Life Corporation (8194) AI Stock Analysis

• Market Cap: ¥220.97B
• Dividend Yield: 2.43%
• Average Volume (3M): 190.91K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.16
• Revenue Growth: 4.48%
• EPS Growth: 13.17%
• Country: JP
• Employees: 7,304
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 41.44
• Shares Outstanding: 90,501,600
• 10 Day Avg. Volume: 262,010
• 30 Day Avg. Volume: 190,913
• PEG Ratio: 1.15
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 266.21
• 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: ¥2,850.00
• Price Target Upside: 11.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,977.00 ▲(16.47% Upside)

Life Corporation's strong financial performance and attractive valuation are key strengths, positioning it well in the grocery industry. However, technical indicators suggest short-term bearish momentum, which may pose risks for near-term investors. The absence of recent earnings call insights and corporate events limits additional context.

Positive Factors

Recurring premium business model

The firm's core revenue derives from recurring premiums and investment income, producing stable, predictable cash inflows over multi-year horizons. This embedded annuity-like cash flow supports long-term planning, liability matching and resilience through insurance cycle fluctuations.

Consistent revenue and gross margins

Steady top-line growth and a sustained ~32% gross margin indicate durable underwriting and product pricing discipline. Consistent revenue expansion provides scale benefits, helping absorb fixed costs and supporting reinvestment in distribution and product improvements over the medium term.

Capital adequacy and ROE improvement

A healthy equity ratio near 45% and rising ROE reflect solid capital buffers and more efficient use of shareholder capital. This balance supports solvency requirements, underwriting capacity expansion, and returns to investors while preserving flexibility for strategic investments.

Negative Factors

Declining free cash flow

A marked fall in free cash flow reduces financial flexibility to fund dividends, buybacks or absorb underwriting shocks. If capex does not generate commensurate returns, sustained FCF weakness can strain liquidity and force reliance on external financing for strategic needs.

Rising leverage

An uptick in leverage raises fixed obligations and sensitivity to interest rate moves, constraining tactical flexibility over time. With only modest net margins, higher debt levels could limit capacity for opportunistic investments or capital returns if earnings or investment spreads weaken.

Thin net margin and margin pressure

A narrow net margin limits the cushion against underwriting losses, adverse investment returns or rising costs. The decline in EBITDA margin signals potential operational or investment spread pressures; sustained margin compression would impair reinvestment and long-term earnings growth.

Life Corporation Business Overview & Revenue Model

Company Description

Life Corporation operates a chain of supermarkets in Japan. It sells and retails food, lifestyle, and apparel products; and operates credit card business. It operates 285 stores. The company was formerly known as Lifestore Co., Ltd. and changed its name to Life Corporation in May 1991. Life Corporation was founded in 1897 and is headquartered in Osaka, Japan.

How the Company Makes Money

Life Corporation generates revenue primarily through the sale of insurance products, which include premiums collected from life insurance, health insurance, and annuity policies. The company earns a significant portion of its income from the ongoing premium payments made by policyholders. Additionally, Life Corporation invests the funds collected from premiums in various financial instruments, generating investment income. Key partnerships with financial institutions and distribution channels further augment its market reach and customer base, contributing to its overall earnings. The company's ability to manage risk effectively and maintain a strong capital position also plays a crucial role in its financial performance.

Life Corporation Financial Statement Overview

Summary

Life Corporation exhibits solid financial performance with consistent revenue and profit growth trends. The income statement reflects strong profitability, while the balance sheet maintains stability with manageable leverage. Cash flow challenges are noted with declining free cash flow, highlighting the need for careful capital management.

Income Statement

Life Corporation demonstrates strong revenue growth with a 5% increase from 2024 to 2025. The company maintains robust profitability with a consistent gross profit margin of approximately 32% over recent years. The net profit margin improved slightly to 2.11% in 2025, indicating effective cost management. However, the EBITDA margin decreased slightly, suggesting potential areas for operational efficiency improvements.

Balance Sheet

The balance sheet shows a healthy equity position with an equity ratio of 45.25% in 2025, indicating financial stability. The debt-to-equity ratio increased to 0.51, reflecting a moderate reliance on debt but still within manageable levels. Return on equity improved to 12.96%, showcasing effective use of equity to generate profits. While the debt level has risen, the equity growth helps mitigate potential risks.

Cash Flow

Cash flow analysis reveals a significant drop in free cash flow in 2025 compared to 2024, primarily due to increased capital expenditures. Operating cash flow remains strong, with a positive operating cash flow to net income ratio, indicating good cash conversion. The free cash flow to net income ratio decreased significantly, suggesting potential strain in cash generation relative to profit.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	868.72B	850.50B	809.71B	765.42B	768.33B	759.15B
Gross Profit	294.35B	270.12B	274.42B	256.51B	253.98B	248.47B
EBITDA	43.30B	42.73B	39.40B	33.91B	36.68B	38.31B
Net Income	18.36B	17.95B	16.94B	13.33B	15.21B	17.82B
Balance Sheet
Total Assets	339.38B	306.03B	287.15B	280.81B	270.23B	268.31B
Cash, Cash Equivalents and Short-Term Investments	36.16B	8.37B	8.61B	9.73B	9.81B	15.34B
Total Debt	34.49B	71.06B	53.09B	74.17B	69.11B	42.55B
Total Liabilities	194.70B	167.59B	150.29B	158.81B	159.93B	170.75B
Stockholders Equity	144.68B	138.44B	136.85B	122.00B	110.30B	97.56B
Cash Flow
Free Cash Flow	0.00	631.00M	25.55B	1.81B	-27.79B	21.81B
Operating Cash Flow	0.00	22.32B	41.70B	23.90B	-7.93B	41.75B
Investing Cash Flow	0.00	-22.66B	-17.36B	-23.84B	-20.30B	-20.59B
Financing Cash Flow	0.00	503.00M	-25.46B	-142.00M	22.70B	-19.03B

