LA Holdings Co.,Ltd (2986) AI Stock Analysis

LA Holdings Co.,Ltd

(TSE/TYO:2986)

Select Model

Rating:63Neutral

Price Target:JPY 3,093.00▲(17.16% Upside)

Action:reiterated

Date:09/29/26

The overall score of 63 reflects a company with significant strengths offset by a major financial risk. The most positive factors are the attractive valuation, supported by a very high 8% dividend yield and a reasonable P/E ratio, alongside moderately bullish technical momentum. However, the score is heavily constrained by the company's deeply negative and persistent cash flows, which raise serious concerns about financial sustainability despite strong reported earnings. The improving balance sheet and solid profitability are secondary positives that prevent a lower score.

Positive Factors

Strong profitabilityHealthy operating and net margins indicate that the company is converting revenue into profit effectively. Sustained profitability provides internal earnings power, supports resilience through normal property-market fluctuations, and can help fund operations or strategic investment over the next several quarters.

Negative Factors

Persistent negative cash flowNegative operating and free cash flow across five consecutive years shows that reported profits are not consistently converting into cash. This can pressure liquidity, increase reliance on external financing, and reduce flexibility to sustain investment or distributions during weaker periods.

LA Holdings Co.,Ltd (2986) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 61.05B
Dividend Yield: 8.74%
Average Volume (3M): 152.16K
Price to Earnings (P/E): 12.9
Beta (1Y): 0.59
Revenue Growth: -4.35%
EPS Growth: -40.42%
Country: Japan
Employees: 118
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

LA Holdings Co.,Ltd Business Overview & Revenue Model

Company Description

LA Holdings Co., Ltd. and its affiliated companies are actively involved in the Japanese real estate market, focusing on the creation, marketing, and leasing of both newly built and renovated properties. Their business operations encompass property s...

LA Holdings Co.,Ltd Financial Statement Overview

Summary

Financial performance is mixed. The Income Statement is strong (Score 75) with robust profitability and margin improvement, but the Cash Flow Statement is critically weak (Score 30) due to persistent negative operating and free cash flow. The Balance Sheet (Score 65) shows improved leverage but rising absolute debt. The severe cash burn significantly drags down the overall financial health score.

Income Statement

75Positive

Balance Sheet

65Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.14B	46.54B	44.71B	31.50B	18.25B	14.68B
Gross Profit	5.74B	13.34B	11.39B	8.51B	6.02B	5.14B
EBITDA	4.08B	10.11B	7.67B	5.63B	5.19B	3.30B
Net Income	2.29B	6.14B	4.71B	3.29B	3.38B	1.96B
Balance Sheet
Total Assets	104.06B	101.95B	71.25B	61.21B	50.67B	36.33B
Cash, Cash Equivalents and Short-Term Investments	18.90B	23.06B	13.55B	12.78B	9.48B	6.81B
Total Debt	70.52B	65.60B	47.95B	42.76B	35.40B	25.75B
Total Liabilities	74.84B	72.00B	53.12B	46.00B	39.25B	28.99B
Stockholders Equity	29.23B	29.95B	18.13B	15.21B	11.42B	7.34B
Cash Flow
Free Cash Flow	-9.75B	-13.85B	-2.36B	-4.27B	-4.76B	-6.75B
Operating Cash Flow	-7.29B	-11.39B	-1.76B	-3.20B	-3.06B	-5.36B
Investing Cash Flow	-2.26B	-2.26B	-708.53M	-1.40B	-1.48B	-1.17B
Financing Cash Flow	23.17B	23.17B	3.20B	7.77B	6.93B	10.50B

LA Holdings Co.,Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price2640.00

Price Trends

50DMA2797.80Negative

100DMA2780.76Negative

200DMA2901.53Negative

Market Momentum

MACD-39.46Positive

RSI39.47Neutral

STOCH46.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2986, the sentiment is Negative. The current price of 2640.00 is below the 20-day moving average (MA) of 2720.50, below the 50-day MA of 2797.80, and below the 200-day MA of 2901.53, indicating a bearish trend. The MACD of -39.46 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 46.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2986.

LA Holdings Co.,Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:2986 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8877	76Outperform	JPY 78.38B	6.04	―	5.02%	49.56%	42.33%
JP:8934	72Outperform	JPY 125.88B	6.99	13.50%	3.55%	3.39%	-6.00%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:2986	63Neutral	JPY 60.92B	12.90	―	8.74%	-4.35%	-40.42%
JP:3252	60Neutral	JPY 57.05B	8.18	―	4.73%	36.85%	83.36%
JP:3479	59Neutral	JPY 82.19B	5.67	―	―	50.70%	364.91%
JP:8818	53Neutral	JPY 88.34B	11.05	―	2.70%	1.72%	65.38%

* Real Estate Sector Average

Performance Comparison

JP:2986 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2986	LA Holdings Co.,Ltd	2662.00	274.21	11.48%
JP:8934	Sun Frontier Fudousan Co	2200.00	-0.70	-0.03%
JP:3252	JINUSHI Co.,Ltd.	2645.00	-101.31	-3.69%
JP:3479	TKP Corp	1947.00	221.00	12.80%
JP:8818	Keihanshin Building Co., Ltd.	926.00	64.69	7.51%
JP:8877	ESLEAD CORPORATION	5080.00	-227.31	-4.28%

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.

Date of analysis: Sep 29, 2026

LA Holdings Co.,Ltd AI Stock Analysis