ScoreWhy is LEC, Inc. (Japan) ?
1
Weak Long Term Fundamental Strength with a -4.86% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate -4.86% of over the last 5 years
3
The company has declared negative results in Mar'2026 after 2 consecutive positive quarters
- INTEREST COVERAGE RATIO(Q) Lowest at 1,049.4
- NET SALES(Q) Lowest at JPY 15,369 MM
- INTEREST(Q) Highest at JPY 83 MM
4
With ROCE of 8.82%, it has a fair valuation with a 0.97 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -18.96%, its profits have risen by 116.3% ; the PEG ratio of the company is 0.1
5
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 43.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.96% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is LEC, Inc. (Japan) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
LEC, Inc. (Japan)
-18.04%
-0.84
30.81%
Japan Nikkei 225
43.58%
1.48
29.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.13%
EBIT Growth (5y)
-4.86%
EBIT to Interest (avg)
14.82
Debt to EBITDA (avg)
1.77
Net Debt to Equity (avg)
0.43
Sales to Capital Employed (avg)
0.82
Tax Ratio
32.81%
Dividend Payout Ratio
29.60%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.40%
ROE (avg)
6.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.96
EV to EBIT
11.04
EV to EBITDA
6.36
EV to Capital Employed
0.97
EV to Sales
0.71
PEG Ratio
0.10
Dividend Yield
NA
ROCE (Latest)
8.82%
ROE (Latest)
8.49%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
ROCE(HY)
Highest at 8.24%
RAW MATERIAL COST(Y)
Fallen by -7.08% (YoY
NET PROFIT(9M)
Higher at JPY 2,313 MM
CASH AND EQV(HY)
Highest at JPY 66,611 MM
DIVIDEND PER SHARE(HY)
Highest at JPY 6.42
-21What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,049.4
NET SALES(Q)
Lowest at JPY 15,369 MM
INTEREST(Q)
Highest at JPY 83 MM
OPERATING PROFIT(Q)
Lowest at JPY 871 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.67 %
PRE-TAX PROFIT(Q)
Lowest at JPY 373 MM
NET PROFIT(Q)
Lowest at JPY 427 MM
Here's what is working for LEC, Inc. (Japan)
Cash and Eqv
Highest at JPY 66,611 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per share
Highest at JPY 6.42
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -7.08% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for LEC, Inc. (Japan)
Pre-Tax Profit
At JPY 373 MM has Fallen at -67.19%
over average net sales of the previous four periods of JPY 1,137 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Sales
At JPY 15,369 MM has Fallen at -10.36%
over average net sales of the previous four periods of JPY 17,145 MMMOJO Watch
Near term sales trend is very negative
Net Sales (JPY MM)
Interest Coverage Ratio
Lowest at 1,049.4
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At JPY 427 MM has Fallen at -45.12%
over average net sales of the previous four periods of JPY 778 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Net Sales
Lowest at JPY 15,369 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 83 MM
in the last five periods and Increased by 9.21% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Operating Profit
Lowest at JPY 871 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 5.67 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 373 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 427 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
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