Altech Co., Ltd. (9972) AI Stock Analysis

• Market Cap: ¥2.69B
• Dividend Yield: 2.75%
• Average Volume (3M): 29.40K
• Price to Earnings (P/E): 137.9
• Beta (1Y): 0.49
• Revenue Growth: -11.91%
• EPS Growth: N/A
• Country: JP
• Employees: 457
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.13
• Shares Outstanding: 15,153,000
• 10 Day Avg. Volume: 44,660
• 30 Day Avg. Volume: 29,403
• 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: ¥247.00
• Price Target Upside: -3.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥247.00 ▼(-3.14% Downside)

The overall stock score of 53 reflects the company's stable financial base and slight revenue growth, countered by negative net income and low profitability margins. Technical indicators suggest market stability, but high valuation metrics raise concerns. The absence of earnings call and corporate events data limits further insights.

Altech Co., Ltd. Business Overview & Revenue Model

Company Description

Altech Co., Ltd., a trading company, provides machines and equipment. It offers printing machines and film laminators; converting equipment for producing various types of plastic and laminate tubes; synthetic resin and rubber processing equipment; and food, medicines, medical care, cosmetics, and water treatment equipment. The company also provides various systems and solutions, such as ultrasonic sprays, photonic sintering system, and other solutions for thin film deposition, coating, curing, sintering, inspection, and evaluation processes; solutions for ID card and passport manufacturing, EMVCo credit card payment, and wireless charging, as well as hardware security evaluating solutions; and a range of 3D printers and its related services. In addition, it offers logistics and manufacturing site systems; and dies for blow molding machines used for PET bottle manufacturing, leak testers, ultrasonic defoamers, and various measuring equipment. Further, the company manufactures and sells preforms for heat-resistant PET bottles used in beverages; PET bottles for aseptic filling; and PET bottles for cooking oils, PE caps, and other items. Altech Co., Ltd. was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Altech Co., Ltd. generates revenue through the sale and distribution of industrial machinery and equipment to various sectors including electronics, automotive, and manufacturing industries. The company collaborates with a network of manufacturers and suppliers to source high-quality products, which it then markets and sells to businesses requiring specialized machinery for production and operational needs. Key revenue streams for Altech include direct sales of equipment, after-sales services, and maintenance contracts, which provide ongoing income and strengthen customer relationships. Additionally, strategic partnerships with leading technology and manufacturing companies enhance its product offerings and market reach, contributing significantly to its earnings.

Altech Co., Ltd. Financial Statement Overview

Summary

Altech Co., Ltd. shows stability with slight revenue growth and a solid equity base. However, persistent negative net income and low profitability margins highlight operational challenges. The balance sheet is healthy with moderate leverage, but cash flow conversion remains a concern.

Income Statement

The company experienced a slight revenue growth of 2.25% in the latest year, indicating some stability in sales. However, the net income remains negative, resulting in a net profit margin of -0.54%, which is a concern. The gross profit margin is stable at approximately 17.58%, but the negative EBIT margin of -0.81% reflects operational challenges. EBITDA margin improved to 4.02%, showing some improvement in core profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.41, suggesting manageable leverage. With an equity ratio of 58.39%, the company maintains a solid equity base. However, the return on equity is negative at -0.87%, indicating inefficiencies in generating profits from equity.

Cash Flow

The free cash flow growth rate is slightly positive at 2.61%, which is a positive sign. The operating cash flow to net income ratio is unfavorable at 4.6, indicating challenges in converting income into cash. Despite negative free cash flow, the free cash flow to net income ratio of 2.57 shows some potential for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.04B	18.23B	17.83B	16.32B	13.86B	12.95B
Gross Profit	3.35B	3.21B	3.14B	3.56B	3.49B	3.35B
EBITDA	883.37M	732.03M	-290.52M	1.18B	1.24B	1.27B
Net Income	-18.58M	-98.82M	-1.03B	402.79M	542.02M	595.38M
Balance Sheet
Total Assets	19.13B	19.49B	21.55B	20.89B	19.59B	16.18B
Cash, Cash Equivalents and Short-Term Investments	4.08B	4.12B	3.16B	4.14B	4.24B	3.87B
Total Debt	4.72B	4.67B	5.69B	3.11B	2.54B	1.00B
Total Liabilities	7.72B	8.33B	9.72B	8.02B	8.00B	5.56B
Stockholders Equity	11.70B	11.38B	11.67B	12.73B	11.31B	10.34B
Cash Flow
Free Cash Flow	0.00	-253.74M	-2.61B	-466.49M	-817.89M	652.97M
Operating Cash Flow	0.00	454.59M	-937.91M	525.06M	1.13B	1.28B
Investing Cash Flow	0.00	972.96M	-2.44B	-962.19M	-1.91B	-594.38M
Financing Cash Flow	0.00	-445.52M	2.37B	55.50M	1.29B	-339.57M

Altech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9972, the sentiment is Positive. The current price of 255 is above the 20-day moving average (MA) of 244.10, above the 50-day MA of 242.52, and above the 200-day MA of 227.80, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9972.

Altech Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	79 Outperform	3.33B	9.98	10.94%	3.09%	11.28%	19.84%
6233	68 Neutral	2.37B	12.47	2.60%	2.28%	-1.74%	507.58%
6217	54 Neutral	2.27B	-62.99	17.97%	―	-12.77%	-114.94%
9972	53 Neutral	¥2.69B	137.86		2.75%	-11.91%	―
2693	47 Neutral	2.91B	-17.42	-0.02%	1.99%	10.67%	-381.09%
6218	47 Neutral	3.47B	-1.90	-21.78%	1.81%	-10.87%	-3485.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%