ATOM Corporation (7412) AI Stock Analysis

• Market Cap: ¥124.55B
• Dividend Yield: N/A
• Average Volume (3M): 491.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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: ¥616.00 ▲(3.53% 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

Gross Margin Strength

Relatively strong gross margins provide a structural buffer in the restaurant business. This supports pricing power and helps absorb input and labor cost volatility, giving ATOM a durable foundation to restore operating profitability if fixed-cost absorption and efficiencies improve.

Moderate Leverage

A moderate debt-to-equity ratio indicates a balanced capital structure that preserves financial flexibility. This allows ATOM to fund operations or targeted investments without excessive leverage, supporting resilience across cycles and providing runway to execute turnaround initiatives.

Net Income Improvement

Recent improvement in net income suggests management actions are beginning to work (cost controls, mix shifts or efficiency gains). If sustained, this will rebuild retained earnings and improve cash generation, signaling a pathway toward durable profitability rather than isolated short-term gains.

Negative Factors

Declining Revenue

A sustained negative revenue growth trend (~-16% recently) reduces scale and operating leverage in a low-margin industry. Shrinking top-line volume pressures long-term margin recovery, competitive position and return on invested capital unless the company halts declines or diversifies revenue streams.

Weak Cash Generation

Persistent negative operating and free cash flow indicate poor cash conversion and operational inefficiency. This constrains reinvestment, limits ability to service debt or fund growth, and raises refinancing and liquidity risk, undermining the company's capacity to execute longer-term recovery plans.

Eroding Equity Base

A declining stockholders' equity and shrinking asset base weaken financial buffers and reduce borrowing capacity. This erosion—likely from losses or write-downs—lowers resilience to shocks, restricts capital for store investment or modernization, and hampers sustainable recovery and expansion.

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

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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	19.05B	20.42B	22.66B	24.43B	24.83B
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	6.94B	7.15B
Total Liabilities	15.08B	11.74B	13.66B	14.44B	14.04B	14.30B
Stockholders Equity	7.05B	7.30B	6.76B	8.22B	10.38B	10.52B
Cash Flow
Free Cash Flow	0.00	-1.56B	-1.01B	-1.29B	1.38B	-1.34B
Operating Cash Flow	0.00	-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: 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 below the 20-day moving average (MA) of 626.85, below the 50-day MA of 611.94, and below the 200-day MA of 612.49, indicating a bullish trend. The MACD of 9.47 indicates Negative momentum. The RSI at 70.64 is Negative, neither overbought nor oversold. The STOCH value of 96.29 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
8153	70 Outperform	¥130.43B	20.09	―	0.70%	5.15%	47.13%
3197	63 Neutral	$760.31B	45.71	9.53%	0.55%	15.58%	60.90%
3543	63 Neutral	¥136.62B	22.64	―	1.88%	16.70%	-0.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7550	59 Neutral	¥1.46T	28.68	15.36%	0.78%	11.29%	-4.88%
9861	53 Neutral	¥206.68B	72.52	―	0.69%	10.75%	-14.28%
7412	41 Neutral	¥124.55B	-79.00	―	―	-12.01%	―