Education
About Us
Working with TipRanks
Follow Us
Ly Corporation Unsponsored Adr (YAHOY)
:YAHOY
Top Page
LY Corporation
(OTC:YAHOY)
Rating:72Outperform
Price Target:―
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.73B
Dividend Yield0.65%
Average Volume (3M)4.29K
Price to Earnings (P/E)26.2
Beta (1Y)0.16
Revenue Growth-1.16%
EPS Growth-6.96%
CountryUS
Employees28,196
SectorConsumer Cyclical
Sector Strength60
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.05
Shares Outstanding3,471,482,000
10 Day Avg. Volume12,869
30 Day Avg. Volume4,289
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio-50.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
LY Corporation Business Overview & Revenue Model
Company DescriptionLY Corporation (YAHOY) is a multinational conglomerate known for its diverse range of services in the technology and internet sectors. The company operates through various segments including digital advertising, e-commerce, online services, and telecommunications. Its core offerings include a comprehensive suite of internet services such as search engines, online shopping platforms, and cloud computing services, catering to both individual consumers and businesses globally.
How the Company Makes MoneyLY Corporation generates revenue primarily through its digital advertising and e-commerce platforms. Advertising revenue is driven by the company's ability to leverage its extensive user base and sophisticated targeting capabilities, offering advertisers effective tools to reach potential customers. E-commerce sales contribute significantly as well, with the company facilitating transactions on its platforms and earning fees from sellers and buyers. Additionally, LY Corporation benefits from subscription services and premium offerings within its online services, as well as strategic partnerships and joint ventures in the telecommunications sector, which help diversify its income streams.
LY Corporation Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q4-2024)
| % Change Since: -4.02%|
Next Earnings Date:Aug 01, 2025
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 a solid financial foundation with stable revenue growth, healthy cash flow generation, and moderate leverage. While the company faces challenges in improving operating profitability, its strong equity base and effective cash flow management position it well for future growth opportunities in the retail sector. Continued focus on enhancing profit margins will be crucial for sustaining overall financial health.Income Statement
LY Corporation has demonstrated a stable revenue growth trajectory over recent years, evidenced by a revenue growth rate of 8.5% from 2023 to 2024. The gross profit margin remains robust at 71.3%, indicating effective cost management. However, the decline in EBIT margin from 18.8% to 10.9% suggests pressure on operating profitability, and the drop in net profit margin from 10.7% to 6.2% highlights challenges in maintaining bottom-line growth.78
Positive
Balance Sheet
The company's balance sheet reflects strong equity with an equity ratio of 33.6%. The debt-to-equity ratio is moderate at 0.62, indicating manageable leverage levels. Return on equity decreased from 6.1% to 3.7%, signaling room for improvement in generating shareholder returns. Overall, the balance sheet demonstrates financial stability with a healthy asset base.82
Very Positive
Cash Flow
LY Corporation's cash flow performance is commendable, with a substantial improvement in free cash flow from negative to a positive 245.5 billion, reflecting effective capital expenditure management. The operating cash flow to net income ratio of 2.8 signifies strong cash generation relative to earnings. The firm's ability to convert earnings into cash is a significant strength, providing a cushion for future investments.85
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.85T | 1.81T | 1.67T | 1.57T | 1.21T | 1.05T |
| Gross Profit | 1.32T | 1.29T | 1.16T | 1.07T | 773.40B | 628.48B |
| EBITDA | 388.62B | 361.30B | 306.81B | 325.25B | 283.52B | 235.69B |
| Net Income | 127.41B | 113.20B | 178.87B | 77.32B | 70.14B | 81.67B |
Balance Sheet | ||||||
| Total Assets | 8.97T | 9.04T | 8.59T | 7.11T | 6.70T | 3.93T |
| Cash, Cash Equivalents and Short-Term Investments | 1.26T | 1.42T | 1.65T | 1.13T | 1.07T | 880.10B |
| Total Debt | 1.83T | 1.88T | 1.91T | 1.67T | 1.39T | 1.09T |
| Total Liabilities | 5.50T | 5.60T | 5.27T | 4.13T | 3.71T | 2.89T |
| Stockholders Equity | 3.08T | 3.04T | 2.92T | 2.68T | 2.68T | 771.55B |
Cash Flow | ||||||
| Free Cash Flow | 367.12B | 245.47B | -55.94B | -6.32B | 137.18B | 158.15B |
| Operating Cash Flow | 389.66B | 316.48B | 93.05B | 266.31B | 207.92B | 243.28B |
| Investing Cash Flow | -484.95B | -444.06B | 319.79B | -303.90B | -12.35B | -503.03B |
| Financing Cash Flow | -48.85B | -81.49B | 105.79B | 91.63B | -12.07B | 593.41B |
LY Corporation Technical Analysis
Negative
7.17
Price Trends
7.31
Negative
7.12
Positive
6.36
Positive
Market Momentum
>-0.01
Negative
46.93
Neutral
56.63
Neutral
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 7.17 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 7.31, and above the 200-day MA of 6.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 56.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YAHOY.
LY Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $21.30B | 19.60 | 51.10% | 1.52% | 1.64% | 8.57% | |
77 Outperform | $35.20B | 18.25 | 36.48% | 1.52% | 2.04% | -15.61% | |
74 Outperform | $54.99B | 219.02 | 6.06% | ― | 20.88% | -80.08% | |
72 Outperform | $24.73B | 26.15 | 5.01% | 0.65% | -1.16% | -6.96% | |
64 Neutral | $7.01B | 8.86 | -52.83% | 2.41% | -0.93% | -4.07% | |
64 Neutral | $5.67B | 38.62 | -39.97% | ― | 2.18% | -32.87% | |
62 Neutral | $16.85B | 11.50 | -7.38% | 2.96% | 1.59% | -23.36% |
* Consumer Cyclical Sector Average
Performance Comparison
YAHOY
LY Corporation
7.17
2.19
43.98%
EBAY
eBay
76.36
24.48
47.19%
BBWI
Bath & Body Works
33.14
-3.41
-9.33%
WSM
Williams-Sonoma
173.19
32.80
23.36%
ETSY
Etsy
54.37
-1.00
-1.81%
CPNG
Coupang
30.29
8.88
41.48%
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.