Lonseal Corporation (4224) AI Stock Analysis

• Market Cap: ¥7.76B
• Dividend Yield: 4.16%
• Average Volume (3M): 5.16K
• Price to Earnings (P/E): 589.1
• Beta (1Y): 0.40
• Revenue Growth: 1.96%
• EPS Growth: -98.44%
• Country: JP
• Employees: 423
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction
• EPS (TTM): -115.71
• Shares Outstanding: 4,625,309
• 10 Day Avg. Volume: 6,000
• 30 Day Avg. Volume: 5,163
• PEG Ratio: -0.26
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -58.28
• 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: ¥1,666.00
• Price Target Upside: 0.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥1,744.00 ▲(5.57%Upside)

The most significant factor is the company's strong financial stability and cash flow resilience, despite profitability challenges. However, technical indicators suggest potential overbought conditions, and the high P/E ratio raises concerns about overvaluation. The favorable dividend yield provides some support to the overall score.

Lonseal Corporation Business Overview & Revenue Model

Company Description

Lonseal Corporation (4224) is a leading manufacturer and distributor of high-performance vinyl flooring solutions. The company specializes in providing durable, aesthetically pleasing, and environmentally friendly flooring products for commercial, industrial, and residential applications. Lonseal's product line includes a wide range of sheet vinyl, vinyl tiles, and specialty floors designed to meet the specific needs of sectors such as healthcare, education, retail, and marine industries.

How the Company Makes Money

Lonseal Corporation generates revenue through the sale of its vinyl flooring products to a diverse customer base across multiple industries. The company's key revenue streams include direct sales to businesses and institutions in sectors like healthcare, education, and retail, as well as distribution partnerships with contractors and resellers who supply these products to end-users. Lonseal's earnings are significantly influenced by its ability to innovate and meet the evolving demands for sustainable and high-performance flooring solutions. Strategic partnerships with distributors and a robust sales network further enhance its market reach and revenue potential.

Lonseal Corporation Financial Statement Overview

Summary

Lonseal Corporation shows strong financial stability with minimal leverage and high equity, but faces profitability challenges with a significant drop in net profit margin and declining EBIT and EBITDA margins, impacting the income statement performance.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.16B	21.43B	21.02B	19.56B	18.13B	17.17B
Gross Profit	7.38B	7.50B	7.38B	6.70B	7.08B	6.78B
EBITDA	1.36B	852.00M	1.64B	1.10B	1.80B	1.65B
Net Income	753.00M	13.00M	835.00M	448.00M	965.00M	872.00M
Balance Sheet
Total Assets	26.50B	25.90B	26.43B	25.34B	24.75B	23.90B
Cash, Cash Equivalents and Short-Term Investments	6.88B	7.55B	7.18B	6.44B	6.80B	7.00B
Total Debt	498.00M	470.00M	582.00M	682.00M	773.00M	1.54B
Total Liabilities	7.06B	6.89B	7.28B	7.09B	6.79B	6.69B
Stockholders Equity	19.44B	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: 1652.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1652 is above the 20-day moving average (MA) of 1601.95, above the 50-day MA of 1543.50, and above the 200-day MA of 1459.41, indicating a bullish trend. The MACD of 38.02 indicates Negative momentum. The RSI at 69.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 is Negative, 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	78 Outperform	¥10.43B	9.12		4.37%	-4.86%	31.22%
4026	74 Outperform	¥11.27B	7.79		3.52%	7.70%	13.39%
7871	73 Outperform	¥16.10B	10.74		3.93%	0.60%	-13.74%
Sector *	67 Neutral	€8.27B	20.54	6.46%	2.73%	1.89%	-38.57%
5940	64 Neutral	¥8.76B	3.95		3.58%	3.45%	29.89%
5391	62 Neutral	¥9.13B	6.10		5.03%	5.18%	-104.41%
4224	60 Neutral	¥7.76B	589.11		4.16%	1.96%	-98.44%