SUN-LIFE HOLDING CO., LTD. (7040) AI Stock Analysis

• Market Cap: ¥5.84B
• Dividend Yield: 3.47%
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.30
• Revenue Growth: 3.40%
• EPS Growth: -25.64%
• Country: JP
• Employees: 477
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 25.29
• Shares Outstanding: 6,820,000
• 10 Day Avg. Volume: 2,350
• 30 Day Avg. Volume: 1,863
• PEG Ratio: -0.28
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 6.97
• 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: 75 Outperform
• Price Target: ¥1,072.00 ▲(13.32% Upside)

The score is driven primarily by strong financial quality (especially a debt-free balance sheet and improved profitability) and attractive valuation (low P/E with a solid dividend). These positives are tempered by only neutral technical conditions and some variability in profitability and cash-flow conversion.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company for continued expansion and market leadership.

Profitability

Strong profit margins reflect efficient cost management and operational effectiveness, supporting sustainable profitability and shareholder value creation.

Negative Factors

Earnings Growth Decline

A decline in earnings growth can signal challenges in maintaining profitability, potentially impacting investor confidence and future financial performance.

Cash Flow Uncertainty

Lack of recent cash flow data creates uncertainty about the company's liquidity and ability to fund operations, which could affect its financial stability.

Equity Ratio Concerns

A relatively modest equity ratio could indicate potential risk in asset financing through liabilities, which may affect long-term financial health.

SUN-LIFE HOLDING CO., LTD. Business Overview & Revenue Model

Company Description

SUN-LIFE HOLDING CO., LTD. (7040) operates within the financial services sector, specializing in insurance solutions and related financial products. The company offers a wide range of insurance services, including life insurance, health insurance, and annuities, catering to both individual and corporate clients. SUN-LIFE HOLDING CO., LTD. aims to provide comprehensive financial protection and investment opportunities, ensuring long-term security and growth for its clients.

How the Company Makes Money

SUN-LIFE HOLDING CO., LTD. generates revenue primarily through the sale of insurance policies, including life and health insurance. The company earns premiums from policyholders, which are collected periodically. These premiums constitute the main revenue stream for the company. Additionally, SUN-LIFE HOLDING CO., LTD. invests the premiums collected into various financial instruments, such as stocks, bonds, and real estate, to generate investment income. The company may also earn fees and commissions from additional financial services and products offered, enhancing its profitability. Strategic partnerships with financial institutions and other companies may also contribute to revenue through collaborative insurance solutions and cross-selling opportunities.

SUN-LIFE HOLDING CO., LTD. Financial Statement Overview

Summary

SUN-LIFE HOLDING CO., LTD. demonstrates strong financial health with impressive revenue growth, profitability, and a debt-free balance sheet. The income statement reflects efficient operations and growth, while the balance sheet highlights financial stability. Cash flow results show potential, though recent data is limited. The company is well-positioned within the personal products and services industry, though monitoring cash flow closely is advisable.

Income Statement

SUN-LIFE HOLDING CO., LTD. showcases a strong financial performance with a consistent increase in total revenue over the years, culminating in a 23.1% revenue growth from 2022 to 2023. The company maintains healthy gross and net profit margins, with TTM figures at 24.7% and 7.9%, respectively. The EBIT and EBITDA margins are robust, indicating efficient cost management and profitability. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The balance sheet of SUN-LIFE HOLDING CO., LTD. indicates financial stability with zero debt, leading to a favorable debt-to-equity ratio. The equity ratio stands at 17.6% TTM, suggesting a balanced capital structure. Return on Equity (ROE) has improved to 17.0% TTM, reflecting effective utilization of shareholder funds. However, the relatively modest equity ratio could indicate potential risk in asset financing through liabilities.

Cash Flow

SUN-LIFE HOLDING CO., LTD. shows fluctuations in cash flow performance. While free cash flow has grown impressively by 698% from 2022 to 2023, TTM cash flow figures are unavailable, limiting comprehensive analysis. The absence of recent operating cash flow data creates uncertainty about ongoing operational liquidity. Historical data indicates positive cash flow management, though more recent insights are needed for definitive evaluation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.95B	13.86B	13.50B	12.60B	11.06B	10.32B
Gross Profit	3.52B	3.54B	3.41B	3.01B	2.50B	2.11B
EBITDA	2.04B	2.03B	1.94B	1.57B	1.11B	806.88M
Net Income	834.77M	835.46M	1.12B	357.12M	406.18M	135.29M
Balance Sheet
Total Assets	36.06B	36.16B	35.83B	35.15B	35.29B	34.93B
Cash, Cash Equivalents and Short-Term Investments	10.23B	10.67B	10.58B	9.50B	9.54B	9.45B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	29.39B	29.55B	29.83B	30.07B	30.39B	30.20B
Stockholders Equity	6.67B	6.60B	6.00B	5.07B	4.89B	4.72B
Cash Flow
Free Cash Flow	0.00	835.12M	1.09B	136.60M	372.18M	-523.20M
Operating Cash Flow	0.00	1.36B	1.66B	728.10M	928.81M	371.63M
Investing Cash Flow	0.00	-1.07B	204.37M	-515.63M	-945.24M	-908.23M
Financing Cash Flow	0.00	-198.27M	-490.23M	-207.12M	-45.12M	-45.60M

SUN-LIFE HOLDING CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 946.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7040, the sentiment is Positive. The current price of 946 is below the 20-day moving average (MA) of 951.80, below the 50-day MA of 953.82, and above the 200-day MA of 926.91, indicating a neutral trend. The MACD of -1.40 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7040.

SUN-LIFE HOLDING CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7040	75 Outperform	¥5.84B	6.93	―	3.47%	3.40%	-25.64%
9160	72 Outperform	¥8.00B	7.99	―	―	12.19%	28.25%
2198	71 Outperform	¥23.36B	11.69	―	3.04%	-3.47%	14.42%
2424	69 Neutral	¥3.70B	16.05	―	1.24%	6.77%	40.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	54 Neutral	¥2.06B	-52.85	―	3.76%	-2.06%	-109.18%
7127	54 Neutral	¥4.85B	-72.25	―	―	12.42%	4.67%