Liberta Co., Ltd. (4935) AI Stock Analysis

• Market Cap: ¥11.02B
• Dividend Yield: 0.48%
• Average Volume (3M): 77.87K
• Price to Earnings (P/E): 235.7
• Beta (1Y): 1.23
• Revenue Growth: 10.13%
• EPS Growth: -14654.18%
• Country: JP
• Employees: 128
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 7.88
• Shares Outstanding: 30,262,600
• 10 Day Avg. Volume: 36,500
• 30 Day Avg. Volume: 77,873
• PEG Ratio: -0.66
• Price to Book (P/B): 6.16
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -23.83
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7.2
• Revenue Forecast (FY): ¥11.62B

• Rating: 44 Neutral
• Price Target: ¥342.00 ▼(-81.76% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily held down by weak financial quality (thin margins, higher leverage, and negative operating/free cash flow) and an expensive valuation (very high P/E with low yield). Technicals are moderately supportive in the near term (above 20/50-day averages with positive MACD), but longer-term trend remains weaker (below the 200-day average).

Positive Factors

Revenue Growth

Sustained ~15.8% top-line growth in 2025 indicates improving product demand and market traction. Over the next 2–6 months this supports scale benefits, revenue diversification and the potential to leverage fixed costs toward higher operating leverage if cost control continues.

Gross Margin Stability

Stable gross margins near 39–41% suggest consistent product economics and pricing power versus input cost swings. That structural margin stability provides a foundation for durable profitability improvement if the company tightens operating expenses or realizes scale from higher revenues.

Return to Profitability (2025)

A return to positive net income in 2025, even modest, reduces existential risk and improves access to lenders and equity markets. Sustained profitability, coupled with revenue growth, can restore confidence and fund gradual deleveraging if cash generation improves.

Negative Factors

High Leverage

A marked rise in leverage to ~2.6x D/E materially increases financial risk and interest burden. With thin margins and volatile cash flow, elevated debt constrains strategic flexibility, heightens refinancing risk during stress, and limits ability to invest in growth without deleveraging.

Persistent Negative Cash Flow

Repeated negative operating and free cash flow signals structural working-capital or earning-quality issues. Reliance on external financing to fund operations weakens resilience, raises liquidity risk, and can hamper long-term investment, dividend capacity, and debt reduction plans.

Very Thin Profitability

Margins around 0.5% net and ~1.3% EBIT leave minimal buffer for cost inflation or demand shocks. Thin profitability limits internal reinvestment, reduces return on capital, and means small adverse changes in costs or volumes can quickly revert the firm to losses.

Liberta Co., Ltd. Business Overview & Revenue Model

Company Description

Liberta Co., Ltd. (4935) is a Japanese company primarily engaged in the development, manufacturing, and sale of healthcare products, focusing on innovative solutions for skin health and personal care. The company operates in the pharmaceutical and cosmetic sectors, providing a range of products that include topical treatments, skincare formulations, and health supplements. Liberta is committed to leveraging advanced research and technology to enhance consumer well-being and promote healthier skin.

How the Company Makes Money

Liberta Co., Ltd. generates revenue through multiple streams, primarily from the sale of its skincare and healthcare products. The company distributes its products through various channels, including pharmacies, online platforms, and direct sales, catering to both individual consumers and healthcare professionals. Key revenue streams include prescription medications, over-the-counter skincare products, and health supplements. Additionally, Liberta may engage in strategic partnerships with healthcare providers, clinics, and distributors to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Liberta Co., Ltd. Financial Statement Overview

Summary

Despite improved 2025 revenue growth (~15.8%), profitability is extremely thin (net margin ~0.5%, EBIT margin ~1.3%) with a 2024 net loss. Leverage has risen materially (debt-to-equity ~2.6), and operating/free cash flow are negative in both 2024 and 2025, increasing financing and liquidity risk.

Income Statement

Revenue growth accelerated meaningfully in 2025 (annual report) to about 15.8% after a near-flat 2024, showing improving demand. However, profitability has compressed sharply versus 2020–2021: 2025 net margin is ~0.5% (very thin) and EBIT margin is ~1.3%, and the company posted a net loss in 2024. Gross margin has been relatively steady (~39–41% recently), but weak operating leverage and inconsistent bottom-line results keep the income statement quality mid-tier.

Balance Sheet

Leverage has increased substantially: debt-to-equity rose from ~0.6 (2021) to ~2.6 (2025 annual report), signaling heavier reliance on debt funding. Equity has been relatively flat while total debt and assets expanded, which reduces financial flexibility. While the balance sheet isn’t showing negative equity, the higher leverage profile raises risk, especially given thin and volatile profitability.

Cash Flow

Cash generation has weakened materially: operating cash flow and free cash flow are negative in both 2024 and 2025 (annual reports), reversing the positive cash generation seen in 2023 and 2021. The cash conversion relative to earnings is also poor recently (operating cash flow is negative despite positive 2025 net income), suggesting working-capital pressure and/or higher cash operating needs. Persistent negative free cash flow increases dependence on financing and heightens liquidity risk if conditions tighten.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.66B	10.03B	8.64B	7.09B	6.64B	5.03B
Gross Profit	3.55B	4.07B	3.34B	2.85B	2.60B	2.15B
EBITDA	108.18M	372.86M	259.90M	318.19M	308.32M	286.75M
Net Income	-160.41M	46.33M	-21.17M	111.33M	114.51M	200.23M
Balance Sheet
Total Assets	6.95B	7.81B	6.44B	5.52B	5.31B	2.94B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.20B	1.01B	880.52M	986.20M	947.59M
Total Debt	3.85B	4.12B	3.44B	2.49B	2.44B	825.45M
Total Liabilities	5.61B	6.22B	4.87B	3.88B	3.74B	1.62B
Stockholders Equity	1.33B	1.59B	1.57B	1.63B	1.57B	1.32B
Cash Flow
Free Cash Flow	0.00	-411.66M	-624.92M	311.02M	-825.23M	391.70M
Operating Cash Flow	0.00	-305.76M	-577.34M	414.13M	-799.26M	416.57M
Investing Cash Flow	0.00	-90.48M	-202.74M	-144.96M	-692.94M	-51.12M
Financing Cash Flow	0.00	570.81M	885.84M	-400.30M	1.51B	-410.29M

Liberta Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4935, the sentiment is Positive. The current price of 1875 is above the 20-day moving average (MA) of 320.95, above the 50-day MA of 324.75, and above the 200-day MA of 399.86, indicating a neutral trend. The MACD of 11.27 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 32.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4935.

Liberta Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4933	71 Outperform	¥20.03B	7.98	―	0.91%	13.12%	27.53%
4918	68 Neutral	¥2.36B	6.81	―	―	12.96%	―
4925	63 Neutral	¥6.94B	10.29	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.82B	24.38	―	1.68%	8.46%	―
4934	52 Neutral	¥7.12B	15.32	―	―	-19.42%	―
4935	44 Neutral	¥11.02B	235.74	―	0.48%	10.13%	-14654.18%