Lead Real Estate Co., Ltd American Depositary Shares

LRE

Real Estate - Development · Real Estate

Exchange

NASDAQ Capital Market

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Good

Stability

Good

Valuation

Good

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Winston Score History

The full picture

Lead Real Estate Co., Ltd is a Japanese real estate developer that builds and sells luxury residential properties, primarily high-end condominiums and single-family homes. Its main customers are wealthy individuals and investors looking for premium housing in Japan. The company also has a smaller business helping Japanese clients purchase real estate in Hawaii.

Lead Real Estate earns money mainly by selling completed properties, which means revenue can be lumpy depending on how many units close in a given period. The company operates primarily in Japan, with a niche international presence in Hawaii, and is a small-cap firm with a market cap under $100 million. Its focus on luxury properties gives it somewhat higher margins than mass-market developers, but the main risks include Japan's shrinking population, rising construction costs, and the company's heavy reliance on a small number of high-value transactions — meaning a few delayed deals can significantly impact annual results.

Score breakdown

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Quality

Profit per sale

Gross Margin

10.6%

Thin — 10.6% gross margin

Profit after running costs

Operating Margin

-11.4%

Losing money on operations — -11.4%

Return on the money invested

ROCE

7.0%

Weak — 7.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

-1.7%

Shrinking sales (-1.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

199%

Turns 199% of profit into real cash

Spare cash per sale

FCF Margin

-2.4%

Burning cash (-2.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

3.91

Heavy debt load (3.91)

Covers its interest

Interest Cover

36.91x

Comfortably covers interest (36.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

3.0x

no trend

Attractive valuation — P/E 3.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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