Lifenet Insurance Company (7157) AI Stock Analysis

• Market Cap: ¥175.54B
• Dividend Yield: N/A
• Average Volume (3M): 218.47K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.89
• Revenue Growth: 20.22%
• EPS Growth: 19.40%
• Country: JP
• Employees: 224
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 21.94
• Shares Outstanding: 80,340,770
• 10 Day Avg. Volume: 188,880
• 30 Day Avg. Volume: 218,470
• PEG Ratio: -13.23
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 22.93
• 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): 95.2
• Revenue Forecast (FY): ¥33.83B

• Rating: 67 Neutral
• Price Target: ¥2,387.00 ▲(21.79% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

Lifenet Insurance Company's strong financial performance is the most significant factor, showcasing robust revenue growth and cash flow generation. However, technical indicators suggest a bearish trend, and the valuation is moderate, which tempers the overall score.

Positive Factors

Very low leverage

Extremely low debt-to-equity (0.014) gives Lifenet durable financial flexibility to absorb underwriting shocks and meet regulatory capital needs without urgent external funding. This conservative balance sheet supports long-term solvency, lower financing costs, and strategic optionality for investing or M&A over 2-6 months.

Very strong free cash flow growth

A 443.85% rise in free cash flow and an FCF-to-net-income of 0.84 indicate robust cash conversion from operations and investments. High and growing FCF underpins reserve funding, product investment, and potential capital deployment, enhancing resilience through insurance cycles and enabling sustained strategic initiatives.

Solid revenue and margin profile

Consistent revenue growth (~7.6%) combined with high operating margins (EBIT/EBITDA ~29.6%) and a near-20% net margin reflect durable underwriting discipline and operating efficiency. These margins provide buffer against pricing cycles and support reinvestment in distribution and product development over the medium term.

Negative Factors

Moderate ROE

A 6.51% ROE signals only moderate returns on shareholder capital, which can constrain long-term EPS growth and investor returns relative to peers. If maintained, modest ROE may limit the company’s ability to attract capital and could reflect conservative underwriting or capital intensity that dampens upside over multiple quarters.

No dividend yield

A policy or outcome of paying no dividend reduces Lifenet’s appeal to income-oriented shareholders and narrows the investor base. Over time, absence of cash returns may pressure management to allocate elevated free cash flow to growth or buybacks, creating strategic trade-offs between reinvestment and shareholder distributions.

Disclosure gaps on cash flow and margins

Missing key metrics (operating cash flow to net income and gross profit margin) reduces transparency into expense structure and cash conversion quality. This impedes reliable assessment of underwriting economics and expense trends, making forward-looking profitability and capital planning harder to evaluate over the medium term.

Lifenet Insurance Company Business Overview & Revenue Model

Company Description

Lifenet Insurance Company provides life insurance products and services in Japan. The company offers term death, whole life medical, cancer, incapacity, and disability insurance products. It sells its products and services directly to customers through Internet. The company also offers insurance underwriting and asset management services, as well as business agency. The company was formerly known as Net Life Planning Co., Ltd. and changed its name to Lifenet Insurance Company in April 2008. Lifenet Insurance Company was founded in 2006 and is based in Tokyo, Japan.

How the Company Makes Money

Lifenet Insurance Company generates revenue primarily through the sale of insurance premiums paid by policyholders. The company earns income from various types of insurance products, including life and health insurance. In addition to premium income, Lifenet also profits from investment income generated by the premiums collected, which are invested in a diversified portfolio of assets. Significant partnerships with healthcare providers and financial institutions may also contribute to its earnings by expanding distribution channels and enhancing product offerings. Furthermore, the company may benefit from reinsurance arrangements that help manage risk while optimizing capital utilization.

Lifenet Insurance Company Financial Statement Overview

Summary

Lifenet Insurance Company demonstrates strong financial health with robust revenue growth and profitability margins. The balance sheet is solid with minimal leverage, enhancing financial stability. Cash flow generation is particularly strong, supporting the company's operational and strategic flexibility.

