LeTech Corporation (3497) AI Stock Analysis

• Market Cap: ¥15.81B
• Dividend Yield: 5.88%
• Average Volume (3M): 15.33K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.59
• Revenue Growth: -7.42%
• EPS Growth: -33.37%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 68
• Industry: Real Estate - Services
• EPS (TTM): 224.19
• Shares Outstanding: 10,618,603
• 10 Day Avg. Volume: 16,890
• 30 Day Avg. Volume: 15,330
• PEG Ratio: -0.12
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

LeTech Corporation's stock score is driven by strong technical indicators and an attractive valuation, offset by financial performance challenges. While the stock shows positive momentum and is undervalued, high leverage and inconsistent cash flow generation require attention to ensure sustainable growth.

LeTech Corporation Business Overview & Revenue Model

Company Description

LeTech Corporation (3497) is a technology-driven company specializing in the development and provision of advanced software solutions and IT services. The company operates in various sectors including financial technology, enterprise software, and digital transformation services. LeTech is known for its innovative products that cater to both large enterprises and small businesses, helping them enhance operational efficiency and achieve strategic business goals.

How the Company Makes Money

LeTech Corporation generates revenue primarily through the sale of software licenses, subscription services, and IT consulting. The company's key revenue streams include its proprietary software products, which are licensed to clients on a recurring subscription basis, offering a steady income flow. Additionally, LeTech provides bespoke IT solutions and consultancy services, charging clients for both project-based and ongoing support work. Significant partnerships with major industry players and strategic alliances also contribute to LeTech's earnings by opening up new market opportunities and expanding its client base.

LeTech Corporation Financial Statement Overview

Summary

LeTech Corporation is experiencing a recovery phase with improving profitability metrics, though high leverage and inconsistent cash flows pose challenges. The company needs to stabilize cash flow generation and manage debt to enhance financial resilience.

Income Statement

LeTech Corporation has seen fluctuating revenues, with a notable decline in recent years. Gross profit margin improved from negative in 2022 to positive in 2023 and 2024. The net profit margin recovered significantly from losses in 2022 to profitability in 2023 and 2024, indicating a positive turnaround. EBIT and EBITDA margins also show improvement but remain below 2020 levels.

Balance Sheet

The company exhibits high leverage, with a debt-to-equity ratio indicating substantial debt levels compared to equity. However, the return on equity has improved as profitability returned. The equity ratio is low, suggesting potential risk, but improvements in stockholders' equity from previous years are a positive sign.

Cash Flow

Operating cash flow turned negative in 2024, which is concerning. Free cash flow has also worsened, driven by negative operating cash flows. The inconsistency in free cash flow growth and operating cash flow to net income ratio raises sustainability concerns, although previous strong cash flows provide some cushion.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
17.64B	14.80B	15.99B	18.20B	19.06B	26.70B
	Gross Profit
4.04B	3.34B	3.10B	-1.30B	3.85B	4.81B
	EBIT
2.24B	1.53B	1.39B	-3.23B	1.22B	1.78B
	EBITDA
2.12B	1.40B	1.42B	-3.22B	1.38B	1.87B
	Net Income Common Stockholders
1.80B	1.08B	1.16B	-4.69B	609.65M	100.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.50B	2.57B	2.07B	770.61M	1.54B	1.98B
	Total Assets
23.19B	24.53B	21.72B	18.82B	33.56B	40.98B
	Total Debt
16.21B	16.21B	14.97B	17.60B	26.55B	35.00B
	Net Debt
13.71B	13.64B	12.90B	16.83B	25.00B	33.02B
	Total Liabilities
17.49B	19.31B	17.49B	18.76B	28.91B	36.97B
	Stockholders Equity
5.70B	5.22B	4.23B	65.78M	4.66B	4.01B
Cash Flow		Free Cash Flow
0.00	-484.51M	818.40M	6.26B	7.30B	8.51B
	Operating Cash Flow
0.00	-477.09M	821.90M	6.26B	7.51B	9.48B
	Investing Cash Flow
0.00	220.39M	-127.76M	2.00B	516.05M	-787.37M
	Financing Cash Flow
0.00	1.05B	322.00M	-8.97B	-8.46B	-7.54B

LeTech Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1496.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3497, the sentiment is Positive. The current price of 1496 is above the 20-day moving average (MA) of 1493.85, above the 50-day MA of 1461.74, and above the 200-day MA of 1246.32, indicating a bullish trend. The MACD of 7.66 indicates Positive momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3497.

LeTech Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3300	71 Outperform	¥15.81B	8.03		1.65%	30.20%	67.98%
3484	71 Outperform	¥16.72B	15.42		2.96%	16.79%	54.88%
8908	71 Outperform	¥13.63B	10.45		4.09%	-1.02%	-7.65%
3497	70 Outperform	¥15.81B	6.67		5.88%	-7.42%	-33.37%
Sector *	61 Neutral	$2.81B	10.77	0.50%	8439.03%	5.72%	-20.80%
8999	55 Neutral	¥15.47B	30.86		6.09%	4.73%	17.14%