Lecip Holdings Corporation (7213) AI Stock Analysis

• Market Cap: ¥6.57B
• Dividend Yield: 2.55%
• Average Volume (3M): 16.89K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.41
• Revenue Growth: 1.49%
• EPS Growth: -54.66%
• Country: JP
• Employees: 600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -26.02
• Shares Outstanding: 15,891,500
• 10 Day Avg. Volume: 22,160
• 30 Day Avg. Volume: 16,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥492.00
• Price Target Upside: 9.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥492.00 ▲(9.33% Upside)

Lecip Holdings Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. However, technical indicators suggest potential short-term weakness, and liquidity concerns due to declining cash flows could impact long-term growth.

Lecip Holdings Corporation Business Overview & Revenue Model

Company Description

Lecip Holdings Corporation (7213) is a Japanese company that specializes in the design, manufacture, and sale of electronic and electrical equipment primarily for the transportation industry. The company operates in several sectors, including transportation infrastructure and transport-related information systems. Lecip Holdings provides a range of products such as fare collection systems, LED destination indicators, and smart card readers, which are utilized by public transportation operators to enhance passenger services and operational efficiency.

How the Company Makes Money

Lecip Holdings Corporation generates revenue through the sale of its electronic and electrical products tailored for the transportation sector. The company's key revenue streams include the sale of fare collection systems, which are used by public transportation operators to manage ticketing and passenger payments efficiently. Additionally, Lecip earns income from its LED destination indicators and smart card readers, which are crucial for modernizing and digitizing public transport services. The company also engages in maintenance and after-sales services, providing ongoing support to its clients, which contributes to recurring revenue. Significant partnerships with transportation companies and government entities further bolster its earnings by ensuring a steady demand for its products and services.

Lecip Holdings Corporation Financial Statement Overview

Summary

Lecip Holdings Corporation demonstrates strong profitability with improved revenue and margins. The balance sheet is stable with low leverage and a strong equity position, though liquidity could be a concern due to declining cash balances. Cash flow management requires attention as operating cash inflows have significantly decreased.

Income Statement

Lecip Holdings Corporation shows a strong revenue recovery in the latest fiscal year with a growth rate of 14.3%. The gross profit margin stands at a healthy 32.5%, and the net profit margin is robust at 8.7%. The company has improved its profitability significantly from previous years, with positive EBIT and EBITDA margins of 13.6% and 15.7%, respectively. However, the reduction in net income from the prior year could be a concern if it signals future downward trends.

Balance Sheet

Lecip Holdings has a solid equity base with an equity ratio of 49.5%, indicating a stable financial structure. The debt-to-equity ratio is low at 0.17, pointing to low leverage risk. Return on equity is strong at 22.3%, reflecting effective use of shareholder funds. However, the decrease in cash and short-term investments could restrict liquidity if it continues.

Cash Flow

The company experienced a significant decline in operating cash flow, impacting free cash flow, which fell sharply from positive to negative. The operating cash flow to net income ratio of 0.52 suggests potential issues with cash earnings quality. Nevertheless, the cash flow from financing activities is under control, showing no excessive leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.93B	25.93B	22.68B	14.25B	14.08B	15.55B
Gross Profit	8.63B	8.42B	7.86B	3.71B	3.95B	3.30B
EBITDA	4.07B	4.07B	4.41B	294.35M	813.73M	516.33M
Net Income	2.26B	2.26B	2.42B	-249.47M	53.27M	-124.48M
Balance Sheet
Total Assets	20.40B	20.40B	19.95B	14.86B	14.45B	15.13B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.07B	2.96B	3.18B	4.09B	3.39B
Total Debt	1.75B	1.75B	3.07B	5.44B	4.48B	5.73B
Total Liabilities	10.30B	10.30B	13.07B	10.17B	9.67B	10.22B
Stockholders Equity	10.10B	10.10B	6.88B	4.69B	4.78B	4.91B
Cash Flow
Free Cash Flow	0.00	-254.63M	1.89B	-1.71B	2.10B	-1.61B
Operating Cash Flow	0.00	1.18B	2.34B	-1.49B	2.30B	-1.13B
Investing Cash Flow	0.00	-1.56B	-105.31M	-222.11M	-138.95M	-481.36M
Financing Cash Flow	0.00	-543.06M	-2.48B	781.24M	-1.42B	2.75B

Lecip Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 450.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7213, the sentiment is Negative. The current price of 450 is below the 20-day moving average (MA) of 462.05, below the 50-day MA of 456.18, and below the 200-day MA of 457.88, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 2.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7213.

Lecip Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6899	77 Outperform	¥6.47B	19.82	2.55%	5.31%	3.76%	-84.33%
6907	75 Outperform	¥8.46B	17.82	3.96%	―	15.58%	―
6858	71 Outperform	¥6.50B	13.33	2.92%	2.59%	13.34%	-74.02%
6837	69 Neutral	¥5.30B	9.33	6.26%	2.97%	5.61%	7.09%
7213	68 Neutral	¥6.57B	4.80	―	2.55%	1.49%	-54.66%
6721	40 Underperform	¥5.79B	-3.85	-158.00%	―	-28.46%	-124.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Lecip Holdings Corporation Corporate Events

Lecip Holdings Reports Increased Sales but Decline in Profits for FY 2025

Lecip Holdings Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 14.3% increase in net sales to ¥25,931 million. Despite the growth in sales, the company experienced a decline in ordinary profit and profit attributable to owners of the parent by 2.1% and 6.7% respectively. The financial position improved with total assets rising to ¥20,403 million and a capital adequacy ratio of 49.5%. The company also announced an increase in annual dividends, reflecting a payout ratio of 13.1%.