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LRELead Real Estate Co., Ltd American Depositary Shares
$1.29$18M
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Lead Real Estate Co., Ltd American Depositary Shares (LRE) Financial Ratios

Latest Ratios: P/E Ratio 3.5x · EV/EBITDA 8.6x · ROE 17.6%. (2020–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LRE Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Market Cap$18M$25M$30M————
Enterprise Value$82M$10.4B$10.3B————
P/E Ratio →3.540.030.05————
P/S Ratio0.160.000.00————
P/B Ratio0.570.000.01————
P/FCF3.750.03—————
P/OCF0.900.010.02————

P/E links to full P/E history page with 30-year chart

LRE EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
EV / Revenue—0.570.54————
EV / EBITDA8.636.7810.31————
EV / EBIT9.287.2910.62————
EV / FCF—13.58—————

LRE Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Gross Margin19.2%19.2%15.6%15.8%16.5%13.2%11.4%
Operating Margin7.8%7.8%4.7%5.4%5.4%4.0%2.1%
Net Profit Margin4.5%4.5%3.3%3.5%3.3%2.5%1.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
ROE17.6%17.6%18.0%24.8%28.7%19.1%7.9%
ROA4.3%4.3%3.8%4.3%5.1%3.2%1.2%
ROIC7.1%7.1%4.8%5.9%7.5%4.8%1.9%
ROCE12.9%12.9%10.1%14.0%21.9%15.2%6.7%

LRE Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Debt / Equity2.592.592.744.154.003.624.86
Debt / EBITDA8.508.5011.5811.129.4512.0824.11
Net Debt / Equity—2.062.433.863.813.334.60
Net Debt / EBITDA6.766.7610.2810.359.0211.1022.84
Debt / FCF—13.55—————
Interest Coverage33.1133.1153.1756.5136.927.8415.12

LRE Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Current Ratio0.360.361.421.661.280.950.84
Quick Ratio0.360.360.260.210.120.200.14
Cash Ratio0.340.340.160.110.050.080.06
Asset Turnover—0.881.101.101.331.201.05
Inventory Turnover——1.731.411.562.151.95
Days Sales Outstanding———————

LRE Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Dividend Yield1.4%100.0%84.7%————
Payout Ratio——4.0%————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020
Earnings Yield28.2%3267.4%2123.5%————
FCF Yield26.7%3089.5%—————
Buyback Yield0.0%0.0%0.0%————
Total Shareholder Yield1.4%100.0%84.7%————
Shares Outstanding—$14M$13M$14M$14M$14M$14M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetStrained
Cash FlowBurning
Top Statement Risk

Project completion timing volatility

Valuation Multiples Reflect Operational Uncertainty

Based on reported financial data, LRE's P/E ratio of 3.58 suggests a significant discount compared to broader market averages, which may indicate that investors are pricing in the inherent volatility of the firm's project-based revenue model rather than its underlying asset value.

The lack of stable P/FFO or P/AFFO metrics complicates traditional REIT valuation, as the company's earnings are heavily skewed by the timing of property sales. This valuation discount appears to reflect market skepticism regarding the sustainability of earnings in a rising interest rate environment.

NOI Margin Compression Signals Pressure

According to the company's income statement data, NOI margins contracted to 11.4% in 2024Q4 from a peak of 17.2% in 2022Q4, indicating that rising construction costs or competitive pricing pressures are likely eroding the profitability of the firm's core luxury residential development projects.

The downward trend in NOI margins suggests that LRE is struggling to maintain pricing power amidst Japan's construction labor shortages. Investors should monitor whether this margin contraction is a temporary byproduct of project mix or a structural shift in the firm's cost base.

Negative AFFO Challenges Dividend Sustainability

Based on reported figures, LRE's AFFO remains deeply negative, reaching -$96.79 per share in 2024Q4, which indicates that the company is currently unable to fund its dividend distributions from recurring cash flow after accounting for the necessary maintenance and leasing capital expenditures required to sustain its portfolio.

The disconnect between headline FFO and negative AFFO highlights the capital-intensive nature of the firm's development pipeline. This suggests that any dividend payments are likely funded through external financing or asset sales rather than organic operational cash flow, warranting caution regarding long-term sustainability.

Leverage Ratios Indicate Financial Sensitivity

As reported in recent financial statements, the company's debt-to-equity ratio fluctuated significantly, reaching 2.74 in 2024Q4, which, while lower than the 4.53 peak observed in 2023Q2, still indicates a reliance on external financing that may be sensitive to shifting interest rate environments in Japan.

While the interest coverage ratio of 98.60 in 2024Q4 appears robust, it may be distorted by the timing of project completions and non-recurring gains. The firm's reliance on debt to fund its development cycle suggests that any sustained increase in borrowing costs could materially impact future profitability.

Misapplication of Standard P/E Multiples

The most commonly misapplied metric for LRE is the standard P/E ratio, which fails to account for the significant non-cash depreciation charges inherent in real estate development and the lumpy nature of revenue recognition that characterizes the firm's luxury residential sales cycle.

Using P/E obscures the true cash-generating capacity of the underlying assets by ignoring the capital-intensive nature of property development. Analysts should instead prioritize FFO and AFFO metrics to better assess the firm's ability to generate recurring cash flow and sustain its dividend obligations.

Download Financial Ratios Data

Includes 30+ ratios · 6 years · Updated daily

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LRE — Frequently Asked Questions

Quick answers to the most common questions about buying LRE stock.

What is Lead Real Estate Co., Ltd American Depositary Shares's P/E ratio?

Lead Real Estate Co., Ltd American Depositary Shares's current P/E ratio is 3.5x. The historical average is 0.0x. This places it at the 100th percentile of its historical range.

What is Lead Real Estate Co., Ltd American Depositary Shares's EV/EBITDA?

Lead Real Estate Co., Ltd American Depositary Shares's current EV/EBITDA is 8.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.

What is Lead Real Estate Co., Ltd American Depositary Shares's ROE?

Lead Real Estate Co., Ltd American Depositary Shares's return on equity (ROE) is 17.6%. The historical average is 19.3%.

Is LRE stock overvalued?

Based on historical data, Lead Real Estate Co., Ltd American Depositary Shares is trading at a P/E of 3.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Lead Real Estate Co., Ltd American Depositary Shares's dividend yield?

Lead Real Estate Co., Ltd American Depositary Shares's current dividend yield is 1.38%.

What are Lead Real Estate Co., Ltd American Depositary Shares's profit margins?

Lead Real Estate Co., Ltd American Depositary Shares has 19.2% gross margin and 7.8% operating margin.

How much debt does Lead Real Estate Co., Ltd American Depositary Shares have?

Lead Real Estate Co., Ltd American Depositary Shares's Debt/EBITDA ratio is 8.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.