LEC INC (7874) AI Stock Analysis

• Market Cap: ¥37.93B
• Dividend Yield: 1.82%
• Average Volume (3M): 40.30K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.51
• Revenue Growth: 9.08%
• EPS Growth: 122.70%
• Country: JP
• Employees: 946
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.94
• Shares Outstanding: 38,165,340
• 10 Day Avg. Volume: 32,520
• 30 Day Avg. Volume: 40,303
• PEG Ratio: 1.11
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,282.00
• Price Target Upside: 13.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ¥1,162.00 ▲(2.83%Upside)

LEC INC's overall stock score is primarily influenced by its strong financial performance, despite the need for improved profitability and debt management. Technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is moderate, offering a balanced view of growth and income potential. The absence of earnings call and corporate events data limits further insights.

LEC INC Business Overview & Revenue Model

Company Description

LEC INC (7874) is a company specializing in the development and manufacturing of advanced electronic components and systems. Operating primarily in the technology sector, LEC INC provides a range of products including semiconductors, circuit boards, and integrated systems that serve various industries such as telecommunications, automotive, and consumer electronics.

How the Company Makes Money

LEC INC generates revenue through multiple key streams, primarily from the sale of its electronic components and systems to original equipment manufacturers (OEMs) and other businesses in need of advanced technology solutions. The company also engages in long-term contracts and partnerships with major players in the technology and automotive sectors, which provide a steady income through recurring orders. Additionally, LEC INC invests in research and development to innovate and enhance its product offerings, allowing it to maintain a competitive edge and command premium pricing. The company may also earn revenue from licensing its technologies and intellectual property to other firms, further diversifying its income sources.

LEC INC Financial Statement Overview

Summary

LEC INC shows solid revenue growth and a stable financial position with a strong equity base. However, there are concerns about debt management and net profitability, indicating a need for improved operational efficiency.

Income Statement

LEC INC has demonstrated a solid revenue growth rate, with a notable increase from ¥60.78 billion in 2024 to ¥66.30 billion in 2025, indicating a positive trend. The gross profit margin remains healthy, showing efficient cost management. However, the net profit margin is moderate, suggesting room for improvement in operational efficiency and cost control.

Balance Sheet

The company's balance sheet reflects a stable equity base, with a reasonable debt-to-equity ratio indicating manageable leverage. The equity ratio is solid, ensuring financial stability. However, the rising total debt over the years may pose a risk if growth doesn't outpace debt accumulation.

Cash Flow

LEC INC's cash flow statements reveal a strong operating cash flow, supporting its net income effectively. The free cash flow growth rate is positive, but the volatility in investing and financing activities suggests some potential risks in sustaining cash flows.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	66.30B	60.78B	55.46B	51.42B	49.68B
Gross Profit	17.45B	16.19B	14.60B	16.72B	18.23B
EBITDA	6.08B	6.11B	6.80B	7.30B	8.11B
Net Income	1.73B	796.00M	942.00M	2.28B	4.17B
Balance Sheet
Total Assets	89.42B	89.24B	84.32B	74.60B	68.59B
Cash, Cash Equivalents and Short-Term Investments	30.25B	33.47B	28.31B	21.21B	23.65B
Total Debt	46.34B	44.28B	41.29B	32.39B	27.62B
Total Liabilities	53.37B	51.65B	48.04B	38.85B	34.36B
Stockholders Equity	34.64B	35.76B	34.64B	34.18B	32.77B
Cash Flow
Free Cash Flow	2.72B	3.16B	654.00M	-5.33B	-2.96B
Operating Cash Flow	4.21B	5.94B	3.37B	3.35B	5.61B
Investing Cash Flow	-10.76B	-2.25B	-7.42B	-9.59B	-4.17B
Financing Cash Flow	-251.00M	2.25B	6.85B	3.55B	-2.31B

LEC INC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7874, the sentiment is Negative. The current price of 1130 is below the 20-day moving average (MA) of 1141.75, below the 50-day MA of 1172.54, and below the 200-day MA of 1229.29, indicating a bearish trend. The MACD of -18.29 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7874.

LEC INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	79 Outperform	¥26.45B	15.04		4.31%	1.57%	20.22%
7989	73 Outperform	¥36.01B	11.32		2.90%	1.88%	8.88%
7898	72 Outperform	¥7.91B	4.44		2.83%	0.58%	―
7887	72 Outperform	¥5.84B	57.75		2.49%	4.82%	-89.35%
7840	69 Neutral	¥44.23B	15.01		3.04%	2.38%	-2.46%
Sector *	62 Neutral	$17.13B	10.11	-8.47%	3.27%	1.63%	-24.01%
7874	58 Neutral	¥37.93B	20.83		1.82%	9.08%	122.70%

LEC INC Corporate Events

LEC, Inc. Announces Treasury Stock Disposal for Executive Compensation

LEC, Inc. has announced the disposal of 158,000 shares of its treasury stock as restricted stock compensation to its directors and executive officers. This move is part of a plan to motivate these individuals to enhance corporate value and align their interests with shareholders by tying compensation to stock performance.