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LY Corporation (YAHOY)
OTHER OTC:YAHOY
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LY Corporation
(OTC:YAHOY)
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Rating:64Neutral
Price Target:
$5.50
▲(1.10% Upside)
LY Corporation's strong financial performance is the most significant factor, reflecting robust revenue growth and profitability. However, technical analysis indicates bearish momentum, which negatively impacts the stock score. The valuation is reasonable, providing some support to the overall score.
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.56B
Dividend Yield1.81%
Average Volume (3M)10.21K
Price to Earnings (P/E)20.6
Beta (1Y)0.02
Revenue Growth7.22%
EPS Growth110.36%
CountryUS
Employees28,196
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.18
Shares Outstanding3,441,092,500
10 Day Avg. Volume19,762
30 Day Avg. Volume10,206
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)1.24
Price to Sales (P/S)1.94
P/FCF Ratio8.86
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LY Corporation Business Overview & Revenue Model
Company DescriptionLY Corp. engages in the management of group companies and related operations. It operates through the following segments: Media and Commerce. The Media segment covers the advertisement related services that include search linked advertisement and display advertisement. The Commerce segment handles the commerce related services in Yahoo Auction!, Yahoo! Shopping, ASKUL Corp., and Yahoo! Premium. It also provides the settlement finance related services. The company was founded on January 31, 1996 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyLY Corporation generates revenue through multiple streams, primarily by selling its telecommunications equipment and software solutions to businesses and consumers. The company earns significant income from direct sales, licensing agreements, and subscription services for its software products. Additionally, LY Corporation has established strategic partnerships with major tech firms and telecommunications providers, enabling it to expand its market reach and enhance its product offerings. These collaborations often lead to joint ventures and co-branded products, further contributing to the company's revenue. The recurring nature of subscription-based services provides a stable income source, while ongoing research and development efforts ensure that LY Corporation remains competitive in the rapidly evolving tech landscape.
LY Corporation Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
While LY Corporation demonstrated strong financial performance with significant growth in adjusted EBITDA and strategic business segments, there were notable challenges in display and search advertising. The company's focus on transforming its platforms and preparing for PayPay's IPO indicates a forward-looking strategy, though uncertainty remains in the strategic business forecast.Q4-2024 Updates
Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA grew 13.5% year-on-year to JPY470.8 billion, with a margin expanded to 24.6%.
Significant Share Repurchase
Announced up to JPY150 billion share repurchase to improve capital efficiency.
Media Business Performance
Highly profitable account ads showed strong growth with adjusted EBITDA growing 11.6% year-on-year and margin increasing to 38.8%.
Strategic Business Growth
Revenue in the Strategic Business exceeded JPY300 billion, with PayPay consolidated achieving 17.7% year-on-year growth.
PayPay's High Growth Trajectory
Total consolidated GMV rose by 23.4% year-over-year with consolidated EBITDA surging to JPY45.5 billion.
Earnings Guidance for Fiscal '25
Expecting entire group revenue to grow by approximately 9% and adjusted EPS to increase by 4.0% to 7.9%.
Negative Updates
Commerce Ads Revenue Decline
Commerce ads revenue declined, although a major growth was realized in the second half of FY '23 through disciplined sales promotion investment.
Challenges in Display Advertising
Display advertising revenue declined by 1.4% year-on-year due to decreased demand in some industries.
Search Advertising Revenue Struggles
Partners' website revenue declined in search advertising despite improvements in LY Corporation's website functionality.
Flat EBITDA Growth in Media
Despite revenue growth in Media, EBITDA growth is expected to be flat due to costs associated with generative AI.
Uncertainty in Strategic Business Forecast
Due to preparations for PayPay's IPO, financial forecast numbers for PayPay consolidated in fiscal '25 are withheld, creating uncertainty.