Income Statement

Lifenet Insurance Company has shown a strong revenue growth rate of 7.62% in the latest year, with a solid net profit margin of 19.29%. The EBIT and EBITDA margins are also robust at 29.61%, indicating efficient operations. However, the gross profit margin is not available, which limits a full assessment of cost management.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.014, reflecting minimal leverage and strong financial stability. Return on equity is moderate at 6.51%, suggesting reasonable profitability relative to shareholder equity. The equity ratio is not provided, which could have offered additional insights into asset financing.

Cash Flow

Lifenet Insurance Company exhibits impressive free cash flow growth of 443.85%, indicating strong cash generation capabilities. The free cash flow to net income ratio is healthy at 0.84, suggesting effective conversion of profits into cash. However, the operating cash flow to net income ratio is not available, which could have provided further insights into cash flow efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.91B	29.29B	25.00B	20.13B	26.16B	20.79B
Gross Profit	30.30B	29.29B	25.00B	20.13B	26.16B	20.79B
EBITDA	9.64B	10.13B	8.88B	5.90B	-2.92B	-2.75B
Net Income	6.28B	5.99B	5.73B	3.56B	-3.32B	-3.11B
Balance Sheet
Total Assets	120.35B	116.18B	112.42B	68.60B	67.82B	54.50B
Cash, Cash Equivalents and Short-Term Investments	0.00	17.23B	24.42B	5.72B	3.76B	2.06B
Total Debt	1.23B	1.29B	110.00M	110.00M	7.00M	11.00M
Total Liabilities	25.03B	24.06B	21.54B	53.03B	45.75B	38.70B
Stockholders Equity	95.31B	92.11B	90.87B	75.69B	22.07B	15.81B
Cash Flow
Free Cash Flow	0.00	6.10B	5.23B	2.12B	2.27B	2.11B
Operating Cash Flow	0.00	7.28B	6.02B	2.68B	2.78B	2.94B
Investing Cash Flow	0.00	-14.29B	-3.44B	763.00M	-7.75B	-10.44B
Financing Cash Flow	0.00	-164.00M	9.68B	-109.00M	9.67B	8.88B

Lifenet Insurance Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7157, the sentiment is Positive. The current price of 1960 is below the 20-day moving average (MA) of 2076.15, below the 50-day MA of 2032.04, and below the 200-day MA of 2081.67, indicating a bullish trend. The MACD of 40.60 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 86.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7157.

Lifenet Insurance Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7325	73 Outperform	¥7.70B	16.21	―	2.85%	12.33%	-15.46%
7181	72 Outperform	¥1.75T	11.53	―	2.44%	-21.38%	58.05%
7326	69 Neutral	¥55.57B	18.39	6.16%	1.10%	13.99%	85.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7157	67 Neutral	¥175.54B	24.12	―	―	20.22%	19.40%
8750	67 Neutral	¥5.58T	12.41	10.61%	3.26%	-8.02%	5.21%
8795	61 Neutral	¥1.81T	17.06	8.83%	2.74%	-1.96%	10.32%

Lifenet Insurance Company Corporate Events

Lifenet Insurance Lifts Profit Outlook on Strong Term Life Growth

Lifenet Insurance Company reported strong results for the cumulative third quarter of fiscal 2025, highlighting robust growth in annualized premiums of policies in force and improved insurance service results. Performance was driven by solid demand for its term life products among younger customers, ongoing rollout of new services, and more efficient promotional strategies, leading management to raise forecasts for profitability.

These results underscore Lifenet’s strengthening position in Japan’s life insurance market, where its targeted product strategy and digital-centric approach continue to attract younger policyholders. The upward revision of earnings expectations signals improving operational efficiency and claims experience, with potential benefits for shareholders and other stakeholders as the company builds comprehensive equity and future profit potential.

The most recent analyst rating on (JP:7157) stock is a Hold with a Yen2231.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.

