Life Intelligent Enterprise Holdings Co., Ltd. (5856) AI Stock Analysis

• Market Cap: ¥3.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -52.40%
• EPS Growth: -321.23%
• Country: JP
• Employees: 179
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): -1.38
• Shares Outstanding: 108,957,800
• 10 Day Avg. Volume: 910,790
• 30 Day Avg. Volume: 1,168,166
• PEG Ratio: -0.18
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -1.79
• 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: 42 Neutral
• Price Target: ¥28.00 ▼(-6.67% Downside)

The overall stock score is primarily influenced by weak financial performance and poor valuation metrics. The company's ongoing losses and negative cash flow from operations are significant concerns. Technical analysis indicates a bearish trend, further impacting the score. Improving financial health and reversing the bearish technical indicators are crucial for enhancing the stock's attractiveness.

Positive Factors

Manageable leverage

A moderate debt-to-equity ratio provides durable financial flexibility, lowering immediate refinancing and default risk. This structural leverage profile gives management time to execute turnaround plans or invest in growth initiatives over multiple quarters without forcing urgent deleveraging or asset sales.

Increased cash reserves

Higher cash reserves create a multi-month liquidity cushion that reduces short-term financing pressure. This buffer allows the company to cover operating shortfalls, fund strategic investments or restructuring, and pursue longer-term recovery without immediate dilutive capital raises.

EBITDA beginning to recover

An improving EBITDA trend suggests operational adjustments or a better revenue mix are having effect. If sustained, this structural recovery can translate into stronger cash generation and margin stabilization over several quarters, supporting longer-term profitability restoration.

Negative Factors

Steep revenue decline

A greater-than-50% revenue contraction signals meaningful loss of scale or demand and is a structural red flag. Prolonged top-line erosion weakens pricing power, makes fixed costs harder to absorb, and constrains the path to margin recovery and sustainable profitability over the medium term.

Negative operating cash flow

Persistent negative operating cash flow means core operations do not generate sufficient cash to fund the business. Over several quarters this depletes liquidity, increases reliance on external financing, and limits ability to invest in growth or restructure without material financing or asset sales.

Continued net losses and negative margins

Ongoing net losses and negative margins reflect structural inability to convert revenue into profit. This erodes equity and return on capital, increases the likelihood of repeated funding needs, and constrains strategic options unless the company achieves sustained margin improvement.

Life Intelligent Enterprise Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Life Intelligent Enterprise Holdings Co.,Ltd. engages in the alcoholic beverage, education, food, and other businesses in Japan. The company is involved in the retail discount of commercial food products; real estate business; renovation-related business; and non-life and life insurance agency businesses, as well as operates a nickel business. It manufactures and sells alcoholic beverages, such as shochu under the Enma and Kojiya Denbei brand name; and provides tests and teaching materials for junior high schools. The company was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Life Intelligent Enterprise Holdings generates revenue through multiple streams, primarily by selling health monitoring devices directly to consumers and businesses. The company also earns income from subscription services related to its digital health platforms, which provide users with ongoing health analytics and personalized recommendations. Additionally, partnerships with healthcare providers and technology firms allow the company to expand its market reach and develop new products, contributing to its revenue. These collaborations can lead to joint ventures, co-branded products, and access to larger customer bases, which further enhance its earnings potential.

Life Intelligent Enterprise Holdings Co., Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and persistent losses impacting profitability. While leverage remains manageable, negative cash flow from operations and weak equity returns highlight ongoing operational inefficiencies. Improving revenue growth and cost management are critical for future financial stability.

Income Statement

The company shows declining revenue over the years with a significant drop from 2024 to 2025. The gross profit margin has deteriorated, and the net profit margin remains negative, indicating continued unprofitability. EBIT margins are also negative, with EBITDA slightly recovering in 2025 yet still inadequate. Overall, the income statement reflects weak financial health with persistent losses.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the equity ratio has decreased over time, reflecting a reduction in financial stability. Return on equity is negative due to continued net losses, suggesting inefficiencies in using equity capital. Despite these challenges, cash reserves have increased, providing some financial buffer.

Cash Flow

Operating cash flow remains negative, indicating challenges in generating cash from core operations. Free cash flow has also worsened, demonstrating the company's struggle to fund its expenditures. However, a significant increase in investing cash flow in 2025 may provide temporary liquidity relief. Overall, cash flow management requires improvement to enhance financial sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.50B	10.31B	19.04B	17.92B	15.52B	15.77B
Gross Profit	706.74M	1.07B	2.82B	3.28B	3.31B	3.50B
EBITDA	-2.85B	719.71M	-969.90M	228.43M	443.09M	885.52M
Net Income	291.10M	194.94M	-1.35B	-63.46M	168.55M	762.23M
Balance Sheet
Total Assets	5.10B	6.21B	6.02B	6.22B	5.59B	5.82B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.86B	500.86M	978.73M	1.51B	2.17B
Total Debt	1.11B	1.34B	1.84B	892.51M	730.58M	734.35M
Total Liabilities	2.47B	3.27B	4.39B	3.16B	2.33B	2.27B
Stockholders Equity	2.64B	2.93B	1.63B	3.06B	3.26B	3.55B
Cash Flow
Free Cash Flow	0.00	-2.20B	-1.29B	-571.27M	-72.80M	733.01M
Operating Cash Flow	0.00	-2.02B	-830.33M	-96.47M	247.24M	793.13M
Investing Cash Flow	0.00	4.55B	-153.34M	-534.95M	-928.41M	10.63M
Financing Cash Flow	0.00	-302.77M	764.34M	12.13M	-153.56M	-37.22M

Life Intelligent Enterprise Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5856, the sentiment is Negative. The current price of 30 is below the 20-day moving average (MA) of 30.45, below the 50-day MA of 30.40, and below the 200-day MA of 39.52, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5856.

Life Intelligent Enterprise Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3204	77 Outperform	¥4.39B	5.41	―	2.70%	-3.33%	30.77%
7509	73 Outperform	¥6.28B	4.77	―	3.35%	7.25%	-11.62%
5355	72 Outperform	¥4.31B	11.83	―	2.79%	3.32%	18.84%
8835	68 Neutral	¥6.99B	13.00	―	4.84%	14.94%	2.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6838	52 Neutral	¥5.02B	17.85	―	0.72%	―	―
5856	42 Neutral	¥3.16B	-1.30	―	―	-52.40%	-321.23%