LY Corporation (4689) AI Stock Analysis

• Market Cap: ¥2.97T
• Dividend Yield: 1.55%
• Average Volume (3M): 15.02M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.17
• Revenue Growth: 5.24%
• EPS Growth: 23.07%
• Country: JP
• Employees: 28,196
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 6.84
• Shares Outstanding: 6,881,058,000
• 10 Day Avg. Volume: 17,618,049
• 30 Day Avg. Volume: 15,020,503
• PEG Ratio: 0.62
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 8.81
• 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: ¥580.00
• Price Target Upside: 28.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: ¥476.00 ▲(5.33% Upside)

LY Corporation's overall stock score is primarily supported by its strong financial performance, characterized by robust revenue growth and effective cash management. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's short-term outlook. The valuation is balanced, with a fair P/E ratio and modest dividend yield, contributing to a moderate overall score.

LY Corporation Business Overview & Revenue Model

Company Description

LY Corp. engages in the management of group companies and related operations. It operates through the following segments: Media and Commerce. The Media segment covers the advertisement related services that include search linked advertisement and display advertisement. The Commerce segment handles the commerce related services in Yahoo Auction!, Yahoo! Shopping, ASKUL Corp., and Yahoo! Premium. It also provides the settlement finance related services. The company was founded on January 31, 1996 and is headquartered in Tokyo, Japan.

How the Company Makes Money

LY Corporation generates revenue through multiple channels, including direct sales of consumer electronics, partnerships with major retailers, and contracts with automotive manufacturers for electronic components. A significant portion of its income comes from the sale of smart home devices, which have seen increased demand in recent years. Additionally, the company benefits from long-term contracts with telecommunications providers, supplying essential hardware for network infrastructure. Strategic collaborations with tech firms for product development and joint ventures in emerging markets also contribute to its earnings, allowing LY Corporation to leverage new opportunities and expand its market reach.

LY Corporation Financial Statement Overview

Summary

LY Corporation exhibits strong financial performance with robust revenue growth and profitability. The balance sheet is stable with prudent leverage, and cash flows are healthy, supporting future growth. Some volatility in operational margins and capital allocation is noted.

Income Statement

LY Corporation has demonstrated strong revenue growth with a consistent upward trajectory over the years. The gross profit margin remains robust, indicating effective cost management. Net profit margin has improved significantly, reflecting enhanced profitability. However, the EBIT margin shows some volatility, suggesting potential operational challenges.

Balance Sheet

The company's balance sheet is solid with a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is manageable, suggesting prudent leverage levels. Return on equity has been improving, showcasing effective utilization of shareholder funds. However, the increase in total liabilities warrants monitoring for potential risk.

Cash Flow

LY Corporation's cash flow position is strong, with significant growth in free cash flow. The operating cash flow to net income ratio is healthy, indicating efficient cash generation from operations. The free cash flow to net income ratio also shows positive trends, supporting sustainable growth. However, fluctuations in investing and financing cash flows suggest potential volatility in capital allocation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.94T	1.92T	1.81T	1.67T	1.57T	1.21T
Gross Profit	1.41T	1.39T	1.29T	1.16T	1.07T	773.40B
EBITDA	459.76B	444.44B	361.30B	306.81B	337.77B	267.45B
Net Income	150.65B	153.47B	113.20B	178.87B	77.32B	70.14B
Balance Sheet
Total Assets	10.15T	9.16T	9.04T	8.59T	7.11T	6.70T
Cash, Cash Equivalents and Short-Term Investments	1.10T	1.04T	1.42T	1.65T	1.13T	1.07T
Total Debt	1.98T	1.69T	1.88T	1.91T	1.67T	1.39T
Total Liabilities	6.70T	5.74T	5.60T	5.27T	4.13T	3.71T
Stockholders Equity	2.89T	3.00T	3.04T	2.92T	2.68T	2.68T
Cash Flow
Free Cash Flow	454.00B	419.85B	245.47B	-55.94B	-6.32B	137.18B
Operating Cash Flow	527.27B	519.59B	316.48B	93.05B	266.31B	207.92B
Investing Cash Flow	-439.80B	-485.28B	-444.06B	319.79B	-303.90B	-12.35B
Financing Cash Flow	-251.68B	-437.15B	-110.80B	105.79B	91.63B	-12.07B

