LEC, Inc. (Japan) (7874) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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LEC, Inc. (Japan)

Why is LEC, Inc. (Japan) ?

Weak Long Term Fundamental Strength with a -4.86% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -4.86% of over the last 5 years

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

Below par performance in long term as well as near term

Along with generating -15.78% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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)

-19.92%

-0.81

31.77%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

ROCE (avg)

5.40%

ROE (avg)

6.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

8.82%

ROE (Latest)

8.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What 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 periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 6.42

in the last five years

MOJO 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 MM

MOJO 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 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest Coverage Ratio

Lowest at 1,049.4

in the last five periods

MOJO 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 MM

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 5.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 373 MM

in the last five periods

MOJO 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 periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)