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Lonseal Corporation (4224) AI Stock Analysis

JP:4224

Lonseal Corporation

(TSE/TYO:4224)

Select Model
Rating:75.4Outperform
Price Target:JPY 2,780.00â–²(16.42% Upside)
Action:reiterated
Date:10/30/26

The score is driven primarily by solid financial fundamentals (notably a strong balance sheet) and attractive valuation (low P/E and healthy dividend yield). These positives are partly offset by earnings/cash-flow volatility and an overextended technical setup (very high RSI), which raises near-term pullback risk.

Positive Factors
Steady Revenue GrowthThe sustained increase in revenue over several years indicates expanding demand for Lonseal’s flooring and wallcovering products. Continued top-line growth can support operating scale, provide resources for product development, and reinforce the company’s position across commercial, public, and residential projects.
Negative Factors
Uneven ProfitabilityThe sharp variation in profitability makes the company’s earnings power less predictable than its revenue trend. Compressed margins can limit operating leverage and reduce the benefit of sales growth, while the 2025 profit weakness highlights the need for a sustained recovery rather than a single-year rebound.

Lonseal Corporation (4224) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:4224+28.42%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 11.00B
Dividend Yield
3.56%
Average Volume (3M)
11.27K
Price to Earnings (P/E)
9.2
Beta (1Y)
0.48
Revenue Growth
2.89%
EPS Growth
866.98%
Country
Japan
Employees
419
Sector
Industrials
Sector Strength
63
Industry
Chemicals - Specialty

Lonseal Corporation Business Overview & Revenue Model

Company Description

Established in 1928 and headquartered in Tokyo, Japan, Lonseal Corporation operates as a global manufacturer and distributor of plastic goods. Its comprehensive product line encompasses a wide array of flooring and sheet waterproofing solutions. The...

How the Company Makes Money

Lonseal Corporation primarily makes money by selling interior finishing materials—especially vinyl flooring and wallcovering products—to customers involved in building construction, renovation, and facility maintenance. Revenue is generated from prod...

Lonseal Corporation Financial Statement Overview

Summary

Steady multi-year revenue growth and a strong, low-leverage balance sheet support stability. However, profitability and cash generation have been volatile (notably the sharp profit dip in 2025 and uneven free cash flow), which tempers the score.

Income Statement

66Positive

Balance Sheet

84Very Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue22.45B22.11B21.43B21.02B19.56B18.13B
Gross Profit8.66B8.36B7.50B7.38B6.70B7.08B
EBITDA2.14B1.94B1.45B1.64B1.10B1.80B
Net Income1.20B1.02B13.00M835.00M448.00M965.00M
Balance Sheet
Total Assets27.20B26.47B25.90B26.43B25.52B24.91B
Cash, Cash Equivalents and Short-Term Investments7.83B8.08B7.55B7.18B6.44B6.80B
Total Debt493.00M381.00M494.00M582.00M682.00M773.00M
Total Liabilities7.44B6.75B6.89B7.28B7.27B6.95B
Stockholders Equity19.75B19.72B19.02B19.15B18.25B17.96B
Cash Flow
Free Cash Flow0924.00M762.00M1.14B-38.00M1.14B
Operating Cash Flow01.34B1.13B1.49B341.00M1.73B
Investing Cash Flow0-1.65B-474.00M-468.00M-450.00M-666.00M
Financing Cash Flow0-345.00M-347.00M-302.00M-316.00M-1.30B

Lonseal Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price2388.00

Price Trends

50DMA2138.50Positive
100DMA2094.56Positive
200DMA2034.86Positive

Market Momentum

MACD45.31Negative
RSI72.86Negative
STOCH76.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4224, the sentiment is Positive. The current price of 2388.00 is above the 20-day moving average (MA) of 2156.80, above the 50-day MA of 2138.50, and above the 200-day MA of 2034.86, indicating a bullish trend. The MACD of 45.31 indicates Negative momentum. The RSI at 72.86 is Negative, neither overbought nor oversold. The STOCH value of 76.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4224.

Lonseal Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:4224 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5930JP:593080OutperformJPY 127.09B10.7310.85%3.91%3.01%2.30%
JP:7949JP:794979OutperformJPY 46.22B15.10―4.98%4.47%12.02%
JP:4224JP:422475OutperformJPY 11.01B9.18―3.56%2.89%866.98%
JP:7971JP:797173OutperformJPY 39.34B8.96―4.71%4.49%35.25%
JP:5936JP:593664NeutralJPY 5.48B8.75―4.86%-3.27%-4.23%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:7943JP:794360NeutralJPY 95.28B22.32―4.29%-3.10%144.65%

* Industrials Sector Average

Performance Comparison

-10%0%10%20%30%JP:4224JP:5930JP:5936JP:7943JP:7949JP:7971Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4224 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4224Lonseal Corporation2388.00543.9229.50%
JP:5930Bunka Shutter Co., Ltd.1892.00-66.09-3.38%
JP:5936Toyo Shutter Co., Ltd.865.00-11.75-1.34%
JP:7943Nichiha Corporation2821.00180.876.85%
JP:7949Komatsu Wall Industry Co., Ltd.2611.00237.119.99%
JP:7971Toli Corporation722.00128.3921.63%
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: Oct 30, 2026