Low Leverage & Strong EquityExtremely low leverage and a ~73% equity ratio give Lonseal durable financial resilience. This reduces refinancing and interest rate risk, preserves capacity to fund capex or absorb project delays, and supports long-term stability across construction cycles.

Stable Gross Margin And Modest Revenue GrowthConsistent ~35% gross margins with steady revenue growth indicate sustained product-level profitability and pricing power in resilient flooring. These margins support long-term cost absorption and provide a foundation for incremental investments in product and channel development.

Positive Operating And Free Cash FlowPositive operating and free cash flow demonstrate the business generates internal funds to service operations and modest investment needs. Over months, this cash generation lowers dependency on external financing and supports maintenance capex, dividends, or targeted reinvestment.

Bears Say

Collapsed Net Profit Margin And ROEA near-zero net margin and collapsing ROE materially weaken shareholder returns and indicate that operating profits are not converting to retained earnings. Persistently low net profitability limits reinvestment, dividend sustainability, and the company's ability to compete on long-term product innovation.

Declining Cash Generation TrendFalling operating and free cash flow reduce financial flexibility over multiple quarters. If the trend continues, Lonseal may face constraints funding working capital, maintenance capex, or strategic investments without tapping debt or equity, weakening resilience in slower construction cycles.

Eroding Operating Margins (EBIT/EBITDA)Shrinking EBIT and EBITDA margins point to rising operating costs or pricing pressure. Persistently lower operating profitability undermines break-even economics on projects, limits ability to invest in efficiency or product improvement, and heightens sensitivity to input-cost inflation.

4224 FAQ

What was Lonseal Corporation’s price range in the past 12 months?

Lonseal Corporation lowest stock price was ¥1370.00 and its highest was ¥2311.00 in the past 12 months.

What is Lonseal Corporation’s market cap?

Lonseal Corporation’s market cap is ¥9.55B.

When is Lonseal Corporation’s upcoming earnings report date?

Lonseal Corporation’s upcoming earnings report date is May 20, 2026 which is in 67 days.

How were Lonseal Corporation’s earnings last quarter?

Lonseal Corporation released its earnings results on Feb 06, 2026. The company reported ¥73.06 earnings per share for the quarter, beating the consensus estimate of N/A by ¥73.06.

Is Lonseal Corporation overvalued?

According to Wall Street analysts Lonseal Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Lonseal Corporation pay dividends?

Lonseal Corporation pays a Annually dividend of ¥70 which represents an annual dividend yield of 3.73%. See more information on Lonseal Corporation dividends here

What is Lonseal Corporation’s EPS estimate?

Lonseal Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Lonseal Corporation have?

Lonseal Corporation has 4,625,309 shares outstanding.

What happened to Lonseal Corporation’s price movement after its last earnings report?

Lonseal Corporation reported an EPS of ¥73.06 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.007%.

Which hedge fund is a major shareholder of Lonseal Corporation?

Currently, no hedge funds are holding shares in JP:4224

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Lonseal Corporation

Lonseal Corporation manufactures and sells plastic products in Japan and internationally. The company offers flooring materials; sheet waterproof materials; antivirus, antibacterial, deodorizing, and contamination-proof wall materials, as well as products for sick building syndrome; and flexible, rigid, and antiviral PVC films, as well as flexible acrylic films for use in various industrial purposes. It also provides floor coverings for railroad vehicles; floor coating materials for buses, specially equipped vehicles, and cars; substrate films for semiconductors and electronic components; and housing material products. Lonseal Corporation was founded in 1928 and is headquartered in Tokyo, Japan.