LEIFRAS Co. Ltd. American Depositary Shares (LFS)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics and a margin of safety. Leifras operates sports schools and social services in Japan; I see no data quantifying a competitive moat. The supplied revenue growth of 15.68% is encouraging, yet profit growth is -7.02%. In fiscal Q1 2026, the latest reported quarter, revenue was $3.0B, net income was $124.3M, and the margin was 4.21%. Thin margins leave little room for error. Returns are mixed: FairStock's ROE is 29.23%, but ROCE is 8.55%, debt/equity is 0.60, Piotroski F-Score is 3/9, and Altman Z-Score is 1.37—not a fortress. At the 2026-10-13 close of $2.10, market cap is $53.5M. On earnings and book, FairStock's P/E of 19.09 and P/B of 4.29 are not bargains. The FairStock Graham Number of $13.66 and 84.63% margin of safety look spectacular, and trailing free cash flow of $512.4M with a 957.7% FCF yield would be extraordinary. But those figures sit oddly beside a $53.5M market cap and $3.0B quarterly revenue, so I would demand clean filings before trusting them. EV/EBITDA of -1.64 also needs explanation. The 52-week range of $1.58–$12.49 shows Mr. Market's mood swings. Until I see consistent profits, cash conversion, and multi-year filed results, I would call this speculative rather than a classic value opportunity.

In plain English: Leifras runs sports schools and social programs in Japan. The business shows rising sales but falling profit, and its financial-health signals are mixed to weak. At $2.10, the shares look expensive compared with earnings and book value, though one conservative calculation suggests a large discount; the supplied figures have odd gaps, so it is hard to call the stock clearly cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer