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

Lead Real Estate Co., Ltd. Sponsored ADR

(NASDAQ:LRE)

Select Model

Rating:53Neutral

Price Target:$1.50▲(41.51% Upside)

Action:reiterated

Date:03/17/26

Weak financials from revenue plunge and high debt dominate, partially offset by attractive valuation and neutral technicals; high-risk profile prevails.

Positive Factors

Focused residential development & managementThe company’s integrated business model—development, sales and property management for Japanese residential properties—creates multiple, complementary revenue streams. Over the medium term, recurring management income can stabilize cash flows versus pure sales-driven peers and supports long-term customer relationships.

Negative Factors

Severe revenue collapseA near-total drop in reported revenue is a structural red flag: it erodes scale economics, undermines sustainability of fixed-cost coverage, and raises questions about project pipeline and demand. Persistently depressed top line would impair reinvestment capacity and long-term competitiveness.

Lead Real Estate Co., Ltd. Sponsored ADR (LRE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $14.46M
Dividend Yield: 4.19%
Average Volume (3M): 15.33K
Price to Earnings (P/E): 4.1
Beta (1Y): 0.59
Revenue Growth: -7.34%
EPS Growth: -39.75%
Country: US
Employees: 76
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Development

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

Company Description

Lead Real Estate Co., Ltd (LRE) focuses on the development and sale of upscale residential properties, which include both detached houses and condominium complexes. The company further extends its operations to managing hotels in Tokyo and offering a...

How the Company Makes Money

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

Summary

Average of poor income statement (38), very weak balance sheet (32), and weak cash flow (35) scores reflects revenue collapse, high leverage, and volatile cash flows, signaling high business risk.

Income Statement

38Negative

Balance Sheet

32Negative

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	18.95B	18.17B	18.95B	17.44B	16.57B	11.26B
Gross Profit	2.87B	3.49B	2.95B	2.76B	2.73B	1.49B
EBITDA	937.96M	1.53B	1.08B	1.03B	904.86M	481.20M
Net Income	630.58M	816.33M	626.96M	611.92M	551.62M	279.49M
Balance Sheet
Total Assets	17.22B	20.59B	17.22B	15.82B	12.42B	9.41B
Cash, Cash Equivalents and Short-Term Investments	1.30B	2.65B	1.30B	786.37M	403.11M	480.32M
Total Debt	11.60B	12.99B	11.60B	11.37B	8.80B	5.93B
Total Liabilities	12.98B	15.57B	12.98B	13.07B	10.22B	7.77B
Stockholders Equity	4.24B	5.03B	4.24B	2.75B	2.21B	1.64B
Cash Flow
Free Cash Flow	-418.32M	762.85M	-655.96M	-2.36B	-3.47B	-414.89M
Operating Cash Flow	1.88B	3.19B	1.57B	-1.12B	-2.93B	-244.66M
Investing Cash Flow	-2.31B	-2.53B	-2.24B	-1.26B	-19.08M	-160.43M
Financing Cash Flow	995.96M	670.73M	1.18B	2.55B	2.85B	555.60M

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

Technical Analysis SentimentNegative

Last Price1.06

Price Trends

50DMA1.16Negative

100DMA1.24Negative

200DMA1.28Negative

Market Momentum

MACD-0.02Negative

RSI41.08Neutral

STOCH56.06Neutral

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 1.06 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.16, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 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 Risk Analysis

Lead Real Estate Co., Ltd. Sponsored ADR disclosed 50 risk factors in its most recent earnings report. Lead Real Estate Co., Ltd. Sponsored ADR reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

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

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

LRE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AXR	62Neutral	$111.13M	18.94	4.21%	―	-15.29%	-56.15%
LRE	53Neutral	$14.46M	4.11	11.79%	4.19%	-7.34%	-39.75%
AMBR	52Neutral	$165.82M	-40.23	-0.14%	―	―	―
ARL	50Neutral	$298.01M	35.79	1.36%	―	6.77%	―

* Real Estate Sector Average

Performance Comparison

LRE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LRE	Lead Real Estate Co., Ltd. Sponsored ADR	1.06	-0.48	-31.17%
ARL	American Realty Investors, Inc.	18.45	2.59	16.33%
AXR	AMREP Corporation	20.87	-0.74	-3.42%
AMBR	Amber International Holding Limited	1.77	-0.08	-4.32%
AEI	Alset Ehome International Inc.	0.51	-2.47	-82.89%
MRNO	Murano Global Investments Plc	0.21	-2.49	-92.33%

Lead Real Estate Co., Ltd. Sponsored ADR Corporate Events

Lead Real Estate Plans FY2026 Cash Dividend Pending Board and Shareholder Approval

Jun 15, 2026

On June 10, 2026, Lead Real Estate Co., Ltd. announced it plans to pay a cash dividend for the fiscal year ending June 30, 2026, with the exact dividend rate to be set by its board in August 2026. The proposal remains subject to approval at the annua...

Lead Real Estate Details 2025 Shareholder Meeting Decisions and Dividend Payout

May 26, 2026

Lead Real Estate Co., Ltd., a Tokyo-based property company listed in the U.S. through sponsored ADRs, reported on shareholder decisions made at its 25th Ordinary General Meeting of Shareholders held on September 29, 2025. The firm maintained a govern...

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: Mar 17, 2026

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