Diversified Revenue Streams & Strategic PartnershipsLEC's business model spans automotive OEM sales, telecommunications contracts, licensing and strategic partnerships. This multi-channel revenue mix and ongoing R&D create structural resilience versus a single end market, reducing cyclical exposure and supporting stable demand over months.

Consistent Revenue Growth And Stable Gross MarginsThe company has delivered steady top-line growth with stable gross margins and improving EBIT/EBITDA trends, including a notable revenue uptick from 2024 to 2025. Persistent demand and controlled COGS point to sustainable operating leverage and reinvestment capacity over the medium term.

Healthy Operating Cash Generation Relative To IncomeA healthy operating cash flow to net income ratio indicates the business converts reported profits into cash reliably. The 2025 free cash flow recovery demonstrates cash generation resilience, supporting capex, licensing activities and R&D without immediate equity or debt raises in the medium term.

Bears Say

Rising Total Debt LevelsTotal debt has increased over time despite a moderate debt-to-equity ratio. Higher absolute leverage raises interest and refinancing risk, which can constrain capital allocation, limit strategic flexibility, and magnify shocks to earnings and cash flow if industry conditions deteriorate.

Low Net Profit MarginDespite solid revenue growth, low net margins indicate limited conversion of sales into bottom-line profits. This constrains retained earnings, weakens buffer against cost inflation, and reduces the firm's ability to self-fund expansions or absorb margin pressure from competitive pricing over the coming months.

Volatile Free Cash Flow HistoryFree cash flow variability and prior declines signal uneven cash conversion cycles. Even with a 2025 recovery, inconsistent FCF complicates planning for capex, R&D and debt service, increasing the risk that future investments or debt maturities could require external financing under less favorable terms.

LEC INC News

LEC boosts payout ratio and hikes dividend forecast for FY2026

LEC INC ( ($JP:7874) ) has shared an update. LEC, Inc., a Tokyo-listed company on the Prime Market,...

5d ago

7874

LEC Upgrades Full-Year Profit Forecast on Strong Product Mix and Cost Cuts

An announcement from LEC INC ( ($JP:7874) ) is now available. LEC, Inc. has raised its consolidated earnings...

5d ago

7874

LEC Inc. Lifts Profit Outlook and Dividend as Earnings Surge

An update from LEC INC ( ($JP:7874) ) is now available. LEC Inc., a Tokyo-listed company reporting under...

5d ago

7874

LEC, Inc. Revises Financial Forecasts Upward for FY 2026

LEC INC ( ($JP:7874) ) just unveiled an announcement. LEC, Inc. has revised its financial forecasts for the...

3M ago

7874

LEC INC. Reports Strong First Half Financial Results for 2025

The latest update is out from LEC INC ( ($JP:7874) ). LEC INC. reported its consolidated financial results...

3M ago

7874

LEC, Inc. Announces Treasury Stock Disposal for Executive Compensation

An update from LEC INC ( ($JP:7874) ) is now available. LEC, Inc. has announced the disposal of...

7M ago

7874

7874 FAQ

What was LEC INC’s price range in the past 12 months?

LEC INC lowest stock price was ¥992.00 and its highest was ¥1423.00 in the past 12 months.

What is LEC INC’s market cap?

LEC INC’s market cap is ¥36.41B.

When is LEC INC’s upcoming earnings report date?

LEC INC’s upcoming earnings report date is May 08, 2026 which is in 79 days.

How were LEC INC’s earnings last quarter?

LEC INC released its earnings results on Feb 13, 2026. The company reported ¥32.65 earnings per share for the quarter, beating the consensus estimate of N/A by ¥32.65.

Is LEC INC overvalued?

According to Wall Street analysts LEC INC’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does LEC INC pay dividends?

LEC INC pays a Semiannually dividend of ¥10 which represents an annual dividend yield of 1.9%. See more information on LEC INC dividends here

What is LEC INC’s EPS estimate?

LEC INC’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does LEC INC have?

LEC INC has 38,165,340 shares outstanding.

What happened to LEC INC’s price movement after its last earnings report?

LEC INC reported an EPS of ¥32.65 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.031%.

Which hedge fund is a major shareholder of LEC INC?

Currently, no hedge funds are holding shares in JP:7874

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

LEC INC

LEC INC (7874) is a diversified technology company specializing in advanced electronics and communication systems. The company operates primarily in the telecommunications and automotive sectors, offering a range of products including high-performance sensors, communication devices, and integrated circuit solutions. LEC INC is known for its innovation in developing cutting-edge technologies that enhance connectivity and efficiency in various applications.