Lifenet Lifts Profit Outlook Despite Lower Premium Forecast for Fiscal 2025

Lifenet Insurance Company revised its consolidated business forecasts for fiscal 2025, trimming its outlook for annualized premiums of policies in force as slower-than-expected growth in group credit life insurance offset stronger performance in individual life products. The company now expects total annualized premiums of ¥37.1 billion, down 1.1% from its previous forecast, reflecting the impact of a challenging external environment on its group credit segment.

Despite the softer premium outlook, Lifenet raised its projections for profitability, citing lower-than-anticipated insurance claims and benefit payments in the first nine months of the fiscal year. The insurer now forecasts insurance service results of ¥11.2 billion and net income of ¥7.8 billion, representing 14.3% and 13.0% upward revisions respectively versus its prior guidance, while maintaining its insurance revenue forecast, signaling improved margin performance and stronger earnings for shareholders.

The most recent analyst rating on (JP:7157) stock is a Hold with a Yen2231.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.

Lifenet Insurance Lifts Premiums and Profits on Strong Life and Group Credit Growth

Lifenet Insurance Company reported steady expansion in its insurance portfolio for the third quarter of fiscal 2025, with annualized premiums of policies-in-force rising to ¥36.4 billion, driven by growth in both individual life and group credit life segments. Individual life policies-in-force climbed to 670,589, new business premiums and policy counts grew double digits year-on-year, and the surrender and lapse ratio improved slightly, indicating stronger customer retention.

Financially, insurance revenue for the nine months to December 31, 2025 increased 15.1% to ¥25.4 billion, while insurance service results grew 21.8% on the back of lower-than-expected claims and higher profit from group credit life insurance. Net income attributable to shareholders rose 25.9% to ¥6.24 billion, supported by improved investment income from higher corporate bond holdings and controlled maintenance costs, underscoring stronger profitability and operational efficiency under IFRS reporting.

The most recent analyst rating on (JP:7157) stock is a Hold with a Yen2231.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.

Lifenet Insurance Posts 9% Year-on-Year Rise in Policies-in-Force Premiums for January

Lifenet Insurance Company reported that the annualized premium of policies in force reached 36,637 million yen at the end of January 2026, representing 109% of the level a year earlier. Individual insurance accounted for 28,350 million yen, or 107% of the previous year, while group credit life insurance rose to 8,286 million yen, or 118%, highlighting continued portfolio expansion.

The company’s individual insurance portfolio grew to 676,268 policies in force, supported by an increase in new business annualized premiums to 330 million yen and 9,029 new policies written in January. A slightly lower surrender and lapse ratio of 5.7%, compared with 6.0% a year earlier, indicates improved policy retention and suggests strengthening customer stickiness and recurring revenue stability for stakeholders.

The most recent analyst rating on (JP:7157) stock is a Hold with a Yen2220.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.

Lifenet Insurance Lifts Policies-in-Force Premiums 9% Year-on-Year in December 2025

Lifenet Insurance Company reported that its annualized premium of policies in force reached 36,387 million yen at the end of December 2025, representing 109% of the level a year earlier, underscoring steady portfolio expansion. Individual insurance annualized premiums rose to 28,154 million yen (107% year-on-year) while group credit life insurance climbed to 8,232 million yen (119% year-on-year), supported by an increase in policies in force to 670,600 and higher new business premiums and policy counts; the modest uptick in surrender and lapse ratio to 5.7% suggests persistently strong, though slightly softening, policy retention, indicating ongoing growth momentum and a strengthening position in Japan’s life insurance market.

The most recent analyst rating on (JP:7157) stock is a Buy with a Yen2119.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.

Lifenet Insurance Reports Growth in Annualized Premiums for November 2025

Lifenet Insurance Company reported a significant increase in its annualized premium of policies-in-force for November 2025, reaching 36,176 million yen, which is 109% of the previous year. This growth reflects a strong performance in both individual insurance and group credit life insurance segments, indicating a positive impact on the company’s market position and potential benefits for stakeholders.

The most recent analyst rating on (JP:7157) stock is a Hold with a Yen2091.00 price target. To see the full list of analyst forecasts on Lifenet Insurance Company stock, see the JP:7157 Stock Forecast page.