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LY Corporation (YAHOY)
OTHER OTC:YAHOY
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LY Corporation
(OTC:YAHOY)
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Rating:70Outperform
Price Target:
$7.00
▲(12.00% Upside)
LY Corporation's strong financial performance is the primary driver of its overall stock score, supported by robust revenue growth and profitability. Technical analysis indicates mixed signals, with some short-term weakness but no immediate overbought conditions. The valuation suggests moderate pricing with a low dividend yield, which slightly dampens the overall score.
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.63B
Dividend Yield1.25%
Average Volume (3M)11.96K
Price to Earnings (P/E)22.2
Beta (1Y)0.05
Revenue Growth4.92%
EPS Growth23.39%
CountryUS
Employees28,196
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.10
Shares Outstanding3,440,529,000
10 Day Avg. Volume10,856
30 Day Avg. Volume11,959
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 Cap1.76
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.07
Forecast
1Y Price Target
$7.00Price Target Upside12.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 smart home products and consumer electronics directly to consumers and through retail partnerships. The company utilizes a direct-to-consumer online sales model, enabling it to reach a broader audience while maintaining higher profit margins. Additionally, LY Corporation earns recurring revenue through subscription services related to its smart home ecosystem, such as premium security monitoring and advanced data analytics for users. Strategic partnerships with major retailers and e-commerce platforms also bolster its distribution channels, driving sales volume. Furthermore, the company invests in research and development to innovate and expand its product line, ensuring sustained market competitiveness and revenue growth.
LY Corporation Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 04, 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 strong financial health with impressive growth in revenue and profitability. The company maintains a solid balance sheet and a robust cash flow position, which supports its operational and strategic initiatives. While there are some concerns regarding increasing liabilities and cash flow volatility, the overall financial trajectory remains positive.Income Statement
LY Corporation has demonstrated strong revenue growth with a consistent upward trajectory over the past years. The gross profit margin is robust, indicating effective cost management. Net profit margin has improved significantly, showcasing enhanced profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency. However, the net income experienced some fluctuations, which could pose potential risks.85
Very Positive
Balance Sheet
The company's balance sheet is solid with a reasonable debt-to-equity ratio, suggesting manageable leverage. Return on Equity (ROE) is strong, indicating effective use of shareholder funds. The equity ratio is stable, reflecting a sound capital structure. However, the total liabilities have been increasing, which needs monitoring to ensure financial stability.78
Positive
Cash Flow
LY Corporation's cash flow position is strong, with significant growth in free cash flow, indicating ample liquidity for reinvestment and debt servicing. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations. However, fluctuations in investing and financing cash flows highlight potential volatility in cash management strategies.82
Very 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
6.25
Price Trends
6.59
Negative
6.93
Negative
6.74
Negative
Market Momentum
-0.10
Positive
35.51
Neutral
7.26
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 6.25 is below the 20-day moving average (MA) of 6.53, below the 50-day MA of 6.59, and below the 200-day MA of 6.74, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $25.42B | 21.34 | 48.52% | ― | 2.94% | 4.57% | |
77 Outperform | $41.94B | 20.37 | 42.63% | 1.23% | 3.05% | -10.82% | |
70 Outperform | $20.63B | 22.17 | 5.16% | 1.25% | 4.92% | 23.39% | |
70 Outperform | $28.98B | 26.90 | 45.34% | 1.69% | 2.96% | -2.02% | |
66 Neutral | $15.59B | 106.18 | 34.48% | ― | 9.04% | -56.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $6.94B | 57.13 | -39.97% | ― | 2.38% | -38.88% |
* Consumer Cyclical Sector Average
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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.