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Lion Corporation (JP:4912)
:4912
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Lion (4912) AI Stock Analysis

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JP:4912

Lion

(4912)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥1,851.00
▲(10.77% Upside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by solid financial performance (improving margins and low leverage), partially offset by weak technicals (price below key moving averages with negative momentum) and a somewhat high P/E relative to the modest dividend yield.
Positive Factors
Improving profitability
Margins have recovered materially versus 2023, reflecting better cost control or pricing power. Sustained higher gross and net margins improve earnings resilience, fund reinvestment or payouts, and provide a durable buffer against cyclical revenue weakness over the next several months.
Negative Factors
Modest revenue growth
Top-line growth is very modest, signalling a mature or slow-growing core market. Low organic revenue expansion constrains long-term earnings upside and forces reliance on margin expansion or buybacks to drive EPS growth, limiting scalability over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Margins have recovered materially versus 2023, reflecting better cost control or pricing power. Sustained higher gross and net margins improve earnings resilience, fund reinvestment or payouts, and provide a durable buffer against cyclical revenue weakness over the next several months.
Read all positive factors

Lion (4912) vs. iShares MSCI Japan ETF (EWJ)

Lion Business Overview & Revenue Model

Company Description
Headquartered in Tokyo, Japan, and established in 1891, Lion Corporation is a global manufacturer and distributor of an extensive range of consumer and industrial products. Its operations are organized into three primary divisions: Consumer Produc...
How the Company Makes Money
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Lion Earnings Call Summary

Earnings Call Date:Nov 07, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted an increase in net sales and profits, driven by effective price revisions and structural reforms. However, challenges such as impairment losses, a decline in domestic sales, and a slowdown in certain overseas markets were also noted. The partnership with Japan Activation Capital is a strategic move to bolster future growth.
Positive Updates
Increased Net Sales and Profits
Net sales were JPY 301.1 billion, up 1.7% year-on-year. Core operating income was JPY 18.6 billion, an increase of JPY 6 billion year-on-year.
Negative Updates
Impairment Loss on Domestic Facilities
Impairment loss of approximately JPY 6.2 billion due to streamlining of domestic home care production facilities.
Read all updates
Q3-2024 Updates
Negative
Increased Net Sales and Profits
Net sales were JPY 301.1 billion, up 1.7% year-on-year. Core operating income was JPY 18.6 billion, an increase of JPY 6 billion year-on-year.
Read all positive updates
Company Guidance
In the earnings call for Q3 2024, Lion Corporation reported a 1.7% increase in net sales to JPY 301.1 billion, with a core operating income rise of JPY 6 billion year-on-year, reaching JPY 18.6 billion. The EBITDA was JPY 32.5 billion, up by JPY 6.4 billion, with a margin increase of 2 percentage points to 10.8%. Despite an impairment loss of JPY 6.2 billion due to domestic production facility streamlining, the company maintained its full-year forecast, attributing the resilient performance to price revisions and cost reductions, specifically mentioning a JPY 2.8 billion price revision impact and a total cost reduction of JPY 2.2 billion. The consumer product sales in Japan fell by 4.3%, whereas overseas sales showed sustained double-digit growth. The company plans further asset sales in Q4 to support ongoing structural reforms, aiming for a total shareholder return ratio of 91.9% with a dividend set at JPY 27 per share.

Lion Financial Statement Overview

Summary
Fundamentals are solid overall: modest TTM revenue growth (+1.18%) with improved profitability (gross margin ~46.3%, net margin ~6.5% vs ~3.6% in 2023) and a conservatively financed balance sheet (debt-to-equity ~0.13, ROE ~9.1%). The main constraint is cash-flow quality/consistency, with only moderate cash conversion (FCF ~60% of net income) and historical volatility despite positive current OCF (~39.9B) and FCF (~23.8B).
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
69
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue427.06B422.09B412.94B402.77B389.87B366.23B
Gross Profit197.68B193.92B188.78B180.60B174.61B179.10B
EBITDA63.31B61.79B54.17B43.35B49.14B48.48B
Net Income27.77B27.59B21.20B14.63B21.94B23.76B
Balance Sheet
Total Assets520.31B528.60B497.17B486.36B469.28B428.02B
Cash, Cash Equivalents and Short-Term Investments57.56B88.09B102.24B85.53B101.08B97.25B
Total Debt40.77B54.44B29.74B30.34B32.17B8.37B
Total Liabilities170.60B180.17B181.47B188.23B190.11B163.01B
Stockholders Equity323.16B322.73B293.72B280.32B264.25B251.57B
Cash Flow
Free Cash Flow23.85B22.57B25.60B6.34B23.47B-17.99B
Operating Cash Flow39.95B40.65B43.66B30.07B41.96B19.30B
Investing Cash Flow-55.90B-43.37B-7.19B-34.37B-19.54B-34.18B
Financing Cash Flow-9.20B-12.50B-21.67B-12.19B-19.82B-10.22B

Lion Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1671.00
Price Trends
50DMA
1598.59
Positive
100DMA
1644.44
Positive
200DMA
1614.59
Positive
Market Momentum
MACD
29.81
Negative
RSI
65.18
Neutral
STOCH
73.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4912, the sentiment is Positive. The current price of 1671 is above the 20-day moving average (MA) of 1650.77, above the 50-day MA of 1598.59, and above the 200-day MA of 1614.59, indicating a bullish trend. The MACD of 29.81 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4912.

Lion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥555.21B15.7812.66%1.53%11.37%11.35%
70
Outperform
¥2.96T23.4511.50%2.41%3.60%13.80%
69
Neutral
¥301.17B29.402.72%2.61%1.63%74.87%
65
Neutral
¥408.27B133.365.37%1.95%3.14%-71.37%
65
Neutral
¥1.74T28.0410.79%3.47%-2.89%-31.75%
64
Neutral
¥469.39B17.239.09%1.73%3.10%27.99%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4912
Lion
1,729.50
277.65
19.12%
JP:4452
Kao
3,267.00
149.38
4.79%
JP:4967
Kobayashi Pharmaceutical Co
5,505.00
287.04
5.50%
JP:4922
Kose
5,279.00
-465.17
-8.10%
JP:4527
Rohto Pharmaceutical Co
2,391.50
363.51
17.92%
JP:8113
Unicharm
951.90
-92.20
-8.83%

Lion Corporate Events

Lion lifts Q1 profit on high value-added oral care push, keeps 2026 outlook
May 12, 2026
Lion Corporation reported that first-quarter 2026 net sales rose 5.3% year on year to ¥99.20 billion, with core operating income up 13.8% to ¥6.01 billion and an EBITDA margin of 11.1%, driven by a shift to higher value-added oral care p...
Lion Corporation Delivers Strong Q1 2026 Earnings and Confirms Full-Year Outlook
May 12, 2026
Lion Corporation reported solid first-quarter 2026 results, with net sales rising 5.3% year on year to ¥99.2 billion and operating profit climbing 11.6% to ¥6.3 billion, supported by a 13.8% increase in core operating income. Profit attr...
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: May 14, 2026