Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥1.89B
• 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

High gross margins

A 61.75% gross margin indicates strong product-level economics and pricing power or low variable costs. Durable high gross margins provide scope to absorb SG&A or R&D investments and support long-term profitability recovery if management tightens operating cost control.

Strong balance sheet / low leverage

Very low leverage and a high equity ratio give the company financial flexibility to fund capex, working capital, or restructuring without high interest burden. This stability reduces solvency risk and supports multi-month resilience while addressing operational weaknesses.

Lower market volatility exposure

A beta around 0.53 implies lower sensitivity to market swings, supporting steadier earnings volatility and planning. For capital allocation and creditor confidence, reduced market-driven variability helps management execute multi-quarter restructuring or investment plans more predictably.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow limits the company’s ability to fund operations, pay suppliers, service debt, or invest in growth without external financing. This structural cash generation shortfall increases liquidity risk and may force asset sales or equity issuance.

Persistent unprofitability

Negative EBIT and net margins show the company fails to convert gross profit into operating and net earnings, suggesting structural cost or scale issues. Continued losses depress returns on equity (reported ROE -5.78%) and impair the firm’s ability to internally finance growth or dividends.

Declining revenue trend

A meaningful slowdown in revenue growth signals weakening demand or competitive displacement. Shrinking top-line reduces scale economies and pressures margins and cash flow, making turnaround dependent on durable demand recovery or successful product/market repositioning.

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	¥31.93B	16.29	―	2.89%	6.15%	2.98%
6853	73 Outperform	¥21.31B	21.76	―	2.93%	-1.58%	12.24%
6864	63 Neutral	¥9.97B	-362.57	―	2.85%	10.27%	-106.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥10.30B	24.74	―	2.45%	15.66%	-69.17%
6867	52 Neutral	¥1.89B	-105.57	―	3.02%	-0.26%	―