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LY Corporation (YAHOY)
OTHER OTC:YAHOY
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LY Corporation
(OTC:YAHOY)
Rating:69Neutral
Price Target:
$7.00
▲(5.74% Upside)
LY Corporation (YAHOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.41B
Dividend Yield0.96%
Average Volume (3M)7.39K
Price to Earnings (P/E)23.5
Beta (1Y)0.17
Revenue Growth4.92%
EPS Growth23.39%
CountryUS
Employees28,196
SectorConsumer Cyclical
Sector Strength74
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.10
Shares Outstanding3,471,482,000
10 Day Avg. Volume9,294
30 Day Avg. Volume7,388
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue0.02
Enterprise Value/Gross Profit0.03
Enterprise Value/Ebitda0.08
Forecast
1Y Price Target
$8.50Price Target Upside28.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
LY Corporation Business Overview & Revenue Model
Company DescriptionZ Holdings Corporation engages in media and commerce businesses in Japan. The company focuses on shopping and reuse businesses. It also offers membership, e-commerce, and payment-related services. The company was founded in 1996 and is headquartered in Tokyo, Japan. Z Holdings Corporation operates as a subsidiary of A Holdings Corporation.
How the Company Makes Moneynull
LY Corporation Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q4-2024)
| % Change Since: -12.66%|
Next Earnings Date:Oct 30, 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 revenue and profit growth, solid financial stability, and enhanced cash generation capabilities. However, careful monitoring of liabilities is needed to sustain this trajectory.Income Statement
The income statement shows a strong performance with a consistent increase in total revenue from ¥1,052.9 billion in 2020 to ¥1,917.5 billion in 2025. The gross profit margin remains robust, peaking at 72.4% in 2025. Net profit margin improved from 7.8% in 2020 to 8.0% in 2025. EBIT and EBITDA margins also show strength, indicating efficient operations. Revenue growth rates are healthy, illustrating a positive growth trajectory. Overall, the income statement reflects strong profitability and revenue growth.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with total assets growing from ¥3,933.9 billion in 2020 to ¥9,158.3 billion in 2025. The debt-to-equity ratio is stable, showing prudent financial leverage, with a slight increase in total debt. Return on equity has improved, indicating effective use of shareholder funds. The equity ratio has remained consistent, suggesting financial stability. While the company has managed its debt well, there is a need to monitor liabilities closely for potential risks.78
Positive
Cash Flow
Cash flow analysis reveals a strong operating cash flow growth, especially from 2024 to 2025. Free cash flow has shown significant improvement, indicating effective capital management. The operating cash flow to net income ratio is robust, showcasing efficient cash generation relative to earnings. The free cash flow to net income ratio has improved over the years, demonstrating enhanced cash profitability. Despite past fluctuations, the cash flow statement portrays a positive trend towards financial flexibility.80
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.92T | 1.81T | 1.67T | 1.57T | 1.21T |
| Gross Profit | 1.39T | 1.29T | 1.16T | 1.07T | 773.40B |
| EBITDA | 431.85B | 361.30B | 306.81B | 325.25B | 283.52B |
| Net Income | 153.47B | 113.20B | 178.87B | 77.32B | 70.14B |
Balance Sheet | |||||
| Total Assets | 9.16T | 9.04T | 8.59T | 7.11T | 6.70T |
| Cash, Cash Equivalents and Short-Term Investments | 1.04T | 1.42T | 1.65T | 1.13T | 1.07T |
| Total Debt | 1.69T | 1.88T | 1.91T | 1.67T | 1.39T |
| Total Liabilities | 5.74T | 5.60T | 5.27T | 4.13T | 3.71T |
| Stockholders Equity | 3.00T | 3.04T | 2.92T | 2.68T | 2.68T |
Cash Flow | |||||
| Free Cash Flow | 419.85B | 245.47B | -55.94B | -6.32B | 137.18B |
| Operating Cash Flow | 519.59B | 316.48B | 93.05B | 266.31B | 207.92B |
| Investing Cash Flow | -505.63B | -444.06B | 319.79B | -303.90B | -12.35B |
| Financing Cash Flow | -416.80B | -81.49B | 105.79B | 91.63B | -12.07B |
LY Corporation Technical Analysis
Negative
6.62
Price Trends
7.26
Negative
7.24
Negative
6.54
Positive
Market Momentum
-0.10
Positive
34.22
Neutral
1.30
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 6.62 is below the 20-day moving average (MA) of 7.23, below the 50-day MA of 7.26, and above the 200-day MA of 6.54, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 34.22 is Neutral, neither overbought nor oversold. The STOCH value of 1.30 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $42.29B | 20.45 | 42.63% | 1.20% | 3.05% | -10.82% | |
78 Outperform | $24.69B | 22.72 | 51.10% | 1.23% | 1.64% | 8.57% | |
69 Neutral | $22.41B | 23.47 | 5.16% | 0.96% | 4.92% | 23.39% | |
63 Neutral | $5.55B | 44.95 | -39.97% | ― | 2.38% | -38.88% | |
62 Neutral | $6.12B | 7.73 | -52.83% | 2.73% | -0.93% | -4.07% | |
62 Neutral | $51.01B | 140.03 | 8.55% | ― | 18.69% | -65.55% | |
61 Neutral | $16.55B | 10.17 | -9.03% | 3.32% | 1.46% | -22.90% |
* Consumer Cyclical Sector Average
Performance Comparison
YAHOY
LY Corporation
6.62
1.46
28.29%
EBAY
eBay
93.02
37.47
67.45%
BBWI
Bath & Body Works
29.29
-1.37
-4.47%
WSM
Williams-Sonoma
199.60
60.79
43.79%
ETSY
Etsy
60.49
5.52
10.04%
CPNG
Coupang
27.81
5.22
23.11%
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.