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LEIFRAS Co., Ltd. Sponsored ADR (LFS)
NASDAQ:LFS
US Market
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LEIFRAS Co., Ltd. Sponsored ADR (LFS) AI Stock Analysis

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LFS

LEIFRAS Co., Ltd. Sponsored ADR

(NASDAQ:LFS)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
$2.50
▲(16.28% Upside)
Action:Downgraded
Date:08/04/26
LFS scores well primarily due to strong financial performance (accelerating growth, improving margins, and a de-risking balance sheet), partially offset by thin net margins and some cash-flow volatility. Technicals are mixed with improving short-term trend but a still-weaker longer-term trend, while valuation is reasonable on P/E but lacks dividend support.
Positive Factors
Accelerating revenue growth
Accelerating revenue growth indicates stronger market demand and expanding business activity, supporting operating leverage and reinvestment capacity. If maintained, the higher growth rate can strengthen competitive positioning and provide a durable foundation for earnings expansion over the next several quarters.
Negative Factors
Thin net margins
Thin net margins leave limited room for execution mistakes, cost inflation, or weaker demand to be absorbed before earnings are affected. The 2025 decline versus 2024 also indicates that improved gross profitability has not fully translated into stronger bottom-line resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth
Accelerating revenue growth indicates stronger market demand and expanding business activity, supporting operating leverage and reinvestment capacity. If maintained, the higher growth rate can strengthen competitive positioning and provide a durable foundation for earnings expansion over the next several quarters.
Read all positive factors

LEIFRAS Co., Ltd. Sponsored ADR (LFS) vs. SPDR S&P 500 ETF (SPY)

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 ...

LEIFRAS Co., Ltd. Sponsored ADR Financial Statement Overview

Summary
Financial statements are a clear positive: accelerating revenue growth (peaking around ~45% in 2025), improving gross margin (~25% to ~30%), and meaningfully lower leverage versus 2022–2023. Offsets are thin net margins (~3–4%) and somewhat volatile cash conversion year to year despite solid free-cash-flow-to-earnings tracking.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
BreakdownMar 2026Dec 2024Dec 2023Dec 2022
Income Statement
Total Revenue12.20B10.33B9.30B7.69B
Gross Profit3.61B2.95B2.34B1.96B
EBITDA783.94M676.49M516.40M358.70M
Net Income456.17M418.63M245.34M178.03M
Balance Sheet
Total Assets4.64B4.50B4.38B3.52B
Cash, Cash Equivalents and Short-Term Investments2.51B2.54B2.73B2.08B
Total Debt1.05B1.73B1.87B1.80B
Total Liabilities2.81B3.45B3.76B3.10B
Stockholders Equity1.83B1.04B622.23M420.28M
Cash Flow
Free Cash Flow442.89M172.98M673.16M377.55M
Operating Cash Flow487.21M207.11M677.94M401.50M
Investing Cash Flow-55.66M-51.39M-4.78M66.04M
Financing Cash Flow-454.66M-346.45M-20.98M404.37M

LEIFRAS Co., Ltd. Sponsored ADR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.15
Price Trends
50DMA
2.24
Negative
100DMA
2.23
Negative
200DMA
2.52
Negative
Market Momentum
MACD
-0.03
Positive
RSI
45.54
Neutral
STOCH
25.99
Neutral
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 2.15 is below the 20-day moving average (MA) of 2.22, below the 50-day MA of 2.24, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.99 is Neutral, 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
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$56.77M15.6636.37%13.83%7.79%
63
Neutral
$38.88M-2.31-39.66%80.33%31.05%
62
Neutral
$37.04M0.8332.87%11.35%-5.26%-3.04%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
$29.18M-0.41-25.09%134.23%6.00%45.53%
44
Neutral
$28.87M-3.83-120.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LFS
LEIFRAS Co., Ltd. Sponsored ADR
2.16
-2.04
-48.57%
STG
Sunlands Online Education Group
3.00
-5.00
-62.50%
YQ
17 Education & Technology Group
3.74
0.00
0.00%
GNS
Genius Group Limited
0.15
-0.83
-84.80%
RYET
Ruanyun Edai Technology Incorporation
0.89
-0.51
-36.50%
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 04, 2026