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

• Market Cap: $17.19M
• Dividend Yield: 1.3%
• Average Volume (3M): 6.93K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.69
• Revenue Growth: -0.82%
• EPS Growth: 5.30%
• Country: US
• Employees: 70
• Sector: Real Estate
• Sector Strength: 80
• Industry: Real Estate - Development
• EPS (TTM): 0.30
• Shares Outstanding: 13,641,900
• 10 Day Avg. Volume: 13,919
• 30 Day Avg. Volume: 6,928
• PEG Ratio: 0.76
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Lead Real Estate Co., Ltd. scores well in valuation due to its low P/E ratio and reasonable dividend yield, indicating potential value for investors. The company shows strong revenue growth and stable profitability but is hampered by high leverage and negative free cash flow. Technical analysis indicates mixed signals, with the stock trading below key moving averages, which could suggest caution. Overall, the company has a solid base for future growth, but financial risks and technical indicators warrant careful monitoring.

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

Company Description

Lead Real Estate Co., Ltd. Sponsored ADR (LRE) is a company operating in the real estate sector, primarily focusing on the acquisition, development, and management of residential and commercial properties. The company is engaged in the development of high-quality real estate projects, offering services that range from initial planning and design to construction and property management. LRE aims to create sustainable and innovative living and working environments across various regions.

How the Company Makes Money

Lead Real Estate Co., Ltd. generates revenue through several key streams. The primary source of income is the sale and leasing of residential and commercial properties. The company undertakes development projects, constructing properties that are then sold to individual buyers or investors. Additionally, LRE earns recurring revenue by leasing its commercial and residential properties, providing property management services, and engaging in strategic partnerships with local and international real estate firms. These partnerships often enhance their market reach and provide a diversified income source. Other contributing factors to its earnings may include consulting services related to real estate development and property management.

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

Summary

Lead Real Estate Co., Ltd. exhibits strong revenue growth and stable profitability margins. However, the high debt-to-equity ratio and negative free cash flow are significant challenges. Improvements in stockholders' equity and operating cash flows offer potential for future stability, but focus is needed on reducing leverage and enhancing free cash flow.

Income Statement

Lead Real Estate Co., Ltd. shows strong revenue growth, increasing from $8.68 billion in 2020 to $18.95 billion in 2024. Gross profit margins have improved over time, suggesting efficient cost management, with a margin of approximately 15.6% in 2024. The company maintains a stable net profit margin of around 3.3% in 2024. EBIT and EBITDA margins are moderate, indicating reasonable operational efficiency. Overall, the company exhibits strong growth trends and stable profitability metrics.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage. As of 2024, the debt-to-equity ratio is approximately 2.73, which could pose financial risks if not managed carefully. However, stockholders' equity has grown substantially from 2020 to 2024, reflecting financial strengthening. The equity ratio is about 24.7% in 2024, showing moderate financial stability. While there is notable improvement in equity, the high debt levels suggest potential risk exposure.

Cash Flow

Free cash flow has been negative over the years, although it shows signs of improvement, moving from -$321 million in 2020 to -$655 million in 2024. Operating cash flow has turned positive at $1.57 billion in 2024, significantly improving from previous years, indicating better cash management. However, free cash flow remains a challenge, and improvements in this area are necessary for long-term financial health.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
18.95B	17.44B	14.32B	11.26B	8.68B
	Gross Profit
2.95B	2.76B	2.44B	1.49B	993.50M
	EBIT
898.57M	939.27M	649.19M	453.65M	178.91M
	EBITDA
1.08B	1.03B	904.86M	505.65M	255.52M
	Net Income Common Stockholders
626.96M	611.92M	528.75M	279.49M	101.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.30B	786.37M	403.11M	480.32M	329.54M
	Total Assets
17.22B	15.82B	12.42B	9.41B	8.30B
	Total Debt
11.60B	11.37B	8.80B	6.62B	6.25B
	Net Debt
10.30B	10.58B	8.40B	6.14B	5.92B
	Total Liabilities
12.98B	13.07B	10.22B	7.77B	7.01B
	Stockholders Equity
4.24B	2.75B	2.21B	1.64B	1.27B
Cash Flow		Free Cash Flow
-655.96M	-2.36B	-3.47B	-414.89M	-321.29M
	Operating Cash Flow
1.57B	-1.12B	-2.93B	-244.66M	-51.30M
	Investing Cash Flow
-2.24B	-1.25B	-19.08M	-160.43M	-312.88M
	Financing Cash Flow
1.18B	2.55B	2.85B	555.60M	402.65M

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.26 is below the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.23, and below the 200-day MA of 1.64, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 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	80 Outperform	$120.77M	9.44	10.82%	―	30.36%	481.87%
LRE	75 Outperform	$17.19M	4.01	18.25%	1.30%	-0.82%	5.30%
Sector *	60 Neutral	$2.78B	11.39	0.16%	8531.54%	5.92%	-14.67%
ARL	50 Neutral	$203.03M	―	-2.41%	―	-6.30%	-470.49%
AMBR	45 Neutral	$89.56M	―	-95.79%	―	-75.67%	―