Lintec (7966) AI Stock Analysis

• Market Cap: $202.08B
• Dividend Yield: 3.37%
• Average Volume (3M): 229.33K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.94
• Revenue Growth: 14.35%
• EPS Growth: 175.50%
• Country: JP
• Employees: 5,476
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -24.12
• Shares Outstanding: 72,488,740
• 10 Day Avg. Volume: 213,790
• 30 Day Avg. Volume: 229,330
• PEG Ratio: -0.82
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.08
• 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: $3,329.87
• Price Target Upside: 11.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥3,184.00 ▲(7.06%Upside)

Lintec's overall score is driven by strong financial performance and reasonable valuation. The positive short-term technical indicators further support the score, despite challenges in cash flow generation. The absence of significant earnings call highlights or corporate events keeps the focus on these core areas.

Lintec Business Overview & Revenue Model

Company Description

Lintec Corporation, headquartered in Tokyo, Japan, is a leading manufacturer and supplier of adhesive products, specialty papers, and advanced materials. The company operates primarily in three sectors: adhesive products, specialty papers, and electronic and optical products. Lintec's core offerings include adhesive tapes, films, and label materials used in various industries such as automotive, electronics, and healthcare. Additionally, the company provides release papers and films, window films, and other innovative solutions that cater to diverse industrial needs.

How the Company Makes Money

Lintec Corporation generates revenue through the production and sale of a wide array of adhesive products, specialty papers, and advanced materials. The company's key revenue streams include the sale of adhesive labels and tapes, which are extensively used across industries for packaging, branding, and logistics. Another significant revenue source for Lintec is its specialty paper division, which supplies high-quality papers for printing, labeling, and industrial applications. The electronic and optical products segment also contributes to Lintec's earnings by providing advanced materials and films used in electronic displays and optical devices. Furthermore, Lintec engages in strategic partnerships and collaborations to expand its market reach and technological capabilities, enhancing its revenue potential.

Lintec Financial Statement Overview

Summary

Lintec shows strong revenue growth and improved profitability, supported by a solid balance sheet with low leverage. However, challenges in free cash flow generation pose a risk. Maintaining operational efficiency and enhancing cash generation will be crucial for sustaining growth.

Income Statement

Lintec's income statement shows strong growth in total revenue from 276.3 billion to 315.9 billion yen, a 14.4% increase year-over-year. The gross profit margin improved to 25.3%, indicating effective cost management. Net profit margin also increased to 4.6% from 1.9% in the previous year, showcasing enhanced profitability. EBIT and EBITDA margins saw significant improvements, standing at 7.8% and 11.5%, respectively. These metrics reflect a robust operational performance. However, the company has experienced volatility in revenue growth in preceding years, which is a potential risk factor.

Balance Sheet

Lintec's balance sheet is solid, with a debt-to-equity ratio of 0.04, indicating low leverage and financial stability. The equity ratio is strong at 72.1%, suggesting a high degree of financial independence. Return on equity improved to 5.9% from 2.3% in the previous year, reflecting better utilization of shareholders' equity. Overall, the balance sheet shows a healthy financial position with minimal reliance on debt, though there is room for improvement in ROE.

Cash Flow

The cash flow statement shows a decrease in operating cash flow from 39.2 billion yen to 33.7 billion yen. Free cash flow declined significantly from 24.3 billion yen to 9.95 billion yen, indicating challenges in cash generation. The operating cash flow to net income ratio is robust at 2.33, demonstrating efficiency in converting profits into cash. However, the free cash flow to net income ratio has weakened to 0.69, indicating reduced cash available for expansion and dividends. The negative trend in free cash flow growth is a concern.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	315.98B	276.32B	284.60B	256.84B	235.90B
Gross Profit	79.84B	61.41B	63.17B	65.14B	58.23B
EBITDA	36.42B	25.75B	28.69B	34.68B	29.50B
Net Income	14.48B	5.24B	11.51B	16.64B	11.41B
Balance Sheet
Total Assets	340.47B	333.64B	304.88B	302.57B	280.26B
Cash, Cash Equivalents and Short-Term Investments	55.51B	55.49B	38.03B	55.42B	61.82B
Total Debt	10.35B	9.26B	2.56B	4.11B	5.28B
Total Liabilities	94.34B	100.66B	77.73B	92.81B	82.91B
Stockholders Equity	245.37B	232.28B	226.43B	209.30B	196.95B
Cash Flow
Free Cash Flow	9.95B	24.28B	-7.79B	15.91B	19.38B
Operating Cash Flow	33.72B	39.20B	5.94B	24.64B	28.82B
Investing Cash Flow	-24.67B	-21.51B	-12.14B	-19.64B	-8.61B
Financing Cash Flow	-12.33B	-1.29B	-12.78B	-14.46B	-14.13B

