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

• Market Cap: ¥2.69B
• Dividend Yield: 2.56%
• Average Volume (3M): 42.96K
• Price to Earnings (P/E): 135.7
• Beta (1Y): 0.54
• Revenue Growth: -11.91%
• EPS Growth: N/A
• Country: JP
• Employees: 457
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 1.13
• Shares Outstanding: 15,153,000
• 10 Day Avg. Volume: 41,910
• 30 Day Avg. Volume: 42,960
• PEG Ratio: -2.15
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.48
• 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: 57 Neutral
• Price Target: ¥283.00 ▲(3.66%Upside)

The stock's overall score of 57 reflects a mixed outlook. Strong upward technical momentum is the primary positive factor, but it is countered by a high P/E ratio suggesting overvaluation and ongoing operational challenges reflected in financial performance. Strategic improvements and careful monitoring of technical indicators are recommended.

Altech Co., Ltd. Business Overview & Revenue Model

Company Description

Altech Co., Ltd. (9972) is a diversified company engaged in the manufacturing and distribution of industrial machinery and equipment. The company operates across several sectors, including electronics, semiconductors, and automotive industries. It provides a wide range of products and services, specializing in the development, production, and maintenance of equipment used in manufacturing processes, as well as offering technical support and engineering solutions to its clients.

How the Company Makes Money

Altech Co., Ltd. generates revenue primarily through the sale of industrial machinery and related equipment to various industries, including electronics, semiconductors, and automotive sectors. The company also earns income by providing maintenance services, technical support, and engineering solutions to its customers. Key revenue streams include equipment sales, service contracts for equipment maintenance, and consulting services. Strategic partnerships with leading manufacturers and suppliers enhance its product offerings and market reach, contributing to its overall earnings.

Altech Co., Ltd. Financial Statement Overview

Summary

Altech Co., Ltd. shows some stability with slight revenue growth and a solid equity base. However, negative net income and low profitability margins highlight operational challenges. While the balance sheet is relatively healthy with moderate leverage, 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	19.43B	18.23B	17.83B	16.32B	13.86B	12.95B
Gross Profit	3.29B	3.21B	3.14B	3.56B	3.49B	3.35B
EBITDA	-284.75M	732.03M	-290.52M	1.18B	1.24B	1.27B
Net Income	-974.80M	-98.82M	-1.03B	402.79M	542.02M	595.38M
Balance Sheet
Total Assets	18.80B	19.49B	21.55B	20.89B	19.59B	16.18B
Cash, Cash Equivalents and Short-Term Investments	4.37B	4.12B	3.16B	4.14B	4.24B	3.87B
Total Debt	2.44B	4.67B	5.69B	3.11B	2.54B	1.00B
Total Liabilities	8.06B	8.33B	9.72B	8.02B	8.00B	5.56B
Stockholders Equity	10.47B	11.38B	11.67B	12.73B	11.31B	10.34B
Cash Flow
Free Cash Flow	766.75M	-253.74M	-2.61B	-466.49M	-817.89M	652.97M
Operating Cash Flow	766.75M	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: 273.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 273 is above the 20-day moving average (MA) of 250.45, above the 50-day MA of 237.68, and above the 200-day MA of 219.71, indicating a bullish trend. The MACD of 6.37 indicates Negative momentum. The RSI at 76.82 is Negative, neither overbought nor oversold. The STOCH value of 74.78 is Neutral, 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	¥2.89B	8.95		3.57%	11.07%	17.66%
6233	71 Outperform	¥2.28B	9.59		2.36%	1.40%	―
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
6217	64 Neutral	¥2.28B	3.34		―	-14.05%	―
9972	57 Neutral	¥2.69B	135.73		2.56%	-11.91%	―
6218	55 Neutral	¥2.77B	―		2.27%	-9.15%	-1123.11%
2693	51 Neutral	¥2.82B	2,006.61		2.06%	18.07%	―