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

• Market Cap: ¥7.90B
• Dividend Yield: 0.48%
• Average Volume (3M): 77.87K
• Price to Earnings (P/E): 211.8
• Beta (1Y): 1.34
• 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: 41 Neutral
• Price Target: ¥266.00 ▼(-85.81% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is weighed down primarily by weak financial quality (negative operating/free cash flow, higher leverage, and very thin/volatile profitability). Technicals also reflect a persistent downtrend with weak momentum, and valuation is a further headwind due to an extremely high P/E and low dividend yield.

Positive Factors

Revenue growth acceleration

Revenue accelerating to ~15.8% in 2025 indicates strengthening end-market demand and helped reverse the prior-year stagnation. Sustained top-line growth provides a durable runway to leverage fixed costs, expand distribution, and invest in product initiatives over the next several quarters.

Stable gross margins

A consistent gross margin band (~39–41%) suggests stable product economics and pricing power versus input volatility. That structural margin stability gives management room to focus on operating efficiency and margin recovery, making profitability improvements more achievable if SG&A is controlled.

Return to positive net income

Posting positive net income in 2025 after a 2024 loss demonstrates the underlying business can be profitable when sales rebound. This structural ability to return to profit supports strategic options (deleveraging, reinvestment) if management sustains revenue and margin momentum.

Negative Factors

Elevated leverage

Leverage rising to ~2.6x debt-to-equity materially increases financial risk and interest burden. With equity flat and debt expanded, balance-sheet flexibility is constrained, making the company more sensitive to funding cost moves and reducing capacity to fund growth or absorb shocks over the medium term.

Negative operating & free cash flow

Persistent negative operating and free cash flow forces reliance on external financing to run the business, heightening liquidity and refinancing risk. Over months, this erodes the company's ability to invest, reduce debt, or sustain dividends without raising new capital under potentially unfavorable terms.

Very thin, volatile profitability

Extremely thin margins and a recent net loss signal weak operating leverage and little buffer for cost shocks. Volatile and minimal profitability undermines sustainable cash generation, complicates planning, and elevates the probability that any supply or demand disruption will revert gains.

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

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Liberta Co., Ltd. Financial Statement Overview

Summary

Despite improved 2025 revenue growth (~15.8%), profitability is very thin (net margin ~0.5%, EBIT margin ~1.3%) with a net loss in 2024. Leverage is elevated (debt-to-equity ~2.6), and both operating cash flow and free cash flow are negative in 2024–2025, 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	6.51B	5.60B	5.40B	2.95B
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	4.94B	3.97B	3.83B	1.63B
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: Negative
• Last Price: 1875.00
• 50DMA: Negative
• 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:4935, the sentiment is Negative. The current price of 1875 is above the 20-day moving average (MA) of 323.40, above the 50-day MA of 315.68, and above the 200-day MA of 398.31, indicating a bearish trend. The MACD of -13.94 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 7.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥19.16B	33.88	―	0.91%	13.12%	27.53%
4918	68 Neutral	¥2.19B	-3.04	―	―	12.96%	―
4925	63 Neutral	¥6.81B	12.52	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.67B	-33.12	―	1.68%	8.46%	―
4934	52 Neutral	¥5.41B	42.42	―	―	-19.42%	―
4935	41 Neutral	¥7.90B	211.77	―	0.48%	10.13%	-14654.18%