Company Overview
Leifras Co., Ltd. operates as a sports and social business entity within the Japanese market, specializing in the operation of sports schools and the organization of events specifically for children. The company's revenue streams are diversified across the sale of sports equipment, the management of extracurricular activities in elementary and junior high schools, and broader entertainment services. This business model places Leifras Co., Ltd. squarely within the Communication Services sector, specifically under the Entertainment industry classification, indicating its reliance on consumer engagement and media distribution channels for value creation. The company currently holds a market capitalization of $65.40M and generates annual revenue of $11.47B, employing a workforce of 999 individuals to execute its operational strategy. These financial figures suggest that while the enterprise maintains a significant top-line revenue stream, its market valuation reflects a smaller capitalization relative to its sales volume, which is characteristic of companies in the Entertainment industry where brand equity and market share can be volatile.
Financial Health
The company reports a trailing twelve-month revenue of $11.47B, accompanied by a net income of $420.25M and an EBITDA of $732.98M. The substantial gap between the $11.47B in revenue and the $420.25M in net income reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume approximately 96.3% of total revenue before interest and taxes. Free cash flow is listed as N/A, which indicates that the company's liquidity analysis must rely on cash balance and debt levels rather than operational cash generation metrics in the current reporting period. Despite the lack of specific free cash flow data, the company holds a cash balance of $2.44B against total debt of $1.71B, suggesting a robust liquidity position on the balance sheet. The debt-to-equity ratio stands at 131.85, which implies that the company is leveraged significantly, relying heavily on debt financing relative to shareholder equity to fund its operations or expansion. The current ratio is 1.15, indicating that the company possesses $1.15 in current assets for every $1.00 of current liabilities, which suggests a tight but adequate short-term liquidity position to meet immediate obligations. Return on Equity and Return on Assets are both listed as N/A, preventing a direct calculation of management effectiveness based on these specific return metrics in the available data.
Valuation Assessment
The trailing twelve-month P/E ratio is 35.71, while the forward P/E is N/A, implying that analysts or the market currently lack consensus on future earnings growth expectations necessary to calculate a forward multiple. The price-to-book ratio is 7.67, indicating that the market values the company at a significant premium of 7.67 times its tangible book value, which often occurs in sectors where intangible assets like brand reputation are not fully captured on the balance sheet. Alternative valuation metrics such as the price-to-sales ratio of 0.01 and an EV/EBITDA of -0.91 suggest that traditional valuation models face challenges due to the specific capitalization structure or accounting adjustments affecting the enterprise value. The stock has traded between a 52-week low of $1.58 and a 52-week high of $12.49, meaning the current price sits at a level that reflects a wide trading range typical for volatile entertainment stocks. The beta value is N/A, which means volatility relative to the broader market cannot be quantified using this specific metric for Leifras Co., Ltd. in the current dataset.
Growth & Income
Revenue growth year-over-year is 15.9%, whereas earnings growth year-over-year is -5.0%, indicating that earnings are growing significantly slower than revenue, which implies that revenue expansion is currently being offset by rising costs or margin compression. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests all available earnings into business operations, debt reduction, or growth initiatives rather than returning capital to shareholders. This lack of dividend distribution aligns with the high debt-to-equity ratio and the company's focus on maintaining liquidity and operational flexibility in a competitive sports and social business landscape. Overall, the growth and income profile is characterized by strong top-line expansion that has not yet translated into proportional bottom-line growth, with capital allocation directed entirely toward internal business needs rather than shareholder payouts.