Leader Electronics Corp. (6867) AI Stock Analysis

• Market Cap: ¥1.87B
• Dividend Yield: 3.02%
• Average Volume (3M): 9.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• 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: 0.03
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -2.25
• 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: ¥440.00 ▼(-12.18% 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 balance sheet

Low financial leverage and a high equity ratio provide durable financial flexibility. With minimal debt, the company can fund operations, absorb shocks, and pursue strategic investments or restructurings without immediate refinancing risk, supporting stability over the next several months.

High gross margins

A ~62% gross margin indicates strong product-level pricing or cost advantages in hardware components. This structural margin gives room to restore operating profitability if SG&A or operating inefficiencies are addressed, and supports long-term cash generation potential.

Prior free cash flow generation

Historical ability to produce positive free cash flow shows the business model can generate cash once operational issues are fixed. That track record, combined with a strong balance sheet, means management has a foundation to restore sustainable cash generation over a multi-month recovery.

Negative Factors

Negative operating cash flow

Ongoing negative operating and free cash flow erode liquidity and limit capacity to fund capex, R&D, or dividends without tapping reserves. Persisting cash deficits can force cost cuts or external financing, constraining strategic options and growth over the medium term.

Negative profitability

Converting healthy gross margins into net profits is failing due to elevated operating costs or other structural expenses. Sustained negative EBIT and net margins depress returns, hinder reinvestment, and undermine shareholder value unless cost structure or pricing is materially improved.

Declining revenues

A noticeable drop in revenues signals weakening demand or lost market share in hardware markets. Revenue decline reduces operating leverage, makes margin recovery harder, and increases the risk that fixed costs will continue to drive losses absent a sustained sales turnaround.

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

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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	2.71B	2.54B	2.88B	2.40B	2.30B	1.94B
EBITDA	51.70M	-99.47M	324.10M	-76.49M	319.08M	219.41M
Net Income	-1.82M	-185.25M	137.88M	-644.22M	116.34M	136.24M
Balance Sheet
Total Assets	4.80B	4.56B	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	1.36B	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	52.39M	-456.84M	431.00M	632.43M
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: Negative
• 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 439.15, above the 50-day MA of 469.56, and below the 200-day MA of 501.72, indicating a bearish trend. The MACD of -7.90 indicates Negative momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 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	¥27.43B	13.32	―	2.89%	6.15%	2.98%
6866	79 Outperform	¥101.26B	15.13	―	3.23%	7.28%	4.16%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥23.12B	7.24	―	2.84%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.23B	16.72	―	2.45%	15.66%	-69.17%
6867	52 Neutral	¥1.87B	-6.99	―	3.02%	-0.26%	―