Lecip Holdings Corporation (7213) AI Stock Analysis

• Market Cap: ¥6.93B
• Dividend Yield: 2.63%
• Average Volume (3M): 15.96K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.37
• Revenue Growth: -7.06%
• EPS Growth: -58.58%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 72.97
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥492.00 ▲(12.07% Upside)
• Action: Reiterated Date: 10/01/25
• Date: Action: Reiterated 10/01/25

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

Low leverage & strong equity base

Lecip’s equity ratio (~49.5%) and very low debt-to-equity (~0.17) alongside a 22.3% ROE indicate a conservative capital structure and efficient use of capital. Low leverage provides financial flexibility to fund capex, absorb demand shocks, and support strategic investments over the medium term.

Improved profitability and margins

Reported gross and operating margins and a reported 14.3% revenue recovery point to improved operating leverage and cost control. Sustained mid‑teens EBITDA-level margins and positive top-line momentum support durable cash generation and reinvestment capacity if maintained across cycles.

Specialized transit equipment business

Lecip’s focus on fare collection, ticketing and vehicle electronics is a specialized, mission-critical niche tied to public transit infrastructure. Long procurement cycles, recurring contracts and integration requirements create durable revenue visibility and higher switching costs than commodity hardware.

Negative Factors

Declining operating cash flow

Operating cash flow deterioration and a sharp fall in free cash flow indicate weak cash conversion of reported earnings (OCF/Net Income ~0.52). Persistent weak cash generation reduces internal funding for capex, dividends or growth initiatives and may force reliance on external financing.

Earnings volatility / negative EPS growth

A near-47% drop in EPS signals significant earnings volatility even with reported margin improvements. Large EPS declines complicate forecasting and raise questions about the persistence of profitability, increasing execution risk and sensitivity to demand swings or one-off items over the medium term.

Decreasing cash & short-term investments

The balance sheet notes falling cash and short-term investments, which narrows liquidity buffers. With weaker operating cash flow, reduced cash reserves heighten the risk of working-capital stress or the need for higher-cost funding to support contracts and seasonal cash needs.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 439.00
• 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:7213, the sentiment is Positive. The current price of 439 is below the 20-day moving average (MA) of 475.85, below the 50-day MA of 460.34, and below the 200-day MA of 449.83, indicating a neutral trend. The MACD of 4.46 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7213.

Lecip Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	74 Outperform	$6.73T	59.16	8.95%	1.88%	2.88%	28.76%
2760	70 Outperform	¥97.08B	10.19	―	3.02%	-14.47%	-26.11%
6908	70 Outperform	¥79.33B	10.57	―	3.05%	10.79%	12.28%
7213	68 Neutral	¥6.93B	1.51	―	2.63%	-7.06%	-58.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	56 Neutral	¥494.31B	15.62	―	2.57%	4.81%	-49.43%
6997	47 Neutral	¥37.61B	9.09	2.26%	―	-2.53%	-85.61%

Lecip Holdings Corporation Corporate Events

Lecip Profit Slumps on Flat Sales but Forecasts Earnings Rebound and Maintains Dividend

Lecip Holdings reported consolidated net sales of ¥15.46 billion for the nine months ended 31 December 2025, down 1.8% year on year, as operating profit fell 56.0% to ¥790 million and ordinary profit declined 52.1% to ¥952 million. Profit attributable to owners of parent dropped 27.7% to ¥900 million, while earnings per share slid to ¥58.39, reflecting weaker profitability despite broadly stable revenues.

The company’s financial position remained solid, with total assets of ¥20.29 billion and an equity ratio improving to 52.9%, pushing net assets per share up to ¥694.22. For the full year ending March 31, 2026, Lecip forecasts a 7.4% decline in net sales to ¥24.0 billion but expects operating and ordinary profit to rebound by about 69%, and plans a fiscal-year-end dividend of ¥13.50 per share, signaling confidence in earnings recovery and continued shareholder returns despite near-term headwinds.

The most recent analyst rating on (JP:7213) stock is a Hold with a Yen474.00 price target. To see the full list of analyst forecasts on Lecip Holdings Corporation stock, see the JP:7213 Stock Forecast page.