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

• Market Cap: ¥2.89B
• Dividend Yield: 2.47%
• Average Volume (3M): 51.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -12.04%
• EPS Growth: 20.36%
• Country: JP
• Employees: 457
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -196.76
• Shares Outstanding: 15,153,000
• 10 Day Avg. Volume: 22,710
• 30 Day Avg. Volume: 51,966
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 32.84
• 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: 49 Neutral
• Price Target: ¥283.00 ▼(-1.39% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is primarily held back by weak financial performance driven by sustained recent losses and deteriorating margins, despite resilient revenue and only moderate leverage. Technical signals are neutral-to-slightly positive, and valuation is mixed (decent yield but negative P/E from losses), providing limited offset to the fundamental risk.

Positive Factors

Resilient revenue base

Consistent top-line growth, including a 5.4% increase in 2025, indicates durable end-market demand for equipment and services. A stable revenue runway supports recovery efforts, funds service-led margins, and provides the scale needed to absorb restructuring costs over the medium term.

Equipment + technical services model

Combining hardware sales with engineering and after-sales support creates recurring revenue, higher switching costs, and closer customer relationships. This hybrid model enhances lifetime customer value, smooths sales cyclicality, and supports margin resilience when product pricing is pressured.

Moderate leverage provides flexibility

Reasonable debt levels give the company financing flexibility to fund operations, service investments, or restructuring without acute solvency risk. Moderate leverage lowers refinancing pressure and increases capacity to absorb losses while management works to restore profitability.

Negative Factors

Sustained multi-year losses

Three consecutive years of losses materially erode equity and restrict re-investment capacity. Persistent unprofitability impairs ROIC, reduces buffer against demand shocks, and could force cost cuts or asset sales that harm long-term competitive position if not reversed.

Eroding margins and pricing power

A sustained decline in gross margin signals weaker pricing power or higher input costs, limiting the company’s ability to convert sales into operating profits. Continued margin compression will make it harder to return to consistent profitability even if revenues stabilize.

Volatile cash generation and FCF

Irregular operating cash flow and swings in free cash flow undermine predictable funding for capex, working capital, and dividends. This volatility raises refinancing and investment risk and weakens the company’s ability to execute long-term strategic projects without external capital.

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 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

Revenue has held up with recent growth, but profitability has deteriorated sharply, with losses in 2023–2025 and a deeply negative net margin in 2025. Balance sheet leverage is moderate, yet equity has declined and ROE is strongly negative. Cash flow improved to positive operating and modest positive free cash flow in 2025, but remains inconsistent overall.

Income Statement

Revenue has generally grown over the last several years (including +5.4% in 2025), but profitability has deteriorated materially. The company swung from positive earnings in 2020–2022 to losses in 2023–2025, with 2025 showing a deeply negative net margin (~-14.8%) and negative operating profit. Gross margin has also trended down versus earlier years (roughly mid-to-high 20% in 2020–2021 to ~18.7% in 2025), suggesting weaker pricing power and/or higher costs. The main strength is that sales have held up, but the key weakness is the sharp earnings volatility and loss-making profile in the most recent periods.

Balance Sheet

Leverage appears moderate, with debt-to-equity around ~0.41–0.49 in 2023–2025 (and lower in earlier years), indicating the balance sheet is not excessively debt-loaded. However, equity has declined meaningfully from 2022 to 2025, and returns on equity turned strongly negative in 2023–2025 (about -30.9% in 2025), reflecting that recent losses are eroding shareholder value. Overall, the balance sheet provides some financing flexibility, but sustained losses are a clear risk to capital strength.

Cash Flow

Cash generation is mixed. Operating cash flow returned to positive in 2024–2025 (about 0.63B in 2025), but it has been inconsistent, including negative operating cash flow in 2023. Free cash flow is also volatile: deeply negative in 2023, negative again in 2024, and only modestly positive in 2025. A key concern is that cash flow has not consistently supported profitability trends, with relatively low operating cash flow relative to revenue and uneven conversion of earnings into cash. The positive in 2025 is encouraging, but durability remains unproven.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	17.55B	18.23B	17.83B	16.32B	13.86B
Gross Profit	3.29B	3.21B	3.14B	3.56B	3.49B
EBITDA	760.87M	675.60M	412.48M	1.05B	1.16B
Net Income	-2.59B	-98.82M	-1.03B	402.79M	542.02M
Balance Sheet
Total Assets	14.92B	19.51B	21.61B	20.98B	19.66B
Cash, Cash Equivalents and Short-Term Investments	3.61B	4.12B	3.16B	4.14B	4.24B
Total Debt	4.03B	4.67B	5.69B	3.11B	2.54B
Total Liabilities	6.45B	8.35B	9.79B	8.11B	8.07B
Stockholders Equity	8.39B	11.38B	11.67B	12.73B	11.31B
Cash Flow
Free Cash Flow	115.72M	-234.63M	-2.60B	-460.16M	-811.95M
Operating Cash Flow	569.59M	454.59M	-937.91M	525.06M	1.13B
Investing Cash Flow	-102.07M	972.96M	-2.44B	-962.19M	-1.91B
Financing Cash Flow	-1.03B	-445.52M	2.37B	55.50M	1.29B

Altech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 287.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 287 is above the 20-day moving average (MA) of 276.20, above the 50-day MA of 279.98, and above the 200-day MA of 264.17, indicating a neutral trend. The MACD of -1.29 indicates Negative momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	¥3.48B	6.95	―	4.50%	4.73%	9.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6233	62 Neutral	¥2.15B	-163.32	―	2.46%	-2.17%	126.99%
6217	57 Neutral	¥3.19B	-8.35	―	―	-5.76%	-120.95%
2693	54 Neutral	¥2.94B	47.47	―	2.13%	7.62%	-104.18%
9972	49 Neutral	¥2.89B	-1.46	―	2.47%	-12.04%	20.36%
6218	47 Neutral	¥3.62B	4.24	―	1.93%	-14.00%	-216.77%