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

• Market Cap: ¥79.36B
• Dividend Yield: 5.71%
• Average Volume (3M): 103.74K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.61
• 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: 76 Outperform
• Price Target: ¥10,679.00 ▲(27.43% Upside)

Overall score is driven by strong financial performance on growth/profitability and a clearly positive technical trend, tempered by elevated leverage and weak cash-flow generation; valuation is supportive with a moderate P/E and solid dividend yield.

Positive Factors

Revenue and Margin Improvement

LA Holdings' consistent revenue growth and rising gross and net margins indicate improving core business economics. This supports sustainable earnings, better cash generation potential over time, and gives management room to reinvest in operations and preserve competitiveness.

EPS Growth

Double-digit EPS growth reflects the company converting revenue gains into shareholder earnings. Sustained EPS improvement enhances ability to fund dividends, reduce leverage, or reinvest in the business, strengthening long-term financial resilience and investor returns.

Improving Return on Equity

An improving ROE shows more efficient use of shareholders' capital and better operational returns. Over the medium term higher ROE can drive shareholder value, support capital allocation choices, and indicate management effectiveness in deploying equity into profitable projects.

Negative Factors

High Leverage

Elevated leverage and a low equity ratio increase financial vulnerability to economic downturns and interest rate rises. Heavy debt reliance constrains strategic flexibility, raises refinancing risk, and can divert cash flow toward servicing obligations rather than growth or shareholder returns.

Negative Cash Flow Generation

Persistent negative operating and free cash flow indicate core operations are not self-funding, forcing dependence on external financing. Over months this impairs ability to service debt, sustain dividends, or invest in growth without increasing leverage or raising costly capital.

Suboptimal EBIT/EBITDA Margins

Signs of constrained EBIT/EBITDA margins point to operational inefficiencies or revenue mix issues that limit profitability resilience. Without structural margin improvement, the firm may struggle to convert revenue into durable cash flow and to compete effectively over the medium term.

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

Strong revenue growth and improving profitability support the score, but high leverage (elevated debt reliance/low equity ratio) and negative operating/free cash flow meaningfully increase financial risk.

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 below the 20-day moving average (MA) of 9415.50, below the 50-day MA of 8382.45, and above the 200-day MA of 7392.65, indicating a bullish trend. The MACD of 459.67 indicates Negative momentum. The RSI at 76.81 is Negative, neither overbought nor oversold. The STOCH value of 90.42 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	77 Outperform	¥55.57B	7.45	―	3.64%	15.82%	22.32%
2986	76 Outperform	¥79.36B	13.29	―	5.71%	8.07%	12.06%
3496	75 Outperform	¥52.15B	27.31	―	2.10%	27.87%	40.22%
3245	69 Neutral	¥55.26B	9.21	―	5.74%	67.46%	68.52%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3482	65 Neutral	¥50.03B	7.88	―	2.38%	33.64%	-0.28%
3252	62 Neutral	¥71.50B	16.83	―	2.89%	-3.09%	-35.66%