Lead Real Estate Co., Ltd. Sponsored ADR (LRE) AI Stock Analysis

• Market Cap: $20.24M
• Dividend Yield: 7.9%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.82
• Revenue Growth: -4.55%
• EPS Growth: -115.10%
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.30
• Shares Outstanding: 13,641,900
• 10 Day Avg. Volume: 637,015
• 30 Day Avg. Volume: 1,715,096
• PEG Ratio: 1.55
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -6.82
• Enterprise Value/Market Cap: 4.65
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.03
• Enterprise Value/Ebitda: 0.09
• 1Y Price Target: $1.50
• Price Target Upside: 0.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $1.50 ▲(0.67% Upside)

The overall stock score for Lead Real Estate Co., Ltd. is primarily impacted by strong financial performance, despite risks associated with high leverage and negative free cash flow. The technical analysis indicates a bearish outlook, contributing to a lower score. Valuation concerns due to a negative P/E ratio further weigh down the score. The company needs to address operational efficiencies and debt management to improve its stock performance.

Lead Real Estate Co., Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

Lead Real Estate Co., Ltd, together with its subsidiaries, develops and sells luxury residential properties. The company develops single-family homes and condominiums. It operates hotels in Tokyo and leases apartment building units in Japan and Dallas, Texas. The company was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Lead Real Estate Co., Ltd. generates revenue primarily through the sale and lease of residential and commercial properties. The company earns income from the development and subsequent sale of real estate projects, as well as from leasing properties to tenants. Additionally, LRE may provide property management services, which can include maintenance and tenant management, offering another stream of revenue. The company might also engage in strategic partnerships or joint ventures with other real estate firms to expand its portfolio and market reach, contributing further to its earnings.

Lead Real Estate Co., Ltd. Sponsored ADR Financial Statement Overview

Summary

Lead Real Estate Co., Ltd. exhibits strong revenue growth and improving profitability, supported by a solid balance sheet with increasing equity. However, high leverage and negative free cash flow present potential risks. The company should focus on enhancing operational efficiencies and managing debt levels to sustain its growth trajectory and improve cash flow stability.

Income Statement

Lead Real Estate Co., Ltd. has demonstrated strong revenue growth over the years, with a significant increase from 2020 to 2024. The company maintains a healthy gross profit margin, indicating efficient cost management. Net profit margin has also improved, reflecting enhanced profitability. However, EBIT and EBITDA margins show room for improvement, suggesting potential operational efficiencies could be explored.

Balance Sheet

The company's balance sheet shows a robust equity growth, with stockholders' equity increasing significantly over the period. The debt-to-equity ratio is relatively high, indicating substantial leverage, which could pose risks if not managed properly. The equity ratio has improved, reflecting a stronger financial position. Overall, the balance sheet is stable but highlights the need for careful debt management.

Cash Flow

Cash flow analysis reveals a challenging scenario with negative free cash flow in recent years, although there is a positive trend in operating cash flow. The operating cash flow to net income ratio indicates that the company is generating cash effectively relative to its net income. However, the free cash flow to net income ratio suggests that capital expenditures are significantly impacting cash reserves, necessitating strategic financial planning.

Breakdown	TTM	Dec 2023	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.27B	17.44B	18.95B	14.69B	11.26B	8.68B
Gross Profit	3.32B	2.76B	2.95B	2.44B	1.49B	993.50M
EBITDA	1.06B	1.03B	1.08B	904.86M	481.20M	255.52M
Net Income	572.33M	611.92M	626.96M	551.62M	279.49M	101.44M
Balance Sheet
Total Assets	17.22B	15.82B	17.22B	12.42B	9.41B	8.30B
Cash, Cash Equivalents and Short-Term Investments	1.30B	786.37M	1.30B	403.11M	480.32M	329.54M
Total Debt	11.60B	11.37B	11.60B	8.80B	5.93B	6.25B
Total Liabilities	12.98B	13.07B	12.98B	10.22B	7.77B	7.01B
Stockholders Equity	4.24B	2.75B	4.24B	2.21B	1.64B	1.27B
Cash Flow
Free Cash Flow	-418.32M	-2.36B	-655.96M	-3.47B	-414.89M	-321.29M
Operating Cash Flow	1.88B	-1.12B	1.57B	-2.93B	-244.66M	-51.30M
Investing Cash Flow	-2.31B	-1.26B	-2.24B	-19.08M	-160.43M	-312.88M
Financing Cash Flow	995.96M	2.55B	1.18B	2.85B	555.60M	402.65M

Lead Real Estate Co., Ltd. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRE, the sentiment is Negative. The current price of 1.49 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.61, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LRE.

Lead Real Estate Co., Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXR	73 Outperform	$123.63M	9.57	9.90%	―	-19.47%	41.27%
LRE	53 Neutral	$20.24M	5.68	-2.06%	7.90%	-4.55%	-115.10%
AMBR	45 Neutral	$319.46M	-1.29	-222.74%	―	-32.18%	―
ARL	43 Neutral	$257.79M	-20.77	-2.42%	―	-4.84%	-412.72%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%