Lead Real Estate Co., Ltd. Sponsored ADR (LRE) AI Stock Analysis

• Market Cap: $17.73M
• Dividend Yield: 3.4%
• Average Volume (3M): 122.37K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.95
• Revenue Growth: 0.11%
• EPS Growth: 39.20%
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 13,641,900
• 10 Day Avg. Volume: 106,657
• 30 Day Avg. Volume: 122,369
• PEG Ratio: -0.04
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 4.67
• Enterprise Value/Market Cap: 838.19
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 14.03
• 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: 59 Neutral
• Price Target: $1.50 ▲(7.14% Upside)

The overall stock score of 58.5 reflects significant financial challenges, particularly with revenue decline and cash flow issues, which are partially offset by an attractive valuation. Technical indicators suggest a neutral trend, with no strong momentum. The low P/E ratio and decent dividend yield highlight potential undervaluation, but financial risks remain a concern.

Positive Factors

Net Income Growth

The significant increase in net income indicates improved profitability, suggesting effective cost management and a favorable sales mix, which can enhance long-term financial health.

Margin Improvement

The improvement in gross margin reflects the company's ability to optimize its sales mix, which can lead to sustained profitability and competitive advantage in the market.

Strategic Expansion

Strategic expansion into international markets can diversify revenue streams and reduce dependency on local markets, potentially leading to long-term growth and stability.

Negative Factors

Revenue Decline

The sharp decline in revenue poses a major risk to the company's financial stability, as it may impact its ability to invest in growth initiatives and maintain competitive positioning.

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, potentially affecting long-term sustainability and growth opportunities.

Negative Cash Flow Growth

Negative cash flow growth indicates challenges in generating cash from operations, which can constrain the company's ability to fund new projects and meet financial obligations.

Lead Real Estate Co., Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

Lead Real Estate Co., Ltd. Sponsored ADR (LRE) is a prominent player in the real estate sector, focusing on property development, leasing, and investment management. The company operates across various segments, including residential, commercial, and industrial real estate, providing a diverse portfolio of properties that cater to a wide range of clients. LRE is committed to delivering high-quality developments and enhancing asset value through strategic acquisitions and innovative management practices.

How the Company Makes Money

Lead Real Estate Co., Ltd. generates revenue through multiple streams, primarily from property sales, rental income, and property management fees. The company earns significant income by developing residential and commercial properties and then selling them to investors or end-users. Additionally, LRE leases properties to tenants, providing a steady cash flow through rental agreements. The company also offers property management services, charging fees for managing properties on behalf of owners. Strategic partnerships with local governments and other real estate firms enhance its market reach and operational efficiency, contributing to its overall earnings.

Lead Real Estate Co., Ltd. Sponsored ADR Financial Statement Overview

Summary

Lead Real Estate Co., Ltd. exhibits strong revenue growth and improving profitability, supported by a solid balance sheet with increasing equity. However, high leverage and negative free cash flow present potential risks. The company should focus on enhancing operational efficiencies and managing debt levels to sustain its growth trajectory and improve cash flow stability.

Income Statement

Lead Real Estate Co., Ltd. has demonstrated strong revenue growth over the years, with a significant increase from 2020 to 2024. The company maintains a healthy gross profit margin, indicating efficient cost management. Net profit margin has also improved, reflecting enhanced profitability. However, EBIT and EBITDA margins show room for improvement, suggesting potential operational efficiencies could be explored.

Balance Sheet

The company's balance sheet shows a robust equity growth, with stockholders' equity increasing significantly over the period. The debt-to-equity ratio is relatively high, indicating substantial leverage, which could pose risks if not managed properly. The equity ratio has improved, reflecting a stronger financial position. Overall, the balance sheet is stable but highlights the need for careful debt management.

Cash Flow

Cash flow analysis reveals a challenging scenario with negative free cash flow in recent years, although there is a positive trend in operating cash flow. The operating cash flow to net income ratio indicates that the company is generating cash effectively relative to its net income. However, the free cash flow to net income ratio suggests that capital expenditures are significantly impacting cash reserves, necessitating strategic financial planning.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.27B	125.93M	18.95B	17.44B	14.69B	11.26B
Gross Profit	3.32B	24.92M	2.95B	2.76B	2.44B	1.49B
EBITDA	1.06B	10.60M	1.08B	1.03B	904.86M	481.20M
Net Income	572.33M	5.66M	626.96M	611.92M	551.62M	279.49M
Balance Sheet
Total Assets	17.22B	142.77M	17.22B	15.82B	12.42B	9.41B
Cash, Cash Equivalents and Short-Term Investments	1.30B	18.39M	1.30B	786.37M	403.11M	480.32M
Total Debt	11.60B	90.06M	11.60B	11.37B	8.80B	5.93B
Total Liabilities	12.98B	107.94M	12.98B	13.07B	10.22B	7.77B
Stockholders Equity	4.24B	34.89M	4.24B	2.75B	2.21B	1.64B
Cash Flow
Free Cash Flow	-418.32M	5.29M	-655.96M	-2.36B	-3.47B	-414.89M
Operating Cash Flow	1.88B	22.14M	1.57B	-1.12B	-2.93B	-244.66M
Investing Cash Flow	-2.31B	-17.52M	-2.24B	-1.26B	-19.08M	-160.43M
Financing Cash Flow	995.96M	4.65M	1.18B	2.55B	2.85B	555.60M

Lead Real Estate Co., Ltd. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRE, the sentiment is Negative. The current price of 1.4 is above the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.41, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRE.

Lead Real Estate Co., Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	67 Neutral	$100.80M	9.71	8.04%	―	-27.32%	-15.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
LRE	59 Neutral	$17.73M	3.13	18.83%	3.40%	0.11%	39.20%
ARL	53 Neutral	$258.11M	44.81	0.95%	―	-0.58%	―
AMBR	41 Neutral	$167.69M	-0.52	―	―	-75.38%	―

Lead Real Estate Co., Ltd. Sponsored ADR Corporate Events

Lead Real Estate Co., Ltd Reports Strong Fiscal Year 2025 Results

Lead Real Estate Co., Ltd announced its fiscal year 2025 results, highlighting a 35.1% increase in net income to JPY846.8 million. Despite a slight decline in total revenue to JPY18.8 billion, the company improved its gross margin to 19.8% due to a favorable sales mix and higher-margin hotel transactions. The company is strategically expanding its hotel operations and plans to acquire international properties, aiming for renewed revenue growth and enhanced profitability in fiscal 2026.