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

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LIHIT LAB., INC.

(TSE/TYO:7975)

Select Model

Rating:48Neutral

Price Target:JPY 1,111.00▼(-4.39% Downside)

Action:reiterated

Date:11/07/26

The overall score is 48, reflecting significant risks. The primary drag is the company's weak and volatile financial performance, characterized by low profitability and poor cash flow, which overshadows its strong balance sheet. This is compounded by a bearish technical trend and a very high P/E ratio that is difficult to justify given the earnings inconsistency. The attractive dividend yield provides a minor offset but is not enough to counterbalance the fundamental and technical headwinds.

Positive Factors

Conservative balance sheetThe company’s modest debt and large equity base provide meaningful solvency protection and reduce financial pressure during periods of weaker demand. Manageable leverage also preserves flexibility to fund operations and product development without relying heavily on refinancing or additional borrowing.

Negative Factors

Declining and largely flat revenueLimited top-line growth constrains the company’s ability to absorb fixed costs, expand earnings and build operating leverage. The latest revenue decline suggests that current products and channels are not delivering sustained demand expansion, increasing reliance on mix or cost improvements.

LIHIT LAB., INC. (7975) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.94B
Dividend Yield: 2.15%
Average Volume (3M): 2,243
Price to Earnings (P/E): 56.7
Beta (1Y): 0.13
Revenue Growth: -2.49%
EPS Growth: -82.69%
Country: Japan
Employees: 591
Sector: General
Sector Strength: 55
Industry: Business Equipment & Supplies

LIHIT LAB., INC. Business Overview & Revenue Model

Company Description

Lihit Lab., Inc., founded in Osaka, Japan, in 1938, manufactures and distributes a comprehensive range of office supplies both domestically and internationally. Their extensive product portfolio includes an array of filing and organizational solution...

How the Company Makes Money

LIHIT LAB. generates revenue primarily from the sale of stationery and office-supply products. Its core monetization model is product-based: it designs, manufactures and/or procures items such as file/folder systems and other desk and document organi...

LIHIT LAB., INC. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is exceptionally strong (Score 85) with negligible debt, providing a solid foundation. However, the income statement (Score 40) and cash flow statement (Score 35) are weak, marked by volatile earnings, declining margins, and poor cash generation. The overall financial health is weighed down by inconsistent profitability.

Income Statement

40Negative

Balance Sheet

85Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	9.09B	9.12B	9.22B	8.80B	8.51B	8.69B
Gross Profit	3.04B	3.00B	2.88B	2.52B	2.50B	2.90B
EBITDA	368.57M	306.06M	822.07M	174.54M	261.38M	725.53M
Net Income	69.51M	67.07M	411.57M	-93.73M	-24.41M	262.51M
Balance Sheet
Total Assets	13.68B	13.52B	13.43B	13.12B	13.03B	13.62B
Cash, Cash Equivalents and Short-Term Investments	1.43B	728.51M	2.33B	1.24B	1.08B	2.26B
Total Debt	226.00M	282.00M	437.50M	751.50M	445.00M	698.00M
Total Liabilities	2.46B	2.54B	2.79B	2.88B	2.81B	3.51B
Stockholders Equity	11.23B	10.98B	10.64B	10.24B	10.22B	10.11B
Cash Flow
Free Cash Flow	0	-1.36B	17.92M	-196.64M	-825.63M	608.64M
Operating Cash Flow	0	47.73M	290.49M	663.33M	-745.70M	720.74M
Investing Cash Flow	0	-1.40B	1.18B	-726.91M	-112.96M	-127.15M
Financing Cash Flow	0	-241.69M	-400.05M	220.14M	-339.35M	-139.16M

LIHIT LAB., INC. Technical Analysis

Technical Analysis SentimentPositive

Last Price1162.00

Price Trends

50DMA1161.30Positive

100DMA1134.28Positive

200DMA1159.27Positive

Market Momentum

MACD-1.89Negative

RSI53.60Neutral

STOCH93.45Negative

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 1162.00 is above the 20-day moving average (MA) of 1153.80, above the 50-day MA of 1161.30, and above the 200-day MA of 1159.27, indicating a bullish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 93.45 is Negative, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7975 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7976	76Outperform	JPY 186.74B	22.69	―	1.51%	6.19%	14.63%
JP:4218	75Outperform	JPY 40.59B	19.55	―	2.04%	3.32%	12.97%
JP:7846	74Outperform	JPY 261.27B	14.59	―	1.89%	9.15%	25.09%
JP:7962	66Neutral	JPY 20.56B	16.01	―	2.08%	1.71%	268.54%
JP:7984	64Neutral	JPY 374.00B	16.29	9.06%	2.90%	9.10%	8.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7975	48Neutral	JPY 3.94B	56.71	―	2.15%	-2.49%	-82.69%

* General Sector Average

Performance Comparison

JP:7975 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7975	LIHIT LAB., INC.	1162.00	-49.10	-4.05%
JP:7984	Kokuyo Co	871.60	-5.63	-0.64%
JP:4218	Nichiban Co., Ltd.	1959.00	39.71	2.07%
JP:7846	Pilot Corporation	2171.00	642.72	42.06%
JP:7962	King Jim Co., Ltd.	722.00	-95.01	-11.63%
JP:7976	Mitsubishi Pencil Company, Limited	3605.00	1563.49	76.59%

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: Nov 07, 2026

LIHIT LAB., INC. AI Stock Analysis