Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥1.96B
• Dividend Yield: 3.46%
• Average Volume (3M): 15.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -9.40%
• EPS Growth: -290.60%
• Country: JP
• Employees: 124
• Sector: Technology
• Sector Strength: 78
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 28.20
• Shares Outstanding: 4,514,301
• 10 Day Avg. Volume: 29,750
• 30 Day Avg. Volume: 15,323
• PEG Ratio: <0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.05
• 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

• Rating: 63 Neutral
• Price Target: ¥515.00 ▲(18.66%Upside)

The overall stock score reflects a mix of strong technical momentum and valuation appeal, countered by significant financial performance challenges. The company's financial health is concerning due to profitability and cash flow issues, yet technical indicators suggest short-term positive momentum. Investors should weigh the risks of financial instability against the potential for dividend income and technical gains.

Leader Electronics Corp. Business Overview & Revenue Model

Company Description

Leader Electronics Corp. (6867) is a Japan-based company primarily engaged in the development, manufacture, and sale of electronic measurement instruments. The company serves various sectors, including broadcasting, communications, and industrial applications, by providing high-quality test and measurement solutions. Leader Electronics is known for its innovative products that help ensure the reliability and efficiency of electronic devices and systems.

How the Company Makes Money

Leader Electronics Corp. generates revenue through the sale of its electronic measurement instruments. The company's key revenue streams include product sales to broadcasting companies, telecommunications providers, and industrial firms that require precise and reliable testing equipment. Leader Electronics benefits from its reputation for high-quality products and its ability to innovate in response to technological advancements in the industry. Additionally, the company may engage in strategic partnerships to expand its market reach and enhance its product offerings, although specific partnerships are not disclosed in the available data.

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
4.12B	4.12B	4.54B	4.06B	3.79B	3.31B
	Gross Profit
2.62B	2.54B	2.94B	2.59B	2.49B	2.10B
	EBIT
-151.60M	-179.47M	216.40M	-314.87M	70.08M	3.35M
	EBITDA
-88.66M	-128.99M	345.84M	-386.74M	405.52M	320.01M
	Net Income Common Stockholders
-190.81M	-185.25M	137.88M	-644.22M	116.34M	136.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
885.00M	1.23B	1.46B	2.43B	3.01B	2.65B
	Total Assets
4.18B	4.53B	4.63B	5.41B	5.73B	5.37B
	Total Debt
26.00M	269.02M	82.37M	134.43M	140.37M	94.00M
	Net Debt
-859.00M	-960.09M	-1.38B	-2.29B	-2.86B	-2.56B
	Total Liabilities
1.15B	1.33B	1.27B	1.33B	1.02B	778.56M
	Stockholders Equity
3.02B	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: 434.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6867, the sentiment is Neutral. The current price of 434 is below the 20-day moving average (MA) of 435.20, above the 50-day MA of 414.44, and below the 200-day MA of 437.21, indicating a neutral trend. The MACD of 8.90 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 12.51 is Positive, 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
6858	84 Outperform	¥6.56B	3.83		1.71%	6.18%	206.74%
6850	79 Outperform	¥19.58B	9.87		3.89%	6.94%	13.27%
6853	76 Outperform	¥14.52B	13.29		4.52%	0.16%	5.68%
6864	73 Outperform	¥10.18B	22.58		2.21%	-3.36%	39.15%
6867	63 Neutral	¥1.96B	―		3.46%	-9.40%	-290.60%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%