tiprankstipranks
Trending News
More News >
LY Corporation (JP:4689)
:4689
Japanese Market

LY Corporation (4689) AI Stock Analysis

Compare
2 Followers

Top Page

JP

LY Corporation

(4689)

71Outperform
LY Corporation exhibits strong financial performance with impressive revenue and profit growth. The earnings call highlights positive sentiment and strategic initiatives that bolster shareholder value. However, technical indicators suggest a potential short-term downtrend, and the stock's high P/E ratio indicates it may be overvalued. Challenges in display advertising and the LINE renewal delay are risks to consider.

LY Corporation (4689) vs. S&P 500 (SPY)

LY Corporation Business Overview & Revenue Model

Company Descriptionnull
How the Company Makes Moneynull

LY Corporation Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.90T1.81T1.67T1.57T1.21T1.05T
Gross Profit
1.37T1.29T1.16T1.07T773.40B628.48B
EBIT
251.34B198.38B314.53B189.50B162.13B152.28B
EBITDA
407.82B382.62B306.81B325.25B283.52B235.69B
Net Income Common Stockholders
118.43B113.20B178.87B77.32B70.14B81.67B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.33T1.42T1.65T1.13T1.07T880.10B
Total Assets
9.45T9.04T8.59T7.11T6.70T3.93T
Total Debt
1.82T1.88T1.91T1.67T1.39T1.09T
Net Debt
491.04B462.32B261.95B538.98B323.84B206.34B
Total Liabilities
6.04T5.60T5.27T4.13T3.71T2.89T
Stockholders Equity
2.99T3.04T2.92T2.68T2.68T771.55B
Cash FlowFree Cash Flow
498.19B245.47B-55.94B-6.32B137.18B158.15B
Operating Cash Flow
591.96B316.48B93.05B266.31B207.92B243.28B
Investing Cash Flow
-470.90B-444.06B319.79B-303.90B-12.35B-503.03B
Financing Cash Flow
-306.89B-110.80B105.79B91.63B-12.07B593.41B

LY Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price556.10
Price Trends
50DMA
509.07
Positive
100DMA
468.10
Positive
200DMA
432.13
Positive
Market Momentum
MACD
11.05
Negative
RSI
63.34
Neutral
STOCH
94.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4689, the sentiment is Positive. The current price of 556.1 is above the 20-day moving average (MA) of 520.70, above the 50-day MA of 509.07, and above the 200-day MA of 432.13, indicating a bullish trend. The MACD of 11.05 indicates Negative momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 94.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4689.

LY Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥3.69B13.06
1.43%5.72%-4.91%
73
Outperform
¥637.67B29.1915.61%0.78%6.23%78.16%
71
Outperform
¥3.90T34.57
1.26%6.51%-0.45%
67
Neutral
¥219.32B18.16
0.58%4.47%-1.74%
66
Neutral
¥34.36B19.26
4.64%11.85%54.72%
60
Neutral
$6.56B11.423.23%4.27%2.37%-21.19%
56
Neutral
¥209.32B-5.12%1.02%18.11%-212.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4689
LY Corporation
552.70
200.55
56.95%
JP:4686
Justsystems Corporation
3,425.00
843.44
32.67%
JP:4736
Nippon RAD Inc.
683.00
-336.89
-33.03%
JP:9629
PCA Corporation
1,828.00
131.17
7.73%
JP:9749
Fuji Soft Incorporated
9,804.00
3,750.28
61.95%
JP:4819
Digital Garage
4,520.00
2,019.19
80.74%

LY Corporation Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: 18.87% | Next Earnings Date: Aug 1, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive sentiment with significant revenue and profit growth across multiple segments, driven by strategic initiatives and disciplined cost management. However, challenges in display advertising and the delay in LINE renewal were noted. Overall, the company's outlook remains strong with proactive shareholder return measures.
Highlights
Record Revenue Achievement
Quarterly revenue exceeded JPY500 billion for the first time, driven by account advertising and PayPay Consolidated, with an overall revenue growth of 6% year-on-year.
Significant Adjusted EBITDA Growth
Consolidated adjusted EBITDA grew by 17.5% year-on-year, with the adjusted EBITDA margin improving to 25.6%.
Successful PayPay Consolidated Growth
PayPay Consolidated revenue increased by 19% year-on-year to JPY91.1 billion, with an adjusted EBITDA of JPY18 billion, contributing to a margin of 19.8%.
Yahoo! JAPAN Shopping Growth
Yahoo! JAPAN Shopping transaction value increased by 9.5% year-on-year, supported by successful sales promotion measures.
Positive Shareholder Returns
Dividend forecast revised upward from JPY5.56 to JPY7, with a total shareholder return of 70% or higher targeted for the 2025-2029 period.
Lowlights
Display Advertising Weakness
Display ads weakened slightly due to lower demand in certain industries, impacting both LINE and Yahoo! platforms.
LINE Renewal Delay
The renewal of LINE, initially scheduled for FY 2024, has been postponed to FY 2025, potentially affecting future business performance.
Challenges in Display Ad Revenue
Display ad revenue faced negative growth due to reduced demand from cosmetics, health food sectors, and absence of large entertainment titles.
Company Guidance
During the FY 2024 Third Quarter Business Results briefing for LY Corporation, several key metrics and guidance were shared. The company reported a 6% year-on-year revenue growth and a 17.5% increase in consolidated adjusted EBITDA. The quarterly revenue surpassed JPY500 billion for the first time. The adjusted EBITDA margin improved to 25.6%, driven by revenue growth and fixed cost optimization. The dividend forecast was revised upward from JPY5.56 to JPY7, with a total shareholder return target of 70% or higher over the five-year period from 2025 to 2029. The acquisition of BEENOS aims for a four-year CAGR of 10% in cross-border EC transaction value. By segment, the Media business saw a 3.4% revenue growth, the Commerce segment reported a 9.5% increase in Yahoo! JAPAN Shopping transaction value, and the Strategic business, led by PayPay Consolidated, experienced a 19% revenue growth.

