LEOCLAN Co. Ltd. (7681) AI Stock Analysis

• Market Cap: ¥5.03B
• Dividend Yield: 1.67%
• Average Volume (3M): 4.73K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• Revenue Growth: 8.51%
• EPS Growth: 12.20%
• Country: JP
• Employees: 170
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): -13.46
• Shares Outstanding: 5,922,000
• 10 Day Avg. Volume: 9,000
• 30 Day Avg. Volume: 4,726
• PEG Ratio: 3.64
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -57.01
• 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: 51 Neutral
• Price Target: ¥854.00 ▼(-14.51% Downside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

The score is primarily held back by weak recent cash flow and thin/uneven profitability despite a very strong, low-debt balance sheet. Technicals are slightly negative with the stock trading below major moving averages, and valuation is relatively expensive (high P/E) with only a modest dividend yield.

Positive Factors

Balance sheet strength

Extremely low leverage and stable equity materially reduce financial risk, giving the company durable flexibility to fund R&D, capital spending or absorb demand shocks without refinancing pressure. This conservatism supports long-term solvency and strategic optionality.

Revenue rebound

A clear top-line recovery in 2025 shows the business can regain demand after setbacks, indicating underlying commercial resilience. If sustained, this supports revenue base stabilization and better operating leverage prospects over the medium term.

Favorable industry exposure

Operating in medical equipment/services exposes the company to structural demand drivers like aging populations and healthcare investment. These secular tailwinds tend to support sustained product need and provide a defensive backdrop for long-term revenue potential.

Negative Factors

Weak cash generation

Recent deterioration to negative operating and free cash flow constrains the firm's ability to self-fund growth, pay consistent dividends, or invest in new product development. Persistent weak cash conversion raises financing risk despite low debt.

Thin and compressed profitability

Slim net and operating margins and a material decline in ROE reduce earnings resilience and limit internal capital generation. Low profitability makes it harder to absorb cost inflation or invest for growth without eroding returns.

Volatile revenue trajectory

Irregular revenue trends increase forecasting uncertainty and complicate capacity planning and R&D prioritization. Without steadier growth, achieving durable margin expansion or predictable cash flows will remain challenging over the medium term.

LEOCLAN Co. Ltd. Business Overview & Revenue Model

Company Description

LEOCLAN Co.,Ltd. operates as a medical equipment trading company that meets various medical care, welfare, and health needs. It operates through three segments: Medical Total Solutions Business, Remote Image Diagnosis Service Business, and School Lunch Business. The Medical Total Solutions Business segment provides incidental maintenance services; and interior decoration construction and installation works for medical institutions, preventive/health checkup facilities, nursing care/welfare facilities, etc. based on consulting services such as selection of medical equipment, as well as sells medical equipment and medical information systems. The Remote Image Diagnosis Service Business segment offers services in which diagnostic radiology specialists remotely diagnose image data taken by MRI, CT, etc., and provides information. The School Lunch Business segment provides school lunch services, including regular meals, medical meals, and other meals to nursing care and welfare facilities. LEOCLAN Co.,Ltd. was incorporated in 2001 and is headquartered in Settsu, Japan.

LEOCLAN Co. Ltd. Financial Statement Overview

Summary

Balance sheet strength (negligible debt; strong capitalization) is offset by mixed operating results: volatile revenue, thin/low net margins, and deteriorating cash generation with negative operating and free cash flow in the most recent year.

Income Statement

Revenue has been volatile: strong rebound in 2025 (annual) after declines in 2023–2024, but the trajectory lacks consistency. Profitability is modest and has compressed versus prior peaks—net margins are low (~0.7% in 2025 vs ~1.5% in 2021–2022), and operating margins remain thin despite a slight improvement in 2025. Overall, the company is profitable, but earnings quality and durability look only average given the uneven top-line trend and slim margins.

Balance Sheet

The balance sheet is a clear strength: debt is effectively negligible (debt-to-equity near zero, and zero debt in 2025), which materially reduces financial risk. Equity is stable and supports the asset base, indicating solid capitalization. The main trade-off is that returns on equity have come down meaningfully from earlier years (roughly ~8% in 2021–2022 to ~2–3% in 2024–2025), suggesting the company is currently generating only modest returns despite the conservative leverage profile.

Cash Flow

Cash flow performance is inconsistent and has weakened recently. Operating cash flow turned negative in 2025 after being small but positive in 2024, and free cash flow is negative in both 2024 and 2025, indicating the business is not consistently converting accounting profits into cash. While 2021–2023 showed substantially stronger cash generation, the latest two years raise concern around working-capital swings and/or investment demands pressuring near-term cash returns.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	21.49B	19.80B	26.63B	29.77B	26.35B
Gross Profit	2.74B	2.62B	2.82B	3.06B	2.73B
EBITDA	378.03M	277.60M	544.73M	747.26M	670.86M
Net Income	152.78M	136.06M	271.31M	437.05M	390.98M
Balance Sheet
Total Assets	10.91B	10.66B	14.75B	13.52B	13.02B
Cash, Cash Equivalents and Short-Term Investments	4.78B	5.57B	5.54B	5.48B	5.41B
Total Debt	7.19M	12.57M	5.67M	99.82M	133.54M
Total Liabilities	5.09B	4.93B	9.02B	7.98B	7.86B
Stockholders Equity	5.63B	5.57B	5.57B	5.38B	5.03B
Cash Flow
Free Cash Flow	-116.70M	17.72M	291.06M	215.57M	1.28B
Operating Cash Flow	-86.65M	33.08M	341.56M	242.36M	1.30B
Investing Cash Flow	-619.82M	100.75M	-82.01M	-49.96M	-42.13M
Financing Cash Flow	-100.73M	-97.22M	-202.31M	-120.93M	-298.01M

LEOCLAN Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 999.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7681, the sentiment is Negative. The current price of 999 is above the 20-day moving average (MA) of 904.75, above the 50-day MA of 961.02, and below the 200-day MA of 1022.47, indicating a bearish trend. The MACD of -27.97 indicates Positive momentum. The RSI at 28.15 is Positive, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7681.

LEOCLAN Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4978	56 Neutral	¥16.02B	120.78	―	―	1.24%	-33.41%
7774	54 Neutral	¥24.81B	-34.16	―	―	-5.65%	-469.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7681	51 Neutral	¥5.03B	-19.07	―	1.67%	8.51%	12.20%
7776	49 Neutral	¥12.00B	-8.14	―	―	-42.49%	-2.37%
3750	45 Neutral	¥7.95B	-10.09	―	―	-93.79%	-1332.86%
4599	43 Neutral	¥18.55B	-11.30	―	―	―	11.34%