Allied Telesis Holdings KK (6835) AI Stock Analysis

• Market Cap: $22.30B
• Dividend Yield: 0.97%
• Average Volume (3M): 953.25K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.48
• Revenue Growth: 7.81%
• EPS Growth: 301.96%
• Country: JP
• Employees: 1,879
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.07
• Shares Outstanding: 107,715,744
• 10 Day Avg. Volume: 760,570
• 30 Day Avg. Volume: 953,246
• PEG Ratio: 0.01
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.23
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.24
• Enterprise Value/Ebitda: 1.45
• 1Y Price Target: $242.57
• Price Target Upside: 17.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥241.00 ▲(16.43% Upside)

Allied Telesis Holdings KK's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust revenue and profit growth, along with a low P/E ratio, make it an appealing investment. However, the technical analysis indicates potential overbought conditions, which could lead to short-term volatility.

Allied Telesis Holdings KK Business Overview & Revenue Model

Company Description

Allied Telesis Holdings K.K., a holding company, engages in the planning, development, manufacture, and sale of network devices and solutions worldwide. The company manufactures network products, including network equipment; AlliedWare Plus, a network OS for IoT infrastructure including autonomous management framework for stable system operation and autonomous wave control, an autonomous wireless LAN solution; and solutions that will expand the possibilities of network infrastructure, such as systems where network infrastructure blocks unauthorized access in collaboration with security software and asset management software, as well as systems where monitoring cameras monitor and detect physical hazards that include acts of terrorism. It also provides support services, which comprise planning and consulting, installation and structuring, operation and monitoring, and education services. The company was incorporated in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Allied Telesis generates revenue primarily through the sale of its networking hardware products and associated software solutions. The company's key revenue streams include product sales, maintenance and support services, and network management software licenses. Allied Telesis also collaborates with various technology partners and distributors to expand its market reach and enhance its product offerings. Additionally, the company benefits from long-term contracts with enterprise customers, government agencies, and educational institutions, which provide a stable source of recurring income.

Allied Telesis Holdings KK Financial Statement Overview

Summary

Allied Telesis Holdings KK demonstrates strong financial performance with impressive revenue growth, improved profit margins, and a solid balance sheet. The company has effectively reduced leverage and improved cash flow stability, indicating robust financial health.

Income Statement

Allied Telesis Holdings KK has shown impressive revenue growth over the years, with a notable increase from ¥29.38 billion in 2020 to ¥48.46 billion in 2024. The gross profit margin remains strong, consistently above 50%, indicating effective cost management. The net profit margin has improved significantly, rising from 0.63% in 2020 to 7.43% in 2024, reflecting enhanced profitability. EBIT and EBITDA margins have also increased, showing operational efficiency gains. Overall, the income statement displays strong growth and profitability trends.

Balance Sheet

The company's balance sheet reflects a robust equity base, with stockholders' equity growing consistently to reach ¥19.45 billion in 2024. The debt-to-equity ratio has improved, down from 2.05 in 2020 to 0.39 in 2024, indicating reduced leverage. Return on equity has shown positive trends, supported by increasing net income. However, the total assets to equity ratio indicates a balanced approach to asset financing. Overall, the balance sheet is stable with a positive trajectory towards lower leverage.

Cash Flow

Allied Telesis' cash flows reflect a significant turnaround in free cash flow, which has grown from negative figures in earlier years to ¥5.09 billion in 2024. The operating cash flow to net income ratio is strong, suggesting effective conversion of income to cash. The company has shown resilience in cash flow management, despite past volatility. The free cash flow to net income ratio is also favorable, indicating healthy cash generation relative to earnings. Overall, cash flow stability and growth are commendable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.72B	48.46B	44.39B	41.50B	33.27B	29.38B
Gross Profit	28.35B	27.90B	25.04B	24.21B	20.63B	17.92B
EBITDA	4.77B	6.74B	3.19B	12.86B	2.02B	1.40B
Net Income	3.74B	3.60B	1.09B	8.61B	1.37B	185.90M
Balance Sheet
Total Assets	44.01B	46.49B	45.50B	41.64B	28.88B	25.77B
Cash, Cash Equivalents and Short-Term Investments	15.62B	14.26B	10.70B	9.05B	4.72B	4.06B
Total Debt	3.61B	7.67B	9.69B	6.56B	8.81B	10.09B
Total Liabilities	25.56B	27.03B	28.03B	25.87B	22.68B	21.43B
Stockholders Equity	18.45B	19.45B	17.47B	15.77B	6.20B	4.34B
Cash Flow
Free Cash Flow	0.00	5.09B	-954.62M	7.12B	2.19B	377.59M
Operating Cash Flow	0.00	5.74B	-74.37M	8.41B	2.54B	913.11M
Investing Cash Flow	0.00	2.88B	-967.43M	-1.45B	-423.31M	-542.79M
Financing Cash Flow	0.00	-5.44B	2.58B	-4.25B	-1.62B	782.77M

Allied Telesis Holdings KK Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 207.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6835, the sentiment is Positive. The current price of 207 is above the 20-day moving average (MA) of 204.10, above the 50-day MA of 190.18, and above the 200-day MA of 161.85, indicating a bullish trend. The MACD of 5.72 indicates Positive momentum. The RSI at 56.05 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6835.

Allied Telesis Holdings KK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6287	81 Outperform	¥70.51B	10.27	9.28%	3.45%	5.32%	106.88%
6835	80 Outperform	$22.30B	5.98	21.29%	0.97%	7.81%	301.96%
6718	80 Outperform	¥44.18B	18.65	5.42%	4.53%	-2.28%	-43.48%
6820	74 Outperform	¥43.49B	19.02	―	2.74%	-1.19%	-30.24%
6675	73 Outperform	¥28.65B	7.74	11.38%	2.69%	16.42%	79.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%