Lion (4912) AI Stock Analysis

• Market Cap: ¥449.85B
• Dividend Yield: 1.75%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.30
• Revenue Growth: 2.18%
• EPS Growth: 60.81%
• Country: JP
• Employees: 7,654
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 40.50
• Shares Outstanding: 279,782,750
• 10 Day Avg. Volume: 831,660
• 30 Day Avg. Volume: 1,173,743
• PEG Ratio: 0.47
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 19.08
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 93.05
• Revenue Forecast (FY): ¥417.46B

• Rating: 76 Outperform
• Price Target: ¥1,923.00 ▲(15.08% Upside)

Lion's strong financial performance and bullish technical indicators are the primary drivers of its stock score. The company's solid revenue growth and stable financial position are complemented by positive market momentum. While the valuation is fair, the lack of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and market position.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports sustainable growth and investment capacity.

Negative Factors

Declining ROE

A declining ROE may indicate challenges in efficiently generating returns on equity, potentially impacting investor confidence and growth.

Net Profit Margin Decrease

A decreasing net profit margin suggests rising costs or pricing pressures, which could affect profitability if not addressed.

Free Cash Flow Efficiency

Reduced free cash flow efficiency may limit the company's ability to fund operations and growth initiatives, impacting long-term financial health.

Lion Business Overview & Revenue Model

Company Description

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company offers dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes and breath fresheners, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It also provides antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, ground improvement and asphalt recycling agents, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Lion generates revenue through multiple streams, primarily from the sale of its food and beverage products. Key revenue streams include the sale of dairy products, alcoholic beverages, and nutritional goods, which are distributed through both retail channels and direct sales to businesses. Lion has established significant partnerships with retailers and distributors, enhancing its market reach and brand visibility. Additionally, the company benefits from economies of scale in production and a strong supply chain, which contribute to its profitability. Seasonal promotions and product innovation also play a crucial role in driving sales and increasing consumer engagement.

Lion Financial Statement Overview

Summary

Lion exhibits strong profitability and a robust balance sheet with low leverage. However, the recent decline in revenue and free cash flow growth in the TTM period presents potential challenges. The company maintains operational efficiency, but the focus should be on reversing the revenue and cash flow trends to sustain long-term growth.

Income Statement

Lion's income statement shows a stable gross profit margin of around 45% over the years, indicating efficient cost management. However, the TTM data reveals a revenue decline of 10.8%, which is concerning. The net profit margin remains modest at 5.2% in the TTM, reflecting consistent profitability, though slightly lower than previous years. EBIT and EBITDA margins are stable, suggesting operational efficiency. Overall, while profitability is stable, the recent revenue decline is a potential risk.

Balance Sheet

Lion maintains a strong balance sheet with a low debt-to-equity ratio of 0.10 in the TTM, indicating low financial leverage and reduced risk. The return on equity is moderate at 7.5%, showing decent profitability relative to shareholder equity. The equity ratio is healthy, reflecting a strong capital structure. Overall, the balance sheet is robust, with low leverage and solid equity positioning.

Cash Flow

The cash flow statement shows a decline in free cash flow growth by 30.8% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.34, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.52, suggesting reasonable cash flow conversion. While cash flow generation is adequate, the significant decline in free cash flow growth poses a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	416.73B	412.94B	402.77B	389.87B	366.23B	355.35B
Gross Profit	190.35B	188.78B	180.60B	174.61B	179.10B	179.87B
EBITDA	60.84B	49.55B	43.42B	47.31B	46.06B	56.37B
Net Income	29.35B	21.20B	14.62B	21.94B	23.76B	29.87B
Balance Sheet
Total Assets	480.31B	497.17B	486.36B	469.28B	428.02B	435.50B
Cash, Cash Equivalents and Short-Term Investments	62.52B	102.24B	85.53B	101.08B	97.25B	121.53B
Total Debt	28.63B	29.74B	30.34B	32.17B	8.37B	8.12B
Total Liabilities	151.34B	181.47B	188.23B	190.11B	163.01B	190.65B
Stockholders Equity	305.92B	293.72B	280.32B	264.25B	251.57B	231.72B
Cash Flow
Free Cash Flow	19.57B	25.60B	5.08B	18.82B	-23.63B	13.80B
Operating Cash Flow	38.29B	43.66B	30.07B	41.96B	19.30B	40.73B
Investing Cash Flow	-38.78B	-7.66B	-34.79B	-19.54B	-34.18B	-19.87B
Financing Cash Flow	-12.37B	-21.20B	-11.76B	-19.82B	-10.22B	-9.14B

Lion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1671.00
• 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:4912, the sentiment is Positive. The current price of 1671 is above the 20-day moving average (MA) of 1635.20, above the 50-day MA of 1584.01, and above the 200-day MA of 1604.59, indicating a bullish trend. The MACD of 20.43 indicates Negative momentum. The RSI at 69.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4912.

Lion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4928	76 Outperform	¥157.46B	19.61	―	5.04%	1.41%	0.75%
4912	76 Outperform	¥449.85B	15.62	9.77%	1.75%	2.18%	60.81%
4919	72 Outperform	¥80.56B	24.40	6.83%	3.59%	3.05%	-32.61%
4527	71 Outperform	¥593.17B	16.21	13.22%	1.60%	18.35%	31.87%
4927	68 Neutral	¥294.90B	29.52	6.05%	3.90%	-1.16%	36.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4967	57 Neutral	¥390.17B	33.91	5.37%	1.96%	-3.33%	13.76%

Lion Corporate Events

Lion Corporation Reports Strong Financial Growth for Nine Months Ending September 2025

Lion Corporation reported a significant increase in its financial performance for the nine months ending September 30, 2025, with net sales reaching ¥304,945 million, a 1.3% increase year-on-year. The company’s operating profit surged by 62.7% to ¥27,829 million, and profit before tax rose by 52.2% to ¥29,797 million. This robust growth is attributed to improved core operating income and effective cost management. The company’s financial position remains strong with a notable increase in equity attributable to owners of the parent, reflecting a solid balance sheet. The dividend forecast for fiscal 2025 indicates a potential increase, suggesting confidence in continued financial stability and growth.