Lecip Holdings Corporation (7213) AI Stock Analysis

• Market Cap: ¥6.45B
• Dividend Yield: 2.6%
• Average Volume (3M): 15.96K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.40
• Revenue Growth: 1.49%
• EPS Growth: -54.66%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -26.02
• 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 ▲(11.31% 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.

Lecip Holdings Corporation Business Overview & Revenue Model

Company Description

Lecip Holdings Corporation plans, designs, manufactures, and sells lighting, electric power conversion, and information processing equipment for buses, trains, automobiles, and industrial equipment in Japan and internationally. The company offers transport equipment for bus, including automated fare collection system, transit management system, validator, farebox, LCD and LED destination display, and interior light; LED light, light guide panel LEDs, and fluorescent light products for rail; and automobile lighting products. It also provides industrial equipment, such as uninterruptible power supplies, rechargers for battery-driven forklift, power supply units for LED, and neon and ignition transformers; and alpha and engine generator controllers. The company was formerly known as LECIP Corporation and changed its name to Lecip Holdings Corporation in October 2010. Lecip Holdings Corporation was founded in 1948 and is headquartered in Motosu, Japan.

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: 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 Negative. The current price of 442 is below the 20-day moving average (MA) of 443.40, below the 50-day MA of 453.04, and below the 200-day MA of 455.77, indicating a bearish trend. The MACD of -2.94 indicates Negative momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, 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
6907	75 Outperform	¥9.23B	19.43	―	―	15.88%	―
6858	72 Outperform	¥6.63B	11.71	―	2.56%	15.66%	-69.17%
6899	71 Outperform	¥6.54B	19.55	―	5.26%	3.76%	-84.33%
7213	68 Neutral	¥6.45B	4.71	―	2.60%	1.49%	-54.66%
6837	68 Neutral	¥5.23B	9.08	―	3.03%	5.61%	7.09%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6721	43 Neutral	¥6.06B	-4.03	―	―	-28.46%	-124.75%

Lecip Holdings Corporation Corporate Events

Lecip Holdings Reports Decline in Q1 2025 Financial Results

Lecip Holdings Corporation reported a significant decline in its financial performance for the three months ending June 30, 2025, with net sales dropping by 25.3% compared to the previous year. The company experienced an operating loss and a decrease in net assets, indicating potential challenges in maintaining its market position and financial stability.