Lintec (7966) AI Stock Analysis

• Market Cap: ¥358.49B
• Dividend Yield: 2.36%
• Average Volume (3M): 143.68K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.91
• Revenue Growth: 3.03%
• EPS Growth: -8.38%
• Country: JP
• Employees: 5,476
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): N/A
• Shares Outstanding: 72,488,740
• 10 Day Avg. Volume: 176,660
• 30 Day Avg. Volume: 143,676
• PEG Ratio: 0.07
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 18.91
• 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: ¥5,266.67
• Price Target Upside: 41.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥6,120.00 ▲(64.74% Upside)
• Action: Upgraded Date: 02/11/26
• Date: Action: Upgraded 02/11/26

The score is driven mainly by strong financial resilience (very low leverage) and improving TTM growth, supported by positive technical momentum with the stock trading above key moving averages. The primary constraint is valuation (P/E ~26) alongside profitability and cash conversion inconsistency.

Positive Factors

Conservative balance sheet / very low leverage

Extremely low debt-to-equity (~0.04) and a large equity base materially reduce financial risk, preserving flexibility to weather cycles, fund capex or R&D, and avoid refinancing pressure. This durable strength supports long-term investment and strategic options.

Strong trailing revenue growth

A sustained ~48.8% TTM revenue increase indicates structurally stronger demand or successful product mix shift toward higher-value materials. Durable top-line expansion underpins scale economics and provides scope to invest in product development and customer partnerships over the medium term.

Positive operating and free cash flow generation

Material operating (35.1B) and free cash flow (18.8B) in the TTM show the core business generates real cash that can fund capex, dividends, or pay down debt. While conversion has varied historically, current positive FCF supports sustainable reinvestment and shareholder returns.

Negative Factors

Volatile profitability and margins

Inconsistent gross and net margins across recent years signal exposure to input cost swings, pricing lags, or product-mix shifts. Persistent margin volatility undermines predictability of earnings power and complicates long-term planning for capital allocation and return targets.

Uneven cash conversion and past negative FCF

Although TTM FCF is positive, free cash covered only ~54% of net income and past negative-FCF years show earnings don’t consistently convert to cash. That raises execution risk for capex funding and distributions during downturns and weakens durability of reported profits.

Moderate returns on equity

A ROE near 5% is modest given the company’s large equity base; this points to limited efficiency in deploying capital into high-return projects. Over the medium term, persistently low ROE can constrain shareholder value creation unless management boosts margins or shifts toward higher-return product lines.

Lintec Business Overview & Revenue Model

Company Description

LINTEC Corporation develops, manufactures, and sells adhesive-related products in Japan, Asia, the United States, and internationally. It operates through three segments: Printing and Industrial Materials Products, Electronic and Optical Products, and Paper and Converted Products. The Printing and Industrial Materials Products segment offers adhesive products for seals and labels, labeling machines, automobile-use adhesive products, industrial-use adhesive tapes, window films, films for outdoor signs and advertising, and interior finishing mounting films. The Electronic and Optical Products segment provides semiconductor-related adhesive tapes and equipment, multilayer ceramic capacitor related tapes, and optical display-related adhesive products. The Paper and Converted Products segment offers color papers for envelopes, colored construction papers, special function papers, high-grade printing papers, high-grade papers for paper products, release papers for adhesive products, release films for optical-related products, casting papers for synthetic leather, and casting papers for carbon fiber composite materials. The company was formerly known as FSK Corporation and changed its name to LINTEC Corporation in 1990. LINTEC Corporation was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Lintec generates revenue through the sale of its diverse range of adhesive products and labeling materials. The company's primary revenue streams come from direct sales to manufacturers across various sectors, where they provide customized adhesive solutions to meet specific application needs. Additionally, Lintec partners with companies in the packaging and printing industries to develop tailored products, which further enhances its market presence and customer base. Significant factors contributing to Lintec's earnings include its strong R&D capabilities that drive innovation, the establishment of strategic alliances with key industry players, and a focus on expanding its global reach, particularly in emerging markets.

Lintec Financial Statement Overview

Summary

Strong overall financial footing supported by a very conservative balance sheet (debt-to-equity ~0.04) and sharply higher TTM revenue (+48.8%). Offsets include volatile profitability across recent years and uneven cash conversion (TTM FCF-to-net income ~0.54, including a prior year with negative FCF).

Income Statement

In TTM (Trailing-Twelve-Months), revenue is up sharply (+48.8%), showing strong demand and/or pricing momentum. Profitability is solid but not exceptional for the period, with gross margin around 25.5% and net margin around 3.9%. Compared with recent annual results, margins and earnings have been volatile (notably weaker profitability in FY2024 versus stronger FY2022–FY2023), which tempers the quality of the growth despite the improved TTM trajectory.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (TTM debt-to-equity ~0.04) and a large equity base. Returns are moderate (TTM return on equity ~5.2%), which is healthy but not high given the sizable equity cushion. Overall, financial risk from debt looks limited, but the company’s challenge is generating stronger returns on its capital.

