LeTech Corporation (3497) AI Stock Analysis

• Market Cap: ¥15.82B
• Dividend Yield: 5.89%
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.54
• Revenue Growth: 32.55%
• EPS Growth: -10.06%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): 38.76
• Shares Outstanding: 10,630,603
• 10 Day Avg. Volume: 2,430
• 30 Day Avg. Volume: 2,076
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,640.00
• Price Target Upside: 9.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥1,640.00 ▲(9.70% Upside)

LeTech Corporation achieves a solid overall stock score, driven by strong valuation metrics and positive technical indicators. The low P/E ratio and high dividend yield make the stock attractive to value and income investors. Despite financial performance challenges, particularly with high leverage and negative cash flow, the company maintains operational efficiency. Technical analysis suggests potential upward momentum, though caution is advised due to mixed signals.

LeTech Corporation Business Overview & Revenue Model

Company Description

LeTech Corporation (3497) is a technology company that specializes in developing advanced software solutions and innovative hardware products. The company operates in various sectors, including information technology services, consumer electronics, and enterprise solutions. LeTech is known for its cutting-edge applications and devices that enhance productivity and connectivity for both individual consumers and businesses.

How the Company Makes Money

LeTech Corporation generates revenue through multiple streams. The company sells its software products and services directly to consumers and businesses, which includes licensing fees and subscription models for its suite of applications. Additionally, LeTech manufactures and sells hardware devices, which contribute significantly to its income. The company also engages in strategic partnerships with other technology firms to co-develop and distribute products, further expanding its market reach. Service contracts and maintenance fees from enterprise clients provide a steady income stream, along with consulting services that leverage LeTech's expertise in IT solutions and systems integration.

LeTech Corporation Financial Statement Overview

Summary

LeTech Corporation's financial statements indicate mixed results. The company showed resilience in maintaining profitability despite a 7.5% decline in revenue, with stable EBIT margins. However, high leverage and negative free cash flow pose significant risks. Future stability will depend on effective cost and leverage management.

Income Statement

LeTech Corporation's income statement shows a mixed performance. The gross profit margin improved from the previous year, indicating better cost management. However, the net profit margin decreased due to a decline in total revenue, which fell by 7.5% from the previous year. The EBIT margin remained stable, suggesting consistent operational efficiency. Overall, the company has shown resilience in maintaining profitability despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a potential risk. However, the equity ratio improved slightly, reflecting a stronger equity base. Return on equity remains strong, suggesting effective use of shareholder funds. The company's financial position is stable, but high leverage could impact future flexibility.

Cash Flow

Cash flow analysis indicates challenges in generating positive free cash flow, which turned negative in the current year. The operating cash flow to net income ratio is negative, highlighting cash flow management issues. Despite these challenges, the company has managed to maintain a positive operating cash flow in previous years, suggesting potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.28B	14.80B	15.99B	18.20B	19.06B	26.70B
Gross Profit	3.49B	3.34B	3.10B	-1.30B	3.85B	4.81B
EBITDA	1.63B	1.40B	1.42B	-3.13B	1.38B	1.87B
Net Income	1.11B	1.08B	1.16B	-4.69B	609.65M	100.48M
Balance Sheet
Total Assets	27.56B	24.53B	21.72B	18.82B	33.56B	40.98B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.57B	2.07B	770.61M	1.54B	1.98B
Total Debt	20.44B	16.21B	14.97B	17.60B	26.55B	35.00B
Total Liabilities	21.69B	19.31B	17.49B	18.76B	28.91B	36.97B
Stockholders Equity	5.87B	5.22B	4.23B	65.78M	4.66B	4.01B
Cash Flow
Free Cash Flow	0.00	-484.51M	818.40M	6.26B	7.30B	8.51B
Operating Cash Flow	0.00	-477.09M	821.90M	6.26B	7.51B	9.48B
Investing Cash Flow	0.00	220.39M	-127.76M	2.00B	516.05M	-787.37M
Financing Cash Flow	0.00	1.05B	322.00M	-8.97B	-8.46B	-7.54B

LeTech Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1495.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3497, the sentiment is Positive. The current price of 1495 is below the 20-day moving average (MA) of 1495.10, above the 50-day MA of 1494.14, and above the 200-day MA of 1396.34, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3497.

LeTech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8908	80 Outperform	¥14.49B	8.87		3.96%	7.14%	7.78%
3300	73 Outperform	¥19.46B	8.14		3.84%	24.50%	41.12%
3484	71 Outperform	¥18.72B	14.42		2.64%	20.80%	86.35%
3497	70 Neutral	¥15.82B	5.69		5.89%	32.55%	-10.06%
Sector *	63 Neutral	$7.09B	13.59	-0.50%	6.85%	4.08%	-25.24%
5078	―	¥17.83B	11.33		1.94%	―	―
8999	66 Neutral	¥16.91B	24.71		5.57%	2.23%	165.82%

LeTech Corporation Corporate Events

LeTech Corporation Reports Strong Financial Growth in Fiscal 2025

LeTech Corporation reported a significant increase in its financial performance for the first three quarters of fiscal 2025, with net sales rising by 33.9% and operating profit by 30.1% compared to the previous year. This growth indicates a strong market position and suggests positive implications for stakeholders, as the company continues to enhance its financial stability and expand its market presence.