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Allied Telesis Holdings KK (6835) AI Stock Analysis

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JP:6835

Allied Telesis Holdings KK

(TSE/TYO:6835)

Select Model
Rating:75Outperform
Price Target:JPY 329.00â–²(15.03% Upside)
Action:reiterated
Date:11/07/26

The score is primarily driven by Allied Telesis Holdings' highly attractive valuation (8.25x P/E) and solid financial health, highlighted by strong cash flow conversion and low leverage. These robust underlying fundamentals provide a strong foundation, though the score is moderately tempered by current bearish technical momentum, which shows the stock trading below key short-term moving averages despite flashing oversold signals.

Positive Factors
Accelerating Revenue GrowthThe sharp acceleration in revenue growth indicates improving demand and greater scale across the company’s networking equipment and services activities. If sustained, this expansion can strengthen customer reach, support operating leverage, and reinforce Allied Telesis’s position in enterprise and public-sector infrastructure.
Negative Factors
Margin SofteningThe decline in operating and EBITDA margins shows that rapid revenue expansion has not translated proportionally into operating profitability. Continued margin pressure could limit earnings growth, reduce reinvestment capacity, and make future results more dependent on maintaining high sales growth.

Allied Telesis Holdings KK (6835) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%JP:6835+35.90%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 91.47M
Dividend Yield
2.77%
Average Volume (3M)
342.74K
Price to Earnings (P/E)
8.9
Beta (1Y)
0.68
Revenue Growth
0.34%
EPS Growth
-27.40%
Country
Japan
Employees
1,856
Sector
General
Sector Strength
55
Industry
Communication Equipment

Allied Telesis Holdings KK Business Overview & Revenue Model

Company Description

Allied Telesis Holdings K.K. operates as a global holding company, specializing in the conceptualization, engineering, production, and international sale of network hardware and comprehensive technology solutions. Its product lineup includes diverse...

Allied Telesis Holdings KK Financial Statement Overview

Summary

A robust fundamental profile highlighted by high-quality cash flow generation with a 92% free cash flow to net income conversion, steady revenue expansion, and a conservatively leveraged balance sheet featuring a 0.41 debt-to-equity ratio.

Income Statement

76Positive

Balance Sheet

84Very Positive

Cash Flow

88Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue49.72B49.95B48.46B44.39B41.50B33.27B
Gross Profit30.00B29.28B27.90B25.04B24.21B20.63B
EBITDA5.18B5.34B4.61B3.31B2.86B2.17B
Net Income3.36B2.92B3.60B1.09B8.61B1.37B
Balance Sheet
Total Assets49.40B48.73B46.49B45.50B41.64B28.88B
Cash, Cash Equivalents and Short-Term Investments16.98B17.03B14.26B10.70B9.05B4.72B
Total Debt2.40B6.33B7.68B9.76B6.76B8.81B
Total Liabilities28.05B27.40B27.03B28.03B25.87B22.68B
Stockholders Equity21.34B21.33B19.45B17.47B15.77B6.20B
Cash Flow
Free Cash Flow06.23B5.13B-818.52M7.21B2.25B
Operating Cash Flow06.75B5.74B-74.37M8.41B2.54B
Investing Cash Flow0-537.32M2.88B-967.43M-1.45B-423.31M
Financing Cash Flow0-3.34B-5.44B2.58B-4.25B-1.62B

Allied Telesis Holdings KK Technical Analysis

Technical Analysis SentimentPositive
Last Price286.00

Price Trends

50DMA280.38Positive
100DMA263.31Positive
200DMA270.84Positive

Market Momentum

MACD0.05Positive
RSI48.91Neutral
STOCH59.02Neutral

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 286.00 is below the 20-day moving average (MA) of 294.95, above the 50-day MA of 280.38, and above the 200-day MA of 270.84, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.02 is Neutral, 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6835 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6835JP:683575OutperformJPY 29.75B8.9416.04%2.77%0.34%-27.40%
JP:6718JP:671874OutperformJPY 43.04B13.70―4.76%-0.63%15.90%
JP:6771JP:677168NeutralJPY 3.98B11.32―2.41%8.65%177.02%
JP:6703JP:670367NeutralJPY 213.73B12.3010.39%2.63%-0.76%62.86%
JP:6778JP:677865NeutralJPY 5.47B17.45―4.24%-6.78%126.04%
JP:6820JP:682063NeutralJPY 52.39B13.91―2.05%8.11%61.38%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%25%50%75%100%JP:6835JP:6703JP:6718JP:6771JP:6778JP:6820Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6835 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6835Allied Telesis Holdings KK286.0072.7034.08%
JP:6703OKI Electric Industry Company 2468.00584.8331.06%
JP:6718Aiphone Co., Ltd.2731.0093.873.56%
JP:6771Ikegami Tsushinki Co., Ltd.622.0042.037.25%
JP:6778Artiza Networks, Inc.590.0012.802.22%
JP:6820Icom Incorporated3650.00949.5935.16%

Allied Telesis Holdings KK Corporate Events

Allied Telesis Sets Interim Dividend at JPY 4, Raises Full-Year Payout Target

Aug 14, 2026

Allied Telesis Holdings K.K. has announced that its Board of Directors approved an interim dividend of JPY 4 per share from retained earnings, with a record date of June 30, 2026, and total payout of JPY 414 million. The interim dividend will be effe...

Allied Telesis Boosts 2026 Profit Outlook on U.S. Business Transfer Gain

Aug 14, 2026

Allied Telesis Holdings K.K. will record extraordinary income of about US$4.7 million in the third quarter of fiscal 2026, following the transfer of the IP Triple Play Service Business of its U.S. subsidiary to Warrior Communications Inc. The gain re...

Allied Telesis Boosts Earnings and Dividends Despite Lower Sales

Aug 14, 2026

Allied Telesis reported consolidated net sales of ¥23.49 billion for the six months ended June 30, 2026, down 1% year on year, while operating profit fell 14% to ¥1.16 billion. Despite lower sales and operating profit, ordinary profit surged 47.3% to...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 07, 2026