Company Guidance
During the LY Corporation FY 2024 full-year and Q4 earnings call, the company reported a 13.5% year-on-year increase in adjusted EBITDA to JPY470.8 billion and a 11.7% rise in adjusted EPS. The company outlined its FY 2025 focus on three main areas: transforming LINE Official Account and LINE MINI App into business platforms, evolving PayPay from a payment app to a digital financial platform, and deploying AI agents in consumer-facing services. For FY 2025, LY Corporation anticipates high single-digit growth in both revenue and profit, with entire group revenue expected to grow by approximately 9% and adjusted EBITDA by 6.2% to 8.3%. Additionally, the company plans a JPY150 billion share repurchase to improve capital efficiency and aims for a cumulative total payout ratio of over 70% over the next five years. The company also discussed initiatives in the Media, Commerce, and Strategic segments, highlighting growth in account advertising and the integration of PayPay Bank under PayPay.LY Corporation Financial Statement Overview
Summary
LY Corporation exhibits strong financial health with robust revenue growth and profitability. The balance sheet is solid, with manageable leverage and a strong equity position. Cash flow generation is improving, supporting the company's operational and strategic initiatives. Minor pressures on net margins and returns on equity are noted, but overall financial performance remains strong.Income Statement
LY Corporation has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) increase of 1.38% and consistent annual growth. The gross profit margin remains robust at over 72%, indicating effective cost management. However, the net profit margin has slightly decreased in the TTM, suggesting some pressure on net earnings. Overall, profitability metrics such as EBIT and EBITDA margins are healthy, reflecting operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet shows a moderate debt-to-equity ratio of 0.68 in the TTM, indicating a balanced approach to leveraging. Return on equity is stable, though slightly lower than previous periods, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, reflecting a strong capital base.78
Positive
Cash Flow
LY Corporation's cash flow statement highlights a positive free cash flow growth rate of 8.14% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio suggests that cash flows are well-aligned with reported earnings. The free cash flow to net income ratio is strong, underscoring the company's ability to convert profits into cash.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.94T | 1.92T | 1.81T | 1.67T | 1.57T | 1.21T |
| Gross Profit | 1.41T | 1.39T | 1.29T | 1.16T | 1.07T | 773.40B |
| EBITDA | 490.23B | 431.85B | 361.30B | 306.81B | 325.25B | 283.52B |
| Net Income | 150.65B | 153.47B | 113.20B | 178.87B | 77.32B | 70.14B |
Balance Sheet | ||||||
| Total Assets | 10.15T | 9.16T | 9.04T | 8.59T | 7.11T | 6.70T |
| Cash, Cash Equivalents and Short-Term Investments | 1.10T | 1.04T | 1.42T | 1.65T | 1.13T | 1.07T |
| Total Debt | 1.98T | 1.69T | 1.88T | 1.91T | 1.67T | 1.39T |
| Total Liabilities | 6.70T | 5.74T | 5.60T | 5.27T | 4.13T | 3.71T |
| Stockholders Equity | 2.89T | 3.00T | 3.04T | 2.92T | 2.68T | 2.68T |
Cash Flow | ||||||
| Free Cash Flow | 454.00B | 419.85B | 245.47B | -55.94B | -6.32B | 137.18B |
| Operating Cash Flow | 527.27B | 519.59B | 316.48B | 93.05B | 266.31B | 207.92B |
| Investing Cash Flow | -546.92B | -505.63B | -444.06B | 319.79B | -303.90B | -12.35B |
| Financing Cash Flow | -144.56B | -416.80B | -81.49B | 105.79B | 91.63B | -12.07B |
LY Corporation Technical Analysis
Negative
5.44
Price Trends
6.02
Negative
6.44
Negative
6.77
Negative
Market Momentum
-0.17
Positive
33.60
Neutral
14.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YAHOY, the sentiment is Negative. The current price of 5.44 is below the 20-day moving average (MA) of 5.63, below the 50-day MA of 6.02, and below the 200-day MA of 6.77, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 33.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YAHOY.
LY Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $23.12B | 19.76 | 48.52% | ― | 2.94% | 4.57% | |
71 Outperform | $27.96B | 25.54 | 45.46% | 1.68% | 4.26% | 0.73% | |
70 Outperform | $36.54B | 17.59 | 42.43% | 1.40% | 4.89% | 17.30% | |
64 Neutral | $19.56B | 20.63 | 5.16% | 1.81% | 7.22% | 110.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $5.24B | 37.12 | ― | ― | 1.98% | -20.98% | |
54 Neutral | $13.81B | 93.93 | 34.48% | ― | 9.04% | -56.79% |
* Consumer Cyclical Sector Average
YAHOY
LY Corporation
5.44
0.06
1.12%
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LY Corporation Corporate Events
Ly Corporation Reports Strong Growth in Latest Earnings
Nov 5, 2025
Ly Corporation Unsponsored Adr is a diversified company operating primarily in the media, commerce, and strategic business sectors, with a notable presence in fintech through its PayPay platform. The company recently released its earnings report for the six months ending September 30, 2025, showcasing significant growth across various financial metrics.
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.