LY Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 451.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4689, the sentiment is Negative. The current price of 451.9 is below the 20-day moving average (MA) of 461.70, below the 50-day MA of 472.47, and below the 200-day MA of 497.47, indicating a bearish trend. The MACD of -9.28 indicates Positive momentum. The RSI at 40.60 is Neutral, neither overbought nor oversold. The STOCH value of 38.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4689.

LY Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4298	77 Outperform	―	―	―	―	4.92%	-12.12%
3661	76 Outperform	¥70.72B	34.06	―	0.79%	36.67%	35.38%
4825	73 Outperform	¥95.38B	26.36	―	1.68%	5.17%	52.84%
2371	72 Outperform	$501.97B	24.97	38.20%	2.97%	19.34%	5.71%
4689	62 Neutral	¥2.97T	21.05	―	1.55%	5.24%	23.07%
4194	62 Neutral	¥411.31B	25.59	―	―	21.19%	21.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

LY Corporation Corporate Events

LY Corporation Consolidates LINE MAN to Boost Market Control

LY Corporation announced its decision to consolidate LINE MAN CORPORATION PTE. LTD. into a subsidiary, enhancing control and collaboration in the on-demand services market in Thailand. This strategic move is expected to classify LINE MAN and its subsidiaries as significant contributors to LY Corporation’s capital, potentially impacting the company’s market positioning and stakeholder interests.

The most recent analyst rating on (JP:4689) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on LY Corporation stock, see the JP:4689 Stock Forecast page.

LY Corporation Finalizes Share Consolidation of BEENOS Inc.

LY Corporation has completed the share consolidation of BEENOS Inc., making it a wholly owned subsidiary. This strategic move is expected to facilitate data sharing and accelerate business synergies, particularly in cross-border e-commerce, although the impact on LY Corporation’s consolidated business performance is anticipated to be minimal.

The most recent analyst rating on (JP:4689) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on LY Corporation stock, see the JP:4689 Stock Forecast page.

LY Corporation Accelerates Treasury Share Cancellation

LY Corporation has announced a change in the scheduled date for the cancellation of its treasury shares. The company completed its share repurchase program ahead of schedule, leading to a decision by the Board of Directors to move the cancellation date from October 31, 2025, to September 3, 2025. This move is part of LY Corporation’s strategic financial management, potentially impacting shareholder value and market perception positively.

The most recent analyst rating on (JP:4689) stock is a Buy with a Yen534.00 price target. To see the full list of analyst forecasts on LY Corporation stock, see the JP:4689 Stock Forecast page.

PayPay Corporation Plans U.S. Public Listing

PayPay Corporation, a subsidiary of LY Corporation, has confidentially submitted a draft registration statement for a proposed public listing of American depositary shares on a U.S. stock exchange. The listing’s schedule, size, and price are yet to be determined, and it is contingent on market conditions and SEC review. LY Corporation anticipates that the listing will not materially affect its consolidated financial results.

The most recent analyst rating on (JP:4689) stock is a Buy with a Yen585.00 price target. To see the full list of analyst forecasts on LY Corporation stock, see the JP:4689 Stock Forecast page.

LY Corporation Reports Mixed Financial Results for Q1 FY2025

LY Corporation reported its financial results for the three months ended June 30, 2025, showing a revenue increase of 5.7% year-on-year. However, the company experienced a decline in operating income by 11% and a slight decrease in profit before tax by 0.7%. The results indicate a mixed performance, with growth in revenue but challenges in maintaining profitability, which could impact their market positioning and investor confidence.

The most recent analyst rating on (JP:4689) stock is a Buy with a Yen585.00 price target. To see the full list of analyst forecasts on LY Corporation stock, see the JP:4689 Stock Forecast page.