FUNLIFE HOLDINGS CO. LTD. (1418) AI Stock Analysis

• Market Cap: ¥8.89B
• Dividend Yield: 4.43%
• Average Volume (3M): 155.99K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.14
• Revenue Growth: 19.02%
• EPS Growth: 48.17%
• Country: JP
• Employees: 250
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 5.63
• Shares Outstanding: 17,010,529
• 10 Day Avg. Volume: 354,340
• 30 Day Avg. Volume: 155,986
• PEG Ratio: 0.09
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 12.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥605.00 ▼(-14.91% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by strong financial performance (rapid revenue growth, stable leverage, improving free cash flow) and supportive valuation (P/E 12.536 with a 4.72% dividend yield). Technical indicators are mixed—near-term weakness below the 20-day average and a soft RSI offset by a still-positive longer-term trend—moderating the overall result.

Positive Factors

Strong Revenue Growth

Sustained revenue expansion (+34.2% YoY) indicates durable demand and market traction for core offerings. Over a 2–6 month horizon this supports scale benefits, helps absorb fixed costs, and underpins reinvestment in product and distribution to sustain competitive position.

Healthy Return on Equity and Capital Structure

A 16.7% ROE with moderate leverage (D/E 0.41) reflects efficient capital use and a conservative balance sheet. This combination gives management flexibility to fund growth or weather downturns without excessive refinancing risk, supporting durable financial resilience.

Improving Cash Generation

Large jump in free cash flow (+162%) and solid operating cash conversion (OCF/Net Income 0.69) signal improving cash conversion. Strong, repeatable cash generation bolsters funding for capex, debt servicing and strategic initiatives, strengthening long-term financial flexibility.

Negative Factors

Modest Net Profit Margin

A net margin near 4.2% limits the firm’s ability to convert sales into retained earnings and cushions against cost or revenue shocks. Over months this modest profitability constrains capacity to fund growth internally and reduces buffers versus competitors with higher margins.

History of Negative Cash Flows

Although FCF recently improved, historical negative cash flows indicate cash generation volatility. If cyclical pressures or working-capital swings recur, liquidity and investment plans could be strained, making sustainable operations and strategic spending more uncertain.

Inconsistent Revenue Signal

A negative revenue-growth datapoint in the fundamentals suggests inconsistency across reporting periods. Persistent variability undermines forecasting reliability and may signal exposure to cyclical demand or execution risk, challenging durable planning and resource allocation.

FUNLIFE HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Interlife Holdings Co., Ltd., together with its subsidiaries, provides designs, constructs, manages, and maintains commercial facilities and public facilities in Japan. The company is involved in the planning, designing, constructing, and maintaining special production facilities, such as audio-visual, production lighting, hanging mechanisms, and conference hall systems; and develops video distribution systems for hotel rooms. It also provides facility maintenance, cleaning, and legal inspection services; and installs and repairs air conditioning, electricity, water supply and drainage, sanitary equipment, etc., as well as sells equipment. In addition, the company offers human resources to telecommunications carriers. Interlife Holdings Co., Ltd. was founded in 1974 and is headquartered in Chuo, Japan.

How the Company Makes Money

FUNLIFE HOLDINGS CO. LTD. Financial Statement Overview

Summary

Strong revenue growth (+34.2% YoY) and solid operating efficiency (EBIT margin 5.2%, EBITDA margin 5.8%) support the score. Balance sheet is stable with moderate leverage (debt-to-equity 0.41) and good ROE (16.7%). Cash flow is improving (FCF growth +162.3%) but prior negative cash flows and modest net margin (4.2%) keep the score below the high end.

Income Statement

FUNLIFE HOLDINGS CO. LTD. has shown strong revenue growth of 34.2% from the previous year, indicating a positive trajectory. The gross profit margin stands at 19.8%, and the net profit margin is 4.2%, reflecting stable profitability. The EBIT margin of 5.2% and EBITDA margin of 5.8% suggest efficient operational management. However, there is room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.41, indicating a moderate level of leverage. The return on equity (ROE) is 16.7%, showcasing effective use of equity to generate profits. The equity ratio is 44.7%, reflecting a solid equity base. Overall, the balance sheet is stable, though the company should monitor its debt levels.

