Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥2.31B
• Dividend Yield: 2.94%
• Average Volume (3M): 13.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: -4.70%
• EPS Growth: 97.59%
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 17.27
• Shares Outstanding: 4,514,301
• 10 Day Avg. Volume: 9,690
• 30 Day Avg. Volume: 13,740
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥505.00
• Price Target Upside: 0.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ¥505.00 ▲(0.60% Upside)

Leader Electronics Corp. is facing significant financial and operational challenges, with declining revenues and negative profitability metrics. The technical indicators suggest a bearish trend, and the valuation is unattractive due to a negative P/E ratio. Despite a strong equity position, the company's liquidity issues and lack of profitability weigh heavily on its overall score.

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 primarily through the sale of its electronic measuring instruments. The company's key revenue streams include direct sales to broadcasting companies, telecommunications providers, and electronics manufacturers who utilize its precision measurement tools for quality control and equipment calibration. Additionally, Leader Electronics may establish partnerships with distributors and resellers to extend its market reach. The company's earnings are significantly influenced by technological advancements and industry demand for high-quality measurement solutions in broadcasting and telecommunications.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.12B	4.12B	4.54B	4.06B	3.79B	3.31B
Gross Profit	2.54B	2.54B	2.94B	2.59B	2.49B	2.10B
EBITDA	-175.84M	-128.99M	345.84M	-386.74M	405.52M	320.01M
Net Income	-184.97M	-185.25M	137.88M	-644.22M	116.34M	136.24M
Balance Sheet
Total Assets	4.53B	4.53B	4.63B	5.41B	5.73B	5.37B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.23B	1.46B	2.43B	3.01B	2.65B
Total Debt	269.02M	269.02M	82.37M	134.43M	140.37M	94.00M
Total Liabilities	1.33B	1.33B	1.27B	1.33B	1.02B	778.56M
Stockholders Equity	3.20B	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: Neutral
• Last Price: 502.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 502 is below the 20-day moving average (MA) of 523.10, below the 50-day MA of 528.18, and above the 200-day MA of 463.01, indicating a neutral trend. The MACD of -4.38 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	21.92B	11.58	9.06%	2.63%	9.88%	11.83%
6858	71 Outperform	6.48B	13.06	2.92%	2.56%	13.34%	-74.02%
6853	69 Neutral	20.23B	19.10	5.88%	3.06%	2.10%	4.70%
6864	66 Neutral	9.08B	25.02	3.59%	2.34%	4.03%	-2.88%
6867	45 Neutral	¥2.31B	―		2.94%	-4.70%	97.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%