LA Holdings Adjusts Evaluation Amid Mixed Performance and Rising Debt Concerns

LA Holdings Co., Ltd. (JP), a small-cap player in the realty sector, has recently undergone an adjustment in its evaluation. This revision reflects a nuanced view of the company's performance metrics and market position. The company has demonstrated high management efficiency, evidenced by a return on capital employed (ROCE) of 11.37%. However, it also carries a notable debt burden, with a debt-to-equity ratio that raises concerns about financial leverage. Despite these challenges, LA Holdings has shown healthy long-term growth, with net sales increasing at an annual rate of 34.30% and operating profit rising by 61.77%. In the most recent quarter ending June 2025, the company reported net sales of JPY 9,039.41 million, which reflects a decline of 19.95%. This follows two consecutive quarters of positive results, indicating a shift in performance. Additionally, the interest expense reached its highest point at JPY 242.66 million during this period. With a return on equity (ROE) of 26.74% and a price-to-book value of 2.35, LA Holdings maintains an attractive valuation. Over the past year, the stock has generated a return of 65.73%, outperforming the Japan Nikkei 225 in each of the last three annual periods. Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.