LIHIT LAB., INC. (7975) AI Stock Analysis

• Market Cap: ¥3.90B
• Dividend Yield: 2.19%
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.06
• Revenue Growth: 4.21%
• EPS Growth: N/A
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 7.61
• Shares Outstanding: 3,815,700
• 10 Day Avg. Volume: 1,240
• 30 Day Avg. Volume: 1,640
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,258.00
• Price Target Upside: 9.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,258.00 ▲(9.97% Upside)

The overall stock score is driven primarily by a solid financial foundation with strong revenue growth and a stable balance sheet. However, challenges with profitability and cash flow volatility, combined with neutral technical indicators, moderate the score. The fair valuation with a reasonable P/E ratio and dividend yield supports the stock's attractiveness.

LIHIT LAB., INC. Business Overview & Revenue Model

Company Description

LIHIT LAB., INC. (7975) is a Japanese company specializing in the design and manufacture of stationery and office supplies. Operating primarily in the consumer goods sector, LIHIT LAB. focuses on creating innovative products that enhance productivity and organization, including notebooks, binders, and various writing instruments. The company is recognized for its commitment to quality and functionality, catering to both individual consumers and businesses seeking efficient stationery solutions.

How the Company Makes Money

LIHIT LAB., INC. generates revenue through the sale of its wide range of stationery products. The company's revenue model is primarily based on direct sales to retail outlets, online marketplaces, and direct-to-consumer channels. Key revenue streams include sales from traditional stationery items, specialized office supplies, and custom solutions tailored for corporate clients. Additionally, the company may benefit from partnerships with educational institutions and businesses for bulk orders. Marketing initiatives and brand reputation also play a significant role in driving sales, as LIHIT LAB. positions itself as a premium brand in the stationery market.

LIHIT LAB., INC. Financial Statement Overview

Summary

The company exhibits positive revenue growth and a strong balance sheet with a low debt-to-equity ratio, indicating financial stability. However, profitability is inconsistent, and there are challenges with cash flow volatility, which slightly dampen the financial outlook.

Income Statement

The company shows a positive revenue growth trend with a significant increase in total revenue over the years. Despite this, there are fluctuations in profitability, as seen in the mixed net income results, which suggest a volatile net profit margin. The EBIT and EBITDA margins indicate some operational challenges but show improvement in the latest period, reflecting a rebound in operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity base, with a high equity ratio signifying financial stability. The debt-to-equity ratio is low, indicating prudent leverage management, which adds to the company's financial resilience. However, the declining net debt over the years suggests an increasing cash position, enhancing liquidity.

Cash Flow

While there is a positive trend in free cash flow in the most recent period, the historical volatility in operating cash flows and free cash flows indicates potential challenges in cash management. The operating cash flow to net income ratio and free cash flow to net income ratio have shown improvement recently, suggesting more efficient cash conversion from profits.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.22B	8.80B	8.51B	8.69B	8.56B
Gross Profit	2.88B	2.52B	2.50B	2.90B	3.02B
EBITDA	822.07M	174.54M	261.38M	725.53M	840.88M
Net Income	411.57M	-93.73M	-24.41M	262.51M	352.95M
Balance Sheet
Total Assets	13.43B	13.12B	12.73B	13.33B	12.87B
Cash, Cash Equivalents and Short-Term Investments	2.33B	1.24B	1.08B	2.26B	1.80B
Total Debt	437.50M	751.50M	445.00M	698.00M	751.00M
Total Liabilities	2.79B	2.88B	2.51B	3.22B	3.24B
Stockholders Equity	10.64B	10.24B	10.22B	10.11B	9.62B
Cash Flow
Free Cash Flow	17.92M	-196.64M	-825.63M	608.64M	614.58M
Operating Cash Flow	290.49M	663.33M	-745.70M	720.74M	726.37M
Investing Cash Flow	1.18B	-726.91M	-112.96M	-127.15M	-129.18M
Financing Cash Flow	-400.05M	220.14M	-339.35M	-139.16M	-475.32M

LIHIT LAB., INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1144.00
• 50DMA: Negative
• 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:7975, the sentiment is Negative. The current price of 1144 is below the 20-day moving average (MA) of 1150.45, below the 50-day MA of 1154.84, and above the 200-day MA of 1136.44, indicating a neutral trend. The MACD of -3.06 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7975.

LIHIT LAB., INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7976	76 Outperform	¥108.19B	14.51		2.24%	10.66%	-37.99%
7846	75 Outperform	¥176.37B	12.69		2.61%	2.17%	11.48%
7957	72 Outperform	¥2.49B	5.93		4.91%	9.24%	―
7975	68 Neutral	¥3.90B	10.32		2.19%	4.21%	―
Sector *	64 Neutral	$10.83B	16.63	6.52%	2.06%	2.20%	-16.67%
7962	52 Neutral	¥24.09B	55.97		1.65%	0.22%	―
7992	46 Neutral	¥3.53B	―		―	4.61%	33.80%