LEIFRAS Co., Ltd. American Depositary Shares Fundamental Analysis
LEIFRAS Co., Ltd. American Depositary Shares Fundamental Analysis
LEIFRAS Co., Ltd. American Depositary Shares (LFS) shows moderate financial fundamentals with a PE ratio of 17.16, profit margin of 3.88%, and ROE of 36.37%. The company generates $14.5B in annual revenue with strong year-over-year growth of 18.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LFS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLFS demonstrates superior asset utilization.
Valuation Score
ExcellentLFS trades at attractive valuation levels.
Growth Score
ExcellentLFS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLFS maintains a strong and stable balance sheet.
Profitability Score
ModerateLFS maintains healthy but balanced margins.
Key Financial Metrics
Is LFS Expensive or Cheap?
P/E Ratio
LFS trades at 17.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LFS's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values LEIFRAS Co., Ltd. American Depositary Shares at 4.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.47 times EBITDA. This signals the market has high growth expectations.
How Well Does LFS Make Money?
Net Profit Margin
For every $100 in sales, LEIFRAS Co., Ltd. American Depositary Shares keeps $3.88 as profit after all expenses.
Operating Margin
Core operations generate 5.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.37 in profit for every $100 of shareholder equity.
ROA
LEIFRAS Co., Ltd. American Depositary Shares generates $11.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LEIFRAS Co., Ltd. American Depositary Shares generates limited operating cash flow of $331.26M, signaling weaker underlying cash strength.
Free Cash Flow
LEIFRAS Co., Ltd. American Depositary Shares generates weak or negative free cash flow of $283.42M, restricting financial flexibility.
FCF Per Share
Each share generates $10.83 in free cash annually.
FCF Yield
LFS converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How LFS Stacks Against Its Sector Peers
| Metric | LFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.16 | 19.89 | Better (Cheaper) |
| ROE | 36.37% | 782.00% | Weak |
| Net Margin | 3.88% | -3724.00% (disorted) | Weak |
| Debt/Equity | 0.60 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.69 | 2.28 | Neutral |
| ROA | 11.80% | 347.00% | Weak |
LFS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LEIFRAS Co., Ltd. American Depositary Shares's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.02%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
169.65%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
27.70%
Industry Style: Defensive, Dividend, Low Volatility
High Growth