Allied Telesis Holdings KK (6835) AI Stock Analysis

• Market Cap: $17.99B
• Dividend Yield: 1.2%
• Average Volume (3M): 844.68K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.60
• Revenue Growth: 10.80%
• EPS Growth: 484.38%
• Country: JP
• Employees: 1,879
• Sector: Technology
• Sector Strength: 79
• Industry: Communication Equipment
• EPS (TTM): 4.82
• Shares Outstanding: 107,715,744
• 10 Day Avg. Volume: 697,650
• 30 Day Avg. Volume: 844,680
• PEG Ratio: 5.78
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 76 Outperform
• Price Target: ¥172.00 ▲(6.17%Upside)

Allied Telesis Holdings KK's overall stock score reflects its strong financial performance, characterized by revenue growth, profit margins, and cash flow stability. The stock's valuation is highly attractive, with a low P/E ratio and decent dividend yield, contributing positively to the score. However, mixed technical indicators suggest caution in the short term. The absence of recent earnings call data or corporate events means these aspects did not influence the score.

Allied Telesis Holdings KK Business Overview & Revenue Model

Company Description

Allied Telesis Holdings KK (6835) is a leading provider of networking infrastructure solutions and services. The company operates within the technology sector, specializing in the design, manufacturing, and sale of advanced networking products. Its core offerings include Ethernet switches, routers, wireless LAN products, network adapters, and media converters, serving a wide range of industries including government, education, healthcare, and commercial enterprises. Allied Telesis is known for delivering reliable and secure networking solutions that enable seamless connectivity and efficient data management.

How the Company Makes Money

Allied Telesis Holdings KK generates revenue through the sale of its networking hardware products and related services. The company's primary revenue streams include product sales of Ethernet switches, routers, and wireless LAN products, which are essential components for building and maintaining network infrastructure. Additionally, Allied Telesis provides network management software and support services, offering customers maintenance and technical assistance to ensure optimal performance of their network solutions. Significant partnerships with distributors and resellers, as well as contracts with businesses and government entities, also contribute to the company's earnings by expanding its market reach and customer base. Furthermore, the company may engage in research and development collaborations to innovate and enhance its product offerings, driving continued revenue growth.

Allied Telesis Holdings KK Financial Statement Overview

Summary

Allied Telesis Holdings KK demonstrates a solid financial performance with strong revenue and profit growth, improved leverage ratios, and robust cash flow generation. The company has shown significant improvement in profitability and reduced debt, contributing to its stable financial position.

Income Statement

Allied Telesis Holdings KK has shown impressive revenue growth over the years, with a notable increase from ¥29.38 billion in 2020 to ¥48.46 billion in 2024. The gross profit margin remains strong, consistently above 50%, indicating effective cost management. The net profit margin has improved significantly, rising from 0.63% in 2020 to 7.43% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins have also increased, showing operational efficiency gains. Overall, the income statement displays strong growth and profitability trends.

Balance Sheet

The company's balance sheet reflects a robust equity base, with stockholders' equity growing consistently to reach ¥19.45 billion in 2024. The debt-to-equity ratio has improved, down from 2.05 in 2020 to 0.39 in 2024, indicating reduced leverage. Return on equity has shown positive trends, supported by increasing net income. However, the total assets to equity ratio indicates a balanced approach to asset financing. Overall, the balance sheet is stable with a positive trajectory towards lower leverage.

Cash Flow

Allied Telesis' cash flows reflect a significant turnaround in free cash flow, which has grown from negative figures in earlier years to ¥5.09 billion in 2024. The operating cash flow to net income ratio is strong, suggesting effective conversion of income to cash. The company has shown resilience in cash flow management, despite past volatility. The free cash flow to net income ratio is also favorable, indicating healthy cash generation relative to earnings. Overall, cash flow stability and growth are commendable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.46B	44.39B	41.50B	33.27B	29.38B
	Gross Profit
27.90B	25.04B	24.21B	20.63B	17.92B
	EBIT
3.42B	2.21B	1.89B	1.40B	624.41M
	EBITDA
6.74B	3.19B	12.86B	2.02B	1.40B
	Net Income Common Stockholders
3.60B	1.09B	8.61B	1.37B	185.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.26B	10.70B	9.05B	4.72B	4.06B
	Total Assets
46.49B	45.50B	41.64B	28.88B	25.77B
	Total Debt
7.67B	9.69B	6.56B	8.81B	10.09B
	Net Debt
-6.59B	-1.01B	-2.50B	4.09B	6.03B
	Total Liabilities
27.03B	28.03B	25.87B	22.68B	21.43B
	Stockholders Equity
19.45B	17.47B	15.77B	6.20B	4.34B
Cash Flow		Free Cash Flow
5.09B	-954.62M	7.12B	2.19B	377.59M
	Operating Cash Flow
5.74B	-74.37M	8.41B	2.54B	913.11M
	Investing Cash Flow
2.88B	-967.43M	-1.45B	-423.31M	-542.79M
	Financing Cash Flow
-5.44B	2.58B	-4.25B	-1.62B	782.77M

Allied Telesis Holdings KK Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 162.00
• 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:6835, the sentiment is Neutral. The current price of 162 is below the 20-day moving average (MA) of 164.20, above the 50-day MA of 154.88, and above the 200-day MA of 129.88, indicating a neutral trend. The MACD of 1.96 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6835.

Allied Telesis Holdings KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥42.96B	11.82		6.08%	3.23%	-22.14%
6675	80 Outperform	¥23.77B	6.64		0.74%	7.38%	25.89%
6835	76 Outperform	$17.99B	4.99	20.51%	1.20%	10.80%	484.38%
6820	74 Outperform	¥42.17B	14.29		4.03%	-1.34%	-14.87%
6287	74 Outperform	$65.23B	9.10	9.56%	3.67%	7.92%	100.27%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
6715	50 Neutral	¥11.28B	836.13		1.97%	-1.06%	-111.31%