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

• Market Cap: ¥1.69B
• Dividend Yield: 1.74%
• Average Volume (3M): 2.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• 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: ¥646.00 ▲(8.75% 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

Operating cash generation

Sustained positive operating cash flow and a favorable operating-cash-to-net-income ratio indicate the core business is generating cash despite accounting losses. This durable cash generation supports working capital, near-term obligations and selective reinvestment or deleveraging over the next several months.

Stable equity ratio

A stable equity ratio points to an orderly capital structure and a buffer for creditors. That structural stability reduces downside from balance-sheet shocks, preserves borrowing capacity if needed, and supports operational continuity while management executes any recovery plan over a multi-month horizon.

Low market sensitivity (Beta)

A low beta implies lower sensitivity to broad market swings, helping limit volatility in funding costs and investor pressure. For a company undergoing restructuring or turnaround, lower market volatility can improve access to capital and provide management more time to execute strategic fixes over the next few months.

Negative Factors

High leverage

Material leverage increases interest and refinancing risk and reduces financial flexibility. If earnings remain weak, high debt limits ability to invest or absorb shocks, raises refinancing needs, and can force asset sales or restructuring—risks that persist until leverage is meaningfully reduced.

Sustained unprofitability

Negative EBIT and net income reflect an inability to convert revenue into sustainable profits. Continued losses erode equity, impede reinvestment and can trigger covenant or liquidity stress; without operational improvement, profitability headwinds are likely to persist over the coming months.

Negative free cash flow

Negative free cash flow, driven by elevated capex, drains liquidity despite positive operating cash flow. Persistent negative FCF reduces the firm's ability to pay down debt or fund operations internally, increasing the probability of external financing or cuts that would affect medium-term stability.

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.

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	3.63B	3.70B	4.19B	4.08B
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: Positive
• RSI: Neutral
• STOCH: Neutral

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 654.45, below the 50-day MA of 634.72, and below the 200-day MA of 598.83, indicating a bullish trend. The MACD of 9.60 indicates Positive momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 76.04 is Neutral, 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
7280	70 Outperform	¥51.99B	14.59	―	0.99%	-0.83%	-27.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7215	59 Neutral	¥3.39B	10.65	―	―	-9.58%	―
7214	58 Neutral	¥5.06B	2.75	―	4.51%	0.61%	-453.99%
7217	57 Neutral	¥3.92B	-23.96	―	4.39%	9.38%	0.07%
6901	54 Neutral	¥5.57B	8.75	―	2.46%	-9.28%	-219.81%
6982	45 Neutral	¥1.69B	-25.94	―	1.74%	-14.68%	-145.91%