LEIFRAS Co. Ltd. American Depositary Shares (LFS)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $299 million in annual free cash flow (559.0% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 30.4% demonstrating efficient capital deployment

Concerns

• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

LEIFRAS Co. Ltd. American Depositary Shares is a micro-cap communication services company valued at $53 million. Revenue stands at $11.7 billion. From a quality standpoint, LEIFRAS shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is reasonably priced at 18.4x earnings, with offers a 85% margin of safety vs Graham Number of $13. Growth dynamics show revenue growing at 9.0% and profit growth of 9.4%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $299 million in annual free cash flow (559.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer