LEIFRAS Co., Ltd. Sponsored ADR (LFS) AI Stock Analysis

• Market Cap: $98.63M
• Dividend Yield: N/A
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 34.7
• Beta (1Y): -3.43
• Revenue Growth: 12.19%
• EPS Growth: 72.87%
• Country: US
• Employees: 999
• Sector: Communication Services
• Sector Strength: 97
• Industry: Education & Training Services
• EPS (TTM): N/A
• Shares Outstanding: 26,160,620
• 10 Day Avg. Volume: 9,323,467
• 30 Day Avg. Volume: 3,166,281
• PEG Ratio: 0.45
• Price to Book (P/B): 12.46
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 74.98
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 57 Neutral
• Price Target: $5.00 ▲(31.58% Upside)

LEIFRAS Co., Ltd. shows strong financial performance with revenue growth and improved profitability, but faces challenges in cash flow management. Technical indicators suggest mixed signals with potential short-term bearish sentiment. The valuation indicates the stock may be overvalued, reflecting high growth expectations. The absence of dividend yield limits immediate income potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Profitability Improvement

Enhanced profitability through improved margins suggests effective cost control, contributing to sustainable financial health.

Strategic Partnerships

Strategic partnerships expand market reach and distribution capabilities, bolstering revenue streams and competitive positioning.

Negative Factors

Cash Flow Challenges

Declining cash flow growth can hinder operational flexibility and investment capacity, posing risks to long-term growth.

Low Equity Ratio

A low equity ratio indicates potential financial vulnerability, increasing risk if debt levels are not managed effectively.

Moderate Operational Efficiency

Moderate operational efficiency suggests room for improvement in cost management and resource utilization to enhance profitability.

LEIFRAS Co., Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

A sports and social business company in Japan. It operates children’s sports schools and organizes sports events, and also has social business activities in community engagement.

How the Company Makes Money

LEIFRAS generates revenue through multiple streams, including the sale of consumer electronics, subscription services for its software applications, and licensing fees from its technology solutions. The company has established significant partnerships with leading retailers and e-commerce platforms, which facilitate its product distribution and expand its market reach. Additionally, LEIFRAS leverages its research and development capabilities to continuously innovate, allowing it to maintain a competitive edge and attract a loyal customer base. The combination of direct sales, subscription models, and strategic partnerships contributes significantly to the company's overall earnings.

LEIFRAS Co., Ltd. Sponsored ADR Financial Statement Overview

Summary

LEIFRAS Co., Ltd. demonstrates strong revenue growth and improved profitability, with effective leverage management reflected in a reduced debt-to-equity ratio. However, cash flow challenges and a low equity ratio indicate potential risks. Continued focus on operational efficiency and cash flow management will be crucial for sustaining growth and financial stability.

Income Statement

LEIFRAS Co., Ltd. shows strong revenue growth with a 10.24% increase in 2024, following a 21.01% rise in 2023. Gross profit margin improved to 28.54% in 2024, indicating better cost management. Net profit margin also increased to 4.05%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improving, remain moderate at 5.37% and 6.55%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio improved significantly from 4.29 in 2022 to 1.67 in 2024, indicating better leverage management. Return on equity remains strong at 40.22%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

LEIFRAS Co., Ltd. experienced a significant decline in free cash flow growth by 74.30% in 2024, indicating potential cash flow challenges. The operating cash flow to net income ratio decreased to 0.07, suggesting weaker cash generation relative to net income. However, the free cash flow to net income ratio remains healthy at 0.84, indicating that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	3.14B	10.33B	9.30B	7.69B
Gross Profit	990.42M	2.95B	2.34B	1.96B
EBITDA	333.82M	676.49M	516.40M	358.70M
Net Income	175.85M	418.63M	245.34M	178.03M
Balance Sheet
Total Assets	4.78B	4.50B	4.38B	3.52B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.54B	2.73B	2.08B
Total Debt	1.71B	1.73B	1.87B	1.80B
Total Liabilities	3.48B	3.45B	3.76B	3.10B
Stockholders Equity	1.30B	1.04B	622.23M	420.28M
Cash Flow
Free Cash Flow	17.18M	172.98M	673.16M	377.55M
Operating Cash Flow	18.79M	207.11M	677.94M	401.50M
Investing Cash Flow	-1.68M	-51.39M	-4.78M	66.04M
Financing Cash Flow	-78.17M	-346.45M	-20.98M	404.37M

LEIFRAS Co., Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	68 Neutral	$81.22M	1.56	51.70%	―	-0.84%	-11.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LFS	57 Neutral	$98.63M	34.67	49.19%	―	12.19%	72.87%
BEDU	51 Neutral	$66.88M	-0.49	―	―	-23.75%	-201.80%
RYET	48 Neutral	$42.19M	―	―	―	―	―
YQ	41 Neutral	$36.08M	-1.63	-44.00%	―	-48.17%	35.62%
GNS	40 Underperform	$57.43M	-1.11	-62.24%	―	-64.39%	-305.82%