LY Corporation (4689.T) stock analysis

In our weekly check, LY Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3.

About LY Corporation

LY Corporation is a Technology company (Software - Application) based in Japan, listed on JPX as 4689.T.

What our checks show for 4689.T

Red flags

• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect the net margin to shrink by 1.1 points from today's 9.7%.
• The net margin is only 9.7%: little room if costs rise.
• Free cash flow is only 0% of revenue.

Strengths

• Operating profit covers interest 23.6 times over.
• The net margin rose by 4.7 points over 5 years, to 9.7%.
• The gross margin is 73.9% and has risen by 5.6 points: pricing power is holding.
• Operating cash flow is 3.26x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 10.9% a year over the next years.
• The dividend takes 25% of profit: there is a cushion.

Next earnings report: 2026-11-05

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Questions

What grade does LY Corporation (4689.T) have?

In our weekly check, LY Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 4689.T stock?

This week's biggest flags for LY Corporation: Deep past fall, Low return on capital, Heavy stock pay. In total 6 of 25 checks show a warning or a red flag.

What does LY Corporation do?

LY Corporation is a Technology company (Software - Application) based in Japan, listed on JPX as 4689.T.

When does LY Corporation report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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