Lecip Holdings Corporation (7213) AI Stock Analysis

• Market Cap: ¥6.44B
• Dividend Yield: 1.92%
• Average Volume (3M): 18.54K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.43
• Revenue Growth: 14.31%
• EPS Growth: -14.62%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 67.08
• Shares Outstanding: 15,891,500
• 10 Day Avg. Volume: 21,460
• 30 Day Avg. Volume: 18,536
• PEG Ratio: 0.05
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.75
• 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

• Rating: 68 Neutral
• Price Target: ¥486.00 ▲(9.95%Upside)

The stock's overall score is driven primarily by strong financial performance and attractive valuation. The low P/E ratio and dividend yield enhance its appeal. However, technical indicators suggest caution, as the stock shows bearish momentum. Liquidity concerns and declining cash flows are additional risks to monitor.

Lecip Holdings Corporation Business Overview & Revenue Model

Company Description

Lecip Holdings Corporation is a Japan-based company engaged in the manufacture and sale of electronic equipment primarily for the transportation industry. The company focuses on three main sectors: transportation equipment, information systems, and lighting equipment. Its core products include fare collection systems, passenger information systems, and LED lighting solutions designed for buses and railways. Lecip aims to enhance the efficiency and safety of public transportation through its innovative technologies.

How the Company Makes Money

Lecip Holdings Corporation generates revenue primarily through the sale of its electronic equipment and systems to public transportation operators. The company's key revenue streams include the manufacturing and distribution of fare collection systems that facilitate cashless and automated payment processes, as well as passenger information systems that provide real-time updates to commuters. Additionally, Lecip benefits from the sale of LED lighting solutions designed to improve energy efficiency and safety in public transport vehicles. Significant partnerships with transportation authorities and companies enhance its market reach and contribute to its earnings. The company also engages in maintenance and support services, providing a steady source of recurring income.

Lecip Holdings Corporation Financial Statement Overview

Summary

Lecip Holdings Corporation shows strong profitability with robust revenue growth and improved margins. The balance sheet is stable with low leverage, though liquidity could be a concern if cash declines persist. Cash flow management is critical due to significant declines in operating cash inflows.

Income Statement

Lecip Holdings Corporation shows a strong revenue recovery in the latest fiscal year with a growth rate of 14.3%. The gross profit margin stands at a healthy 32.5%, and the net profit margin is robust at 8.7%. The company has improved its profitability significantly from previous years, with positive EBIT and EBITDA margins of 13.6% and 15.7%, respectively. However, the reduction in net income from the prior year could be a concern if it signals future downward trends.

Balance Sheet

Lecip Holdings has a solid equity base with an equity ratio of 49.5%, indicating a stable financial structure. The debt-to-equity ratio is low at 0.17, pointing to low leverage risk. Return on equity is strong at 22.3%, reflecting effective use of shareholder funds. However, the decrease in cash and short-term investments could restrict liquidity if it continues.

Cash Flow

The company experienced a significant decline in operating cash flow, impacting free cash flow, which fell sharply from positive to negative. The operating cash flow to net income ratio of 0.52 suggests potential issues with cash earnings quality. Nevertheless, the cash flow from financing activities is under control, showing no excessive leverage.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
26.68B	25.93B	22.68B	14.25B	14.08B	15.55B
	Gross Profit
9.48B	8.42B	7.86B	3.71B	3.95B	3.30B
	EBIT
4.39B	3.53B	3.16B	-310.10M	149.80M	-40.10M
	EBITDA
5.67B	4.07B	4.41B	294.35M	813.73M	516.33M
	Net Income Common Stockholders
3.25B	2.26B	2.42B	-249.47M	53.27M	-124.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.70B	2.07B	2.96B	3.18B	4.09B	3.39B
	Total Assets
20.87B	20.40B	19.95B	14.86B	14.45B	15.13B
	Total Debt
3.63B	1.75B	3.07B	5.44B	4.48B	5.73B
	Net Debt
1.93B	-326.92M	106.51M	2.26B	388.94M	2.34B
	Total Liabilities
11.93B	10.30B	13.07B	10.17B	9.67B	10.22B
	Stockholders Equity
8.94B	10.10B	6.88B	4.69B	4.78B	4.91B
Cash Flow		Free Cash Flow
0.00	-254.63M	1.89B	-1.71B	2.10B	-1.61B
	Operating Cash Flow
0.00	1.18B	2.34B	-1.49B	2.30B	-1.13B
	Investing Cash Flow
0.00	-1.56B	-105.31M	-222.11M	-138.95M	-481.36M
	Financing Cash Flow
0.00	-543.06M	-2.48B	781.24M	-1.42B	2.75B

Lecip Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 442.00
• 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:7213, the sentiment is Neutral. The current price of 442 is above the 20-day moving average (MA) of 440.25, below the 50-day MA of 449.94, and below the 200-day MA of 481.49, indicating a neutral trend. The MACD of -3.01 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 72.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7213.

Lecip Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6858	84 Outperform	¥6.68B	3.91		1.68%	6.18%	206.74%
6837	78 Outperform	¥5.39B	8.88		2.92%	6.71%	1.14%
6907	75 Outperform	¥7.27B	20.17		―	14.66%	―
6899	68 Neutral	¥5.60B	8.96		6.14%	2.88%	-76.82%
7213	68 Neutral	¥6.44B	2.90		1.92%	14.31%	-14.62%
Sector *	50 Neutral	AU$1.44B	2.12	-28.24%	3.35%	15.64%	-7.01%
6721	31 Underperform	¥5.56B	―		―	2.37%	-83.58%

Lecip Holdings Corporation Corporate Events

Lecip Holdings Reports Increased Sales but Decline in Profits for FY 2025

Lecip Holdings Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 14.3% increase in net sales to ¥25,931 million. Despite the growth in sales, the company experienced a decline in ordinary profit and profit attributable to owners of the parent by 2.1% and 6.7% respectively. The financial position improved with total assets rising to ¥20,403 million and a capital adequacy ratio of 49.5%. The company also announced an increase in annual dividends, reflecting a payout ratio of 13.1%.