Altech Corporation (4641) AI Stock Analysis

• Market Cap: ¥42.24B
• Dividend Yield: 3.37%
• Average Volume (3M): 19.83K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.73
• Revenue Growth: 8.57%
• EPS Growth: 14.45%
• Country: JP
• Employees: 6,206
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 41.57
• Shares Outstanding: 20,746,675
• 10 Day Avg. Volume: 20,750
• 30 Day Avg. Volume: 19,833
• PEG Ratio: -199.14
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 11.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,836.00 ▲(3.69% Upside)

Altech Corporation's strong financial performance is a major positive, showcasing robust growth and stability. However, the technical analysis indicates bearish momentum, which is a significant concern. The valuation is reasonable, offering a good dividend yield, but the lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Altech's products and services, supporting long-term business expansion and market presence.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling Altech to invest in growth opportunities without significant financial strain.

Cash Generation

Strong cash generation enhances Altech's ability to fund operations, invest in R&D, and return value to shareholders, ensuring sustainable growth.

Negative Factors

Industry Volatility

The semiconductor and telecommunications sectors are subject to rapid technological changes and cyclical demand, which can impact Altech's revenue stability.

Market Competition

Intense competition in the technology sector may pressure Altech's pricing and margins, challenging its ability to maintain market share and profitability.

Profit Margin Pressure

While current margins are solid, maintaining them amidst rising costs and competitive pressures could be challenging, potentially affecting future profitability.

Altech Corporation Business Overview & Revenue Model

Company Description

Altech Corporation (4641) is a technology-driven company specializing in the development and manufacturing of advanced electronic components and systems. Operating primarily within the semiconductor and telecommunications sectors, Altech provides a diverse range of products including integrated circuits, sensors, and communication devices. The company focuses on innovation and quality, catering to both consumer and industrial markets with solutions designed to enhance connectivity and efficiency.

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

Altech Corporation exhibits strong financial performance with consistent revenue and profit growth, robust profitability margins, and a strong balance sheet with low leverage. Cash flows are healthy, supporting its financial flexibility and potential for sustainable growth.

Income Statement

Altech Corporation has shown consistent revenue growth with a 7.9% increase in 2024, following a similar positive trend over recent years. The Gross Profit Margin remains robust at 23.3%, and the Net Profit Margin is solid at 7.4%. The EBIT Margin of 10.3% and EBITDA Margin of 11.2% indicate efficient operational management. These results reflect strong profitability and operational effectiveness.

Balance Sheet

The company's Debt-to-Equity Ratio is low at 0.01, highlighting minimal leverage and financial risk. The Return on Equity (ROE) stands at 19.7%, indicating effective use of equity to generate profits. The Equity Ratio is high at 66.6%, demonstrating strong financial stability and significant equity backing. Overall, the balance sheet reflects a solid financial position with low debt levels.

Cash Flow

Altech Corporation's Free Cash Flow grew by 45.6% in 2024, showing strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio of 1.2 indicates good cash conversion. However, the Free Cash Flow to Net Income Ratio is 1.2, suggesting that cash flows are closely aligned with net income. The cash flow statement reflects strong operational cash generation and prudent capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.10B	49.86B	46.22B	43.65B	39.26B	35.75B
Gross Profit	11.94B	11.59B	10.95B	10.49B	8.94B	8.46B
EBITDA	5.91B	5.80B	5.60B	5.04B	4.80B	4.85B
Net Income	3.94B	3.68B	3.70B	3.42B	3.10B	3.06B
Balance Sheet
Total Assets	27.62B	28.08B	25.03B	24.27B	22.55B	21.00B
Cash, Cash Equivalents and Short-Term Investments	12.49B	13.34B	11.43B	10.70B	9.99B	8.62B
Total Debt	215.02M	220.00M	245.28M	319.67M	893.90M	1.17B
Total Liabilities	8.62B	9.33B	8.16B	8.53B	7.91B	8.23B
Stockholders Equity	18.94B	18.69B	16.82B	15.69B	14.60B	12.75B
Cash Flow
Free Cash Flow	0.00	4.35B	2.99B	3.56B	3.07B	3.79B
Operating Cash Flow	0.00	4.58B	3.21B	3.66B	3.17B	3.90B
Investing Cash Flow	0.00	-366.25M	138.62M	-125.93M	-222.03M	-359.70M
Financing Cash Flow	0.00	-2.49B	-2.68B	-2.88B	-1.73B	-2.46B

Altech Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2735.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4641, the sentiment is Positive. The current price of 2735 is above the 20-day moving average (MA) of 2610.10, above the 50-day MA of 2701.42, and above the 200-day MA of 2670.30, indicating a neutral trend. The MACD of -5.98 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4641.

Altech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2475	74 Outperform	¥31.96B	9.91	―	3.86%	1.22%	-5.35%
4318	72 Outperform	¥15.32B	5.03	―	3.95%	8.08%	-19.45%
4848	72 Outperform	¥59.20B	12.39	―	3.66%	3.47%	-0.05%
7059	72 Outperform	¥40.53B	20.22	―	3.66%	20.52%	11.81%
4641	66 Neutral	¥42.24B	12.82	―	3.37%	8.57%	14.45%
2429	66 Neutral	¥46.98B	6.31	―	3.21%	15.79%	113.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Altech Corporation Corporate Events

Altech Corporation Reports Strong Q2 Financial Results for 2025

Altech Corporation reported its consolidated financial results for the second quarter of the fiscal year ending December 31, 2025, showing a notable increase in profits and sales compared to the previous year. The company achieved a 5.2% rise in net sales and a 16.5% increase in profit attributable to owners, indicating strong operational performance and improved market positioning. This positive financial outcome suggests enhanced value for stakeholders and a solid foundation for future growth.