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LEIFRAS Co., Ltd. Sponsored ADR (LFS) AI Stock Analysis
LEIFRAS Co., Ltd. Sponsored ADR
(NASDAQ:LFS)
LEIFRAS scores in the upper-middle range, driven primarily by strong fundamental momentum: 45% revenue growth, expanding gross margins, and a dramatically de-leveraged balance sheet (debt-to-equity down from 4.3x to 0.57x). The latest earnings call reinforces this with record first-half results, accelerating Social business growth, nationwide coverage, and reaffirmed full-year guidance. Technically, the stock trades above all key moving averages with positive MACD, though momentum indicators suggest the recent advance is becoming extended. Valuation at 17.7x earnings is fair but not compelling, and the lack of a dividend limits income appeal. Key risks holding the score back are thin net margins (~3.7%), volatile cash flow generation, a slight decline in Sports School membership, and heavy second-half profit seasonality that concentrates execution risk.
LEIFRAS Co., Ltd. Sponsored ADR (LFS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $54.41M
- Dividend Yield
- ―
- Average Volume (3M)
- 630.66K
- Price to Earnings (P/E)
- 14.2
- Beta (1Y)
- -0.50
- Revenue Growth
- 13.83%
- EPS Growth
- 7.79%
- Country
- US
- Employees
- 1,055
- Sector
- General
- Sector Strength
- 55
- Industry
- Entertainment
LEIFRAS Co., Ltd. Sponsored ADR Business Overview & Revenue Model
Company Description
LEIFRAS Co., Ltd. is a Japanese enterprise that strategically integrates sports-focused business with social impact initiatives. The company manages sports academies for children and organizes a variety of athletic events. Beyond these commercial act...
LEIFRAS Co., Ltd. Sponsored ADR Earnings Call Summary
The call was broadly positive: first-half revenue, profitability, both segment results, school club contracts, geographic coverage and liquidity all improved, and full-year guidance was maintained. The main challenges were the 0.9% decline in Sports School membership, seasonal concentration of profit in the second half, acquisition-related costs, lower operating cash flow, increased competition in tenders and a still-slow start to some school club reform opportunities.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The full year consolidated outlook for FY 2026 remains unchanged: net revenue of USD 82.9 million to USD 95.7 million, representing growth of 10.8% to 27.9% compared with FY 2025; income from operations of $4.5 million to $5.4 million, representing growth of 13.2% to 33.9%; and an expected operating margin of 5.5% to 5.6%. The company expects Sports School membership to recover in the third and fourth quarters through new initiatives, will continue to pursue both membership growth and higher revenue per member, and will continue to execute its second half initiatives and work toward achieving its full year targets, given that the majority of its profit is generated in the second half. This outlook assumes that no business acquisitions, restructuring transactions or legal settlements are entered into.
LEIFRAS Co., Ltd. Sponsored ADR Financial Statement Overview
Summary
Financials are on a clearly improving trajectory. The income statement (72) stands out with 45% revenue growth to ¥12.2 billion, gross margin expansion from ~25.5% to ~29.5%, and net income nearly tripling since 2022. The balance sheet (62) has been substantially de-risked, with debt-to-equity falling from 4.3x to 0.57x and equity rising to ¥1.83 billion, though debt remains a meaningful share of assets. Cash flow (65) recovered to ¥487 million operating and ¥443 million free cash flow with earnings well backed by cash (0.91x), but year-to-year volatility and still-thin net margins (~3.7%) limit the score.
Income Statement
72PositiveBalance Sheet
62PositiveCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.17B | 11.73B | 10.33B | 9.30B | 7.69B |
| Gross Profit | 4.74B | 3.47B | 2.95B | 2.34B | 1.96B |
| EBITDA | 1.01B | 749.41M | 676.49M | 516.40M | 358.70M |
| Net Income | 586.16M | 438.46M | 418.63M | 245.34M | 178.03M |
Balance Sheet | |||||
| Total Assets | 4.94B | 4.64B | 4.50B | 4.38B | 3.52B |
| Cash, Cash Equivalents and Short-Term Investments | 2.59B | 2.51B | 2.54B | 2.73B | 2.08B |
| Total Debt | 1.15B | 1.05B | 1.73B | 1.87B | 1.80B |
| Total Liabilities | 3.01B | 2.81B | 3.45B | 3.76B | 3.10B |
| Stockholders Equity | 1.92B | 1.83B | 1.04B | 622.23M | 420.28M |
Cash Flow | |||||
| Free Cash Flow | 406.71M | 442.89M | 172.98M | 673.16M | 377.55M |
| Operating Cash Flow | 422.21M | 487.21M | 207.11M | 677.94M | 401.50M |
| Investing Cash Flow | -220.09M | -55.66M | -51.39M | -4.78M | 66.04M |
| Financing Cash Flow | -176.35M | -454.66M | -346.45M | -20.98M | 404.37M |
LEIFRAS Co., Ltd. Sponsored ADR Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFS, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.18, and below the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFS.
LEIFRAS Co., Ltd. Sponsored ADR Peers Comparison
Overall Rating
- LFS67Neutral
STG66Neutral
YQ55Neutral
RYET45Neutral
GNS40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| LFS | 67Neutral | $54.41M | 14.21 | 33.37% | ― | 13.83% | 7.79% |
| STG | 66Neutral | $29.38M | 0.67 | 32.87% | ― | -5.26% | -3.04% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| YQ | 55Neutral | $29.17M | -1.65 | -39.66% | ― | 80.33% | 31.05% |
| RYET | 45Neutral | $26.06M | -2.01 | -180.27% | ― | ― | ― |
| GNS | 40Underperform | $23.07M | -0.51 | -14.33% | 166.67% | 106.42% | 56.99% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LFS | LEIFRAS Co., Ltd. Sponsored ADR | 2.09 | -0.53 | -20.23% | |
| STG | Sunlands Online Education Group | 2.55 | -3.82 | -59.97% | |
| YQ | 17 Education & Technology Group, Inc. | 2.83 | -1.97 | -41.04% | |
| GNS | Genius Group Limited | 0.11 | -0.63 | -84.73% | |
| RYET | Ruanyun Edai Technology Incorporation | 0.68 | -0.42 | -38.18% |
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: Oct 08, 2026