Lion (4912) AI Stock Analysis

• Market Cap: $427.32B
• Dividend Yield: 1.84%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.30
• Revenue Growth: 1.29%
• EPS Growth: 4.72%
• Country: JP
• Employees: 7,654
• Sector: Consumer Defensive
• Sector Strength: 49
• Industry: Household & Personal Products
• EPS (TTM): 20.18
• Shares Outstanding: 279,782,750
• 10 Day Avg. Volume: 1,164,350
• 30 Day Avg. Volume: 1,410,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 7.66
• 1Y Price Target: $1,892.37
• Price Target Upside: 20.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ¥1,720.00 ▲(9.24% Upside)

Lion's overall stock score is driven by strong financial performance, particularly a robust balance sheet and stable profitability. However, the recent decline in revenue and free cash flow growth poses risks. Technical analysis indicates cautious sentiment, with the stock trading below key moving averages. Valuation is fair, but not compelling enough to offset the financial and technical concerns.

Lion Business Overview & Revenue Model

Company Description

Lion Corporation (4912) is a leading Japanese manufacturer in the personal care, healthcare, and household products sectors. The company is renowned for its development and production of a wide range of products including oral care items like toothpaste and toothbrushes, skincare solutions, and laundry detergents. Lion Corporation is committed to enhancing the quality of life through its innovative and environmentally sustainable products.

How the Company Makes Money

Lion Corporation generates its revenue through the sale of its diverse range of personal care, healthcare, and household products. The company’s key revenue streams include its oral care products, such as toothpaste and mouthwash, which hold a significant market share in Japan. Additionally, its laundry detergents and cleaning products contribute substantially to its income. Lion Corporation also benefits from strategic partnerships and collaborations that enhance its distribution network and expand its market reach, particularly in Asia. The company invests in research and development to innovate and maintain its competitive edge, which is crucial for sustaining its revenue growth.

Lion Financial Statement Overview

Summary

Lion demonstrates a 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	413.77B	412.94B	402.77B	389.87B	366.23B	355.35B
Gross Profit	188.99B	188.78B	180.60B	174.61B	179.10B	179.87B
EBITDA	49.88B	49.55B	43.42B	47.31B	46.06B	56.37B
Net Income	20.88B	21.20B	14.62B	21.94B	23.76B	29.87B
Balance Sheet
Total Assets	468.81B	497.17B	486.36B	469.28B	428.02B	435.50B
Cash, Cash Equivalents and Short-Term Investments	80.78B	102.24B	85.53B	101.08B	97.25B	121.53B
Total Debt	29.31B	29.74B	30.34B	32.17B	8.37B	8.12B
Total Liabilities	151.52B	181.47B	188.23B	190.11B	163.01B	190.65B
Stockholders Equity	295.97B	293.72B	280.32B	264.25B	251.57B	231.72B
Cash Flow
Free Cash Flow	13.90B	25.60B	5.08B	18.82B	-23.63B	13.80B
Operating Cash Flow	36.51B	43.66B	30.07B	41.96B	19.30B	40.73B
Investing Cash Flow	-17.23B	-7.66B	-34.79B	-19.54B	-34.18B	-19.87B
Financing Cash Flow	-11.70B	-21.20B	-11.76B	-19.82B	-10.22B	-9.14B

Lion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1574.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1574.5 is below the 20-day moving average (MA) of 1591.02, above the 50-day MA of 1520.72, and below the 200-day MA of 1652.16, indicating a neutral trend. The MACD of 23.64 indicates Positive momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 3.30 is Positive, 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
4912	69 Neutral	$427.32B	20.85	7.29%	1.84%	1.29%	4.72%
Sector *	63 Neutral	$20.44B	14.73	-2.84%	3.14%	2.04%	-6.12%
KBYPF	―	$2.68B	34.10	5.72%	1.89%	―	―
MIOFF	―	$552.33M	43.12	6.66%	1.13%	―	―
PORBF	―	$1.94B	45.02	3.99%	5.45%	―	―
RPHCF	―	$3.97B	14.54	13.33%	1.27%	―	―
4928	70 Outperform	¥156.95B	20.64		4.90%	-1.63%	1.81%

Lion Corporate Events

Lion Corporation Reports Stable First Half 2025 Financial Results with Increased Dividends

Lion Corporation’s financial results for the first half of 2025 show a slight increase in net sales and operating profit, despite a decrease in profit before tax and profit attributable to owners. The company’s core operating income improved significantly, indicating strong regular business performance. The financial position remains stable with a slight increase in total equity, and the company has announced an increase in cash dividends per share, reflecting confidence in future earnings.

The most recent analyst rating on (JP:4912) stock is a Buy with a Yen1750.00 price target. To see the full list of analyst forecasts on Lion stock, see the JP:4912 Stock Forecast page.