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

• Market Cap: $22.10M
• Dividend Yield: 0.92%
• Average Volume (3M): 16.52K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.77
• Revenue Growth: -0.82%
• EPS Growth: 5.30%
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Development
• EPS (TTM): 0.30
• Shares Outstanding: 13,641,900
• 10 Day Avg. Volume: 6,060
• 30 Day Avg. Volume: 16,522
• PEG Ratio: 1.27
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $2.00 ▲(7.53%Upside)

Lead Real Estate Co., Ltd. benefits from strong revenue growth and stable profitability, coupled with robust technical indicators and attractive valuation metrics. However, high leverage and negative free cash flow present financial risks that must be managed to sustain long-term growth.

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

Company Description

Lead 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 Money

Lead Real Estate Co., Ltd. generates revenue through several key streams. The primary source of income is the sale and leasing of residential and commercial properties. The company undertakes development projects, constructing properties that are then sold to individual buyers or investors. Additionally, LRE earns recurring revenue by leasing its commercial and residential properties, providing property management services, and engaging in strategic partnerships with local and international real estate firms. These partnerships often enhance their market reach and provide a diversified income source. Other contributing factors to its earnings may include consulting services related to real estate development and property management.

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, it faces significant challenges with a high debt-to-equity ratio and negative free cash flow. Improvements in operating cash flow provide a positive outlook, but reducing leverage and enhancing free cash flow are crucial for long-term stability.

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: Positive
• Last Price: 1.86
• 50DMA: Positive
• 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 Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.77, above the 50-day MA of 1.48, and above the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$116.06M	8.71	10.82%	―	30.36%	481.87%
LRE	76 Outperform	$22.10M	5.15	18.25%	0.92%	-0.82%	5.30%
Sector *	63 Neutral	€3.73B	5.07	-2.71%	4.04%	-3.17%	24.15%
ARL	55 Neutral	$234.20M	―	-2.20%	―	-6.48%	-592.10%
XIN		$9.93M	0.42		―	―	―
AMBR	57 Neutral	$96.21M	―	-95.79%	―	-75.67%	―
AEI		$11.03M	―	-7.00%	―	―	―