Lead Co., Inc. (6982) AI Stock Analysis

• Market Cap: ¥1.70B
• Dividend Yield: 1.74%
• Average Volume (3M): 2.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -14.68%
• EPS Growth: -145.91%
• Country: JP
• Employees: 174
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -5.67
• Shares Outstanding: 2,632,960
• 10 Day Avg. Volume: 1,950
• 30 Day Avg. Volume: 2,043
• PEG Ratio: 0.05
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -4.71
• 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: 45 Neutral
• Price Target: ¥634.00 ▲(6.73% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Lead Co., Inc. is facing significant financial and technical challenges. The company's declining revenue and profitability issues, combined with bearish technical indicators, contribute to a low overall score. The negative P/E ratio further impacts the valuation negatively. The absence of earnings call data and corporate events means these components do not influence the score.

Positive Factors

Positive operating cash flow

Consistent positive operating cash flow provides a durable source of liquidity to fund working capital and near-term obligations without immediate reliance on new financing. This cash generation supports operational stability while management addresses profitability and strategic initiatives.

Stable equity ratio

A stable equity ratio indicates the company’s asset base remains supported by shareholder capital, which moderates solvency risk. This balanced asset structure gives the company buffer to absorb shocks and maintain access to capital while executing restructuring or recovery plans.

Favorable OCF-to-net-income ratio

A favorable operating-cash-flow-to-net-income ratio signals higher quality earnings: reported (loss) figures are still translating into real cash. That improves the company’s ability to service obligations, prioritize investments, and provides a more resilient short-to-medium term cash profile.

Negative Factors

High leverage

Elevated debt-to-equity raises fixed interest and principal obligations, reducing financial flexibility. With higher leverage the firm faces greater refinancing and covenant risk if earnings do not recover, constraining capital allocation and strategic options over the medium term.

Negative profitability

Sustained negative EBIT and net income erode retained earnings and hamper reinvestment capacity. Continued operating losses increase the likelihood of recurring cash strain, make debt servicing harder, and necessitate clear operational turnaround to restore long-term viability.

Negative free cash flow

Negative free cash flow after capex reduces cash available for debt reduction, dividends, or strategic investments. If capex does not yield improved returns, persistent negative FCF will force external financing or asset sales, weakening balance sheet resilience over the medium term.

Lead Co., Inc. Business Overview & Revenue Model

Company Description

The Lead Co., Inc. designs, manufactures, and sells automotive parts, and electronic equipment related racks and cases in Japan. The company offers automotive parts, such as bumpers and doors, and handbrake levers; and system rack, electric case, and hydraulic punch. It also engages in the planning, development, design, manufacture, sale, installation, and maintenance of bicycle parking equipment/system, such as bicycle parking racks and electric kickboard related products. The Lead Co., Inc. was founded in 1945 and is headquartered in Kumagaya, Japan.

How the Company Makes Money

Lead Co., Inc. generates revenue through multiple streams, primarily by charging clients for lead generation services and advertising placements. The company employs a performance-based pricing model, where clients pay based on the quality and quantity of leads generated. Additionally, Lead Co., Inc. offers subscription-based access to its data analytics and CRM tools, providing businesses with valuable insights to optimize their marketing strategies. Strategic partnerships with digital advertising networks and industry influencers further enhance its offerings, allowing for expanded reach and increased client acquisition. The combination of these revenue streams contributes significantly to the company's overall earnings.

Lead Co., Inc. Financial Statement Overview

Summary

Lead Co., Inc. faces significant financial challenges, with declining revenue and profitability issues. The balance sheet shows high leverage, which could be risky if earnings do not improve. While operating cash flow remains positive, the negative free cash flow due to capital expenditures is concerning. The company needs to address its profitability and leverage to improve its financial health.

Income Statement

Lead Co., Inc. has experienced declining revenue over the past few years, with a notable drop from 2020 to 2025. The gross profit margin has been inconsistent, and the company reported negative EBIT and net income in the latest year, indicating profitability challenges. The net profit margin has been negative in recent years, highlighting ongoing financial struggles.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which poses a risk if earnings do not improve. However, the equity ratio remains stable, suggesting a balanced asset structure. The return on equity has been negative, reflecting the company's recent losses.

Cash Flow

Operating cash flow has been positive, but free cash flow has turned negative in the latest year due to high capital expenditures. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to net income, but the negative free cash flow is a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.12B	4.19B	5.06B	5.02B	3.96B	4.75B
Gross Profit	494.78M	514.24M	647.83M	716.99M	261.82M	212.36M
EBITDA	256.21M	278.17M	509.35M	726.52M	303.81M	293.41M
Net Income	-129.07M	-105.00M	48.49M	184.90M	-188.05M	-123.18M
Balance Sheet
Total Assets	7.89B	7.88B	8.56B	8.18B	8.14B	8.46B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.44B	1.59B	1.58B	1.71B	1.34B
Total Debt	3.61B	3.78B	3.56B	3.70B	4.08B	4.09B
Total Liabilities	5.38B	5.28B	5.67B	5.58B	5.75B	5.82B
Stockholders Equity	2.51B	2.60B	2.88B	2.60B	2.40B	2.64B
Cash Flow
Free Cash Flow	0.00	-329.44M	215.28M	328.62M	432.68M	-197.85M
Operating Cash Flow	0.00	273.35M	436.15M	589.59M	606.45M	191.89M
Investing Cash Flow	0.00	-667.92M	-232.31M	-255.38M	-187.10M	-420.82M
Financing Cash Flow	0.00	195.06M	-183.38M	-479.74M	-51.27M	83.18M

Lead Co., Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 594.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6982, the sentiment is Positive. The current price of 594 is below the 20-day moving average (MA) of 628.70, below the 50-day MA of 613.60, and above the 200-day MA of 591.07, indicating a bullish trend. The MACD of 7.60 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 90.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6982.

Lead Co., Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7284	71 Outperform	¥4.27B	8.29	―	4.08%	3.46%	―
7219	70 Neutral	¥3.19B	10.36	―	2.92%	-0.31%	3.93%
7217	68 Neutral	¥4.11B	19.34	―	4.39%	9.38%	0.07%
7255	64 Neutral	¥2.46B	6.80	―	1.68%	8.58%	11.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.78B	-31.23	―	―	-9.58%	―
6982	45 Neutral	¥1.70B	-7.43	―	1.74%	-14.68%	-145.91%