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ZYBERNO

Stock Report

Updated Aug 22, 2026

LEAD REAL ESTATE CO., LTD (LRE)

Industrial • NASDAQ

$1.31

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

33.0/100

WEAK BUSINESS

LEAD REAL ESTATE CO., LTD (LRE) scores 33/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full LRE quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+25.7%

Market Underestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full LRE valuation analysis · → View full LRE Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):GOOD (0.34x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):POOR (8.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

LEAD REAL ESTATE CO., LTD (LRE) stock report — Zyberno Score 33/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, LEAD REAL ESTATE CO., LTD (LRE) shows a Brina Gap of +25.7%, which strengthens the case: based on the company's ROIC (8.4%) and reinvestment rate (269.4%), the business can fundamentally grow at 22.8% — but the current enterprise value implies the market expects -3.0%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:1.31

Market Cap:$17.87M

Valuation Multiples (3)

P/B Ratio:0.56x

P/S Ratio:0.15x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$53.18M

Ev Ebitda Ratio:5.36x

Pfcf Ratio:3.61x

Price Action & Momentum (3)

12-1 Momentum:

-19.9% (18th pctile)

📈 Click to view full LRE Momentum analysis →

Momentum Percentile:18 / 100

% of 52-Week High:44.1%

B. Profitability Assessment

Return Metrics (5)

Roic:

8.4%

📊 Click to view full LRE ROIC analysis →

Reinvestment Rate:269.4%

Fundamental Growth Rate (g):22.8%

Market-Implied Growth Rate:-3.0%

Brina Gap:

25.7%

☷ Click to view full LRE Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:8.3%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:1.4%

C. Log-Linear Regression Growth Trends

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.34x

Quick Ratio:1.34x

Cash Ratio:0.27x

Leverage Analysis (3)

Debt To Equity Ttm:0.34x

Debt-to-Equity Ratio:0.34x

Debt To Ebitda:5.25x

Coverage Ratios (2)

Interest Coverage Ratio:33.11x

Times Interest Earned:33.11

Capital Structure (4)

Working Capital:21,665,796.10

Cash And Cash Equivalents:16,860,433.56

Long Term Debt:$3.95M

Net Debt:$35.31M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$119.58M

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00$9.36M

Bottom Line Performance (3)

$5.37M

Income Before Tax:$8.85M

Ebitda Ttm:9,929,306.98

Operating Expenses (5)

Operating Expenses:110,215,309.97

R And D Expense:0.00

Sga Expense:14,301,681.94

Income Tax Expense:$3.48M

Interest Expense:282,676.22

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:12.0%

Ebitda Margin:8.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$129.97M

Current Assets:$84.74M

Ppe Net:20,537,502.69

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:98,040,121.87

Current Liabilities:63,073,109.76

Long Term Debt:$3.95M

Short Term Debt:$48.23M

Equity & Capital (3)

Equity:$31.92M

Retained Earnings:$25.17M

Common Stock:50,000,000.00

Working Capital Items (3)

Accounts Receivable:244,466.96

Inventory:0.00

Accounts Payable:6,572,628.35

Special Items (2)

Contract Liabilities:2,141,667.12

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

$21.02M$5.02M

Investment Activities (1)

Investing Cash Flow:-$16.64M

Financing Activities (3)

Financing Cash Flow:$4.42M

Dividends Paid Ttm:259,716.40

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:7,535,418.09

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:569,077.55

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$0.39

Revenue & Cash Per Share (2)

Sales Per Share Ttm:8.77

Operating Cash Flow Per Share:$1.54

Book Value & Capital (2)

Book Value Per Share:$2.34

Cash Per Share:1.24

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.92x

Working Capital Turnover Ttm:5.52x

Receivables Management (2)

Receivables Turnover Ttm:489.13x

Days Sales Outstanding Ttm:0.75

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:20.06

Cash Conversion Cycle:-1,018.32

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:80.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:269.4%

Fundamental Growth Rate (g):22.8%

Market-Implied Growth Rate:-3.0%

Brina Gap:

25.7%

☷ Click to view full LRE Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

C. Company Profile & Context

Corporate Information (6)

Symbol:LRE

Company Name:LEAD REAL ESTATE CO., LTD

Sector:Industrial

Industry:Construction

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:13.64M

Shares Outstanding Basic:13.64M

Shares Outstanding Diluted:13.64M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-22 22:05:21 UTC

Data Timestamp:2026-08-21T08:34:57.013873