Morningstar

LY Corp 4689

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Stock XTKS Rating as of
¥‎433.80 +8.70 (2.05%)
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Company Report

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LY’s Strong Fundamentals and Improvement in Shareholder Return Should Not Be Overlooked

Kazunori Ito, Pujance Chan

LY Corp is Japan’s largest internet conglomerate, with the Yahoo Japan portal site, Line messenger, PayPay mobile payment, and Zozo fashion e-commerce site under its umbrella, each with the largest number of active users in Japan. LY Corp’s business portfolio was built through the aggressive mergers and acquisitions strategy implemented by former co-CEO Kentaro Kawabe. Yahoo Japan, which has a relatively older user base; Line, which has a younger user base; and Zozo, which has many young female users, have little overlap in user base, and thus we expect significant synergies in the future.

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Price vs Fair Value

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4689 is trading at a 487% premium.
Price
¥‎433.80
Fair Value
¥‎625.00
Uncertainty
High
1-Star Price
¥‎792.80
5-Star Price
¥‎299.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Collaboration with Line and Zozo will strengthen LY Corp's network effect.

Bears

Line's and Zozo's growth may weaken in the future due to market saturation.

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News

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Trading Information

Previous Close Price
¥‎425.10
Day Range
¥‎427.30–436.40
52-Week Range
¥‎337.50–503.50
Bid/Ask
¥‎433.70 / ¥‎434.30
Market Cap
¥‎3.25 Tril
Volume/Avg
14.9 Mil / 14.2 Mil

Key Statistics

Price/Earnings (Normalized)
24.81
Price/Sales
1.77
Dividend Yield (Trailing)
1.28%
Dividend Yield (Forward)
2.56%
Total Yield
1.28%

Company Profile

LY Corp's portal site, Yahoo Japan, was one of the first internet services in Japan, and it has maintained its market-leading position in terms of monthly active user numbers and page views. In addition, the company offers a variety of internet services, including e-commerce, online travel, and online video. In October 2013, the firm began a new e-commerce strategy of waiving store tenant fees and sales royalty fees on its Yahoo Shopping service to compete with Rakuten and Amazon Japan. The company acquired Zozo in 2019 and integrated Line in 2021.
Sector
Consumer Cyclical
Industry
Internet Retail
Stock Style Box
Large Core
Total Number of Employees
40,643
Website
https://www.lycorp.co.jp

Competitors

Valuation

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Metric
4689
4385
4755
Price/Earnings (Normalized)
 24.8127.27—
Price/Book Value
 1.075.912.28
Price/Sales
 1.772.350.91
Price/Cash Flow
 7.50—5.54
Price/Earnings
4689
4385
4755

Financial Strength

Metric
4689
4385
4755
Quick Ratio
 2.341.3035.03
Current Ratio
 2.371.3335.03
Interest Coverage
 —35.83−1.37
Quick Ratio
4689
4385
4755

Profitability

Metric
4689
4385
4755
Return on Assets (Normalized)
 1.62%2.94%−1.11%
Return on Equity (Normalized)
 4.74%21.34%−27.92%
Return on Invested Capital (Normalized)
 2.69%5.51%−4.26%
Return on Assets
4689
4385
4755

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