LA Holdings Co.,Ltd (2986) AI Stock Analysis

• Market Cap: ¥75.57B
• Dividend Yield: 5.71%
• Average Volume (3M): 103.74K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.63
• Revenue Growth: 8.07%
• EPS Growth: 12.06%
• Country: JP
• Employees: 102
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 406.97
• Shares Outstanding: 7,630,075
• 10 Day Avg. Volume: 109,740
• 30 Day Avg. Volume: 103,740
• PEG Ratio: 0.63
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -4.24
• 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: 64 Neutral
• Price Target: ¥10,486.00 ▲(25.13% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily constrained by weak cash-flow quality (multi-year negative operating and free cash flow) and meaningful leverage, despite solid reported profitability. Offsetting factors include constructive technical trend signals and a supportive valuation profile (moderate P/E and a ~3.45% dividend yield).

Positive Factors

Strong reported profitability and margins

Reported margins in 2025 are high for the business (net ~13.2%, EBIT ~21.5%) and net income rose versus prior year. Durable margin strength indicates pricing power or operating leverage in core services, supporting sustainable profit conversion if cash dynamics improve.

Material top-line scale built over several years

Multi-year revenue expansion to ¥46.5B shows the company expanded its market footprint or service capacity. This scale improves bargaining, fixed-cost absorption, and strategic optionality, which are structural advantages for sustained competitiveness over the medium term.

Equity growth and strong return on equity

Substantial equity buildup and a ~20.5% ROE reflect retained earnings and profitable asset deployment. Strong ROE signals effective capital allocation historically, and higher equity provides a larger buffer against asset-value swings typical in real-estate services.

Negative Factors

Persistent negative operating cash flow

Multi-year negative operating cash flow, including a large -¥11.4B outflow in 2025, shows accounting profits are not converting to cash. This structural cash deficit increases reliance on external financing and raises execution and liquidity risk if markets tighten.

Meaningful leverage and high absolute debt

Elevated leverage (D/E ~2.19x) and rising absolute debt leave the company exposed to interest and refinancing risks common in real estate-related businesses. High leverage reduces flexibility and raises sensitivity to funding conditions and asset-value volatility.

Growth volatility and recent revenue decline

After material scale-up, the 2025 revenue dip and margin normalization indicate cyclical or execution volatility. This pattern suggests growth is not yet consistently stable and could pressure reinvestment plans and cash conversion if weaker periods persist.

LA Holdings Co.,Ltd Business Overview & Revenue Model

Company Description

La Holdings Co., Ltd., together with its subsidiaries, engages in the development, sale, and rental of new and refurbished real estate properties in Japan. It is involved in the real estate sales and brokerage; real estate rental and management; and condominium development and sales businesses. The company was incorporated in 2020 and is based in Tokyo, Japan.

How the Company Makes Money

LA Holdings generates revenue through several key streams. Primarily, the company earns income from its real estate holdings, which includes rental income from commercial and residential properties. Additionally, LA Holdings profits from property sales and development projects, capitalizing on market demand and property appreciation. The company also engages in financial services, offering investment and advisory services, which contribute to its revenue. Strategic partnerships with other firms in the finance and technology sectors enhance its investment capabilities, allowing LA Holdings to capitalize on emerging market opportunities and diversify its income sources.

LA Holdings Co.,Ltd Financial Statement Overview

Summary

Profitability is strong (2025 net margin ~13.2%, EBIT margin ~21.5%) and earnings improved year over year, but this is outweighed by persistently negative operating and free cash flow (2021–2025; 2025 OCF about -¥11.4B, FCF about -¥13.9B). Leverage remains meaningful (debt-to-equity ~2.19x) despite improvement versus prior years, increasing financing sensitivity.

Income Statement

Revenue has scaled materially over the last several years (from ~¥13.8B in 2020 to ~¥46.5B in 2025), and profitability remains solid with 2025 net margin ~13.2% and EBIT margin ~21.5%. Margins improved versus 2024 and earnings grew (net income ~¥6.1B vs ~¥4.7B). The main weakness is growth volatility—2025 revenue declined (-3.2%) after prior multi-year expansion, and margins are below the 2021–2022 peak levels, suggesting normalization in the operating environment.

Balance Sheet

The balance sheet shows meaningful leverage, with debt-to-equity still elevated at ~2.19x in 2025 (though improved from ~2.64x in 2024 and ~3.7x in 2020). Equity has grown substantially over time (~¥29.9B in 2025 vs ~¥4.3B in 2020), which supports resilience, and returns on equity remain strong (~20.5% in 2025). The key risk is that absolute debt is high and has increased in 2025, leaving the company more exposed to funding conditions and asset-value swings typical for real estate-related businesses.

Cash Flow

Cash generation is the weak point: operating cash flow has been negative for multiple years (2021–2025), including a large outflow in 2025 (about -¥11.4B), and free cash flow is also consistently negative (about -¥13.9B in 2025). While accounting profits are healthy, the persistent cash outflows indicate earnings are not translating into cash in recent years, increasing reliance on external funding and raising risk if capital markets tighten.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.10B	46.54B	44.71B	31.50B	18.25B	14.68B
Gross Profit	13.73B	13.34B	11.39B	8.51B	6.02B	5.14B
EBITDA	10.20B	10.25B	7.67B	5.63B	5.19B	3.30B
Net Income	6.30B	6.14B	4.71B	3.29B	3.38B	1.96B
Balance Sheet
Total Assets	94.42B	101.95B	71.25B	61.21B	50.67B	36.33B
Cash, Cash Equivalents and Short-Term Investments	19.54B	23.06B	13.55B	12.78B	9.48B	6.81B
Total Debt	62.10B	65.60B	47.95B	42.76B	35.40B	25.75B
Total Liabilities	66.99B	72.00B	53.12B	46.00B	39.25B	28.99B
Stockholders Equity	27.43B	29.95B	18.13B	15.21B	11.42B	7.34B
Cash Flow
Free Cash Flow	0.00	-13.85B	-2.36B	-4.27B	-4.76B	-6.75B
Operating Cash Flow	0.00	-11.39B	-1.76B	-3.20B	-3.06B	-5.36B
Investing Cash Flow	0.00	-2.26B	-708.53M	-1.40B	-1.48B	-1.17B
Financing Cash Flow	0.00	23.17B	3.20B	7.77B	6.93B	10.50B

LA Holdings Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8380.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2986, the sentiment is Positive. The current price of 8380 is below the 20-day moving average (MA) of 9994.00, below the 50-day MA of 9271.74, and above the 200-day MA of 7685.49, indicating a neutral trend. The MACD of 121.32 indicates Positive momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 64.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2986.

LA Holdings Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	79 Outperform	¥116.34B	12.23	―	3.08%	-6.27%	-11.07%
8934	73 Outperform	¥137.65B	8.22	17.98%	2.93%	84.20%	137.87%
8818	71 Outperform	¥101.64B	22.93	―	2.19%	4.72%	47.55%
3479	67 Neutral	¥86.17B	22.36	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2986	64 Neutral	¥75.57B	11.40	―	5.71%	8.07%	12.06%
3252	62 Neutral	¥73.66B	9.56	―	2.89%	-3.09%	-35.66%