasts on Altech Corporation stock, see the JP:4641 Stock Forecast page.

Altech Sets Higher 2026–2028 Targets in Updated Medium-Term Management Plan

Altech Co., Ltd. has updated the quantitative targets in its rolling medium-term management plan for fiscal years 2026 to 2028, projecting steady growth in net sales from ¥55.5 billion in 2026 to ¥61.5 billion in 2028 and aiming to keep return on equity at or above 20%. Operating and ordinary profit, as well as profit attributable to owners of the parent, are expected to rise moderately over the period, reflecting management’s confidence in sustaining profitability while maintaining capital efficiency.

The company’s 12th five-year plan, running from July 2023 to June 2028, sets qualitative goals centered on becoming a partner in a co-creating society through technology, underpinned by four key priorities. These include strengthening sustainable competitive advantages in the outsourcing market, building new earnings pillars, contributing to a sustainable and prosperous society, and advancing digitization to cultivate an organizational culture where diverse talent can thrive, signaling a balanced focus on growth, innovation, and ESG-oriented initiatives.

The most recent analyst rating on (JP:4641) stock is a Hold with a Yen2849.00 price target. To see the full list of analyst forecasts on Altech Corporation stock, see the JP:4641 Stock Forecast page.

Altech Delivers Higher FY2025 Earnings and Dividend, Projects Modest Profit Dip in 2026

Altech Corporation reported consolidated net sales of ¥52.6 billion for the fiscal year ended December 31, 2025, up 5.6% year on year, with operating profit rising 4.6% to ¥5.4 billion and profit attributable to owners of parent increasing 8.3% to ¥4.0 billion. Earnings per share climbed to ¥202.72, return on equity remained robust at 20.4%, and the capital adequacy ratio improved to 69.5% as net assets expanded to ¥20.4 billion.

The company generated ¥3.4 billion in operating cash flow while maintaining solid liquidity with cash and cash equivalents of ¥13.2 billion, and it continued its shareholder returns policy by raising the annual dividend to ¥108 per share, lifting the payout ratio to 53.3%. For 2026, Altech forecasts further growth in full-year net sales to ¥55.5 billion and operating profit to ¥5.7 billion, though it expects a slight decline in profit attributable to owners of parent, signaling ongoing top-line momentum alongside pressure on bottom-line growth.

The most recent analyst rating on (JP:4641) stock is a Hold with a Yen2849.00 price target. To see the full list of analyst forecasts on Altech Corporation stock, see the JP:4641 Stock Forecast page.

Altech Co., Ltd. Revises Dividend Policy to Enhance Shareholder Returns

Altech Co., Ltd. announced a revision to its basic dividend policy to enhance shareholder returns and adapt to changing business environments. The new policy maintains a target consolidated dividend payout ratio of 50% or higher and ensures stable dividends, with the revised policy taking effect from the fiscal year ending December 2025. This change reflects Altech’s commitment to performance-based profit allocation and strategic investments in corporate value enhancement.

The most recent analyst rating on (JP:4641) stock is a Hold with a Yen2836.00 price target. To see the full list of analyst forecasts on Altech Corporation stock, see the JP:4641 Stock Forecast page.