Lead Co., Inc. (6982) AI Stock Analysis

• Market Cap: ¥1.50B
• Dividend Yield: 1.72%
• Average Volume (3M): 11.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -17.26%
• EPS Growth: -315.56%
• Country: JP
• Employees: 174
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Parts
• EPS (TTM): -4.28
• Shares Outstanding: 2,632,960
• 10 Day Avg. Volume: 29,130
• 30 Day Avg. Volume: 11,063
• PEG Ratio: 0.20
• Price to Book (P/B): 0.51
• 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: 56 Neutral
• Price Target: ¥604.00 ▲(3.78%Upside)

The stock's overall score is primarily influenced by its technical strength, showing positive momentum. However, financial performance concerns, notably high leverage and erratic cash flow, and poor valuation metrics significantly offset this, resulting in a moderate overall assessment.

Lead Co., Inc. Business Overview & Revenue Model

Company Description

The Lead Co., Inc. designs, manufactures, and sells automotive parts, and electronic equipment related racks and cases in Japan. The company offers automotive parts, such as bumpers and doors, and handbrake levers; and system rack, electric case, and hydraulic punch. It also engages in the planning, development, design, manufacture, sale, installation, and maintenance of bicycle parking equipment/system, such as bicycle parking racks and electric kickboard related products. The Lead Co., Inc. was founded in 1945 and is headquartered in Kumagaya, Japan.

How the Company Makes Money

Lead Co., Inc. Financial Statement Overview

Summary

Lead Co., Inc. is experiencing financial difficulties across income, balance sheet, and cash flow aspects. The income statement shows declining revenue and profitability, while the balance sheet is heavily leveraged, posing potential risks. Cash flow issues further indicate liquidity challenges. The company needs to focus on improving operational efficiency and cash management to stabilize its financial standing and return to growth.

Income Statement

Lead Co., Inc. faced a challenging period with declining revenues and profitability. The TTM shows a negative net income and EBIT, indicating operational difficulties. Revenue growth has been inconsistent, with a significant drop in the most recent TTM compared to the previous year. Gross profit margin is low, further impacting profitability. Overall, the income statement reflects financial strain and a need for operational improvements.

Balance Sheet

The balance sheet of Lead Co., Inc. shows a moderate level of stability. The debt-to-equity ratio indicates a relatively high level of leverage, which could pose risks if earnings do not improve. However, the company maintains a reasonable equity ratio, suggesting a fair balance between debt and equity financing. Stockholders' equity has shown some fluctuation, reflecting volatility in net income. Improvement in profitability would enhance balance sheet health.

Cash Flow

Cash flow analysis reveals significant challenges for Lead Co., Inc. The company reported zero free cash flow in the TTM, a concerning drop from previous positive cash flows. Operating cash flow has also decreased, indicating potential liquidity issues. The lack of free cash flow growth and negative operating cash flow to net income ratio highlight cash management challenges that need urgent attention.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.30B	5.06B	5.02B	3.96B	4.75B	6.44B
	Gross Profit
452.63M	647.83M	716.99M	261.82M	212.36M	691.00M
	EBIT
-153.23M	10.44M	140.86M	-268.07M	-261.01M	124.00M
	EBITDA
167.42M	509.35M	726.52M	303.81M	288.10M	585.06M
	Net Income Common Stockholders
-139.11M	48.49M	184.90M	-188.05M	-123.18M	112.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.86B	1.59B	1.58B	1.71B	1.34B	1.50B
	Total Assets
8.30B	8.56B	8.18B	8.14B	8.46B	8.84B
	Total Debt
3.73B	3.56B	3.63B	4.08B	4.09B	3.77B
	Net Debt
1.87B	1.98B	2.05B	2.37B	2.75B	2.28B
	Total Liabilities
5.63B	5.67B	5.58B	5.75B	5.82B	6.10B
	Stockholders Equity
2.67B	2.88B	2.60B	2.40B	2.64B	2.74B
Cash Flow		Free Cash Flow
0.00	215.28M	328.62M	432.68M	-197.85M	712.00M
	Operating Cash Flow
0.00	436.15M	589.59M	606.45M	191.89M	786.00M
	Investing Cash Flow
0.00	-232.31M	-255.38M	-187.10M	-420.82M	-114.00M
	Financing Cash Flow
0.00	-183.38M	-479.74M	-51.27M	83.18M	-475.00M

Lead Co., Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 582.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6982, the sentiment is Positive. The current price of 582 is above the 20-day moving average (MA) of 558.65, above the 50-day MA of 546.62, and above the 200-day MA of 579.73, indicating a bullish trend. The MACD of 8.77 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6982.

Lead Co., Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7217	70 Outperform	¥3.71B	15.71		4.35%	9.25%	-45.40%
7219	68 Neutral	¥2.83B	7.93		3.25%	0.23%	-16.37%
7255	68 Neutral	¥2.09B	9.46		1.75%	-10.38%	-31.30%
7284	66 Neutral	¥3.61B	7.97		4.85%	3.82%	―
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
7215	60 Neutral	¥3.39B	10.35		―	-3.39%	―
6982	56 Neutral	¥1.50B	―		1.72%	-17.26%	-315.56%