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Lead Real Estate Co., Ltd. Sponsored ADR (LRE)
NASDAQ:LRE
US Market
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Lead Real Estate Co., Ltd. Sponsored ADR (LRE) AI Stock Analysis

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LRE

Lead Real Estate Co., Ltd. Sponsored ADR

(NASDAQ:LRE)

Rating:53Neutral
Price Target:
$1.50
▲(3.45% Upside)
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 (LRE) vs. SPDR S&P 500 ETF (SPY)

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

Company DescriptionLead Real Estate Co., Ltd, together with its subsidiaries, develops and sells luxury residential properties. The company develops single-family homes and condominiums. It operates hotels in Tokyo and leases apartment building units in Japan and Dallas, Texas. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyLead 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. 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
82
Very Positive
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
75
Positive
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
68
Positive
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.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue19.27B18.95B17.44B14.32B11.26B8.68B
Gross Profit3.32B2.95B2.76B2.44B1.49B993.50M
EBITDA1.06B1.08B1.03B904.86M505.65M255.52M
Net Income572.33M626.96M611.92M528.75M279.49M101.44M
Balance Sheet
Total Assets17.22B17.22B15.82B12.42B9.41B8.30B
Cash, Cash Equivalents and Short-Term Investments1.30B1.30B786.37M403.11M480.32M329.54M
Total Debt11.60B11.60B11.37B8.80B6.62B6.25B
Total Liabilities12.98B12.98B13.07B10.22B7.77B7.01B
Stockholders Equity4.24B4.24B2.75B2.21B1.64B1.27B
Cash Flow
Free Cash Flow-418.32M-655.96M-2.36B-3.47B-414.89M-321.29M
Operating Cash Flow1.88B1.57B-1.12B-2.93B-244.66M-51.30M
Investing Cash Flow-2.31B-2.24B-1.25B-19.08M-160.43M-312.88M
Financing Cash Flow995.96M1.18B2.55B2.85B555.60M402.65M

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

Technical Analysis Sentiment
Negative
Last Price1.45
Price Trends
50DMA
1.67
Negative
100DMA
1.56
Negative
200DMA
1.61
Negative
Market Momentum
MACD
-0.07
Positive
RSI
40.92
Neutral
STOCH
25.78
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 1.45 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.67, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 25.78 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 Risk Analysis

Lead Real Estate Co., Ltd. Sponsored ADR disclosed 50 risk factors in its most recent earnings report. Lead Real Estate Co., Ltd. Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$110.31M8.7710.25%-3.26%89.15%
63
Neutral
$7.02B13.29-0.50%6.92%4.08%-25.24%
53
Neutral
$19.78M5.68-2.06%1.18%-4.55%-115.10%
43
Neutral
$244.22M-1.93%-4.84%-412.72%
$14.47M0.42
45
Neutral
$327.89M-95.79%-75.67%
$72.17M-16.44%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LRE
Lead Real Estate Co., Ltd. Sponsored ADR
1.45
-0.04
-2.68%
ARL
American Realty Investors
15.86
-1.34
-7.79%
AXR
Amrep
20.79
-1.55
-6.94%
XIN
Xinyuan Real Estate Co
1.95
-0.91
-31.82%
AMBR
Amber International Holding
3.78
0.88
30.34%
AEI
Alset EHome International
1.84
0.73
65.77%
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.Date of analysis: Aug 01, 2025