Lion (4912) AI Stock Analysis

• Market Cap: ¥408.46B
• Dividend Yield: 1.86%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.30
• Revenue Growth: 2.30%
• EPS Growth: 33.87%
• Country: JP
• Employees: 7,654
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Household & Personal Products
• EPS (TTM): 14.57
• Shares Outstanding: 279,782,750
• 10 Day Avg. Volume: 1,040,090
• 30 Day Avg. Volume: 1,194,826
• PEG Ratio: -3.43
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.91
• 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: ¥1,695.28
• Price Target Upside: 12.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: ¥1,632.00 ▲(8.44%Upside)

The overall stock score is primarily influenced by strong financial performance, which provides a solid foundation. However, technical analysis signals bearish momentum, significantly impacting the score. Valuation metrics are moderately positive but do not offset the negative technical signals. The absence of earnings call and corporate event data means these factors do not contribute to the score.

Lion Business Overview & Revenue Model

Company Description

Lion Corporation (4912) is a leading Japanese company specializing in the production and sale of a wide range of consumer products, primarily in the sectors of household, toiletries, and pharmaceutical products. The company is renowned for its commitment to innovation and quality, offering a diverse portfolio that includes oral care products, laundry detergents, and other personal care items. Established with a focus on enhancing everyday living, Lion Corporation has a strong market presence in Japan and continues to expand its reach globally, maintaining a dedication to sustainability and consumer satisfaction.

How the Company Makes Money

Lion Corporation generates revenue primarily through the manufacturing and sale of consumer goods across its key business segments: Oral Care, Beauty Care, Fabric Care, Living Care, and Pharmaceutical products. The company leverages its strong brand recognition and extensive distribution network to maintain a steady stream of income from domestic and international markets. Key revenue streams include the sale of popular oral care products such as toothpaste and toothbrushes, as well as household cleaning products like laundry detergents and dishwashing liquids. Additionally, Lion Corporation benefits from strategic partnerships and collaborations that enhance its product offerings and market reach. The company's commitment to research and development enables it to innovate and introduce new products, thereby contributing to its growth and profitability.

Lion Financial Statement Overview

Summary

Lion demonstrates stable financial performance with steady revenue growth and strong profitability margins. The balance sheet is solid with low leverage and high equity, providing a stable foundation. While cash flow generation has faced challenges, the company's efficient operations and strong asset base mitigate potential risks.

Income Statement

The income statement shows a consistent growth trajectory in revenue, with a TTM revenue growth rate of 0.31% compared to the previous period. The gross profit margin for TTM is strong at 45.54%, indicating effective cost management. The net profit margin for TTM is 5.23%, which is stable but slightly lower than historical highs, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.10, highlighting conservative leverage. The equity ratio is robust at 62.37%, suggesting strong asset backing. Return on equity for TTM is 7.50%, which is satisfactory but could be improved to enhance shareholder returns. Overall, the balance sheet indicates stability and financial strength.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth rate, with a decrease of 21.52% from the previous period, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio is strong at 1.78, showing efficient conversion of net income into cash. The free cash flow to net income ratio stands at 0.93, reflecting the company's capacity to generate free cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	414.21B	412.94B	402.77B	389.87B	366.23B	355.35B
Gross Profit	188.57B	188.78B	180.60B	174.61B	179.10B	179.87B
EBITDA	50.29B	49.55B	43.42B	42.40B	46.06B	48.60B
Net Income	21.67B	21.20B	14.62B	21.94B	23.76B	29.87B
Balance Sheet
Total Assets	463.49B	497.17B	486.36B	469.28B	428.02B	435.50B
Cash, Cash Equivalents and Short-Term Investments	80.83B	102.24B	85.53B	109.06B	103.91B	130.13B
Total Debt	29.46B	29.74B	30.34B	32.17B	8.37B	8.12B
Total Liabilities	152.87B	181.47B	188.23B	190.11B	163.01B	190.65B
Stockholders Equity	289.04B	293.72B	280.32B	264.25B	251.57B	231.72B
Cash Flow
Free Cash Flow	20.09B	25.60B	5.08B	18.82B	-23.63B	13.80B
Operating Cash Flow	38.63B	43.66B	30.07B	41.96B	19.30B	40.73B
Investing Cash Flow	-7.82B	-7.66B	-34.79B	-19.54B	-34.18B	-19.87B
Financing Cash Flow	-11.44B	-21.20B	-11.76B	-19.82B	-10.22B	-9.14B

Lion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1505.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4912, the sentiment is Negative. The current price of 1505 is below the 20-day moving average (MA) of 1534.90, below the 50-day MA of 1627.45, and below the 200-day MA of 1678.71, indicating a bearish trend. The MACD of -29.24 indicates Negative momentum. The RSI at 29.54 is Positive, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4912.

Lion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4928	74 Outperform	¥144.48B	18.03		5.32%	1.51%	5.48%
4919	72 Outperform	$78.87B	17.94	9.60%	3.87%	7.44%	25.31%
Sector *	68 Neutral	¥196.73B	21.07	8.29%	2.38%	5.00%	2.96%
4927	66 Neutral	$287.71B	38.52	4.49%	4.77%	-0.74%	-25.66%
4527	65 Neutral	$472.33B	14.95	12.05%	1.97%	13.95%	0.37%
4967	60 Neutral	$400.26B	37.98	5.17%	2.15%	-8.36%	-38.35%
4912	59 Neutral	¥408.46B	19.19	7.58%	1.86%	2.30%	33.87%

Lion Corporate Events

Lion Corporation Announces Treasury Stock Disposal for Executive Compensation

Lion Corporation announced the disposal of 274,100 shares of treasury stock through a stock-based compensation plan aimed at aligning executive compensation with company performance and share price. This move is part of Lion’s ongoing strategy to incentivize its directors and executive officers, with the disposal expected to have an insignificant impact on the trading market due to the reasonable number of shares involved and the lack of immediate influx into the stock market.

Lion Corporation Reports First Quarter 2025 Financial Results with Increased Profits

Lion Corporation reported a modest increase in net sales for the first quarter of 2025, with a 1.4% rise compared to the previous year. The company saw significant growth in operating profit, up 15.2%, and profit before tax, which increased by 8.7%. Despite a decrease in total comprehensive income, core operating income showed a substantial improvement of 32.4% year-on-year, indicating strong underlying business performance. The company also announced a forecasted increase in dividends per share for fiscal 2025, reflecting confidence in its financial stability and commitment to shareholder returns.

Lion Corporation to Cancel Treasury Stock to Boost Shareholder Value

Lion Corporation has announced its decision to cancel 4,650,000 shares of its treasury stock, which constitutes 1.63% of its outstanding shares, as part of a strategy to enhance shareholder value by increasing earnings per share. This move is expected to positively impact the company’s financial metrics and strengthen its market position by optimizing its capital structure.

Lion Corporation Acquires Full Ownership of Vietnamese Affiliate Merap Lion

Lion Corporation announced its decision to acquire all shares of its Vietnam-based affiliate, Merap Lion Holding Corporation, making it a wholly owned subsidiary. This acquisition is part of Lion’s Vision2030 2nd STAGE plan to strengthen its business portfolio and enhance growth overseas. By fully integrating Merap Lion, Lion aims to leverage synergies in product development and production technology, particularly in the oral healthcare sector, to boost its market presence in Vietnam and improve consolidated performance.