Life Corporation (8194) AI Stock Analysis

• Market Cap: ¥208.51B
• Dividend Yield: 2.55%
• Average Volume (3M): 190.91K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.27
• Revenue Growth: 4.48%
• EPS Growth: 13.17%
• Country: JP
• Employees: 7,304
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 43.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,681.00 ▲(7.50% 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

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 prominent Japanese company operating primarily in the life insurance sector. It offers a range of insurance products including life insurance, health insurance, and annuities. The company is dedicated to providing financial protection and peace of mind to its clients through innovative insurance solutions and robust customer service. Life Corporation also engages in asset management services, further enhancing its portfolio in the financial services industry.

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	860.40B	850.50B	809.71B	765.42B	768.33B	759.15B
Gross Profit	290.71B	270.12B	274.42B	256.51B	253.98B	248.47B
EBITDA	43.36B	42.73B	39.40B	33.91B	36.68B	38.31B
Net Income	18.66B	17.95B	16.94B	13.33B	15.21B	17.82B
Balance Sheet
Total Assets	320.70B	306.03B	287.15B	280.81B	270.23B	268.31B
Cash, Cash Equivalents and Short-Term Investments	25.81B	8.37B	8.61B	9.73B	9.81B	15.34B
Total Debt	36.31B	71.06B	53.09B	74.17B	69.11B	42.55B
Total Liabilities	179.34B	167.59B	150.29B	158.81B	159.93B	170.75B
Stockholders Equity	141.35B	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: Negative
• Last Price: 2494.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8194, the sentiment is Negative. The current price of 2494 is above the 20-day moving average (MA) of 2492.30, above the 50-day MA of 2472.14, and above the 200-day MA of 2224.53, indicating a neutral trend. The MACD of 9.04 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 15.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8194.

Life Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9823	79 Outperform	¥78.21B	13.85	―	1.45%	20.50%	10.77%
8198	78 Outperform	¥109.63B	9.97	―	1.94%	2.30%	26.52%
9974	76 Outperform	¥152.95B	12.36	―	1.69%	10.13%	23.77%
8279	76 Outperform	―	―	―	―	16.50%	3.74%
8194	72 Outperform	¥208.51B	11.54	―	2.55%	4.48%	13.17%
2742	72 Outperform	¥96.26B	10.67	―	1.51%	7.75%	-1.68%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Life Corporation Corporate Events

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.

Life Corporation Reports Strong Financial Performance for First Half of Fiscal Year

Life Corporation reported a 4.3% increase in operating revenue for the first six months of the fiscal year ending February 28, 2026, compared to the previous year. The company’s operating profit and ordinary profit also saw significant growth, indicating a strong financial performance. The company conducted a 2-for-1 share split on March 1, 2025, which impacted earnings per share calculations. The financial results highlight Life Corporation’s stable market position and its ability to generate consistent growth, which is likely to have a positive impact on stakeholders.

Life Corporation Reports Strong Financial Growth in First Half of Fiscal Year

Life Corporation reported a 4.3% increase in operating revenue for the first half of the fiscal year ending February 28, 2026, with operating profit rising by 8.8% and ordinary profit by 9.1%. The company also announced a 2-for-1 share split, impacting earnings per share calculations, and maintained its dividend forecast, reflecting a stable financial position and commitment to shareholder returns.