ATOM Corporation (7412) AI Stock Analysis

• Market Cap: ¥119.14B
• Dividend Yield: N/A
• Average Volume (3M): 491.65K
• Price to Earnings (P/E): 197.9
• Beta (1Y): 0.27
• Revenue Growth: -12.01%
• EPS Growth: N/A
• Country: JP
• Employees: 816
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -1.75
• Shares Outstanding: 193,559,300
• 10 Day Avg. Volume: 650,970
• 30 Day Avg. Volume: 491,650
• PEG Ratio: -1.71
• Price to Book (P/B): 16.66
• Price to Sales (P/S): 3.43
• P/FCF Ratio: -77.79
• 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: 41 Neutral
• Price Target: ¥596.00 ▲(0.17% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

ATOM Corporation's stock is currently rated low due to significant financial performance challenges, particularly in profitability and cash flow management. The technical analysis indicates bearish momentum, and the stock's valuation is unattractive with a high P/E ratio and no dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Strong gross margins

ATOM's relatively strong gross margins indicate product-level pricing power and input-cost advantages. Over months this provides a buffer against revenue weakness, enables incremental funding for R&D and capex, and supports durable margin recovery if operating leverage improves.

Balanced capital structure

A moderate debt-to-equity ratio gives ATOM financial flexibility to fund operations and strategic investments without excessive leverage. This reduces refinancing and solvency risk, allowing the company to navigate sector cyclicality and fund targeted growth over the medium term.

Diversified high-margin product mix

Multiple high-margin product lines and long-term contracts across electronics and aerospace provide predictable revenue streams. Combined with collaborative R&D and licensing potential, this structural diversification supports sustained revenue durability and pipeline-driven growth over several quarters.

Negative Factors

Declining revenue trend

A sustained ~-16% revenue decline erodes scale and weakens fixed-cost absorption. Over 2–6 months this reduces absolute gross profit, constrains margins recovery, and limits internal funding for R&D and capex unless top-line stabilization or new contract wins occur.

Negative cash flow

Persistent negative operating and free cash flow restricts the company's ability to self-fund investments, service debt, or build liquidity. In the medium term this forces reliance on external financing, raising costs or dilution and limiting strategic flexibility and resilience.

Weak operating profitability

Despite solid gross margins, negative EBIT and net margins indicate operating-cost, R&D or SG&A pressure. Continued unprofitability will deplete equity, hamper reinvestment capacity and may require restructuring, impairing the firm's ability to compete and execute growth plans.

ATOM Corporation Business Overview & Revenue Model

Company Description

ATOM Corporation engages in the restaurant business in Japan. It is involved in the management of FC restaurant chains, including Karaoke stores in Tohoku, Kita-Kantou, Tokai, and Hokuriku areas. The company was founded in 1972 and is headquartered in Nagoya, Japan. ATOM Corporation operates as a subsidiary of Colowide Co., Ltd.

How the Company Makes Money

ATOM Corporation generates revenue through multiple streams, primarily by selling high-margin products such as semiconductors, nanomaterials, and aerospace components. The company leverages long-term contracts with major clients in the electronics and aerospace sectors, ensuring a steady flow of income. Additionally, ATOM Corporation engages in collaborative research and development initiatives with industry-leading firms, which often leads to joint ventures and licensing agreements, further enhancing its revenue potential. The company's commitment to innovation and strategic partnerships with key players in technology and manufacturing sectors significantly contribute to its financial performance.

ATOM Corporation Financial Statement Overview

Summary

ATOM Corporation faces significant challenges in profitability and cash flow management, despite maintaining a reasonable balance sheet structure. The company needs to address its declining revenue and improve its cash flow generation to enhance financial stability and long-term growth prospects.

Income Statement

ATOM Corporation has shown a declining revenue trend with a negative revenue growth rate in recent years. The gross profit margin is relatively strong, but the company struggles with profitability as indicated by negative EBIT and net profit margins. The recent improvement in net income is a positive sign, but overall profitability remains a concern.

Balance Sheet

The debt-to-equity ratio is moderate, indicating a balanced capital structure. However, the company has experienced a decrease in stockholders' equity over time. The equity ratio suggests a fair level of financial stability, but the declining trend in total assets is a potential risk.

Cash Flow

ATOM Corporation has faced challenges with negative free cash flow and operating cash flow in recent years. The operating cash flow to net income ratio indicates inefficiencies in converting net income into cash. The free cash flow growth rate has been negative, highlighting cash flow management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.91B	35.48B	36.95B	35.24B	31.10B	32.19B
Gross Profit	23.95B	21.73B	23.01B	22.82B	20.07B	21.08B
EBITDA	-641.00M	2.31B	-76.00M	-1.11B	2.90B	-743.00M
Net Income	-1.89B	530.00M	-1.47B	-2.17B	748.00M	-1.81B
Balance Sheet
Total Assets	22.13B	18.99B	20.32B	22.53B	24.28B	24.64B
Cash, Cash Equivalents and Short-Term Investments	5.08B	6.70B	4.66B	5.57B	7.07B	5.32B
Total Debt	6.30B	5.38B	6.24B	6.24B	7.10B	7.15B
Total Liabilities	15.08B	11.68B	13.55B	14.31B	13.89B	14.12B
Stockholders Equity	7.05B	7.30B	6.76B	8.22B	10.38B	10.52B
Cash Flow
Free Cash Flow	2.30B	-1.56B	-1.01B	-1.29B	1.35B	-1.34B
Operating Cash Flow	2.30B	-782.00M	944.00M	1.19B	1.53B	-1.26B
Investing Cash Flow	0.00	3.75B	-1.86B	-1.74B	884.00M	116.00M
Financing Cash Flow	0.00	-914.00M	1.00M	-949.00M	-666.00M	826.00M

ATOM Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 595.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7412, the sentiment is Positive. The current price of 595 is below the 20-day moving average (MA) of 618.05, above the 50-day MA of 589.36, and below the 200-day MA of 613.71, indicating a bullish trend. The MACD of 7.41 indicates Positive momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 86.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7412.

ATOM Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9828	72 Outperform	¥50.56B	10.68	―	2.41%	6.49%	4.27%
8153	70 Outperform	¥128.12B	28.18	―	0.70%	5.15%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7421	58 Neutral	¥77.76B	113.87	―	0.32%	0.51%	4.92%
2695	58 Neutral	¥143.16B	39.79	―	0.63%	4.32%	11.78%
9887	57 Neutral	¥108.24B	32.58	―	0.37%	20.44%	13.71%
7412	41 Neutral	¥119.14B	197.93	―	―	-12.01%	―