Lib Work Co.,Ltd. (1431) AI Stock Analysis

• Market Cap: ¥14.94B
• Dividend Yield: 0.94%
• Average Volume (3M): 44.95K
• Price to Earnings (P/E): 47.0
• Beta (1Y): 0.60
• Revenue Growth: -6.81%
• EPS Growth: -25.33%
• Country: JP
• Employees: 308
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -12.88
• Shares Outstanding: 24,151,540
• 10 Day Avg. Volume: 20,330
• 30 Day Avg. Volume: 44,953
• PEG Ratio: 1.40
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 16.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥666.00 ▲(1.68% Upside)

Lib Work Co.,Ltd. faces challenges with its financial performance, particularly in revenue growth and cash flow conversion. Technical indicators suggest bearish momentum, and the valuation appears high relative to earnings. These factors contribute to a cautious outlook on the stock.

Positive Factors

Gross Margin Improvement

A sustained rise in gross margin reflects structural improvement in cost controls and pricing power within the core homebuilding business. Higher gross margins provide durable buffer against input cost volatility, support reinvestment in product quality, and improve long-term profitability per unit sold.

Reduced Leverage / Strong Capital Structure

Lower leverage and a strong equity ratio materially improve balance sheet resilience in a cyclical real estate industry. Reduced debt reduces interest burden and refinancing risk, giving the company durable financial flexibility to fund projects, withstand downturns, and pursue selective growth initiatives.

Improving Operating Margins

Rising EBIT/EBITDA margins indicate lasting operational efficiency gains from process, procurement, or design improvements in construction. Sustained margin expansion enhances cash generation capacity and competitive positioning, enabling better funding of customer service, product differentiation, and incremental growth investments.

Negative Factors

Revenue Decline

Persistent revenue contraction undermines scale economics and suggests weakening demand or market share pressures in the core detached-home segment. Over several quarters this can erode pricing leverage, reduce fixed-cost absorption, and constrain the company's ability to invest in product development or geographic expansion.

Low Net Profit Margin

A low net margin limits retained earnings and reduces capacity to self-fund growth, dividends, or debt reduction. In homebuilding, small margin cushions make earnings highly sensitive to cost overruns, interest changes, and project delays, increasing long-term earnings volatility despite operational improvements.

Weak Cash Conversion

Subpar conversion of net income into operating and free cash flow constrains liquidity for land acquisition, working capital, and debt servicing. Over time poor cash conversion raises financing needs, heightens sensitivity to credit markets, and limits the company's ability to consistently fund projects or weather cyclical downturns.

Lib Work Co.,Ltd. Business Overview & Revenue Model

Company Description

Lib Work Co.,Ltd. primarily engages in the planning, construction, and sale of detached houses in Japan. The company provides real estate and web marketing business. It offers its services under the Palette, Z.E.N, and Icing name. The company was formerly known as SK-Home Co., Ltd. and changed its name to Lib Work Co.,Ltd. in April 2018. Lib Work Co.,Ltd. was incorporated in 1997 and is headquartered in Yamaga, Japan.

How the Company Makes Money

Lib Work Co., Ltd. generates revenue through multiple streams primarily focused on the sale of office furniture and related accessories. The company sells its products directly to consumers through its own retail outlets and e-commerce platforms, as well as through partnerships with major retailers and distributors. Additionally, Lib Work has established significant B2B relationships, providing tailored solutions to corporate clients, which includes bulk orders and customized designs. The company also benefits from recurring revenue through maintenance and service contracts for its office solutions, further enhancing its financial stability. Strategic partnerships with design firms and architects help to elevate brand visibility and drive sales, contributing to the overall growth of the company's revenue.

Lib Work Co.,Ltd. Financial Statement Overview

Summary

Lib Work Co.,Ltd. demonstrates a stable financial position with improved operational efficiency and reduced leverage. However, challenges in revenue growth and translating net income into cash flow remain concerns.

Income Statement

Lib Work Co.,Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved to 27.43% in 2025 from 24.09% in 2024, indicating better cost management. However, the net profit margin is relatively low at 3.09%, and revenue has declined by 4.10% in 2025, which is a concern. The EBIT and EBITDA margins have improved, suggesting operational efficiency, but the overall profitability remains modest.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.81, which is a decrease from 0.94 in 2024, indicating reduced leverage. The return on equity is at 10.48%, reflecting decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure. However, the company should continue to manage its debt levels carefully.

Cash Flow

Lib Work Co.,Ltd. has shown improvement in cash flow metrics. The free cash flow growth rate is positive, indicating better cash generation. The operating cash flow to net income ratio is 0.28, showing a reasonable conversion of income to cash. However, the free cash flow to net income ratio is 0.68, suggesting that not all net income is translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.00B	16.00B	15.44B	14.18B	13.76B	9.40B
Gross Profit	4.39B	4.39B	3.72B	3.25B	3.30B	2.50B
EBITDA	1.12B	1.14B	755.18M	463.90M	799.30M	594.17M
Net Income	493.31M	494.00M	387.57M	173.54M	444.58M	336.94M
Balance Sheet
Total Assets	11.52B	11.52B	11.74B	8.86B	7.62B	7.60B
Cash, Cash Equivalents and Short-Term Investments	3.90B	3.90B	3.87B	1.41B	2.41B	3.43B
Total Debt	3.81B	3.81B	4.32B	2.98B	1.82B	2.28B
Total Liabilities	6.81B	6.81B	7.17B	5.54B	4.22B	4.23B
Stockholders Equity	4.71B	4.71B	4.57B	3.32B	3.40B	3.37B
Cash Flow
Free Cash Flow	0.00	946.00M	760.84M	-1.89B	-132.83M	-85.57M
Operating Cash Flow	0.00	1.38B	1.10B	-1.56B	138.66M	134.03M
Investing Cash Flow	0.00	-496.00M	-923.32M	-334.17M	-281.72M	-599.13M
Financing Cash Flow	0.00	-856.00M	2.29B	903.45M	-887.96M	3.05B

Lib Work Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 655.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1431, the sentiment is Neutral. The current price of 655 is above the 20-day moving average (MA) of 643.75, below the 50-day MA of 669.48, and below the 200-day MA of 704.34, indicating a bearish trend. The MACD of -8.27 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 42.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1431.

Lib Work Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥19.36B	5.59	―	4.71%	10.42%	48.21%
3242	75 Outperform	¥21.19B	5.39	―	3.69%	84.40%	142.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8927	62 Neutral	¥13.22B	7.87	―	2.85%	20.54%	8.92%
1431	57 Neutral	¥14.94B	46.96	―	0.94%	-6.81%	-25.33%
8918	57 Neutral	¥15.38B	719.42	―	1.11%	―	―