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

• Market Cap: ¥6.31B
• Dividend Yield: 3.47%
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.31
• 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 reduces financial risk and interest burden, enhancing financial stability and flexibility for future investments.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Improving Margins

Improving margins reflect operational efficiency and pricing power, contributing to sustainable profitability and competitive advantage.

Negative Factors

Profitability Variability

Fluctuating profitability can indicate challenges in cost management or market conditions, potentially impacting earnings stability.

Cash Flow Variability

Inconsistent cash flow conversion may limit the company's ability to fund operations and investments, affecting long-term growth potential.

Net Margin Decline

A decline in net margin despite revenue growth suggests cost pressures or inefficiencies, which could hinder future profit growth.

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

Strong overall fundamentals led by an excellent balance sheet (zero debt; growing equity) and a multi-year recovery in revenue and profitability with improving margins. Offsetting this, net profitability was weaker in 2025 versus 2024 and cash conversion is uneven, with free cash flow not fully keeping pace with earnings.

Income Statement

The company shows a clear multi-year recovery: revenue has grown steadily from 2021 to 2025, and profitability improved meaningfully versus earlier losses (net loss in 2020 to solid profits in 2024–2025). Gross margin and operating margin have trended up over the period, supporting healthier earnings quality. The main weakness is volatility in bottom-line results—net margin fell in 2025 versus 2024 despite higher revenue, indicating some pressure from costs or non-operating items.

Balance Sheet

Balance sheet strength is a standout: the company reports zero debt across all periods provided, which materially reduces financial risk and interest burden. Equity has grown over time and returns on equity are solid in recent years (strong in 2024 and still healthy in 2025), reflecting improved profitability. The key drawback is that returns have been inconsistent historically (including negative in 2020), so performance appears more cyclical than uniformly stable.

Cash Flow

Cash generation is positive in recent years, with operating cash flow and free cash flow improving substantially from earlier periods and remaining positive in 2024–2025. However, cash flow is not consistently keeping pace with earnings: free cash flow is only about 61% of net income in 2025 and operating cash flow relative to net income also weakened versus 2024. Earlier years also show meaningful swings, including negative free cash flow in 2020–2021, highlighting higher variability in cash conversion.

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: Positive
• 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 1004.05, below the 50-day MA of 973.30, and above the 200-day MA of 936.79, indicating a bullish trend. The MACD of 15.76 indicates Positive momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 75.79 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	¥6.31B	7.49	―	3.47%	3.40%	-25.64%
9160	72 Outperform	¥7.65B	7.66	―	―	12.19%	28.25%
2198	71 Outperform	¥23.47B	11.75	―	3.04%	-3.47%	14.42%
2424	69 Neutral	¥3.54B	15.36	―	1.24%	6.77%	40.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6186	61 Neutral	¥2.19B	-54.84	―	3.76%	-2.06%	-109.18%
7127	54 Neutral	¥4.99B	-74.61	―	―	12.42%	4.67%