Cash Flow

Cash generation is generally positive in TTM (Trailing-Twelve-Months) with operating cash flow of ~35.1B and free cash flow of ~18.8B, and free cash flow growth is strong versus the prior period. However, cash conversion has been inconsistent over time, including a year with negative free cash flow (FY2023), and the latest TTM free cash flow covers only about half of net income (free cash flow to net income ~0.54), indicating earnings are not fully translating into free cash at a steady rate.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	313.78B	315.98B	276.32B	284.60B	256.84B	235.90B
Gross Profit	79.98B	79.84B	61.41B	63.17B	65.14B	58.23B
EBITDA	34.13B	36.42B	25.75B	30.87B	36.44B	29.50B
Net Income	12.32B	14.48B	5.24B	11.51B	16.64B	11.41B
Balance Sheet
Total Assets	336.88B	340.47B	333.64B	304.88B	302.57B	280.26B
Cash, Cash Equivalents and Short-Term Investments	56.54B	55.51B	55.49B	38.03B	55.42B	61.82B
Total Debt	10.11B	10.35B	9.26B	2.56B	4.11B	5.28B
Total Liabilities	93.14B	94.34B	100.66B	77.73B	92.81B	82.91B
Stockholders Equity	242.99B	245.37B	232.28B	226.43B	209.30B	196.95B
Cash Flow
Free Cash Flow	18.83B	9.95B	24.28B	-7.79B	15.91B	19.38B
Operating Cash Flow	35.08B	33.72B	39.20B	5.94B	24.64B	28.82B
Investing Cash Flow	-15.13B	-24.67B	-21.51B	-12.14B	-19.64B	-8.61B
Financing Cash Flow	-18.08B	-12.33B	-1.29B	-12.78B	-14.46B	-14.13B

Lintec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3715.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7966, the sentiment is Positive. The current price of 3715 is below the 20-day moving average (MA) of 5074.50, below the 50-day MA of 4775.80, and below the 200-day MA of 3738.61, indicating a bullish trend. The MACD of 190.71 indicates Negative momentum. The RSI at 69.63 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7966.

Lintec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7966	75 Outperform	¥358.49B	27.96	5.04%	2.36%	3.03%	-8.38%
3878	64 Neutral	¥9.00B	15.28	―	1.90%	-0.17%	-37.01%
3863	62 Neutral	¥151.81B	12.40	3.57%	1.31%	1.64%	-10.74%
3861	62 Neutral	¥939.75B	31.69	2.87%	3.51%	3.91%	-22.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3864	59 Neutral	¥38.27B	-358.99	3.95%	2.31%	-10.04%	43.13%
3880	59 Neutral	¥198.91B	51.08	-1.54%	1.53%	-2.89%	-15.89%

Lintec Corporate Events

Lintec Posts Softer Nine-Month Earnings but Lifts Annual Dividend Outlook

Lintec reported consolidated net sales of ¥236.8 billion for the nine months to December 31, 2025, down 0.9% year on year, with operating income slipping 3.3% to ¥19.8 billion and profit attributable to owners falling 13.3% to ¥14.0 billion. Despite softer earnings and a slight decline in total assets, the company maintained a strong equity ratio of 72.1%, kept its full-year forecast largely flat with modest profit growth expected, and signaled confidence through a planned annual dividend increase from ¥100 to ¥110 per share.

For the full fiscal year ending March 31, 2026, Lintec projects net sales of ¥317.0 billion, almost unchanged from the prior year, with operating income of ¥24.0 billion and profit attributable to owners of ¥18.0 billion, implying a 24.3% rise in full-year profit despite weaker interim results. The stable balance sheet, ongoing share buybacks reflected in lower average outstanding shares, and higher dividend outlook suggest the company is prioritizing shareholder returns while navigating a slowing revenue environment.

The most recent analyst rating on (JP:7966) stock is a Buy with a Yen5451.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Reshapes Executive Ranks to Strengthen Core Operations

Lintec Corporation has announced a series of senior management changes, effective from late March and April 1, 2026, as part of a broader reorganization of its executive structure. The Board approved promotions within key operational and R&D divisions, a retirement, and new executive appointments aimed at reinforcing oversight of advanced materials, optical products, industrial materials and procurement.

Several executives, including Yoshihisa Mineura, Satoru Shoshi, Hideo Senoo and Hideki Miyake, have been promoted to managing or senior managing executive officer roles, consolidating leadership in research, optical products and industrial operations. The company will also see the retirement of Managing Executive Officer Tatsuya Tsukida from the Procurement Division, with his role succeeded by newly appointed Executive Officer Masayoshi Omori, while Jun Akiwa steps up to lead Advanced Materials Operations and business planning, signaling a focus on continuity and strengthened governance in core business areas.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen5268.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Holds Profit Outlook and Hikes Dividend Despite Softer Q3 Earnings

Lintec reported consolidated net sales of ¥236.8 billion for the nine months to December 31, 2025, a slight 0.9% decline year on year, while operating income slipped 3.3% and profit attributable to owners fell 13.3%. Despite softer earnings and a marginally smaller balance sheet, the equity ratio held at 72.1%, and comprehensive income dropped sharply.

The company maintained its full-year forecast, targeting ¥317 billion in sales and ¥18 billion in profit attributable to owners, implying a 24.3% profit increase for the full year despite weaker interim results. Lintec also plans to lift its annual dividend to ¥110 per share from ¥100, signaling continued shareholder returns even as near-term profitability moderates and treasury share holdings increase.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen5268.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.