LeTech Corporation (3497) AI Stock Analysis

• Market Cap: ¥15.80B
• Dividend Yield: 5.89%
• Average Volume (3M): 8.49K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.62
• Revenue Growth: 32.55%
• EPS Growth: -10.06%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 60
• Industry: Real Estate - Services
• EPS (TTM): 38.76
• Shares Outstanding: 10,630,603
• 10 Day Avg. Volume: 1,400
• 30 Day Avg. Volume: 8,490
• PEG Ratio: -0.12
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Outperform
• Price Target: ―

LeTech Corporation's stock score is driven by strong technical indicators and an attractive valuation, offset by financial performance challenges. While the stock shows positive momentum and is undervalued, high leverage and inconsistent cash flow generation require attention to ensure sustainable growth.

LeTech Corporation Business Overview & Revenue Model

Company Description

LeTech Corporation engages in the real estate business in Japan. It owns and operates YANUSY, a real estate platform that integrates online and offline information and services covering various touchpoints related to housing, such as contracts, payments, financing, investment, and community for owners and residents. The company also offers rental management support and consulting services, and information on investment properties; and real estate management services, such as leasing, maintenance management, cleaning and aesthetic maintenance, restoration and repair work, and rent collection services. In addition, it is involved in property leasing; sorting out and negotiating complex rights relationships to find the maximum value of the land; proposing issues and solutions for cases arising from legal aspects; developing condominiums, commercial buildings, guesthouses, and hotels; and provision of real estate consulting, renovation/conversion services. The company was formerly known as Legal Corporation and changed its name to LeTech Corporation in February 2021. LeTech Corporation was incorporated in 2000 and is based in Osaka, Japan.

How the Company Makes Money

LeTech Corporation generates revenue primarily through the sale of software licenses, subscription services, and IT consulting. The company's key revenue streams include its proprietary software products, which are licensed to clients on a recurring subscription basis, offering a steady income flow. Additionally, LeTech provides bespoke IT solutions and consultancy services, charging clients for both project-based and ongoing support work. Significant partnerships with major industry players and strategic alliances also contribute to LeTech's earnings by opening up new market opportunities and expanding its client base.

LeTech Corporation Financial Statement Overview

Summary

LeTech Corporation is experiencing a recovery phase with improving profitability metrics, though high leverage and inconsistent cash flows pose challenges. The company needs to stabilize cash flow generation and manage debt to enhance financial resilience.

Income Statement

LeTech Corporation has seen fluctuating revenues, with a notable decline in recent years. Gross profit margin improved from negative in 2022 to positive in 2023 and 2024. The net profit margin recovered significantly from losses in 2022 to profitability in 2023 and 2024, indicating a positive turnaround. EBIT and EBITDA margins also show improvement but remain below 2020 levels.

Balance Sheet

The company exhibits high leverage, with a debt-to-equity ratio indicating substantial debt levels compared to equity. However, the return on equity has improved as profitability returned. The equity ratio is low, suggesting potential risk, but improvements in stockholders' equity from previous years are a positive sign.

Cash Flow

Operating cash flow turned negative in 2024, which is concerning. Free cash flow has also worsened, driven by negative operating cash flows. The inconsistency in free cash flow growth and operating cash flow to net income ratio raises sustainability concerns, although previous strong cash flows provide some cushion.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	14.80B	15.99B	18.20B	19.06B	26.70B
Gross Profit	3.34B	3.10B	-1.30B	3.85B	4.81B
EBITDA	1.40B	1.42B	-3.22B	1.38B	1.87B
Net Income	1.08B	1.16B	-4.69B	609.65M	100.48M
Balance Sheet
Total Assets	24.53B	21.72B	18.82B	33.56B	40.98B
Cash, Cash Equivalents and Short-Term Investments	2.57B	2.07B	770.61M	1.54B	1.98B
Total Debt	16.21B	14.97B	17.60B	26.55B	35.00B
Total Liabilities	19.31B	17.49B	18.76B	28.91B	36.97B
Stockholders Equity	5.22B	4.23B	65.78M	4.66B	4.01B
Cash Flow
Free Cash Flow	-484.51M	818.40M	6.26B	7.30B	8.51B
Operating Cash Flow	-477.09M	821.90M	6.26B	7.51B	9.48B
Investing Cash Flow	220.39M	-127.76M	2.00B	516.05M	-787.37M
Financing Cash Flow	1.05B	322.00M	-8.97B	-8.46B	-7.54B

LeTech Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1493.00
• 50DMA: Negative
• 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 Neutral. The current price of 1493 is below the 20-day moving average (MA) of 1493.25, below the 50-day MA of 1494.34, and above the 200-day MA of 1344.07, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 49.30 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 Neutral sentiment for JP:3497.

LeTech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3300	80 Outperform	¥16.19B	8.13		4.62%	30.20%	67.98%
3484	71 Outperform	¥17.06B	15.73		4.97%	16.79%	54.88%
3497	70 Outperform	¥15.80B	5.69		5.89%	32.55%	-10.06%
8908	70 Outperform	¥13.90B	8.51		6.99%	-1.02%	-7.65%
8999	66 Neutral	¥16.06B	32.03		11.74%	4.73%	16.92%
Sector *	63 Neutral	$6.74B	18.42	-1.93%	7.60%	4.67%	-25.44%

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.