Lecip Holdings Corporation (7213) AI Stock Analysis

• Market Cap: ¥6.36B
• Dividend Yield: 2.63%
• Average Volume (3M): 15.96K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.42
• Revenue Growth: -7.06%
• EPS Growth: -58.58%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 11.44
• Shares Outstanding: 15,891,500
• 10 Day Avg. Volume: 12,060
• 30 Day Avg. Volume: 15,960
• PEG Ratio: -0.21
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -27.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥492.00 ▲(12.59% Upside)

Lecip Holdings Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. However, technical indicators suggest potential short-term weakness, and liquidity concerns due to declining cash flows could impact long-term growth.

Positive Factors

Revenue Growth

The 14.3% revenue growth indicates strong demand for Lecip's products, suggesting effective market strategies and a positive outlook for future sales.

Strong Balance Sheet

A strong equity ratio of 49.5% reflects financial stability and low leverage, providing resilience against economic fluctuations.

Profitability Margins

Healthy profit margins indicate efficient operations and pricing power, supporting sustainable profitability and competitive advantage.

Negative Factors

Declining Cash Flow

Declining cash flow can strain liquidity and limit investment capacity, potentially affecting long-term growth and operational flexibility.

Profit Decline

A decline in profits despite sales growth may indicate rising costs or inefficiencies, which could impact future earnings stability.

Net Income Reduction

A reduction in net income suggests potential challenges in maintaining profitability, which could affect investor confidence and strategic initiatives.

Lecip Holdings Corporation Business Overview & Revenue Model

Company Description

Lecip Holdings Corporation, listed under the ticker 7213, is a prominent player in the transportation and automotive sectors, primarily based in Japan. The company specializes in the development and manufacturing of advanced electronic systems and components for vehicles, including traffic management systems, automotive electronics, and various related technologies. Lecip Holdings is dedicated to enhancing safety and efficiency in transportation through innovative solutions that cater to both public and private sectors.

How the Company Makes Money

Lecip Holdings Corporation generates revenue through multiple channels, primarily focused on the sale of its electronic systems and components to automotive manufacturers and transportation authorities. The company earns significant income from the production of traffic management systems, which are sold to municipalities and government agencies for enhancing urban infrastructure. Additionally, Lecip generates revenue from the automotive sector by providing advanced electronic components that improve vehicle performance and safety. Key partnerships with automotive manufacturers and governmental organizations are crucial for securing contracts and projects, contributing to a steady flow of income. The company's commitment to innovation and integration of new technologies, such as smart city solutions, also plays a vital role in expanding its revenue streams.

Lecip Holdings Corporation Financial Statement Overview

Summary

Lecip Holdings Corporation shows strong profitability with improved revenue and margins. The balance sheet is stable with low leverage and a strong equity position. However, liquidity could be a concern if cash balances continue to decline, and cash flow management needs addressing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.75B	25.93B	22.68B	14.25B	14.08B	15.55B
Gross Profit	7.87B	8.63B	7.86B	3.71B	3.95B	3.30B
EBITDA	2.87B	4.07B	4.41B	294.35M	813.73M	516.33M
Net Income	1.44B	2.26B	2.42B	-249.47M	53.27M	-124.48M
Balance Sheet
Total Assets	18.40B	20.40B	19.95B	14.86B	14.45B	15.13B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.07B	2.96B	3.18B	4.09B	3.39B
Total Debt	819.04M	1.75B	3.07B	5.44B	4.48B	5.73B
Total Liabilities	8.92B	10.30B	13.07B	10.17B	9.67B	10.22B
Stockholders Equity	9.49B	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: Negative
• Last Price: 437.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7213, the sentiment is Negative. The current price of 437 is below the 20-day moving average (MA) of 441.65, below the 50-day MA of 442.50, and below the 200-day MA of 451.00, indicating a bearish trend. The MACD of -1.68 indicates Positive momentum. The RSI at 32.55 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7213.

Lecip Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6899	78 Outperform	¥7.50B	8.49	―	4.48%	2.63%	-32.95%
6907	73 Outperform	¥8.56B	16.52	―	―	15.88%	―
6858	69 Neutral	¥6.76B	12.15	―	2.45%	15.66%	-69.17%
7213	68 Neutral	¥6.36B	5.06	―	2.63%	-7.06%	-58.58%
6837	65 Neutral	¥4.18B	9.44	―	3.75%	2.03%	-23.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6721	41 Neutral	¥5.15B	-3.50	―	―	-35.81%	-99.72%

Lecip Holdings Corporation Corporate Events

Lecip Holdings Reports Decline in Financial Performance for H1 2025

Lecip Holdings Corporation reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales dropping by 19.6% compared to the previous year. The company experienced operating and ordinary losses, and its profit attributable to owners of the parent also turned negative. Despite these challenges, Lecip maintained a stable equity-to-asset ratio, indicating a balanced financial position. The company has not revised its financial forecasts or dividend plans for the fiscal year ending March 31, 2026, suggesting a cautious outlook amid current market conditions.