Why is Life Corp. ?
1
High Management Efficiency with a high ROCE of 14.53%
2
Poor long term growth as Net Sales has grown by an annual rate of 3.54% over the last 5 years
3
Negative results in May 25
- INVENTORY TURNOVER RATIO(HY) Lowest at 18.71%
- DEBTORS TURNOVER RATIO(HY) Lowest at 18.26%
- INTEREST COVERAGE RATIO(Q) Lowest at 11,951
4
With ROCE of 12.69%, it has a very attractive valuation with a 1.35 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 42.60%, its profits have fallen by -1.5%
- At the current price, the company has a high dividend yield of 0
5
Market Beating Performance
- The stock has generated a return of 42.60% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%
How much should you hold?
- Overall Portfolio exposure to Life Corp. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Life Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Life Corp.
42.6%
0.34
54.92%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality key factors
Factor
Value
Sales Growth (5y)
3.54%
EBIT Growth (5y)
12.73%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
1.05
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
4.49
Tax Ratio
30.72%
Dividend Payout Ratio
28.19%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.52%
ROE (avg)
14.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.50
EV to EBIT
10.60
EV to EBITDA
6.42
EV to Capital Employed
1.35
EV to Sales
0.32
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
12.69%
ROE (Latest)
13.15%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
8What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 7.43 %
RAW MATERIAL COST(Y)
Fallen by -1.26% (YoY
OPERATING PROFIT(Q)
Highest at JPY 11,951 MM
OPERATING PROFIT MARGIN(Q)
Highest at 5.53 %
PRE-TAX PROFIT(Q)
Highest at JPY 7,966 MM
NET PROFIT(Q)
Highest at JPY 5,523.45 MM
EPS(Q)
Highest at JPY 64.51
-17What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 18.71%
DEBTORS TURNOVER RATIO(HY)
Lowest at 18.26%
INTEREST COVERAGE RATIO(Q)
Lowest at 11,951
INTEREST(Q)
Highest at JPY 100 MM
Here's what is working for Life Corp.
Debt-Equity Ratio
Lowest at 7.43 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Profit
Highest at JPY 11,951 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 5.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 7,966 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 5,523.45 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 64.51
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -1.26% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Life Corp.
Interest
At JPY 100 MM has Grown at 31.58%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 11,951
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 18.71% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 18.26% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
Highest at JPY 100 MM
in the last five periods and Increased by 31.58% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






