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LEC INC (JP:7874)
:7874
Japanese Market
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LEC INC (7874) AI Stock Analysis

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JP:7874

LEC INC

(7874)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥1,007.00
▼(-8.20% Downside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by improving financial performance (revenue growth with a latest-year profitability and cash-flow rebound) and supportive valuation (low P/E and a solid dividend). This is tempered by clear technical weakness (price below key moving averages with negative MACD and weak RSI), and balance-sheet leverage remains a key financial risk.
Positive Factors
Multi-year revenue growth
Consistent, multi-year revenue expansion from ¥49.7B to ¥68.3B demonstrates durable demand and an expanding market footprint. That steady top-line growth provides a structural base for investment, scale benefits, and ongoing earnings recovery even if near-term volatility appears.
Negative Factors
Moderate leverage
Debt-to-equity near 1.23 and a rising leverage trend reduce financial flexibility and increase refinancing and interest risks if profits weaken. Moderate leverage limits ability to absorb shocks, constrains discretionary spending, and raises the cost of pursuing growth or smoothing cyclicality.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Consistent, multi-year revenue expansion from ¥49.7B to ¥68.3B demonstrates durable demand and an expanding market footprint. That steady top-line growth provides a structural base for investment, scale benefits, and ongoing earnings recovery even if near-term volatility appears.
Read all positive factors

LEC INC (7874) vs. iShares MSCI Japan ETF (EWJ)

LEC INC Business Overview & Revenue Model

Company Description
LEC, Inc. operates as a Japanese manufacturer and international supplier of household goods. Its extensive product portfolio encompasses a diverse range of home essentials, including sanitary items for bathrooms, dressing rooms, and toilets; merch...
How the Company Makes Money
null...

LEC INC Financial Statement Overview

Summary
Income statement strength is supported by steady multi-year revenue growth and a meaningful profitability rebound in the latest year. Offsetting this, the balance sheet is moderately levered (debt-to-equity ~1.23) and both margins and free cash flow have shown volatility, which reduces confidence in consistency.
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue67.53B68.29B66.30B60.78B55.46B51.42B
Gross Profit18.44B20.69B17.45B16.19B14.60B16.72B
EBITDA6.62B7.20B6.28B6.11B5.77B6.89B
Net Income1.59B2.98B1.73B796.00M942.00M2.28B
Balance Sheet
Total Assets91.24B93.81B89.42B90.07B85.05B75.13B
Cash, Cash Equivalents and Short-Term Investments31.93B34.70B30.25B33.47B28.31B21.21B
Total Debt45.15B46.48B46.34B44.28B41.29B32.39B
Total Liabilities54.72B55.00B53.37B52.48B48.76B39.38B
Stockholders Equity35.10B37.69B34.64B35.77B34.64B34.18B
Cash Flow
Free Cash Flow0.006.81B2.72B3.21B685.00M-5.08B
Operating Cash Flow0.009.03B4.21B5.94B3.37B3.35B
Investing Cash Flow0.002.50B-10.76B-2.25B-7.42B-9.59B
Financing Cash Flow0.00-1.11B-251.00M2.25B6.85B3.55B

LEC INC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1097.00
Price Trends
50DMA
1009.76
Negative
100DMA
1053.80
Negative
200DMA
1068.95
Negative
Market Momentum
MACD
-15.17
Negative
RSI
48.72
Neutral
STOCH
72.61
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 913.05, above the 50-day MA of 1009.76, and above the 200-day MA of 1068.95, indicating a neutral trend. The MACD of -15.17 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.61 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥188.62B12.603.41%3.85%41.80%
73
Outperform
¥480.28B13.358.51%2.25%2.19%23.96%
73
Outperform
¥32.01B9.063.56%3.46%102.90%
73
Outperform
¥167.70B11.624.91%3.03%16.46%
67
Neutral
¥18.74B8.523.46%4.11%3.43%
63
Neutral
¥32.58B10.401.90%3.00%74.56%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7874
LEC INC
949.00
-204.86
-17.75%
JP:5947
Rinnai
3,438.00
-40.37
-1.16%
JP:6484
KVK Corporation
2,315.00
444.78
23.78%
JP:7955
Cleanup Corporation
907.00
276.56
43.87%
JP:7981
Takara Standard Co., Ltd
3,030.00
747.70
32.76%
JP:8130
Sangetsu Corporation
2,884.00
95.63
3.43%

LEC INC Corporate Events

LEC Inc. Posts Strong Profit Growth and Hikes Dividend, Signals Modest FY2027 Gains
May 15, 2026
LEC Inc. reported consolidated net sales of ¥68.3 billion for the year ended March 31, 2026, a 3% rise year on year, while operating profit jumped 48.8% to ¥4.1 billion and profit attributable to owners surged 78.6% to ¥3.0 billion....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 19, 2026