LY Corporation Corporate Events

LY Corporation to Boost Investment in LINE Bank Taiwan
Apr 10, 2025

LY Corporation announced plans to increase its investment in LINE Bank Taiwan Limited, making it a consolidated and specified subsidiary. This strategic move is intended to bolster the banking services of LINE Bank in Taiwan and strengthen collaboration within the LY Corporation Group, potentially impacting the company’s market position and offering enhanced services to stakeholders.

LY Corporation Submits Report on Information Leakage Prevention
Mar 31, 2025

LY Corporation has submitted a report to Japan’s Personal Information Protection Commission detailing measures to prevent a recurrence of unauthorized access that led to an information leakage. The company is committed to improving its technical and organizational safety management measures to regain trust and ensure the security of its users and stakeholders.

LY Corporation Reports to Ministry on Security Measures
Mar 31, 2025

LY Corporation has submitted a report to Japan’s Ministry of Internal Affairs and Communications following administrative guidance related to an information leakage incident due to unauthorized access. The company is actively implementing measures to enhance security governance, manage subcontractors, and improve customer support to restore trust and ensure safe service usage.

LY Corporation Addresses LINE App Error with Ministry Guidance
Mar 28, 2025

LY Corporation, a company known for its LINE app, has received administrative guidance from Japan’s Ministry of Internal Affairs and Communications due to an error in the app’s album feature that occurred in November 2024. The guidance includes implementing preventive measures, providing user support, and reporting on these actions. LY Corporation is committed to addressing the issue and ensuring user confidence in their services.

ASKUL Corporation to Repurchase and Cancel Treasury Stock
Mar 18, 2025

LY Corporation announced that its subsidiary, ASKUL Corporation, has resolved to repurchase and cancel its treasury stock. This decision aims to maximize ASKUL’s corporate value while maintaining LY Corporation’s voting rights ratio. The impact on LY Corporation’s consolidated business results is expected to be minor.

LY Corporation Enhances Governance Amidst Strategic Transition
Mar 3, 2025

LY Corporation has updated its corporate governance practices, highlighting the importance of a Nominating and Remuneration Committee to ensure effective leadership succession planning. The company is currently in a transitional phase due to recent reorganizations and is focusing on revising its business portfolio to enhance revenue expansion. These changes are aimed at improving corporate value and strengthening stakeholder trust.

LY Corporation Updates on BEENOS Inc. Tender Offer Progress
Feb 28, 2025

LY Corporation announced progress in its tender offer for BEENOS Inc., a company with which it aims to strengthen its cross-border e-commerce business. The tender offer is pending clearance under Taiwan’s competition laws, expected by the end of March 2025, with other conditions being reviewed. Corrections were also made to previous communications regarding the timeline of discussions with BEENOS.

LY Corporation Increases Dividend Forecast Amid Strategic Growth Plans
Feb 6, 2025

LY Corporation has announced a revision to its dividend payment forecast for the fiscal year ending March 31, 2025, increasing the expected payout from JPY5.56 to JPY7.00 per share. The decision reflects the company’s commitment to balancing shareholder returns with strategic investments for long-term growth, leveraging favorable recent performance and a policy targeting a cumulative payout ratio of 70% or more over five years. LY Corporation plans to maintain stable dividends and may consider share buybacks to enhance capital efficiency.

LY Corporation Shows Strong Financial Performance and Revises Dividend Forecast
Feb 6, 2025

LY Corporation reported significant improvements in its financial performance for the nine months ended December 31, 2024, with increases in revenue, operating income, and net income compared to the previous year. The company also revised its dividend forecast, indicating strong confidence in its future outlook, potentially impacting shareholder returns positively.

LY Corporation Streamlines Customer Service Operations through Subsidiary Split
Jan 28, 2025

LY Corporation announced the transfer of its customer service functions to its wholly owned subsidiary, LY Communications Corporation, through a company split effective April 1, 2025. This strategic move aims to unify and improve the efficiency of customer service operations, thereby enhancing corporate value without affecting the company’s share capital or requiring a general meeting of shareholders.

LY Corporation to Absorb JPKI Service from LINE Pay
Jan 28, 2025

LY Corporation has announced an absorption-type split to take over the Japanese Public Key Infrastructure (JPKI) service from its wholly owned subsidiary, LINE Pay Corporation. This strategic move, effective April 1, 2025, aims to ensure a smooth transition and stable provision of the JPKI service, indicating LY Corporation’s commitment to enhancing its service offerings without altering its financial structure.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.