Life Corporation (8194) AI Stock Analysis

• Market Cap: ¥194.56B
• Dividend Yield: 1.13%
• Average Volume (3M): 203.23K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.31
• Revenue Growth: 5.04%
• EPS Growth: 8.60%
• Country: JP
• Employees: 7,304
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Grocery Stores
• EPS (TTM): 58.48
• Shares Outstanding: 90,501,600
• 10 Day Avg. Volume: 203,850
• 30 Day Avg. Volume: 203,226
• PEG Ratio: 1.23
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.10
• 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

• Rating: 78 Outperform
• Price Target: ―

Life Corporation demonstrates strong financial performance with consistent revenue and profit growth, supported by a stable balance sheet and manageable leverage. Technical analysis indicates positive momentum, though there are signs of potential overbought conditions. The stock appears undervalued with a low P/E ratio and offers a reasonable dividend yield, enhancing its appeal to investors. These factors contribute to a solid overall stock score.

Life Corporation Business Overview & Revenue Model

Company Description

Life Corporation (8194) is a Japan-based company primarily engaged in the operation of supermarkets and retail stores. It offers a wide range of grocery products, including fresh foods, household goods, and daily commodities. The company is known for its focus on providing high-quality products and services to meet the diverse needs of its customers across various regions in Japan.

How the Company Makes Money

Life Corporation generates revenue primarily through the sale of goods in its supermarket chain. The company earns money by purchasing products from suppliers and selling them at a markup to customers. Its revenue streams are mainly driven by in-store sales, but it may also include online sales, depending on the region and market demand. The company benefits from economies of scale due to its extensive network of stores, allowing it to negotiate favorable terms with suppliers and maintain competitive pricing. Additionally, Life Corporation may engage in strategic partnerships with local producers and brands to offer exclusive products or promotions, further enhancing its revenue potential.

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. Overall, the company is positioned well in the grocery industry, with opportunities for operational improvements.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	840.14B	850.50B	809.71B	765.42B	768.33B	759.15B
Gross Profit	282.88B	270.12B	274.42B	256.51B	253.98B	248.47B
EBITDA	38.35B	42.73B	39.40B	33.91B	36.68B	38.31B
Net Income	16.48B	17.95B	16.94B	13.33B	15.21B	17.82B
Balance Sheet
Total Assets	304.82B	306.03B	287.15B	280.81B	270.23B	268.31B
Cash, Cash Equivalents and Short-Term Investments	13.16B	8.37B	8.61B	9.73B	9.81B	15.34B
Total Debt	25.43B	71.06B	53.09B	74.17B	69.11B	42.55B
Total Liabilities	171.56B	167.59B	150.29B	158.81B	159.93B	170.75B
Stockholders Equity	133.26B	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: 2213.00
• 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 Positive. The current price of 2213 is above the 20-day moving average (MA) of 2171.65, above the 50-day MA of 2105.08, and above the 200-day MA of 1854.49, indicating a bullish trend. The MACD of 32.18 indicates Positive momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 68.65 is Neutral, 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
9823	82 Outperform	¥58.72B	11.51		1.45%	13.93%	-11.16%
9974	78 Outperform	¥155.66B	12.56		1.55%	10.21%	16.03%
8194	78 Outperform	¥194.56B	11.34		1.13%	5.04%	8.60%
8198	77 Outperform	¥100.24B	10.70		2.22%	2.91%	12.82%
8279	76 Outperform	¥387.35B	19.28	11.37%	1.47%	18.85%	4.19%
2742	72 Outperform	¥99.09B	11.01		1.38%	7.94%	0.06%
Sector *	68 Neutral	¥197.40B	21.11	8.29%	2.33%	4.99%	3.05%

Life Corporation Corporate Events

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.

Life Corporation Reports Strong Fiscal Year 2025 Results and Announces Share Split

Life Corporation reported its consolidated financial results for the fiscal year ending February 28, 2025, showing a 5% increase in operating revenue to ¥850,496 million and a 6% rise in profit attributable to owners of the parent to ¥17,948 million. The company also announced a 2-for-1 share split and an increase in annual dividends, reflecting a robust financial performance and a commitment to shareholder returns.

Life Corporation Announces Dividend Increase and Forecasts

Life Corporation announced an increase in its dividend per share to ¥60 for the fiscal year ending February 28, 2025, reflecting a consolidated dividend payout ratio of 28.2%. This decision aligns with the company’s shareholder return policy and follows financial results that exceeded initial forecasts. The company also provided a forecast for the next fiscal year, indicating an annual dividend of ¥65 per share post a 2-for-1 share split, marking a significant increase in shareholder returns.

Life Corporation Strengthens Ties with Mitsubishi

Life Corporation announced its relationship with Mitsubishi Corporation, which holds a 25.57% voting rights stake, making Life an associate accounted for using the equity method. This partnership aims to enhance corporate value through personnel exchanges and capital relationships, while maintaining operational independence.

Life Corporation Reports 5% Revenue Growth and Announces Share Split

Life Corporation reported a 5% increase in operating revenue for the fiscal year ending February 28, 2025, reaching ¥850,496 million. The company also saw a rise in operating profit and ordinary profit by 4.8% and 5% respectively, while profit attributable to owners of the parent increased by 6%. Despite the positive financial performance, comprehensive income slightly decreased by 1.5%. The company conducted a 2-for-1 share split on March 1, 2025, impacting earnings per share calculations. Looking ahead, Life Corporation forecasts continued growth in operating revenue and profits for the fiscal year ending February 28, 2026, with a projected operating revenue of ¥885,000 million.