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

• Market Cap: $27.01M
• Dividend Yield: 1.02%
• Average Volume (3M): 43.77K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.85
• Revenue Growth: -4.55%
• EPS Growth: -115.10%
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 59
• Industry: Real Estate - Development
• EPS (TTM): 0.30
• Shares Outstanding: 13,641,900
• 10 Day Avg. Volume: 110,888
• 30 Day Avg. Volume: 43,771
• 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: 3.48
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: $1.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $1.50 ▼(-10.71% Downside)

The overall stock score for Lead Real Estate Co., Ltd. is primarily impacted by strong financial performance, despite risks associated with high leverage and negative free cash flow. The technical analysis indicates a bearish outlook, contributing to a lower score. Valuation concerns due to a negative P/E ratio further weigh down the score. The company needs to address operational efficiencies and debt management to improve its stock performance.

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

Company Description

Lead Real Estate Co., Ltd. Sponsored ADR (LRE) is a company operating within the real estate sector, providing a variety of services related to property development, sales, and management. The company focuses on developing residential, commercial, and mixed-use properties, offering a comprehensive range of services from project planning and construction to sales and property management. LRE is known for its innovative approach to real estate development and its commitment to delivering high-quality properties.

How the Company Makes Money

Lead Real Estate Co., Ltd. generates revenue primarily through the sale and lease of residential and commercial properties. The company earns income from the development and subsequent sale of real estate projects, as well as from leasing properties to tenants. Additionally, LRE may provide property management services, which can include maintenance and tenant management, offering another stream of revenue. The company might also engage in strategic partnerships or joint ventures with other real estate firms to expand its portfolio and market reach, contributing further to its earnings.

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

Summary

Lead Real Estate Co., Ltd. shows strong revenue growth and stable profitability margins. However, the high debt-to-equity ratio and negative free cash flow suggest financial risks. Improvements in stockholders' equity and operating cash flow are positive but reducing leverage and enhancing free cash flow remain crucial.

Income Statement

Lead Real Estate Co., Ltd. shows strong revenue growth, increasing from $8.68 billion in 2020 to $18.95 billion in 2024. Gross profit margins have improved over time, suggesting efficient cost management, with a margin of approximately 15.6% in 2024. The company maintains a stable net profit margin of around 3.3% in 2024. EBIT and EBITDA margins are moderate, indicating reasonable operational efficiency. Overall, the company exhibits strong growth trends and stable profitability metrics.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage. As of 2024, the debt-to-equity ratio is approximately 2.73, which could pose financial risks if not managed carefully. However, stockholders' equity has grown substantially from 2020 to 2024, reflecting financial strengthening. The equity ratio is about 24.7% in 2024, showing moderate financial stability. While there is notable improvement in equity, the high debt levels suggest potential risk exposure.

Cash Flow

Free cash flow has been negative over the years, although it shows signs of improvement, moving from -$321 million in 2020 to -$655 million in 2024. Operating cash flow has turned positive at $1.57 billion in 2024, significantly improving from previous years, indicating better cash management. However, free cash flow remains a challenge, and improvements in this area are necessary for long-term financial health.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	18.95B	17.44B	14.32B	11.26B	8.68B
Gross Profit	2.95B	2.76B	2.44B	1.49B	993.50M
EBITDA	1.08B	1.03B	904.86M	505.65M	255.52M
Net Income	626.96M	611.92M	528.75M	279.49M	101.44M
Balance Sheet
Total Assets	17.22B	15.82B	12.42B	9.41B	8.30B
Cash, Cash Equivalents and Short-Term Investments	1.30B	786.37M	403.11M	480.32M	329.54M
Total Debt	11.60B	11.37B	8.80B	6.62B	6.25B
Total Liabilities	12.98B	13.07B	10.22B	7.77B	7.01B
Stockholders Equity	4.24B	2.75B	2.21B	1.64B	1.27B
Cash Flow
Free Cash Flow	-655.96M	-2.36B	-3.47B	-414.89M	-321.29M
Operating Cash Flow	1.57B	-1.12B	-2.93B	-244.66M	-51.30M
Investing Cash Flow	-2.24B	-1.25B	-19.08M	-160.43M	-312.88M
Financing Cash Flow	1.18B	2.55B	2.85B	555.60M	402.65M

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

• Technical Analysis Sentiment: Neutral
• Last Price: 1.68
• 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 LRE, the sentiment is Neutral. The current price of 1.68 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 1.77, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	$117.95M	9.28	10.25%	―	30.36%	481.87%
Sector *	63 Neutral	$6.81B	13.54	-1.43%	7.28%	4.64%	-34.02%
LRE	53 Neutral	$27.01M	5.68	-2.06%	1.02%	-4.55%	-115.10%
AMBR	49 Neutral	$648.29M	―	-95.79%	―	-75.67%	―
ARL	47 Neutral	$206.91M	―	-2.20%	―	-6.48%	-592.10%