LY Corporation (JP:4689)
:4689
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LY Corporation
(4689)
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Rating:60Neutral
Price Target:
¥428.00
▲(0.02% Upside)
Action:Reiterated
Date:06/07/26
The score is primarily driven by solid growth/profitability and reasonable valuation, tempered by weak cash-flow consistency (including free cash flow dropping to zero in the latest period) and mixed-to-negative technical momentum signals.
Positive Factors
Diversified monetization: ads, commerce, fintech, subscriptions
LY Corporation’s revenue mix spans advertising, marketplace/commerce fees, payments/fintech and subscriptions, creating multiple durable cash engines. This diversification reduces single-market dependency, enables cross‑sell between services and leverages platform scale to sustain revenue through cycles.
Negative Factors
Free cash flow volatility; collapsed to zero in 2026
A collapse of free cash flow to zero despite prior strength signals inconsistent cash conversion and potential working‑capital or reinvestment swings. Persistent FCF volatility undermines dividend coverage, reinvestment capacity and long‑term funding for growth without recurring reliance on debt or equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified monetization: ads, commerce, fintech, subscriptions
LY Corporation’s revenue mix spans advertising, marketplace/commerce fees, payments/fintech and subscriptions, creating multiple durable cash engines. This diversification reduces single-market dependency, enables cross‑sell between services and leverages platform scale to sustain revenue through cycles.
Read all positive factors
LY Corporation (4689) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.81T
Dividend Yield1.69%
Average Volume (3M)15.02M
Price to Earnings (P/E)14.2
Beta (1Y)0.16
Revenue Growth6.20%
EPS Growth34.04%
CountryJP
Employees28,196
SectorConsumer Cyclical
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)28.07
Shares Outstanding6,884,409,700
10 Day Avg. Volume17,618,049
30 Day Avg. Volume15,020,503
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)0.88
Price to Sales (P/S)1.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥447.50Price Target Upside4.58% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)26.54
Revenue Forecast (FY)¥2.26T
LY Corporation Business Overview & Revenue Model
Company Description
LY Corporation's core business involves the oversight and management of its various group companies and their related endeavors. Its operations are bifurcated into two main divisions: Media and Commerce. The Media division is responsible for a ran...
How the Company Makes Money
LY Corporation generates revenue primarily through (1) advertising: selling digital ad inventory and performance-based marketing solutions across its owned and operated services, including display and other online ad formats, and providing related...
LY Corporation Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying operational momentum once ASKUL is excluded: strong YoY growth in revenue and adjusted EBITDA in Commerce and Strategic segments, meaningful user and product traction (MINI Apps, Official Accounts), and a clear FY26 adjusted EBITDA target (10%–15% growth). Key weaknesses include the ASKUL ransomware outage that depressed consolidated results, Media segment ad/search weakness and near-term AI monetization still being developed. Management also outlined cost-reduction plans (JPY 15 billion) and multi-year infrastructure savings to support profit expansion.Positive Updates
Strong Underlying Revenue Growth Excluding ASKUL
Q3 consolidated revenue declined 0.7% YoY, but excluding ASKUL revenue increased 15.7% YoY, indicating solid underlying business expansion.
Negative Updates
ASKUL Ransomware Outage Impact
A subsidiary (ASKUL) experienced a system outage due to a ransomware attack; this materially impacted consolidated Q3 results and introduces uncertainty in near-term recovery and FY25 figures.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Underlying Revenue Growth Excluding ASKUL
Q3 consolidated revenue declined 0.7% YoY, but excluding ASKUL revenue increased 15.7% YoY, indicating solid underlying business expansion.
Read all positive updates
Company Guidance
The company reiterated FY25 guidance of roughly JPY 2.0 trillion in revenue and about JPY 500 billion in adjusted EBITDA (after the ASKUL system‑outage impact) and said adjusted EPS should remain within its initial range; for FY26 it is targeting a 10–15% increase in adjusted EBITDA (about JPY 550–575 billion). Management said Q3 underlying trends excluding ASKUL were strong (Q3 revenue +15.7% YoY, adjusted EBITDA +11.2% YoY), Commerce ex‑ASKUL revenue +31% YoY and adjusted EBITDA +15.5% YoY (LINE Yahoo! Commerce revenue +64.4% YoY), company‑wide ad revenue +3% and commerce advertising +20.1%, consolidated e‑commerce GMV/transaction value +2.5% YoY including ASKUL, Strategic revenue +30% YoY with margin expanding to 22.2%, PayPay consolidated revenue +24% and consolidated EBITDA +59.1% YoY to over JPY 30 billion in the quarter. Media is bottoming (Q3 ad revenue +0.4% total; search −9.5%, account +13.8%; adjusted EBITDA −2.8%), MINI Apps MAUs +63.8% and app count +57.8% YoY, AI‑related SG&A in Media ~JPY 1 billion+, AI search currently ~10%+ of search results, and the company expects segment profit uplifts of ~JPY 10 billion each for Media and Commerce (ex‑ASKUL), ~JPY 20 billion for Strategic (mainly PayPay) plus ~JPY 15 billion of company‑wide fixed‑cost savings (ASKUL recovery not assumed).LY Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.04T | 1.92T | 1.81T | 1.67T | 1.57T |
| Gross Profit | 1.51T | 1.39T | 1.29T | 1.16T | 1.07T |
| EBITDA | 470.68B | 452.51B | 366.13B | 389.81B | 298.70B |
| Net Income | 193.69B | 153.47B | 113.20B | 178.87B | 77.32B |
Balance Sheet | |||||
| Total Assets | 11.21T | 9.52T | 9.41T | 8.66T | 7.17T |
| Cash, Cash Equivalents and Short-Term Investments | 1.07T | 1.19T | 1.62T | 1.81T | 1.43T |
| Total Debt | 1.96T | 1.69T | 1.88T | 1.91T | 1.67T |
| Total Liabilities | 7.49T | 6.10T | 5.97T | 5.34T | 4.19T |
| Stockholders Equity | 3.00T | 3.00T | 3.04T | 2.92T | 2.68T |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 366.77B | 263.55B | 209.00M | 214.54B |
| Operating Cash Flow | 662.85B | 466.51B | 334.56B | 93.05B | 266.31B |
| Investing Cash Flow | -625.90B | -485.28B | -414.75B | 319.79B | -303.90B |
| Financing Cash Flow | -30.04B | -437.15B | -110.80B | 105.79B | 91.63B |
LY Corporation Technical Analysis
Positive
427.90
Price Trends
414.62
Positive
400.27
Positive
417.75
Positive
Market Momentum
-0.52
Negative
54.65
Neutral
85.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4689, the sentiment is Positive. The current price of 427.9 is above the 20-day moving average (MA) of 410.29, above the 50-day MA of 414.62, and above the 200-day MA of 417.75, indicating a bullish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 85.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4689.
