Lonseal Corporation (4224) AI Stock Analysis

• Market Cap: ¥8.76B
• Dividend Yield: 3.68%
• Average Volume (3M): 6.65K
• Price to Earnings (P/E): 70.6
• Beta (1Y): 0.40
• Revenue Growth: 2.25%
• EPS Growth: -85.20%
• Country: JP
• Employees: 423
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 57.78
• Shares Outstanding: 4,625,309
• 10 Day Avg. Volume: 9,660
• 30 Day Avg. Volume: 6,646
• 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: ¥2,011.00
• Price Target Upside: 5.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥2,011.00 ▲(5.84% Upside)

The stock score is primarily driven by the company's strong financial stability, evident in its low leverage and high equity. However, profitability challenges and a high P/E ratio raise concerns. While the technical analysis suggests strong bullish momentum, overbought conditions could lead to a correction.

Lonseal Corporation Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Lonseal Corporation generates revenue primarily through the sale of its vinyl flooring products. The company's revenue model is based on manufacturing and distributing these products to a diverse range of industries such as healthcare facilities, educational institutions, commercial buildings, and transportation sectors. Lonseal's business model capitalizes on both domestic and international markets, leveraging its established brand reputation for quality and sustainability. Additionally, strategic partnerships with distributors and contractors help in expanding its market reach and enhancing its sales channels. The company's focus on innovation and sustainable practices also contributes to its competitive advantage and revenue growth.

Lonseal Corporation Financial Statement Overview

Summary

Lonseal Corporation demonstrates strong financial stability with minimal leverage and high equity. However, recent profitability challenges impact its income statement performance. The company shows resilience in maintaining positive cash flow, although there are signs of operational inefficiencies.

Income Statement

Lonseal Corporation exhibits a stable revenue growth trajectory with a 2% increase in the latest year. The gross profit margin remains strong at approximately 35%, indicating effective cost management. However, a significant drop in net profit margin from 4% to 0.06% raises concerns about profitability. The declining EBIT and EBITDA margins reflect operational challenges, reducing overall performance.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.02, suggesting minimal leverage risk. The equity ratio is strong at around 73%, indicating financial stability. Return on equity decreased sharply from 4.4% to 0.07%, reflecting recent profitability issues, but the overall balance sheet remains solid with high equity.

Cash Flow

Operating cash flow remains positive, although it decreased from the previous year, reflecting some operational strain. The free cash flow is positive, but down from last year, indicating reduced cash generation. The company sustains a favorable operating cash flow to net income ratio, but declining free cash flow growth suggests the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.43B	21.43B	21.02B	19.56B	18.13B	17.17B
Gross Profit	7.50B	7.50B	7.38B	6.70B	7.08B	6.78B
EBITDA	757.50M	852.00M	1.76B	1.10B	1.88B	1.65B
Net Income	13.00M	13.00M	835.00M	448.00M	965.00M	872.00M
Balance Sheet
Total Assets	25.90B	25.90B	26.43B	25.34B	24.75B	23.90B
Cash, Cash Equivalents and Short-Term Investments	7.55B	7.55B	7.18B	6.44B	6.80B	7.00B
Total Debt	470.00M	470.00M	582.00M	682.00M	773.00M	1.54B
Total Liabilities	6.89B	6.89B	7.28B	7.09B	6.79B	6.69B
Stockholders Equity	19.02B	19.02B	19.15B	18.25B	17.96B	17.21B
Cash Flow
Free Cash Flow	0.00	762.00M	1.04B	-105.00M	1.08B	19.00M
Operating Cash Flow	0.00	1.13B	1.49B	341.00M	1.73B	1.66B
Investing Cash Flow	0.00	-474.00M	-468.00M	-450.00M	-666.00M	-1.67B
Financing Cash Flow	0.00	-347.00M	-302.00M	-316.00M	-1.30B	-378.00M

Lonseal Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4224, the sentiment is Positive. The current price of 1900 is above the 20-day moving average (MA) of 1872.90, above the 50-day MA of 1842.70, and above the 200-day MA of 1569.31, indicating a bullish trend. The MACD of 24.55 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4224.

Lonseal Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	79 Outperform	¥12.02B	12.89	5.60%	3.80%	-2.90%	-24.21%
4026	77 Outperform	¥12.89B	9.72	11.06%	3.08%	2.25%	-26.12%
5940	74 Outperform	¥10.72B	4.53	9.52%	2.93%	3.90%	9.38%
7871	73 Outperform	¥18.78B	12.56	4.01%	2.83%	1.51%	-13.05%
4224	65 Neutral	¥8.76B	70.61	―	3.68%	2.25%	-85.20%
5391	62 Neutral	¥9.93B	318.04	-0.64%	4.62%	4.42%	-98.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%