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ATOM Corporation (JP:7412)
:7412
Japanese Market
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ATOM Corporation (7412) AI Stock Analysis

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JP:7412

ATOM Corporation

(7412)

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Underperform 40 (OpenAI - 5.2)
Rating:40Underperform
Price Target:
¥328.00
▼(-44.87% Downside)
Action:Reiterated
Date:06/24/26
The score is held down primarily by weak financial performance (loss-making year, higher leverage, and negative operating/free cash flow) and a very bearish technical backdrop (price far below all major moving averages with negative MACD). Valuation does not offset these risks due to negative earnings (negative P/E) and no provided dividend yield.
Positive Factors
High gross margins
Sustained gross margins near 60% indicate strong underlying unit economics and pricing power in the restaurant business. That gross-profit buffer improves the odds of returning to operating profitability once revenue stabilizes, since margins help absorb variable input cost swings and support fixed-cost recovery.
Negative Factors
Significant revenue decline
A ~14% revenue drop in FY2026 signals weakening demand or market share loss, reducing scale and the firm's ability to spread fixed costs. Persistently lower top line undermines profitability recovery and increases the probability that structural initiatives (menu, marketing, locations) are required to restore sustainable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 60% indicate strong underlying unit economics and pricing power in the restaurant business. That gross-profit buffer improves the odds of returning to operating profitability once revenue stabilizes, since margins help absorb variable input cost swings and support fixed-cost recovery.
Read all positive factors

ATOM Corporation (7412) vs. iShares MSCI Japan ETF (EWJ)

ATOM Corporation Business Overview & Revenue Model

Company Description
ATOM Corporation is a Japanese company primarily engaged in the restaurant sector. It oversees the operation of various franchised restaurant networks, which notably include karaoke venues across the Tohoku, Kita-Kanto, Tokai, and Hokuriku regions...
How the Company Makes Money
null...

ATOM Corporation Financial Statement Overview

Summary
Financial statements point to elevated risk: FY2026 revenue declined (~-14% YoY) and results swung to a net loss with operating profit near breakeven. Balance sheet risk increased as debt-to-equity rose to ~1.54 and equity declined, while cash flow quality is a major weakness with negative operating and free cash flow in FY2026 (and negative operating cash flow again in FY2025).
Income Statement
33
Negative
Balance Sheet
36
Negative
Cash Flow
24
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue36.91B30.41B35.48B36.95B35.24B31.10B
Gross Profit23.95B18.15B21.73B23.01B22.82B20.07B
EBITDA-641.00M748.00M2.31B-76.00M-1.11B2.90B
Net Income-1.89B-1.51B530.00M-1.47B-2.17B748.00M
Balance Sheet
Total Assets22.13B14.52B19.05B20.42B22.66B24.43B
Cash, Cash Equivalents and Short-Term Investments5.08B3.63B6.70B4.66B5.57B7.07B
Total Debt6.30B5.65B5.38B6.24B6.24B6.94B
Total Liabilities15.08B10.84B11.74B13.66B14.44B14.04B
Stockholders Equity7.05B3.68B7.30B6.76B8.22B10.38B
Cash Flow
Free Cash Flow0.00-1.14B-1.56B-1.01B-1.29B1.38B
Operating Cash Flow0.00-459.00M-782.00M944.00M1.19B1.53B
Investing Cash Flow0.00-501.00M3.75B-1.86B-1.74B884.00M
Financing Cash Flow0.00-2.11B-914.00M1.00M-949.00M-666.00M

ATOM Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price595.00
Price Trends
50DMA
584.76
Negative
100DMA
606.55
Negative
200DMA
592.95
Negative
Market Momentum
MACD
-74.01
Positive
RSI
26.86
Positive
STOCH
42.09
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 595 is above the 20-day moving average (MA) of 462.00, above the 50-day MA of 584.76, and above the 200-day MA of 592.95, indicating a bearish trend. The MACD of -74.01 indicates Positive momentum. The RSI at 26.86 is Positive, neither overbought nor oversold. The STOCH value of 42.09 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥129.50B19.621.88%21.61%11.23%
63
Neutral
¥114.55B25.160.70%6.85%45.60%
61
Neutral
¥641.44B35.819.53%0.55%12.02%20.18%
61
Neutral
¥206.81B43.750.69%10.09%22.64%
56
Neutral
¥1.30T30.1015.36%0.78%11.21%16.65%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
40
Underperform
¥68.36B-45.90-14.29%-384.35%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7412
ATOM Corporation
354.00
-305.00
-46.28%
JP:3197
Skylark Holdings Co
2,849.00
-157.08
-5.23%
JP:7550
Zensho Holdings Co
8,232.00
-79.61
-0.96%
JP:3543
KOMEDA Holdings Co., Ltd.
2,800.00
-155.68
-5.27%
JP:8153
MOS FOOD SERVICES, INC.
3,715.00
46.26
1.26%
JP:9861
Yoshinoya Holdings Co., Ltd.
3,198.00
112.81
3.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2026