Lintec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2974.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2974 is above the 20-day moving average (MA) of 2938.90, above the 50-day MA of 2869.44, and above the 200-day MA of 2916.82, indicating a bullish trend. The MACD of 32.80 indicates Positive momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 63.71 is Neutral, 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	78 Outperform	$202.08B	14.03	5.97%	3.37%	14.35%	175.50%
8032	77 Outperform	¥94.70B	10.38		3.93%	3.80%	-22.03%
3861	74 Outperform	¥734.60B	15.79	4.18%	3.24%	9.02%	-8.77%
Sector *	70 Outperform	¥175.49B	11.17	6.29%	3.42%	3.91%	3.49%
3865	68 Neutral	¥166.71B	10.72	5.99%	2.22%	2.92%	84.86%
3863	62 Neutral	$126.51B	27.87	0.90%	0.91%	1.30%	-80.06%
3880	53 Neutral	€141.30B	―	-4.63%	1.65%	-0.41%	-348.22%

Lintec Corporate Events

Lintec Corporation to Shut Down Paper Machine Amid Restructuring

Lintec Corporation announced the shutdown of one of its paper machines at the Kumagaya Plant as part of a restructuring effort to improve profitability in its Fine & Specialty Paper Products Operations. This decision comes in response to challenging market conditions, including sluggish orders and rising raw material costs, and aims to enhance production efficiency by reallocating production to remaining machines, while retaining affected employees.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Announces Treasury Shares Disposition for Enhanced Director Compensation

Lintec Corporation has announced the disposition of treasury shares as part of a revised restricted stock compensation scheme. This move, approved at the company’s recent annual general meeting, aims to align the interests of directors with shareholders by promoting shareholdings and enhancing corporate value. The scheme includes both directors and audit committee members, with specific allotments and restrictions outlined to ensure long-term engagement and contribution to the company’s success.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Completes Share Buyback to Strengthen Capital Structure

Lintec Corporation has completed the acquisition of 469,000 of its own shares, amounting to approximately 1.33 billion yen, through market transactions on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 3 million shares, aiming to manage its capital structure and maintain strategic voting rights, particularly in relation to Nippon Paper Industries Co., Ltd., which holds a significant stake in the company.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Corporation Ensures Management Independence Amidst Shareholder Ties

Lintec Corporation has announced its continued independence from its controlling shareholder, Nippon Paper Industries Co., Ltd., despite commercial transactions between the two entities. The company has appointed Mr. Takanori Sano from Nippon Paper Industries as an Outside Director to strengthen its Board of Directors, ensuring that its management remains independent and free from conflicts of interest.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Corporation Acquires Own Shares to Manage Distribution

Lintec Corporation announced the acquisition of 712,600 of its own common shares through market transactions on the Tokyo Stock Exchange, amounting to approximately 1.99 billion yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 3 million shares, aiming to manage the company’s share distribution and maintain voting rights levels with Nippon Paper Industries Co., Ltd.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Reports Strong Financial Growth and Increased Dividends

Lintec Corporation reported a significant increase in its financial performance for the fiscal year ending March 31, 2025, with net sales rising by 14.4% and profit attributable to owners of the parent increasing by 176.1% compared to the previous year. The company also announced an increase in annual dividends per share, reflecting a strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:7966) stock is a Hold with a Yen3700.00 price target. To see the full list of analyst forecasts on Lintec stock, see the JP:7966 Stock Forecast page.

Lintec Completes Treasury Shares Disposition for Stock Compensation

Lintec Corporation has successfully completed the payment procedures for the disposition of treasury shares as restricted stock compensation, a decision made by its Board of Directors in April 2025. This move involves the disposal of 28,400 common shares to nineteen executive officers, potentially impacting the company’s financial structure and aligning executive interests with shareholder value.

Lintec Revises Stock-Based Compensation Scheme for Directors

Lintec Corporation announced a revision to its restricted stock-based compensation scheme for its directors, excluding those serving on the Audit and Supervisory Committee, and introduced a similar scheme for those committee members. This move aims to align directors’ interests with shareholders by promoting stock ownership and enhancing corporate value. The proposal, which includes monetary compensation claims for restricted stock, will be presented at the upcoming Annual General Meeting. The changes reflect Lintec’s commitment to incentivizing its leadership and potentially impacting its market positioning by fostering greater alignment with shareholder interests.

Lintec Corporation Reports Strong Financial Growth and Increased Dividends

Lintec Corporation reported a significant financial improvement for the fiscal year ended March 31, 2025, with net sales increasing by 14.4% and profit attributable to owners of the parent rising by 176.1% compared to the previous year. The company also announced an increase in annual dividends per share, reflecting a strong financial position and positive outlook for stakeholders.

Lintec Corporation Acquires Own Shares to Optimize Capital Structure

Lintec Corporation has announced the acquisition of 736,400 of its own shares through market transactions on the Tokyo Stock Exchange, amounting to 1,918,480,800 yen. This move is part of a broader strategy approved by the Board of Directors to acquire up to 3,000,000 shares, aiming to manage the company’s capital structure and maintain the voting rights percentage held by Nippon Paper Industries at 30.1%.

Lintec Corporation Announces Impairment Loss and Revises Financial Forecasts

Lintec Corporation announced an expected extraordinary loss of approximately 7.7 billion yen due to an impairment in its Fine & Specialty Paper Products Operations, attributed to a challenging business environment and rising costs. Despite this, the company revised its full-year financial forecasts, noting increases in net sales and operating income, although profit attributable to owners is projected to decline due to the impairment loss.