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

• Market Cap: ¥3.00B
• Dividend Yield: 2.46%
• Average Volume (3M): 90.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -12.04%
• EPS Growth: 20.36%
• Country: JP
• Employees: 457
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 4.49
• Shares Outstanding: 15,153,000
• 10 Day Avg. Volume: 14,520
• 30 Day Avg. Volume: 90,336
• PEG Ratio: 0.33
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -11.78
• 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

• Rating: 56 Neutral
• Price Target: ¥296.00 ▲(3.14% Upside)

The stock's overall score is driven by stable technical indicators and a solid equity base, but is weighed down by negative earnings and low profitability margins. The dividend yield provides some support, but operational challenges and cash flow concerns remain significant risks.

Altech Co., Ltd. Business Overview & Revenue Model

Company Description

Altech Co., Ltd. (9972) is a leading technology company based in Japan, specializing in the development and manufacturing of advanced electronic components and systems. The company operates primarily in the sectors of information technology, telecommunications, and industrial automation. Altech's core product offerings include high-performance semiconductors, communication devices, and integrated systems designed to enhance connectivity and efficiency in various applications across multiple industries.

How the Company Makes Money

Altech Co., Ltd. generates revenue through the sale of its electronic components and systems, which are in high demand across various sectors including IT and telecommunications. The company's revenue model is primarily based on direct sales to manufacturers, distributors, and end-users. Key revenue streams include the sale of semiconductors, communication devices, and customized integrated solutions. Additionally, Altech benefits from strategic partnerships with major industry players, which enhance its market reach and product development capabilities. The company's earnings are also supported by ongoing research and development initiatives that lead to innovative products, enabling it to maintain a competitive edge and attract a diverse customer base.

Altech Co., Ltd. Financial Statement Overview

Summary

Altech Co., Ltd. shows slight revenue growth and a solid equity base, but persistent negative net income and low profitability margins highlight operational challenges. The balance sheet is relatively healthy with moderate leverage, yet 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	17.12B	18.23B	17.83B	16.32B	13.86B	12.95B
Gross Profit	3.02B	3.21B	3.14B	3.56B	3.49B	3.35B
EBITDA	441.28M	732.03M	-290.52M	1.18B	1.24B	1.27B
Net Income	25.87M	-98.82M	-1.03B	402.79M	542.02M	595.38M
Balance Sheet
Total Assets	18.60B	19.49B	21.55B	20.89B	19.59B	16.18B
Cash, Cash Equivalents and Short-Term Investments	4.70B	4.12B	3.16B	4.14B	4.24B	3.87B
Total Debt	4.47B	4.67B	5.69B	3.11B	2.54B	1.00B
Total Liabilities	7.66B	8.33B	9.72B	8.02B	8.00B	5.56B
Stockholders Equity	11.24B	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: Neutral
• Last Price: 287.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9972, the sentiment is Neutral. The current price of 287 is above the 20-day moving average (MA) of 285.55, above the 50-day MA of 267.66, and above the 200-day MA of 238.68, indicating a neutral trend. The MACD of 4.38 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	¥3.15B	9.31	―	4.46%	11.28%	19.84%
6233	―	¥2.27B	11.94	―	2.37%	-1.74%	507.58%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9972	―	¥3.00B	―	―	2.46%	-12.04%	20.36%
6217	―	¥2.18B	―	―	―	-5.76%	-120.95%
2693	―	¥2.93B	2,047.89	―	1.96%	10.67%	-381.09%
6218	―	¥3.27B	―	―	1.93%	-10.87%	-3485.61%