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

• Market Cap: ¥69.13B
• Dividend Yield: 5.71%
• Average Volume (3M): 103.74K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.62
• Revenue Growth: 8.07%
• EPS Growth: 12.06%
• Country: JP
• Employees: 102
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 106.14
• Shares Outstanding: 7,630,075
• 10 Day Avg. Volume: 109,740
• 30 Day Avg. Volume: 103,740
• PEG Ratio: 0.20
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -15.02
• 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: 69 Neutral
• Price Target: ¥10,216.00 ▲(21.91% Upside)

The overall stock score for LA Holdings Co., Ltd is primarily driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest the stock may be undervalued. However, financial performance concerns, particularly high leverage and negative cash flows, along with weak technical indicators, weigh down the score. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Consistent Revenue Growth

Sustained revenue growth over multiple years indicates the company is expanding its service footprint or market share in real estate services. Durable top-line expansion provides a base for long-term margin improvement, reinvestment, and scale advantages if maintained across business cycles.

Improving Gross and Net Margins

Rising gross and net margins point to operational improvements and stronger pricing or cost control. Sustained margin expansion enhances resilience to revenue volatility, supports cash flow generation potential, and improves the firm's ability to fund growth and service obligations long term.

Improved Return on Equity

An improving ROE reflects more effective capital allocation and profitability on shareholder funds. Over a multi-quarter horizon this suggests management is generating higher economic returns from invested capital, which supports shareholder value creation if sustained.

Negative Factors

High Leverage

Material reliance on debt increases financial risk and reduces flexibility to weather downturns. High leverage raises interest costs and can constrain capital expenditures or strategic investments, making the business more vulnerable if revenue or margins weaken over the next several quarters.

Negative Operating Cash Flow

Persistent negative operating and free cash flow undermine the company's ability to organically fund operations, capital needs, and debt service. Over months this forces reliance on external financing or asset sales, elevating refinancing and liquidity risk and limiting strategic optionality.

Weak Cash Conversion

A poor conversion of accounting profit into cash suggests working capital or receivables/inventory issues that can persist structurally. Even with improving reported margins, weak cash conversion limits actual financial flexibility, increases funding needs, and may pressure dividends or debt covenants over time.

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

LA Holdings Co., Ltd shows strong revenue growth and improving profitability, which is a positive indicator of its operational performance. However, high leverage and negative cash flows could pose risks if not managed carefully. The company needs to focus on improving its cash flow generation to ensure long-term financial stability.

Income Statement

LA Holdings Co., Ltd has shown strong revenue growth over recent years, with a notable increase from 2020 to 2024. Their gross profit margin has consistently improved, indicating efficient cost management. The net profit margin has also increased, demonstrating improved profitability. However, the EBIT and EBITDA margins indicate potential areas for operational improvements.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting a significant reliance on debt financing, which could pose risks during economic downturns. The return on equity has improved over time, indicating better returns on shareholders' investments. However, the equity ratio remains low, highlighting potential financial leverage concerns.

Cash Flow

The operating cash flow is negative, which is concerning as it implies that the company is not generating enough cash from its core operations. The free cash flow has been negative, but there has been an improvement in recent years. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.10B	44.71B	31.50B	18.25B	14.68B	13.76B
Gross Profit	13.73B	11.39B	8.51B	6.02B	5.14B	2.60B
EBITDA	10.20B	7.67B	5.63B	5.19B	3.30B	1.39B
Net Income	6.30B	4.71B	3.29B	3.38B	1.96B	650.24M
Balance Sheet
Total Assets	94.42B	71.25B	61.21B	50.67B	36.33B	23.63B
Cash, Cash Equivalents and Short-Term Investments	19.54B	13.55B	12.78B	9.48B	6.81B	2.82B
Total Debt	62.10B	47.95B	42.76B	35.40B	25.75B	16.21B
Total Liabilities	66.99B	53.12B	46.00B	39.25B	28.99B	19.28B
Stockholders Equity	27.43B	18.13B	15.21B	11.42B	7.34B	4.35B
Cash Flow
Free Cash Flow	0.00	-2.36B	-4.27B	-4.76B	-6.75B	856.12M
Operating Cash Flow	0.00	-1.76B	-3.20B	-3.06B	-5.36B	1.73B
Investing Cash Flow	0.00	-708.53M	-1.40B	-1.48B	-1.17B	-637.30M
Financing Cash Flow	0.00	3.20B	7.77B	6.93B	10.50B	-1.29B

LA Holdings Co.,Ltd Technical Analysis

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

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 above the 20-day moving average (MA) of 8235.58, above the 50-day MA of 7729.97, and above the 200-day MA of 7147.98, indicating a bullish trend. The MACD of 442.20 indicates Negative momentum. The RSI at 79.85 is Negative, neither overbought nor oversold. The STOCH value of 95.44 is Negative, 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
8935	76 Outperform	¥49.13B	6.69	―	3.64%	15.82%	22.32%
3496	75 Outperform	¥64.07B	33.20	―	2.10%	27.87%	40.22%
2986	69 Neutral	¥69.13B	12.32	―	5.71%	8.07%	12.06%
3245	69 Neutral	¥55.79B	9.47	―	5.74%	67.46%	68.52%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3482	65 Neutral	¥50.20B	7.92	―	2.38%	33.64%	-0.28%
3252	62 Neutral	¥70.21B	17.04	―	2.89%	-3.09%	-35.66%