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

• Market Cap: ¥4.19B
• Dividend Yield: 2.03%
• Average Volume (3M): 833.00
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.10
• Revenue Growth: 3.24%
• EPS Growth: N/A
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 2.22
• Shares Outstanding: 3,815,700
• 10 Day Avg. Volume: 1,000
• 30 Day Avg. Volume: 833
• PEG Ratio: -0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 216.06
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥1,268.00 ▲(3.09% Upside)

The stock score is primarily driven by solid financial performance and attractive valuation. The company's strong equity base and low leverage provide stability, while the low P/E ratio suggests potential undervaluation. Technical analysis indicates a neutral trend, with no strong momentum signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, enhancing long-term business sustainability.

Financial Stability

A strong equity base and low debt levels provide financial stability, allowing the company to navigate economic fluctuations effectively.

Operational Efficiency

Enhanced operational efficiency can lead to better profitability and competitive advantage, supporting long-term growth.

Negative Factors

Profitability Fluctuations

Volatile profitability can hinder consistent earnings growth, affecting investor confidence and long-term financial planning.

Cash Flow Volatility

Cash flow volatility can challenge liquidity management, impacting the company's ability to invest in growth opportunities consistently.

Operational Challenges

Operational challenges reflected in margin pressures may limit profitability improvements and require strategic adjustments to maintain competitiveness.

LIHIT LAB., INC. Business Overview & Revenue Model

Company Description

Lihit Lab.,Inc. manufactures and sells office supplies in Japan and internationally. It offers punch files, Z-type, slide bar and bookbinding, clear holder, pocket holder, and other files; clear books; binders; card, postcard, photo album, and passbook holders; clip type files; clear, file, and document cases. The company also offers P.P. and sewing bags; bag-in-bag products, bag hangers, shoulder belts, and accessory pouches; pencil cases; and notebooks, notebook accessories, and twist ring binding tools. In addition, it provides desk and bookend stands, partition boards, magnetic pocket racks, box files, organizing supplies, office supplies, slide cutters, and steel equipment, as wells as optional parts for electric drills and punches. Further, the company offers medical supplies comprising home medical, medical record folder rack and book, card index, and other medical supplies. Additionally, it provides personal products and electronic equipment related products. Furthermore, the company engages in real estate rental business. It also offers its products through online website. Lihit Lab.,Inc. was founded in 1938 and is headquartered in Osaka, Japan.

How the Company Makes Money

LIHIT LAB., INC. generates revenue primarily through the sale of its stationery products, which are distributed through various channels including retail stores, online platforms, and direct sales to businesses. The company's revenue model is based on a combination of direct-to-consumer sales and B2B partnerships with retailers and wholesalers. Key revenue streams include product sales, with a focus on high-margin items such as specialized notebooks and organizational tools. Additionally, LIHIT LAB. may enter into strategic partnerships with educational institutions and corporate clients, enhancing its market reach and driving sales growth. The company also invests in product innovation and brand development, which contribute to maintaining a competitive edge in the stationery market.

LIHIT LAB., INC. Financial Statement Overview

Summary

The company shows positive revenue growth and a strong equity base, but faces challenges with profitability consistency and cash flow volatility. The low leverage and improving operational efficiency are positive signs.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.33B	9.22B	8.80B	8.51B	8.69B	8.56B
Gross Profit	3.10B	2.88B	2.52B	2.50B	2.90B	3.02B
EBITDA	744.67M	822.07M	174.54M	261.38M	725.53M	840.88M
Net Income	376.25M	411.57M	-93.73M	-24.41M	262.51M	352.95M
Balance Sheet
Total Assets	13.07B	13.43B	13.12B	12.73B	13.33B	12.87B
Cash, Cash Equivalents and Short-Term Investments	759.00M	2.33B	1.24B	1.08B	2.26B	1.80B
Total Debt	359.00M	437.50M	751.50M	445.00M	698.00M	751.00M
Total Liabilities	2.65B	2.79B	2.88B	2.51B	3.22B	3.24B
Stockholders Equity	10.42B	10.64B	10.24B	10.22B	10.11B	9.62B
Cash Flow
Free Cash Flow	0.00	17.92M	-196.64M	-825.63M	608.64M	614.58M
Operating Cash Flow	0.00	290.49M	663.33M	-745.70M	720.74M	726.37M
Investing Cash Flow	0.00	1.18B	-726.91M	-112.96M	-127.15M	-129.18M
Financing Cash Flow	0.00	-400.05M	220.14M	-339.35M	-139.16M	-475.32M

LIHIT LAB., INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1230.00
• 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:7975, the sentiment is Positive. The current price of 1230 is above the 20-day moving average (MA) of 1226.75, above the 50-day MA of 1204.10, and above the 200-day MA of 1162.54, indicating a bullish trend. The MACD of 7.97 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7975.

LIHIT LAB., INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7846	75 Outperform	¥178.72B	12.86	―	2.59%	-0.26%	3.35%
7976	74 Outperform	¥107.80B	15.00	―	2.07%	6.39%	-34.84%
7975	70 Neutral	¥4.19B	10.43	―	2.03%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7957	61 Neutral	¥2.25B	5.34	―	5.23%	0.34%	―
7962	58 Neutral	¥24.12B	69.24	―	1.65%	-2.71%	―
7992	50 Neutral	¥3.02B	―	―	―	4.11%	33.06%