Cash Flow

FUNLIFE HOLDINGS CO. LTD. has improved its free cash flow significantly, with a growth rate of 162.3%. The operating cash flow to net income ratio is 0.69, indicating a good conversion of income to cash. The free cash flow to net income ratio is 0.57, suggesting a healthy cash flow position. However, past negative cash flows should be monitored to ensure ongoing stability.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	17.66B	16.94B	12.63B	11.46B	11.79B	14.82B
Gross Profit	3.53B	3.35B	2.52B	2.37B	2.70B	3.52B
EBITDA	1.13B	989.24M	606.59M	404.37M	309.43M	474.80M
Net Income	805.92M	705.08M	384.89M	179.37M	71.66M	101.66M
Balance Sheet
Total Assets	9.66B	9.44B	8.14B	7.30B	7.56B	8.33B
Cash, Cash Equivalents and Short-Term Investments	3.12B	1.51B	1.42B	1.79B	2.23B	3.18B
Total Debt	1.92B	1.75B	1.79B	1.33B	1.25B	1.79B
Total Liabilities	5.32B	5.22B	4.50B	4.02B	3.65B	4.48B
Stockholders Equity	4.34B	4.21B	3.64B	3.28B	3.92B	3.85B
Cash Flow
Free Cash Flow	0.00	405.10M	-650.61M	118.84M	-891.84M	590.59M
Operating Cash Flow	0.00	484.88M	-622.69M	161.41M	-794.11M	633.20M
Investing Cash Flow	0.00	-150.82M	-57.45M	119.95M	439.31M	41.27M
Financing Cash Flow	0.00	-196.44M	261.82M	-728.46M	-588.96M	-636.59M

FUNLIFE HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 711.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1418, the sentiment is Negative. The current price of 711 is above the 20-day moving average (MA) of 555.65, above the 50-day MA of 595.72, and above the 200-day MA of 488.56, indicating a neutral trend. The MACD of -14.06 indicates Negative momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 38.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1418.

FUNLIFE HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1418	74 Outperform	¥8.89B	25.71	―	4.43%	19.02%	48.17%
4337	64 Neutral	¥47.52B	17.68	―	―	22.66%	230.19%
4346	64 Neutral	¥10.11B	35.99	―	3.65%	16.07%	50.91%
6183	64 Neutral	¥107.30B	11.39	―	4.17%	0.44%	44.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4384	62 Neutral	¥114.93B	18.97	19.59%	0.16%	18.08%	136.77%
4376	46 Neutral	¥9.67B	8.77	―	―	-9.23%	-882.64%

FUNLIFE HOLDINGS CO. LTD. Corporate Events

INTERLIFE Confirms Reviewed Nine-Month Results as Profits Rise Ahead of Secondary Share Offering

INTERLIFE HOLDINGS CO., LTD. reported consolidated results for the nine months ended November 30, 2025, confirming that its previously disclosed figures have now passed an interim review by certified public accountants with no changes required. For the period, the company posted net sales of ¥12.40 billion, down 5.2% year on year, but significantly improved profitability with operating profit up 40.3% to ¥1.06 billion and profit attributable to owners of parent up 27.3% to ¥741 million, while total assets stood at ¥9.43 billion and the equity ratio strengthened to 47.8%. The completion of the review is tied to a secondary offering of the company’s shares approved by the board, underscoring management’s focus on capital market transactions and providing investors with greater assurance over the robustness of its earnings and balance sheet ahead of the planned equity sale.

The most recent analyst rating on (JP:1418) stock is a Hold with a Yen683.00 price target. To see the full list of analyst forecasts on FUNLIFE HOLDINGS CO. LTD. stock, see the JP:1418 Stock Forecast page.

INTERLIFE Holdings Lifts Profits and Dividends Despite Lower Nine-Month Sales

INTERLIFE HOLDINGS reported consolidated net sales of ¥12.4 billion for the nine months ended November 30, 2025, down 5.2% year on year, while operating profit rose 40.3% to ¥1.06 billion and profit attributable to owners of parent increased 27.3% to ¥741 million, lifting basic earnings per share to ¥47.76. The company strengthened its financial position with total assets of ¥9.43 billion, net assets of ¥4.50 billion and an equity ratio of 47.8%, maintained its full-year forecast calling for a modest decline in sales but double-digit profit growth, and confirmed a higher dividend payout for the current fiscal year, signaling confidence in earnings resilience despite softer top-line performance.

The most recent analyst rating on (JP:1418) stock is a Hold with a Yen683.00 price target. To see the full list of analyst forecasts on FUNLIFE HOLDINGS CO. LTD. stock, see the JP:1418 Stock Forecast page.