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ATOM Corporation (7412) AI Stock Analysis

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JP:7412

ATOM Corporation

(TSE/TYO:7412)

Select Model
Rating:41.6Neutral
Price Target:JPY 276.00â–¼(-13.75% Downside)
Action:reiterated
Date:09/24/26

The overall score is deeply bearish, driven primarily by severe financial distress including negative earnings, cash flow burn, and high leverage. This is compounded by weak technicals with the stock in a sustained downtrend below all key moving averages. The negative P/E ratio further confirms a lack of fundamental support, making the stock high-risk.

Positive Factors
Strong Gross MarginA gross margin above 60% provides a meaningful base for recovery if sales stabilize and operating costs are controlled. It indicates the core offering retains substantial value after direct costs, although the benefit is currently being absorbed by operating expenses and does not yet translate into dependable profits.
Negative Factors
Revenue ContractionThe sharp FY2026 revenue decline, following several uneven years, signals weakening demand or execution and reduces the scale available to absorb fixed operating costs. Persistent sales volatility makes planning and investment harder, while a smaller revenue base raises the challenge of restoring sustainable profitability.

ATOM Corporation (7412) vs. iShares MSCI Japan ETF (EWJ)

-60%-40%-20%0%20%40%JP:7412-40.85%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 61.80B
Dividend Yield
―
Average Volume (3M)
708.39K
Price to Earnings (P/E)
-47.2
Beta (1Y)
-0.07
Revenue Growth
-4.20%
EPS Growth
-285.66%
Country
Japan
Employees
816
Sector
General
Sector Strength
55
Industry
Restaurants

ATOM Corporation Business Overview & Revenue Model

Company Description

ATOM Corporation is a Japanese company primarily engaged in the restaurant sector. It oversees the operation of various franchised restaurant networks, which notably include karaoke venues across the Tohoku, Kita-Kanto, Tokai, and Hokuriku regions. F...

ATOM Corporation Financial Statement Overview

Summary

Financial health is severely strained. Revenue declined 14.3%, net margin is -5.0%, and ROE is -41.0%. High leverage (D/E 1.54) and negative operating and free cash flows indicate significant solvency and liquidity risks, despite a healthy gross margin.

Income Statement

25Negative

Balance Sheet

20Very Negative

Cash Flow

15Very Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue36.91B30.41B35.48B36.95B35.24B31.10B
Gross Profit23.95B18.15B21.73B23.01B22.82B20.07B
EBITDA-641.00M748.00M2.31B-76.00M-1.11B2.90B
Net Income-1.89B-1.51B530.00M-1.47B-2.17B748.00M
Balance Sheet
Total Assets22.13B14.52B19.05B20.42B22.66B24.43B
Cash, Cash Equivalents and Short-Term Investments5.08B3.63B6.70B4.66B5.57B7.07B
Total Debt6.30B5.65B5.38B6.24B6.24B6.94B
Total Liabilities15.08B10.84B11.74B13.66B14.44B14.04B
Stockholders Equity7.05B3.68B7.30B6.76B8.22B10.38B
Cash Flow
Free Cash Flow0-1.14B-1.56B-1.01B-1.29B1.38B
Operating Cash Flow0-459.00M-782.00M944.00M1.19B1.53B
Investing Cash Flow0-501.00M3.75B-1.86B-1.74B884.00M
Financing Cash Flow0-2.11B-914.00M1.00M-949.00M-666.00M

ATOM Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price320.00

Price Trends

50DMA331.20Negative
100DMA352.29Negative
200DMA493.88Negative

Market Momentum

MACD-2.30Negative
RSI52.58Neutral
STOCH83.76Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7412, the sentiment is Negative. The current price of 320.00 is above the 20-day moving average (MA) of 309.05, below the 50-day MA of 331.20, and below the 200-day MA of 493.88, indicating a neutral trend. The MACD of -2.30 indicates Negative momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7412.

ATOM Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7412 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3543JP:354371OutperformJPY 138.70B20.31―2.00%13.20%13.76%
JP:7550JP:755070OutperformJPY 1.98T38.1816.56%0.60%12.44%51.49%
JP:9861JP:986169NeutralJPY 302.51B53.60―0.48%9.53%37.85%
JP:3197JP:319764NeutralJPY 800.58B43.639.87%0.66%9.51%10.42%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:8153JP:815355NeutralJPY 137.83B35.94―0.79%11.40%-14.75%
JP:7412JP:741242NeutralJPY 61.40B-47.20――-4.20%-285.66%

* General Sector Average

Performance Comparison

-25%0%25%50%JP:7412JP:3197JP:7550JP:3543JP:8153JP:9861Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7412 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7412ATOM Corporation320.00-227.00-41.50%
JP:3197Skylark Holdings Co 3648.00459.3114.40%
JP:7550Zensho Holdings Co 13270.004523.1251.71%
JP:3543KOMEDA Holdings Co., Ltd.3045.00123.244.22%
JP:8153MOS FOOD SERVICES, INC.4550.00525.6713.06%
JP:9861Yoshinoya Holdings Co., Ltd.4835.001827.3560.76%
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: Sep 24, 2026