LEC INC (7874) AI Stock Analysis

• Market Cap: ¥38.10B
• Dividend Yield: 1.9%
• Average Volume (3M): 51.74K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.51
• Revenue Growth: 6.70%
• EPS Growth: 53.04%
• Country: JP
• Employees: 946
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 25.08
• Shares Outstanding: 38,165,340
• 10 Day Avg. Volume: 48,470
• 30 Day Avg. Volume: 51,740
• PEG Ratio: 0.17
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 14.29
• 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: 63 Neutral
• Price Target: ¥1,226.00 ▲(11.76% Upside)

LEC INC's overall stock score is driven by strong financial performance, despite low profitability and rising debt levels. Technical indicators suggest bearish momentum with overbought conditions. The valuation is moderate, offering some dividend yield but not significantly high.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for LEC INC's products and services, enhancing its market position and financial stability.

Operational Efficiency

Stable gross profit margins reflect effective cost control, contributing to sustained profitability and competitive advantage.

Product Innovation

Ongoing investment in R&D supports product innovation, helping LEC INC maintain a competitive edge and adapt to industry changes.

Negative Factors

Rising Debt Levels

Rising debt levels could strain financial resources and limit flexibility, impacting long-term growth and stability if not managed.

Cash Flow Variability

Variability in cash flow management could affect LEC INC's ability to fund future investments and operational needs consistently.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies in converting revenue into profit, which could hinder long-term profitability.

LEC INC Business Overview & Revenue Model

Company Description

LEC INC (7874) is a diversified technology company specializing in advanced electronics and communication systems. The company operates primarily in the telecommunications and automotive sectors, offering a range of products including high-performance sensors, communication devices, and integrated circuit solutions. LEC INC is known for its innovation in developing cutting-edge technologies that enhance connectivity and efficiency in various applications.

How the Company Makes Money

LEC INC generates revenue through multiple streams, primarily from the sale of its electronic and communication products. Key revenue streams include direct sales to original equipment manufacturers (OEMs) in the automotive industry, as well as contracts with telecommunications companies for infrastructure solutions. The company also benefits from licensing its proprietary technologies to third-party manufacturers, creating additional income. Strategic partnerships with major industry players enhance its market reach and contribute to revenue growth, while ongoing investments in research and development ensure a steady pipeline of new products that meet evolving market demands.

LEC INC Financial Statement Overview

Summary

LEC INC shows strong revenue growth and operational efficiency with stable gross profit margins. The balance sheet is balanced, but rising debt levels need attention. Cash flow management is variable, indicating a need for consistent free cash flow generation.

Income Statement

LEC INC has demonstrated consistent revenue growth with a notable increase from 2024 to 2025. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. EBIT and EBITDA margins show a positive trend, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on Equity (ROE) has shown improvement, highlighting effective use of equity capital. The equity ratio is stable, suggesting a solid financial structure. However, the increase in total debt over the years poses a potential risk if not managed carefully.

Cash Flow

LEC INC's free cash flow has shown fluctuations, with a decline in recent years but a recovery in 2025. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio suggests variability in cash flow management, which could impact future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.53B	66.30B	60.78B	55.46B	51.42B	49.68B
Gross Profit	18.45B	17.45B	16.19B	14.60B	16.72B	18.23B
EBITDA	6.30B	6.08B	6.36B	6.80B	7.30B	8.11B
Net Income	1.59B	1.73B	796.00M	942.00M	2.28B	4.17B
Balance Sheet
Total Assets	91.24B	89.42B	89.24B	84.32B	74.60B	68.59B
Cash, Cash Equivalents and Short-Term Investments	31.93B	30.25B	33.47B	28.31B	21.21B	23.65B
Total Debt	45.15B	46.34B	44.28B	41.29B	32.39B	27.62B
Total Liabilities	54.72B	53.37B	51.65B	48.04B	38.85B	34.36B
Stockholders Equity	35.10B	34.64B	35.76B	34.64B	34.18B	32.77B
Cash Flow
Free Cash Flow	0.00	2.72B	3.16B	654.00M	-5.33B	-2.96B
Operating Cash Flow	0.00	4.21B	5.94B	3.37B	3.35B	5.61B
Investing Cash Flow	0.00	-10.76B	-2.25B	-7.42B	-9.59B	-4.17B
Financing Cash Flow	0.00	-251.00M	2.25B	6.85B	3.55B	-2.31B

LEC INC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1097.00
• 50DMA: Positive
• 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:7874, the sentiment is Neutral. The current price of 1097 is above the 20-day moving average (MA) of 1058.25, below the 50-day MA of 1100.10, and below the 200-day MA of 1175.84, indicating a neutral trend. The MACD of 7.78 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 61.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7874.

LEC INC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	80 Outperform	¥30.88B	12.23	―	3.98%	3.03%	160.39%
7989	80 Outperform	¥41.98B	12.46	―	2.46%	2.47%	6.88%
7887	80 Outperform	¥7.28B	13.60	―	1.94%	8.56%	2690.35%
7840	75 Outperform	¥46.58B	17.26	―	2.96%	0.89%	-14.25%
7898	66 Neutral	¥8.38B	3.51	―	2.79%	1.11%	―
7874	63 Neutral	¥38.10B	16.96	―	1.90%	6.70%	53.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%