Quality Investor

Leifras Co., Ltd.

Rank #26Capital Return

LFS · Nasdaq · Communication Services

Leifras Co., Ltd. (LFS) — Rank #26 by gross profitability (GP/assets 0.74) · ROE 23.7% · Piotroski F-Score 9 / 9.

As-of 2026-09-15 · CIK 0002030277 · all metrics point-in-time as of the filing date.

About

Leifras Co., Ltd. operates as a sports and social business company in Japan.

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It operates through two segments, Sports School Business and Social Business segments. The company focuses on providing services related to the operation of sports schools and organization of events for children; selling of sports equipment; managing extracurricular activities in elementary and junior high schools; offering sports therapy for children with developmental disabilities; and providing health exercise guidance for the elderly. It is also involved in the management and operation of sports clubs, sports classes, and cultural classes; extracurricular activities in elementary and junior high schools; sports and healthcare facility management; travel business; and management of after-school childcare facilities. The company's sports schools offer soccer, baseball, basketball, track and field, general beginner sports, rhythmic karate, kendo, tennis, girls' sports, volleyball, cheer dance, dance, and table tennis, as well as multi-discipline sports programs. Leifras Co., Ltd. has a strategic alliance with H & R Produce Distributors Inc. Leifras Co., Ltd.

was incorporated in 2001 and is headquartered in Shibuya, Japan.

Industry
Entertainment
Sector
Communication Services
State
M0
Filer Category
Non-accelerated filerEmerging growth company
Fiscal Year End
December 31

Price History

LFS-29.6% · -31.7% CAGRSPY+14.8% · +16.2% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$56.25M

P/E (annual)

0.1

P/S (annual)

0.0

P/B

0.0

P/OCF (annual)

0.1

Shareholder Yield

5.0%

Employees

1,055

Industry

Entertainment

Exchange

Nasdaq

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Quality Profile

Profitability

1/1 pass
GP / assets
0.74
Return on equity
23.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.53
Current ratio
1.54×
Net cash
$2.26B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.0%

Growth

2/2 pass
Revenue growth
13.5%
Piotroski F-Score
9 / 9
Share dilution
-5.0%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-87.6%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -5.0% — per-share value needs a total required return of -92.6% once share-count change is priced in.

vs. own 6-year median revenue growth: 13.5%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-87.8%

r = 10% (base)

-87.6%

r = 12%

-87.4%

Net debt / market cap: -4170.9%

Base FCF: $425.7M3Y mean FCF: $425.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

0.1xCheap
0.1xmed 0.2x0.3x

P / S

Price / revenue per share

0.0xCheap
0.0xmed 0.0x0.0x

P / B

Price / book value per share

0.0xCheap
0.0xmed 0.1x0.1x

P / GP

Price / gross profit per share

0.0xCheap
0.0xmed 0.0x0.0x

P / FCF

Price / free cash flow per share

0.1xFair
0.1xmed 0.1x0.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.74

Primary signal (Novy-Marx).

1st of 8 SIC 8200 peers

Return on equity

23.7%

Gross margin

29.5%

8th of 8 SIC 8200 peers

Revenue growth (YoY)

13.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.53

8th of 8 SIC 8200 peers (best = lowest)

Current ratio

1.54×

7th of 8 SIC 8200 peers

Quick ratio

1.45×

Net cash

$2.26B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$425.70M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.03

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.0%

Stock-based comp intensity.

Piotroski F-Score

F-Score

9 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20232025
Capital Return