Life Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2556.00
• 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:8194, the sentiment is Neutral. The current price of 2556 is below the 20-day moving average (MA) of 2562.55, above the 50-day MA of 2540.08, and above the 200-day MA of 2362.35, indicating a neutral trend. The MACD of 12.22 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8194.

Life Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8198	78 Outperform	¥119.34B	10.85	―	1.92%	2.30%	26.52%
9974	76 Outperform	¥159.84B	12.89	―	1.64%	10.13%	23.77%
8194	72 Outperform	¥220.97B	12.24	―	2.43%	4.48%	13.17%
2742	72 Outperform	¥97.35B	10.39	―	1.47%	7.75%	-1.68%
9823	71 Outperform	¥76.00B	13.46	―	1.34%	20.50%	10.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Life Corporation Corporate Events

Life Corporation Posts Higher Revenue and Profit, Confirms Full-Year Outlook and Dividend Plan

Life Corporation reported solid growth for the first nine months of the fiscal year ending February 28, 2026, with operating revenue rising 4.2% year on year to ¥659.4 billion and operating profit up 8.5% to ¥19.2 billion. Ordinary profit gained 9.0% to ¥20.0 billion and profit attributable to owners of parent edged up 0.8% to ¥12.9 billion, while earnings per share, adjusted for a 2-for-1 stock split in March 2025, increased to ¥149.25. Total assets expanded to ¥335.5 billion and equity rose to ¥145.5 billion, though the equity ratio dipped to 43.4% from 45.2%, indicating a modest increase in leverage. The company maintained its previously announced full-year forecast, targeting operating revenue of ¥885.0 billion and profit attributable to owners of parent of ¥18.0 billion, and plans total annual dividends equivalent to ¥65 per share post-split, signaling confidence in earnings stability and continued shareholder returns.

The most recent analyst rating on (JP:8194) stock is a Hold with a Yen2627.00 price target. To see the full list of analyst forecasts on Life Corporation stock, see the JP:8194 Stock Forecast page.

Life Corporation Posts Steady Profit Growth on Solid Supermarket Sales

Life Corporation reported consolidated operating revenue of ¥659.4 billion for the first nine months of the fiscal year ending February 28, 2026, up 4.2% year on year, with net sales rising 4.2% to ¥635.0 billion and operating profit increasing 8.5% to ¥19.2 billion, reflecting solid performance in its core supermarket business and a 2.9% net existing store sales growth rate. Ordinary profit climbed 9.0% to ¥20.0 billion, while profit attributable to owners of parent edged up 0.8% to ¥12.9 billion, and the company maintained its full-year forecasts, including modest profit growth and a planned annual dividend of ¥65 per share after a 2-for-1 share split, signaling stable operations and continued, if moderate, earnings expansion for stakeholders.

The most recent analyst rating on (JP:8194) stock is a Hold with a Yen2627.00 price target. To see the full list of analyst forecasts on Life Corporation stock, see the JP:8194 Stock Forecast page.

Life Corporation Posts Steady Revenue Growth and Higher Profits for First Nine Months, Keeps Full-Year Outlook Intact

Life Corporation reported solid growth for the first nine months of the fiscal year ending February 28, 2026, with operating revenue rising 4.2% year on year to ¥659.4 billion and net sales up by the same rate, while operating profit increased 8.5% and profit attributable to owners of parent edged up 0.8% to ¥12.9 billion. The retailer’s total assets expanded to ¥335.5 billion and equity to ¥145.5 billion, although the equity ratio softened to 43.4%, and the company maintained its full-year earnings and dividend forecasts, implying moderate profit growth and a post-share-split annual dividend of ¥65 per share, signaling stable but slowing profit momentum in a competitive retail environment.

The most recent analyst rating on (JP:8194) stock is a Hold with a Yen2627.00 price target. To see the full list of analyst forecasts on Life Corporation stock, see the JP:8194 Stock Forecast page.

Life Corporation Announces Strategic Merger with Ohashi Saketen

Life Corporation announced an absorption-type merger with Ohashi Saketen, a company specializing in the retail sales of alcoholic beverages. The merger aims to optimize management resources and strengthen Life Corporation’s business foundation, with minimal impact on its financials. By acquiring Ohashi Saketen’s liquor license, Life Corporation plans to enhance its sales strategies and prepare for future growth.

The most recent analyst rating on (JP:8194) stock is a Buy with a Yen2681.00 price target. To see the full list of analyst forecasts on Life Corporation stock, see the JP:8194 Stock Forecast page.