Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥2.30B
• Dividend Yield: 2.91%
• Average Volume (3M): 9.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• 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: 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: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ¥514.00 ▼(-0.19% Downside)

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.

Leader Electronics Corp. Business Overview & Revenue Model

Company Description

Leader Electronics Corp. (6867) is a forward-thinking company specializing in the design and manufacture of advanced electronic components and systems. Operating primarily in the consumer electronics and industrial sectors, it delivers a range of products including audio and video equipment, telecommunications devices, and smart home solutions. The company's commitment to innovation and quality positions it as a competitive player in the fast-evolving electronics market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6867, the sentiment is Positive. The current price of 515 is above the 20-day moving average (MA) of 503.40, above the 50-day MA of 512.22, and above the 200-day MA of 472.56, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	¥24.54B	12.38	―	4.88%	9.88%	11.83%
6858	―	¥6.41B	12.93	―	2.53%	15.66%	-69.17%
6853	―	¥18.73B	17.47	―	3.17%	2.10%	4.70%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6864	―	¥9.97B	27.45	―	2.49%	10.27%	-106.32%
6867	―	¥2.30B	-646.96	―	2.91%	-4.70%	97.59%