Lead Real Estate Co. Ltd American Depositary Shares (LRE)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

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

As a Graham-style investor, I start with price and balance sheet. At the close on 2026-10-13, the shares were $1.12 and market cap was $17.6M. FairStock calculations show a P/E of 2.37 and a P/B of 0.52. Its Graham Number is $58.84, implying a margin of safety of 98.11%. That screams statistically cheap. But I must ask why. Lead Real Estate develops luxury residential property in Japan, operates Tokyo hotels, and leases apartments in Japan and Dallas. It has only 97 employees, so it may be nimble, but real estate development is cyclical and capital-intensive. The FairStock ROE is 24.94%, yet ROCE is only 4.46%; the gap, combined with D/E of 4.04, suggests leverage is flattering equity returns. The Altman Z-Score of 0.34 is a serious distress signal, and the Piotroski F-Score of 3/9 confirms weak fundamentals. A 5.09% dividend yield is attractive only if it is sustainable, and we have no revenue or profit growth data. There is no Peter Lynch category because there are only 0 years of filed results—not enough history. A wide discount can be real, but Graham also demanded financial strength. Here, the low multiple may be a value trap. I would want audited filings, stable debt, and better capital returns before trusting the cheapness. The 52-week range of $1.00-$1.89 and beta of 1.41 add volatility.

In plain English: Lead Real Estate develops luxury homes and condos in Japan, and also runs hotels and apartment rentals. The numbers show a very low price compared with its earnings and book value, but the company uses a lot of debt and has weak financial-health scores. At the current price it looks cheap on paper, yet it is a tiny, thinly traded business with almost no filed history, so the cheapness carries real risk.

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