Life Corporation (8194) AI Stock Analysis

• Market Cap: ¥220.54B
• Dividend Yield: 2.19%
• Average Volume (3M): 189.81K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.28
• Revenue Growth: 4.90%
• EPS Growth: 12.63%
• Country: JP
• Employees: 7,304
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Grocery Stores
• EPS (TTM): 64.51
• Shares Outstanding: 90,501,600
• 10 Day Avg. Volume: 194,730
• 30 Day Avg. Volume: 189,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,576.00
• Price Target Upside: 0.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥2,576.00 ▲(0.43% Upside)

Life Corporation earns a strong overall stock score due to its robust financial performance and favorable technical analysis. The stock demonstrates consistent revenue growth and profitability, supported by a stable balance sheet. Technical indicators suggest a bullish trend, enhancing the stock's attractiveness. The valuation is competitive, offering a good balance of growth and income potential.

Positive Factors

Revenue Growth

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

Profitability

Improved profitability through cost management enhances financial resilience, allowing for reinvestment and competitive positioning.

Shareholder Value

The share split strategy aims to enhance shareholder value and market perception, potentially increasing liquidity and investor appeal.

Negative Factors

Cash Flow Challenges

Declining free cash flow may strain financial flexibility, necessitating careful capital management to sustain operations and growth.

Debt Levels

Rising debt levels could impact financial stability and increase risk, requiring prudent management to maintain balance sheet health.

EBITDA Margin

A declining EBITDA margin may indicate inefficiencies, highlighting the need for operational improvements to maintain profitability.

Life Corporation Business Overview & Revenue Model

Company Description

Life Corporation (8194) is a Japan-based company primarily engaged in the retail sector. The company operates a chain of supermarkets, offering a broad range of products including fresh foods, daily necessities, and general merchandise. It focuses on delivering quality products and services to meet the diverse needs of its customers, while maintaining competitive pricing and exceptional customer service standards.

How the Company Makes Money

Life Corporation generates revenue primarily through the sale of goods in its supermarket chain. The company's key revenue streams include the direct sale of fresh produce, meats, seafood, and other food items, as well as non-food products such as household goods and clothing. The company leverages its extensive distribution network and strategic store locations to optimize sales and profitability. Additionally, Life Corporation may engage in partnerships with suppliers and leverage economies of scale to enhance its purchasing power and reduce costs, contributing to its overall earnings.

Life Corporation Financial Statement Overview

Summary

Life Corporation shows solid financial performance with consistent revenue growth. The income statement reflects strong profitability, while the balance sheet demonstrates stability with manageable leverage. However, there are cash flow challenges due to declining free cash flow, necessitating 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	850.50B	850.50B	809.71B	765.42B	768.33B	759.15B
Gross Profit	286.50B	270.12B	274.42B	256.51B	253.98B	248.47B
EBITDA	42.20B	42.73B	39.40B	33.91B	36.68B	38.31B
Net Income	17.95B	17.95B	16.94B	13.33B	15.21B	17.82B
Balance Sheet
Total Assets	306.03B	306.03B	287.15B	280.81B	270.23B	268.31B
Cash, Cash Equivalents and Short-Term Investments	8.37B	8.37B	8.61B	9.73B	9.81B	15.34B
Total Debt	71.06B	71.06B	53.09B	74.17B	69.11B	42.55B
Total Liabilities	167.59B	167.59B	150.29B	158.81B	159.93B	170.75B
Stockholders Equity	138.44B	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: Positive
• Last Price: 2565.00
• 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:8194, the sentiment is Positive. The current price of 2565 is above the 20-day moving average (MA) of 2492.74, above the 50-day MA of 2420.04, and above the 200-day MA of 2006.92, indicating a bullish trend. The MACD of 37.05 indicates Negative momentum. The RSI at 68.76 is Neutral, neither overbought nor oversold. The STOCH value of 90.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8194.

Life Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8194	79 Outperform	¥220.54B	12.22		2.19%	4.90%	12.63%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%
5FV	―	€2.15B	17.40	11.80%	―	―	―
9823	82 Outperform	¥74.89B	13.97		1.35%	17.13%	-6.33%
9974	76 Outperform	¥157.96B	12.62		1.58%	9.83%	21.58%
2742	73 Outperform	¥108.09B	12.01		1.19%	7.94%	0.06%
8198	73 Outperform	¥103.42B	10.85		2.15%	3.09%	10.80%

Life Corporation Corporate Events

Life Corporation Reports Strong Q1 Financial Results and Share Split

Life Corporation reported a positive financial performance for the first three months of the fiscal year ending February 28, 2026, with increases in operating revenue, operating profit, and profit attributable to owners of the parent compared to the previous year. The company also conducted a 2-for-1 share split, impacting earnings per share calculations and dividend forecasts, indicating a strategic move to enhance shareholder value.

Life Corporation Reports Strong Start to Fiscal Year 2026

Life Corporation reported a positive financial performance for the first three months of the fiscal year ending February 28, 2026, with notable increases in operating revenue, operating profit, and profit attributable to owners of the parent. The company’s strategic initiatives and market positioning have contributed to its growth, reflecting a strong start to the fiscal year and indicating potential stability and profitability for stakeholders.

Life Corporation Cancels Significant Portion of Treasury Shares

Life Corporation has announced the cancellation of 8,400,000 treasury shares, which represents 8.49% of the total issued shares before cancellation. This strategic move is expected to impact the company’s share structure, reducing the number of treasury shares to 4.22% of the total issued shares, potentially enhancing shareholder value and market perception.