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Leju Holdings Ltd (LEJUY)
OTHER OTC:LEJUY

Leju Holdings Ltd (LEJUY) AI Stock Analysis

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Leju Holdings Ltd

(OTC:LEJUY)

Rating:32Underperform
Price Target:
Leju Holdings Ltd's stock is significantly challenged by financial instability, evidenced by negative revenues, profitability, and cash flow issues. Technical analysis reinforces a bearish outlook, and valuation metrics do not provide any relief. The absence of guidance or positive sentiment from the earnings call adds to the uncertainty, leading to a low overall score.

Leju Holdings Ltd (LEJUY) vs. SPDR S&P 500 ETF (SPY)

Leju Holdings Ltd Business Overview & Revenue Model

Company DescriptionLeju Holdings Ltd (LEJUY) is a leading provider of online-to-offline (O2O) real estate services in China. The company operates an integrated platform that includes online advertising, e-commerce services, and listing services for residential properties. Leju partners with various real estate developers and agents to offer a comprehensive suite of services that facilitate property transactions and enhance customer engagement in the Chinese real estate market.
How the Company Makes MoneyLeju Holdings Ltd generates revenue primarily through three key streams: online advertising services, e-commerce services, and listing services. The online advertising services involve marketing and promotional activities for real estate developers and agents, helping them reach a broader audience through Leju's online platform. E-commerce services generate income by assisting transactions of new properties, wherein Leju earns commissions and service fees. Additionally, the company offers listing services for secondary real estate markets, allowing agents and homeowners to list properties for a fee. Strategic partnerships with major real estate developers and technology platforms further enhance Leju's ability to deliver value-added services and reach a wide customer base, contributing significantly to its earnings.

Leju Holdings Ltd Financial Statement Overview

Summary
Leju Holdings Ltd is facing severe financial difficulties with declining revenues and persistent profitability challenges. The negative net income, coupled with operational inefficiencies, is concerning. The balance sheet reveals potential insolvency issues with negative equity, and cash flows are also weak, indicating poor cash management.
Income Statement
28
Negative
Leju Holdings Ltd has been experiencing declining revenues over the past years, with a revenue decrease from $719.5M in 2020 to $316.9M in 2023. The company continues to report negative net income, indicating persistent profitability challenges. The gross profit margin remains healthy at approximately 92.7% for 2023, but the negative EBIT and EBITDA margins highlight significant operational inefficiencies.
Balance Sheet
15
Very Negative
The balance sheet is concerning, with negative stockholders' equity of -$1.17M in 2023, indicating potential insolvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, further underscoring financial instability. Additionally, the equity ratio is negative, showing that liabilities exceed assets.
Cash Flow
23
Negative
The company has been consistently generating negative free cash flow, with a free cash flow of -$73.7M in 2023. The operating cash flow to net income ratio is not meaningful due to both figures being negative. This indicates poor cash generation relative to its net income losses, reflecting significant cash flow management challenges.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
316.85M343.18M534.12M719.53M692.60M
Gross Profit
293.76M312.58M478.32M645.76M624.31M
EBIT
-58.74M-105.62M-166.75M24.12M-251.72K
EBITDA
-46.71M-93.04M-153.38M38.46M32.90M
Net Income Common Stockholders
-55.93M-89.67M-150.93M19.30M11.52M
Balance SheetCash, Cash Equivalents and Short-Term Investments
54.35M123.38M251.50M288.79M3.44M
Total Assets
102.19M216.11M437.25M641.96M524.48M
Total Debt
11.01M21.20M25.80M27.19M28.06M
Net Debt
-37.20M-102.18M-224.51M-257.30M-130.96M
Total Liabilities
103.49M163.15M286.19M347.18M272.12M
Stockholders Equity
-1.17M53.23M151.26M295.93M255.40M
Cash FlowFree Cash Flow
-73.70M-108.12M-41.00M106.94M11.73M
Operating Cash Flow
-73.65M-107.98M-39.89M108.49M19.70M
Investing Cash Flow
2.58M6.35K-318.31K101.77K-5.59M
Financing Cash Flow
-740.38K-51.97K1.03M540.26K69.21K

Leju Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.10
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
32.11
Neutral
STOCH
0.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEJUY, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.04, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 32.11 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LEJUY.

Leju Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ZZ
66
Neutral
$16.92B-1.72%14.96%49.24%
ZGZG
64
Neutral
$16.92B-1.72%14.96%49.24%
61
Neutral
$2.83B10.720.40%6.10%5.80%-21.26%
61
Neutral
$313.16M18.132.01%-4.61%
55
Neutral
$1.38B199.35%5.11%-29.67%
44
Neutral
$438.50M-47.67%2.36%-23.60%
32
Underperform
$2.76K4766.48%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LEJUY
Leju Holdings Ltd
0.03
-0.30
-90.91%
RMAX
Re/Max Holdings
7.86
-0.27
-3.32%
ZG
Zillow Group Class A
69.08
23.54
51.69%
RDFN
Redfin
10.80
4.75
78.51%
OPEN
Opendoor Technologies
0.58
-1.41
-70.85%
Z
Zillow Group Class C
70.37
23.56
50.33%
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.