ATOM Corporation (7412) AI Stock Analysis

• Market Cap: ¥116.82B
• Dividend Yield: N/A
• Average Volume (3M): 491.65K
• Price to Earnings (P/E): 165.7
• Beta (1Y): 0.26
• Revenue Growth: -12.01%
• EPS Growth: N/A
• Country: JP
• Employees: 816
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.44
• 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: ¥578.00 ▼(-2.86% Downside)

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

R&D and product portfolio

ATOM’s strong R&D capabilities and diversified advanced-materials portfolio create durable competitive advantages across electronics, automotive, telecom and aerospace. Sustained innovation supports product differentiation, premium pricing and long-term customer relationships that bolster margins and market share.

High-margin product mix

A product mix centered on high-margin semiconductors and aerospace components supports stronger gross profitability over time. This structural margin profile can fund R&D and capital expenditures, insulating the business from cyclical revenue dips if sales volumes recover or stabilize.

Long-term contracts and partnerships

Long-term client contracts and collaborative R&D agreements provide revenue visibility, reduce near-term customer churn, and create licensing income opportunities. These structural relationships support steadier backlog, lower commercial risk, and deeper technological integration with key industry players.

Negative Factors

Declining revenue trend

A sustained double-digit revenue decline erodes scale economics and weakens bargaining power with suppliers and customers. Over months this trend strains margin recovery, limits reinvestment capacity, and makes it harder to restore growth without clear new products, markets, or contract wins.

Weak cash generation

Consistent negative operating and free cash flow highlights poor cash conversion and liquidity risk. Structurally weak cash generation limits the company’s ability to fund capex, R&D, or service debt internally, increasing reliance on external financing or potentially dilutive measures over the medium term.

Profitability pressures

Negative operating and net margins indicate issues beyond gross profit—likely high SG&A, R&D spending, or inefficiencies. Persisting operating losses prevent internal reinvestment, raise financing needs, and threaten sustainable margin recovery absent decisive cost control or revenue stabilization.

ATOM Corporation Business Overview & Revenue Model

Company Description

ATOM Corporation (7412) is a leading technology company specializing in advanced materials and innovative manufacturing solutions. The company operates primarily in the electronics and aerospace sectors, providing high-performance components and systems that enhance the functionality and efficiency of various applications. ATOM Corporation is known for its cutting-edge research and development capabilities, focusing on the production of semiconductors, nanomaterials, and composite materials that serve a diverse range of industries, including automotive, telecommunications, and defense.

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	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: Positive
• Last Price: 595.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 above the 20-day moving average (MA) of 581.55, above the 50-day MA of 556.08, and below the 200-day MA of 618.35, indicating a neutral trend. The MACD of 14.99 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 80.34 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	¥55.08B	11.63	―	2.41%	6.49%	4.27%
8153	70 Outperform	¥129.97B	30.95	―	0.70%	5.15%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7421	58 Neutral	¥77.90B	59.99	―	0.32%	0.51%	4.92%
2695	58 Neutral	¥135.03B	37.53	―	0.63%	4.32%	11.78%
9887	57 Neutral	¥125.77B	46.67	―	0.37%	20.44%	13.71%
7412	41 Neutral	¥116.82B	165.73	―	―	-12.01%	―