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ATOM Corporation (7412) AI Stock Analysis

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JP:7412

ATOM Corporation

(TSE/TYO:7412)

Select Model
Rating:41Neutral
Price Target:JPY 275.00â–¼(-15.12% Downside)
Action:upgraded
Date:09/24/26

The score is driven primarily by weak financial performance—losses, rising leverage, and negative operating/free cash flow—indicating elevated turnaround and financing risk. Technicals are also unfavorable with a clear downtrend, though oversold indicators suggest only limited near-term support. Valuation is not compelling based on available data because the company is loss-making (negative P/E) and no dividend yield is provided.

Positive Factors
Strong Gross MarginA gross margin above 60% indicates the company retains meaningful value after direct costs, providing a potential base for recovery if operating expenses are brought under control. This supports business economics that are stronger than the current bottom-line result alone suggests.
Negative Factors
Revenue DeclineThe sharp FY2026 revenue decline and history of uneven sales weaken the foundation for sustained earnings growth. Lower revenue reduces operating leverage and makes fixed-cost absorption more difficult, increasing the risk that profitability remains inconsistent over the next several quarters.

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

-60%-40%-20%0%20%40%JP:7412-40.77%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 60.64B
Dividend Yield
―
Average Volume (3M)
719.20K
Price to Earnings (P/E)
-47.5
Beta (1Y)
-0.21
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

Weak fundamentals: FY2026 revenue declined (~-14% YoY) and results swung to a net loss with operating profit around breakeven. Balance-sheet risk increased as debt-to-equity rose to ~1.54 alongside a reduced equity cushion. Cash flow is a major concern, with negative operating cash flow and materially negative free cash flow in FY2026, indicating unreliable cash generation.

Income Statement

33Negative

Balance Sheet

36Negative

Cash Flow

24Negative
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 Price324.00

Price Trends

50DMA333.52Negative
100DMA355.26Negative
200DMA496.54Negative

Market Momentum

MACD-4.08Negative
RSI55.09Neutral
STOCH92.39Negative

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 324.00 is above the 20-day moving average (MA) of 307.65, below the 50-day MA of 333.52, and below the 200-day MA of 496.54, indicating a neutral trend. The MACD of -4.08 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 92.39 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:3197JP:319774OutperformJPY 849.95B43.6510.08%0.65%11.29%22.50%
JP:3543JP:354371OutperformJPY 138.75B19.75―2.06%13.20%13.76%
JP:7550JP:755070OutperformJPY 2.03T38.7216.56%0.63%11.88%45.16%
JP:9861JP:986169NeutralJPY 304.58B51.53―0.49%9.53%37.85%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:8153JP:815355NeutralJPY 138.14B34.91―0.81%6.32%10.13%
JP:7412JP:741241NeutralJPY 62.95B-47.49――-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 Corporation324.00-224.00-40.88%
JP:3197Skylark Holdings Co 3673.00472.4014.76%
JP:7550Zensho Holdings Co 12705.003806.3442.77%
JP:3543KOMEDA Holdings Co., Ltd.2958.0037.221.27%
JP:8153MOS FOOD SERVICES, INC.4440.00415.6710.33%
JP:9861Yoshinoya Holdings Co., Ltd.4691.001676.3955.61%
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