LY Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥654.10B | 35.27 | 32.41% | 3.62% | 20.01% | -6.20% | |
75 Outperform | ¥29.85B | 12.69 | ― | 0.38% | 19.28% | 113.68% | |
66 Neutral | ¥25.50B | 8.05 | 22.37% | 5.66% | -8.47% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥2.81T | 14.16 | ― | 1.69% | 6.20% | 34.04% | |
60 Neutral | ¥8.10B | 39.35 | 4.78% | ― | -8.38% | -78.30% | |
58 Neutral | ¥33.42B | 45.70 | ― | ― | 27.05% | 495.56% |
* Consumer Cyclical Sector Average
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LY Corporation Corporate Events
LY’s PayPay to Take Control of T&D Financial Life in Push Into Digital Insurance
Jun 4, 2026
PayPay Corporation, the fintech arm of LY Corporation, will acquire 70.2% of TD Financial Life Insurance Company from TD Holdings, funding the all-cash deal from its own reserves. The move will make TD Financial Life a consolidated and specified s...
LY Corporation Corrects FY2025 Results, Upgrades PayPay GMV Figure
May 28, 2026
LY Corporation has revised its previously disclosed consolidated results for the fiscal year ended March 31, 2026, correcting an error in the reported gross merchandise value of its strategic subsidiary PayPay Corporation. The company emphasized t...
LY Corporation Cleared to Lift Stake in LINE MAN to Nearly 61%
May 27, 2026
LY Corporation said Thai authorities have confirmed that no regulatory approvals or permits are required for its planned additional acquisition of shares in LINE MAN CORPORATION PTE. LTD., which it already consolidated as a subsidiary in September...
LY Corporation Raises Year-End Dividend and Reaffirms Aggressive Payout Policy
May 15, 2026
LY Corporation’s board has approved a year-end dividend of JPY7.30 per share for the fiscal year ended March 31, 2026, matching its prior forecast and slightly above the previous year’s JPY7.00. The total dividend payment will be about...
LY Corporation Expands Stock-Based Pay Plan to Wider Group of Directors
May 15, 2026
LY Corporation plans to partially revise its existing trust-based restricted stock unit remuneration plan so that all directors, excluding those on the Audit and Supervisory Committee, become eligible rather than only executive directors. The move...
LY Corporation and Bain Capital Propose Take-Private Deal for Kakaku.com
May 14, 2026
LY Corporation, together with an investment fund advised by Bain Capital Private Equity, has submitted joint proposals to Kakaku.com, Inc. regarding a potential capital policy overhaul, including taking Kakaku.com private. The move reflects LY Cor...
LY Corporation Delivers Strong FY2025 Earnings and Lifts Dividend as It Expands Consolidation Scope
May 8, 2026
LY Corporation reported consolidated revenue of ¥2.04 trillion for the fiscal year ended March 31, 2026, up 6.2% year-on-year, with operating income rising 8.3% to ¥341.3 billion and net income attributable to owners of the parent increa...
LY Corporation Posts Record Revenue and Profit Surge on PayPay and Commerce Growth
May 8, 2026
LY Corporation reported record consolidated revenue of ¥2.04 trillion for the fiscal year ended March 31, 2026, up 6.2% from the previous year, driven mainly by PayPay’s consolidation and the addition of BEENOS and LINE MAN in its comme...
LY Corporation Reshapes Board as Chairperson Kawabe to Retire
Apr 6, 2026
LY Corporation announced board changes following an April 6 meeting, with long-serving Chairperson and Representative Director Kentaro Kawabe set to retire when his term ends at the June 19 shareholders’ meeting. President and CEO Takeshi Id...
LY Subsidiary PayPay Raises ¥94.6 Billion in Nasdaq IPO, Retains Consolidated Status
Mar 30, 2026
PayPay Corporation, a consolidated subsidiary of LY Corporation, has completed its initial public offering on the Nasdaq Global Select Market, issuing a total of 63,235,295 American depositary shares at US$16 each. The deal included the full exerc...
LY Corp Subsidiary PayPay Prices US$16 Nasdaq IPO, Adds Japan Tranche
Mar 12, 2026
PayPay Corporation, the digital payments subsidiary of LY Corporation, has priced its U.S. initial public offering at US$16 per American depositary share, with 54,987,214 ADSs to be sold on the Nasdaq under the ticker “PAYP.” Of the to...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.