LIHIT LAB., INC. (7975) AI Stock Analysis

• Market Cap: ¥4.04B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.10
• Revenue Growth: 3.24%
• EPS Growth: N/A
• Country: JP
• Employees: 592
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 2.22
• Shares Outstanding: 3,815,700
• 10 Day Avg. Volume: 700
• 30 Day Avg. Volume: 1,543
• PEG Ratio: -0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 216.06
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥1,268.00 ▲(6.82% Upside)

The stock score is primarily driven by solid financial performance and attractive valuation. The company's strong equity base and low leverage provide stability, while the low P/E ratio suggests potential undervaluation. Technical analysis indicates a neutral trend, with no strong momentum signals.

LIHIT LAB., INC. Business Overview & Revenue Model

Company Description

LIHIT LAB., INC. (7975) is a Japanese company specializing in the design and manufacture of stationery and office supplies. Operating primarily in the consumer goods sector, LIHIT LAB. focuses on creating innovative products that enhance productivity and organization, including notebooks, binders, and various writing instruments. The company is recognized for its commitment to quality and functionality, catering to both individual consumers and businesses seeking efficient stationery solutions.

How the Company Makes Money

LIHIT LAB., INC. generates revenue through the sale of its wide range of stationery products. The company's revenue model is primarily based on direct sales to retail outlets, online marketplaces, and direct-to-consumer channels. Key revenue streams include sales from traditional stationery items, specialized office supplies, and custom solutions tailored for corporate clients. Additionally, the company may benefit from partnerships with educational institutions and businesses for bulk orders. Marketing initiatives and brand reputation also play a significant role in driving sales, as LIHIT LAB. positions itself as a premium brand in the stationery market.

LIHIT LAB., INC. Financial Statement Overview

Summary

The company shows positive revenue growth and a strong equity base, but faces challenges with profitability consistency and cash flow volatility. The low leverage and improving operational efficiency are positive signs.

Income Statement

The company shows a positive revenue growth trend with a significant increase in total revenue over the years. Despite this, there are fluctuations in profitability, as seen in the mixed net income results, which suggest a volatile net profit margin. The EBIT and EBITDA margins indicate some operational challenges but show improvement in the latest period, reflecting a rebound in operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity base, with a high equity ratio signifying financial stability. The debt-to-equity ratio is low, indicating prudent leverage management, which adds to the company's financial resilience. However, the declining net debt over the years suggests an increasing cash position, enhancing liquidity.

Cash Flow

While there is a positive trend in free cash flow in the most recent period, the historical volatility in operating cash flows and free cash flows indicates potential challenges in cash management. The operating cash flow to net income ratio and free cash flow to net income ratio have shown improvement recently, suggesting more efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.33B	9.22B	8.80B	8.51B	8.69B	8.56B
Gross Profit	3.10B	2.88B	2.52B	2.50B	2.90B	3.02B
EBITDA	744.67M	822.07M	174.54M	261.38M	725.53M	840.88M
Net Income	376.25M	411.57M	-93.73M	-24.41M	262.51M	352.95M
Balance Sheet
Total Assets	13.07B	13.43B	13.12B	12.73B	13.33B	12.87B
Cash, Cash Equivalents and Short-Term Investments	759.00M	2.33B	1.24B	1.08B	2.26B	1.80B
Total Debt	359.00M	437.50M	751.50M	445.00M	698.00M	751.00M
Total Liabilities	2.65B	2.79B	2.88B	2.51B	3.22B	3.24B
Stockholders Equity	10.42B	10.64B	10.24B	10.22B	10.11B	9.62B
Cash Flow
Free Cash Flow	0.00	17.92M	-196.64M	-825.63M	608.64M	614.58M
Operating Cash Flow	0.00	290.49M	663.33M	-745.70M	720.74M	726.37M
Investing Cash Flow	0.00	1.18B	-726.91M	-112.96M	-127.15M	-129.18M
Financing Cash Flow	0.00	-400.05M	220.14M	-339.35M	-139.16M	-475.32M

LIHIT LAB., INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1187.00
• 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:7975, the sentiment is Positive. The current price of 1187 is above the 20-day moving average (MA) of 1182.65, above the 50-day MA of 1182.32, and above the 200-day MA of 1161.63, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 39.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7975.

LIHIT LAB., INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7846	75 Outperform	¥178.72B	12.86	―	2.66%	2.17%	11.48%
7976	74 Outperform	¥110.03B	15.31	―	2.25%	6.39%	-34.84%
7975	70 Neutral	¥4.04B	10.05	―	2.11%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7957	61 Neutral	¥2.25B	5.34	―	5.18%	9.24%	―
7962	58 Neutral	¥23.63B	67.85	―	1.67%	-2.71%	―
7992	40 Neutral	¥3.17B	-3.08	―	―	4.61%	33.80%