ATOM Corporation (7412) AI Stock Analysis

• Market Cap: ¥127.64B
• Dividend Yield: N/A
• Average Volume (3M): 196.73K
• Price to Earnings (P/E): 158.1
• Beta (1Y): 0.25
• Revenue Growth: -7.26%
• EPS Growth: N/A
• Country: JP
• Employees: 816
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Restaurants
• EPS (TTM): -2.25
• Shares Outstanding: 193,559,300
• 10 Day Avg. Volume: 189,940
• 30 Day Avg. Volume: 196,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥650.00
• Price Target Upside: -1.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ¥650.00 ▼(-1.52% Downside)

The overall stock score is primarily impacted by the company's financial performance challenges, including declining revenue and cash flow issues. The technical analysis suggests a lack of strong momentum, and the high P/E ratio indicates overvaluation. These factors collectively contribute to a lower stock score.

ATOM Corporation Business Overview & Revenue Model

Company Description

ATOM Corporation (7412) is a technology-driven company specializing in advanced manufacturing and supply chain solutions. Operating primarily in the electronics and semiconductor sectors, ATOM provides innovative products and services that enhance efficiency and productivity for its clients. The company focuses on delivering high-quality components, automation systems, and software solutions that cater to various industries, including consumer electronics, automotive, and telecommunications.

How the Company Makes Money

ATOM Corporation generates revenue through multiple streams, including the sale of electronic components, automation equipment, and software licensing. The company's core revenue comes from direct sales to manufacturers and OEMs (Original Equipment Manufacturers) in the electronics and semiconductor industries. Additionally, ATOM benefits from recurring revenue through service contracts, maintenance agreements, and updates for its software solutions. Strategic partnerships with key players in the technology sector enhance its market reach and provide opportunities for collaborative product development, further contributing to its earnings. The company's focus on innovation and efficiency allows it to maintain competitive pricing, driving both volume sales and profitability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 660.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7412, the sentiment is Negative. The current price of 660 is below the 20-day moving average (MA) of 660.80, below the 50-day MA of 664.00, and below the 200-day MA of 663.66, indicating a bearish trend. The MACD of -1.59 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 72.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7412.

ATOM Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2695	71 Outperform	¥155.45B	126.36		0.51%	4.82%	-79.12%
8153	70 Outperform	¥123.65B	34.88		0.75%	4.32%	29.02%
7421	66 Neutral	¥81.26B	67.11		0.30%	1.53%	-15.91%
9828	66 Neutral	¥62.70B	13.06		1.98%	8.33%	24.64%
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
9887	59 Neutral	¥125.96B	46.40		0.37%	21.94%	-7.70%
7412	47 Neutral	¥127.64B	158.14		―	-7.26%	―