Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥1.91B
• Dividend Yield: 3.02%
• Average Volume (3M): 9.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -0.26%
• EPS Growth: N/A
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -22.23
• Shares Outstanding: 4,514,301
• 10 Day Avg. Volume: 7,260
• 30 Day Avg. Volume: 9,623
• PEG Ratio: 0.05
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -3.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥449.00 ▼(-10.38% Downside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and negative profitability metrics. Technical analysis suggests potential bearish trends, while valuation concerns are mitigated slightly by a reasonable dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong capital structure

Very low leverage and a high equity ratio provide durable financial flexibility. This capital structure reduces default risk, supports withstand periods of weak cash flow, and allows funding of restructuring, working capital or selective capex without relying on expensive external debt.

High gross margins

A gross margin above 60% indicates material product-level pricing power or low direct costs, which is structurally valuable. If operating expenses are managed, these margins create a clear pathway to restore operating profitability as sales stabilize or improve over the medium term.

Historical free cash flow generation

The company has demonstrated the ability to generate free cash flow historically, showing the underlying business model can convert profits to cash. That track record implies management can restore cash generation with operational fixes, making recovery feasible over months.

Negative Factors

Negative operating cash flow

Negative operating cash flow is a structural concern: it erodes liquidity and forces reliance on reserves or financing. Over several months this limits ability to fund capex, R&D or dividends and increases execution risk until operating cash generation is restored.

Declining revenues and negative EBIT

Sustained revenue declines and negative EBIT indicate core demand or competitive problems. Falling top-line reduces operating leverage, constrains margin recovery, and makes it harder to cover fixed costs — a durable headwind for profitability and reinvestment plans.

Negative return on equity

A negative ROE shows the company is destroying shareholder capital despite a strong equity base. Over months this signals poor capital allocation or weak operational returns, potentially forcing strategic changes, heavier cost cuts, or a reconsideration of dividend policy.

Leader Electronics Corp. Business Overview & Revenue Model

Company Description

Leader Electronics Corporation engages in the research and development, manufacturing, and sale of electronic measuring instruments in Japan. The company provides video and broadcast related products, such as waveform monitors, rasterizers, IP, handheld, SG, etc.; and accessories that include rack mount adapters, blank panels, cases, power supplies, and other related products. It also offers SFR-Fit, a software for measuring the modulation transfer function (MTF). Leader Electronics Corporation was incorporated in 1954 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Leader Electronics Corp. generates revenue through multiple streams, primarily by selling its electronic products directly to consumers and businesses. The company leverages a combination of wholesale distribution and direct-to-consumer sales channels to reach its target markets. Key revenue streams include sales of consumer electronics such as audio systems, smart devices, and telecommunication equipment. Additionally, the company often engages in strategic partnerships with retailers and e-commerce platforms to enhance distribution reach and customer access. The revenue model is further supported by after-sales services and warranty agreements, which provide ongoing income and customer retention. Seasonal promotions and new product launches also contribute significantly to revenue growth, capitalizing on trends and consumer demand.

Leader Electronics Corp. Financial Statement Overview

Summary

Leader Electronics Corp. faces significant profitability and cash flow challenges despite maintaining a strong equity position. Declining revenues and negative income metrics indicate operational difficulties, while cash flow issues could present liquidity risks. The company needs to address these challenges to improve financial health and shareholder value.

Income Statement

The income statement reveals a concerning trend with declining revenues and negative net income and EBIT in the latest year. Gross profit margins remain healthy at 61.75%, but the company struggles with profitability, evidenced by a negative net profit margin of -4.50% and a negative EBIT margin of -4.36%. The revenue growth rate has decreased by 9.41% from the previous year, indicating potential challenges in sales or competitive pressures.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.08 and a robust equity ratio of 70.68%, indicating low financial leverage and a strong capital structure. However, the return on equity is negative at -5.78%, highlighting issues in generating returns for shareholders. Overall, the balance sheet suggests stability, but profitability remains a concern.

Cash Flow

Cash flow analysis raises red flags with negative operating cash flow and free cash flow in the latest year. The free cash flow to net income ratio is negative, indicating cash flow issues that could challenge liquidity. Despite previous positive free cash flow, recent trends suggest potential cash management difficulties.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.21B	4.12B	4.54B	4.06B	3.79B	3.31B
Gross Profit	2.68B	2.54B	2.94B	2.59B	2.49B	2.10B
EBITDA	-11.35M	-128.99M	345.84M	-386.74M	405.52M	320.01M
Net Income	-2.45M	-185.25M	137.88M	-644.22M	116.34M	136.24M
Balance Sheet
Total Assets	4.80B	4.53B	4.63B	5.41B	5.73B	5.37B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.23B	1.46B	2.43B	3.01B	2.65B
Total Debt	449.50M	269.02M	82.37M	134.43M	140.37M	94.00M
Total Liabilities	1.64B	1.33B	1.27B	1.33B	1.02B	778.56M
Stockholders Equity	3.16B	3.20B	3.36B	4.08B	4.71B	4.60B
Cash Flow
Free Cash Flow	0.00	-660.71M	-11.95M	-553.22M	419.66M	623.13M
Operating Cash Flow	0.00	-606.34M	144.26M	-433.87M	483.24M	670.39M
Investing Cash Flow	0.00	424.11M	-72.06M	-101.93M	-65.69M	-65.37M
Financing Cash Flow	0.00	141.76M	-878.06M	-80.31M	-90.19M	-127.11M

Leader Electronics Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 501.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6867, the sentiment is Negative. The current price of 501 is above the 20-day moving average (MA) of 463.25, above the 50-day MA of 486.24, and above the 200-day MA of 500.39, indicating a bearish trend. The MACD of -15.97 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6867.

Leader Electronics Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥33.01B	16.29	―	2.89%	6.15%	2.98%
6853	73 Outperform	¥21.82B	21.76	―	2.93%	-1.58%	12.24%
6864	63 Neutral	¥10.41B	-378.65	―	2.85%	10.27%	-106.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥10.54B	24.74	―	2.45%	15.66%	-69.17%
6867	52 Neutral	¥1.91B	-106.28	―	3.02%	-0.26%	―