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LEC INC (JP:7874)
:7874
Japanese Market

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:
¥1,083.00
▼(-1.28% Downside)
Action:ReiteratedDate:11/22/25
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
Consistent Revenue Growth
Sustained top-line growth and a notable increase from 2024 to 2025 indicate durable demand and expanding market penetration. Persistent revenue expansion supports reinvestment in product lines and scale economics, strengthening long-term growth prospects over several quarters.
Negative Factors
Low Net Profit Margin
A persistently low net profit margin limits the firm's ability to convert revenue into retained earnings and free cash. This constrains reinvestment, dividend capacity and buffers against downturns, meaning operational gains must continue to translate into bottom-line improvements to strengthen fundamentals.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained top-line growth and a notable increase from 2024 to 2025 indicate durable demand and expanding market penetration. Persistent revenue expansion supports reinvestment in product lines and scale economics, strengthening long-term growth prospects over several quarters.
Read all positive factors

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

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-perform...
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 co...

LEC INC Financial Statement Overview

Summary
LEC INC shows strong revenue growth and operational efficiency with stable gross profit margins. However, the net profit margin is low, and rising debt levels pose a risk. Cash flow management is variable, indicating a need for consistent free cash flow generation.
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue67.53B66.30B60.78B55.46B51.42B49.68B
Gross Profit18.44B17.45B16.19B14.60B16.72B18.23B
EBITDA6.62B6.28B6.11B5.77B6.89B7.89B
Net Income1.59B1.73B796.00M942.00M2.28B4.17B
Balance Sheet
Total Assets91.24B89.42B90.07B85.05B75.13B69.16B
Cash, Cash Equivalents and Short-Term Investments31.93B30.25B33.47B28.31B21.21B23.65B
Total Debt45.15B46.34B44.28B41.29B32.39B27.62B
Total Liabilities54.72B53.37B52.48B48.76B39.38B34.92B
Stockholders Equity35.10B34.64B35.77B34.64B34.18B32.77B
Cash Flow
Free Cash Flow0.002.72B3.21B685.00M-5.08B-2.65B
Operating Cash Flow0.004.21B5.94B3.37B3.35B5.61B
Investing Cash Flow0.00-10.76B-2.25B-7.42B-9.59B-3.62B
Financing Cash Flow0.00-251.00M2.25B6.85B3.55B-2.87B

LEC INC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1097.00
Price Trends
50DMA
1111.18
Positive
100DMA
1077.00
Positive
200DMA
1100.28
Positive
Market Momentum
MACD
6.77
Negative
RSI
55.72
Neutral
STOCH
82.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7874, the sentiment is Positive. The current price of 1097 is below the 20-day moving average (MA) of 1125.28, below the 50-day MA of 1111.18, and below the 200-day MA of 1100.28, indicating a bullish trend. The MACD of 6.77 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
81
Outperform
¥20.04B9.883.46%3.87%5.89%
76
Outperform
¥525.19B11.768.51%2.25%3.33%9.57%
76
Outperform
¥177.24B11.814.91%6.35%14.05%
75
Outperform
¥34.56B3.813.56%3.03%160.39%
72
Outperform
¥183.43B8.203.41%6.17%61.39%
63
Neutral
¥39.69B8.041.90%6.70%53.04%
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
1,151.00
-38.04
-3.20%
JP:5947
Rinnai
3,754.00
704.71
23.11%
JP:6484
KVK Corporation
2,486.00
771.31
44.98%
JP:7955
Cleanup Corporation
950.00
347.55
57.69%
JP:7981
Takara Standard Co., Ltd
2,932.00
1,261.01
75.46%
JP:8130
Sangetsu Corporation
3,045.00
362.26
13.50%

LEC INC Corporate Events

LEC boosts payout ratio and hikes dividend forecast for FY2026
Feb 13, 2026
LEC, Inc., a Tokyo-listed company on the Prime Market, focuses on distributing profits to shareholders while funding capital investments and maintaining internal reserves to support business expansion and new business development. The group manage...
LEC Upgrades Full-Year Profit Forecast on Strong Product Mix and Cost Cuts
Feb 13, 2026
LEC, Inc. has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, while keeping net sales unchanged at ¥70 billion. The Tokyo Prime-listed consumer products maker now expects operating profit and ordinary prof...
LEC Inc. Lifts Profit Outlook and Dividend as Earnings Surge
Feb 13, 2026
LEC Inc., a Tokyo-listed company reporting under Japanese GAAP, continues to operate with a solid financial position highlighted by growing total assets and equity and an equity-to-asset ratio just under 40%. The firm has not altered its consolida...
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: Nov 22, 2025