ScoreWhy is LEC, Inc. (Japan) ?
1
Poor long term growth as Operating profit has grown by an annual rate -8.07% of over the last 5 years
2
With a growth in Operating Profit of 33.42%, the company declared Very Positive results in Dec 25
- ROCE(HY) Highest at 7.54%
- INVENTORY TURNOVER RATIO(HY) Highest at 4.11 times
- INTEREST COVERAGE RATIO(Q) Highest at 3,151.32
3
With ROCE of 5.49%, it has a attractive valuation with a 1.25 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 -9.90%, its profits have risen by 101.9% ; the PEG ratio of the company is 0.2
4
Underperformed the market in the last 1 year
- Even though the market (Japan Nikkei 225) has generated returns of 40.96% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.90% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to LEC, Inc. (Japan) should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is LEC, Inc. (Japan) for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
LEC, Inc. (Japan)
-9.9%
-0.33
37.19%
Japan Nikkei 225
40.96%
1.44
28.42%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.58%
EBIT Growth (5y)
-8.07%
EBIT to Interest (avg)
23.72
Debt to EBITDA (avg)
1.57
Net Debt to Equity (avg)
0.43
Sales to Capital Employed (avg)
0.80
Tax Ratio
22.29%
Dividend Payout Ratio
37.88%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.57%
ROE (avg)
6.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
1.36
EV to EBIT
22.74
EV to EBITDA
9.82
EV to Capital Employed
1.25
EV to Sales
0.93
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
5.49%
ROE (Latest)
5.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
ROCE(HY)
Highest at 7.54%
INVENTORY TURNOVER RATIO(HY)
Highest at 4.11 times
INTEREST COVERAGE RATIO(Q)
Highest at 3,151.32
NET PROFIT(Q)
Highest at JPY 1,068 MM
RAW MATERIAL COST(Y)
Fallen by -15.03% (YoY
CASH AND EQV(HY)
Highest at JPY 65,255 MM
NET SALES(Q)
Highest at JPY 18,475 MM
OPERATING PROFIT(Q)
Highest at JPY 2,395 MM
OPERATING PROFIT MARGIN(Q)
Highest at 12.96 %
PRE-TAX PROFIT(Q)
Highest at JPY 1,760 MM
EPS(Q)
Highest at JPY 32.41
-8What is not working for the Company
INTEREST(HY)
At JPY 154 MM has Grown at 18.46%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.07 times
Here's what is working for LEC, Inc. (Japan)
Interest Coverage Ratio
Highest at 3,151.32
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
Highest at JPY 1,068 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 4.11 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at JPY 18,475 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 2,395 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 12.96 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 1,760 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 1,760 MM has Grown at 87.28%
over average net sales of the previous four periods of JPY 939.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 1,068 MM has Grown at 65.2%
over average net sales of the previous four periods of JPY 646.5 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 32.41
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 65,255 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -15.03% (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)
Interest
At JPY 154 MM has Grown at 18.46%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debtors Turnover Ratio
Lowest at 5.07 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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