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LEC INC (7874) AI Stock Analysis

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JP:7874

LEC INC

(TSE/TYO:7874)

Select Model
Rating:64Neutral
Price Target:JPY 1,033.00â–²(9.78% Upside)
Action:reiterated
Date:08/19/26

The score is primarily driven by improving operating performance and cash flow alongside supportive valuation (low P/E and a ~2.8% dividend yield). Offsetting factors are balance-sheet leverage and historical volatility in margins/free cash flow, while technicals remain mixed with price still below longer-term moving averages.

Positive Factors
Steady Revenue ExpansionSustained multi-year revenue expansion indicates continued demand and business reach. If maintained, this provides a durable base for operating leverage, reinvestment and future earnings growth beyond a single reporting period.
Negative Factors
Elevated Financial LeverageHigher leverage reduces financial flexibility and increases sensitivity to any slowdown in profitability. If earnings weaken, debt servicing and balance-sheet repair could constrain investment, shareholder distributions and strategic options.

LEC INC (7874) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:7874-8.05%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 31.17B
Dividend Yield
3.29%
Average Volume (3M)
65.26K
Price to Earnings (P/E)
11.5
Beta (1Y)
0.54
Revenue Growth
3.16%
EPS Growth
66.87%
Country
Japan
Employees
956
Sector
General
Sector Strength
55
Industry
Household & Personal Products

LEC INC Business Overview & Revenue Model

Company Description

LEC, Inc. operates as a Japanese manufacturer and international supplier of household goods. Its extensive product portfolio encompasses a diverse range of home essentials, including sanitary items for bathrooms, dressing rooms, and toilets; merchand...

How the Company Makes Money

null

LEC INC Financial Statement Overview

Summary

Financials show steady multi-year revenue growth and a meaningful rebound in profitability and cash flow in the latest year. However, leverage is elevated (debt-to-equity ~1.23) and both margins and free cash flow have been volatile historically, limiting confidence in durability.

Income Statement

72Positive

Balance Sheet

58Neutral

Cash Flow

64Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue69.67B68.29B66.30B60.78B55.46B51.42B
Gross Profit21.10B20.69B17.45B16.19B14.60B16.72B
EBITDA6.70B7.20B6.28B6.11B5.77B6.89B
Net Income2.71B2.98B1.73B796.00M942.00M2.28B
Balance Sheet
Total Assets91.17B93.81B89.42B90.07B85.05B75.13B
Cash, Cash Equivalents and Short-Term Investments29.63B34.70B30.25B33.47B28.31B21.21B
Total Debt42.40B46.48B46.34B44.28B41.29B32.39B
Total Liabilities52.41B55.00B53.37B52.48B48.76B39.38B
Stockholders Equity37.63B37.69B34.64B35.77B34.64B34.18B
Cash Flow
Free Cash Flow06.81B2.72B3.21B685.00M-5.08B
Operating Cash Flow09.03B4.21B5.94B3.37B3.35B
Investing Cash Flow02.50B-10.76B-2.25B-7.42B-9.59B
Financing Cash Flow0-1.11B-251.00M2.25B6.85B3.55B

LEC INC Technical Analysis

Technical Analysis SentimentNegative
Last Price941.00

Price Trends

50DMA948.32Negative
100DMA944.51Negative
200DMA992.67Negative

Market Momentum

MACD-1.76Negative
RSI48.47Neutral
STOCH56.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7874, the sentiment is Negative. The current price of 941.00 is below the 20-day moving average (MA) of 944.90, below the 50-day MA of 948.32, and below the 200-day MA of 992.67, indicating a bearish trend. The MACD of -1.76 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 56.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7874.

LEC INC Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7874 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 182.48B11.09―4.98%3.91%28.69%
JP:5947JP:594773OutperformJPY 490.35B14.197.88%2.96%6.30%4.01%
JP:6484JP:648473OutperformJPY 17.34B8.30―3.79%3.70%-9.08%
JP:7981JP:798172OutperformJPY 195.19B13.19―4.25%1.75%7.95%
JP:7955JP:795565NeutralJPY 30.47B8.08―3.90%5.18%56.14%
JP:7874JP:787464NeutralJPY 32.79B11.55―3.29%3.16%66.87%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%JP:7874JP:5947JP:6484JP:7955JP:7981JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7874 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7874LEC INC941.00-88.26-8.58%
JP:5947Rinnai Corporation3484.00-203.64-5.52%
JP:6484KVK Corporation2112.00-107.64-4.85%
JP:7955Cleanup Corporation846.0086.6211.41%
JP:7981Takara Standard Co., Ltd3015.00542.4921.94%
JP:8130Sangetsu Corporation3115.00202.126.94%

LEC INC Corporate Events

LEC Accelerates Share Buyback Under ¥1 Billion Repurchase Program

Aug 7, 2026

LEC, Inc. has been actively repurchasing its own common shares on the Tokyo Stock Exchange under a board-approved share buyback program. Between July 1 and July 31, 2026, the company acquired 187,700 shares for approximately ¥180.4 million through ma...

LEC Inc. Posts Higher Sales but Sharp Profit Drop, Keeps Forecast and Lifts Dividend

Aug 7, 2026

LEC Inc. reported consolidated net sales of ¥18.71 billion for the three months ended June 30, 2026, up 7.9% year on year, but operating profit fell 45.8% to ¥704 million and profit attributable to owners of parent dropped 40.6% to ¥397 million, with...

LEC, Inc. Grants Restricted Treasury Shares to Directors Under Stock Compensation Plan

Jul 21, 2026

LEC, Inc. will dispose of 150,000 shares of treasury stock as restricted stock compensation to five internal directors, reflecting its ongoing use of stock-based incentives to align management interests with shareholders and support long-term corpora...

LEC Launches Share Buyback, Repurchases 147,000 Shares in June

Jul 15, 2026

LEC, Inc., a Prime Market-listed Japanese company, maintains an active presence in the domestic equity market and adheres to the corporate governance and disclosure requirements applicable to major Tokyo Stock Exchange issuers. Its capital management...

LEC, Inc. Launches Up to ¥1 Billion Share Buyback to Boost Capital Efficiency

Jun 8, 2026

LEC, Inc. has announced that its board has approved a share buyback program, authorizing the repurchase of up to 1,000,000 common shares, equivalent to 2.97% of its outstanding stock excluding treasury shares. The company is also capping the total ac...

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: Aug 19, 2026