Nippon Insure Co. Ltd. (5843) AI Stock Analysis

• Market Cap: ¥7.58B
• Dividend Yield: 0.72%
• Average Volume (3M): 23.55K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.31
• Revenue Growth: 16.04%
• EPS Growth: 86.97%
• Country: JP
• Employees: 107
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 56.23
• Shares Outstanding: 2,869,800
• 10 Day Avg. Volume: 14,740
• 30 Day Avg. Volume: 23,546
• PEG Ratio: 0.18
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 22.12
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,481.00 ▼(-12.39% Downside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

Nippon Insure Co. Ltd. has a robust financial performance, which is the most significant factor supporting its stock score. However, bearish technical indicators and a low dividend yield weigh down the overall score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent revenue growth

Sustained revenue expansion across multiple years indicates growing premium volumes and successful product uptake. For an insurer, multi-year top-line growth supports reserve-building, diversification of underwriting risk, and stronger reinvestment capacity, underpinning durable earnings potential.

Robust margin profile

Improving gross and net margins point to effective underwriting discipline and cost control. Persistent margin strength enhances retained earnings and capital generation, improving ability to absorb underwriting shocks and fund growth without relying excessively on external capital over the medium term.

Prudent balance sheet

A stable balance sheet with prudent leverage and solid equity ratio supports regulatory capital adequacy and ratings resilience. Consistent ROE suggests efficient use of capital, allowing the firm to support underwriting capacity and invest in long-term initiatives while keeping solvency risk contained.

Negative Factors

Free cash flow variability

Variable free cash flow makes reserve funding, dividend policy, and strategic investments harder to plan. For insurers, unpredictable cash generation can strain liquidity for claim spikes or opportunistic investments, necessitating larger liquidity buffers or more conservative capital deployment.

Rising debt trends

A gradual uptick in total debt, even if manageable now, can erode financial flexibility over time and raise interest expense sensitivity. Growing leverage limits room for balance-sheet support in adverse underwriting cycles and may constrain capital actions like buybacks or increased dividends.

Limited operational scale

A relatively small employee base suggests more limited distribution, product development bandwidth, and geographic scale versus larger competitors. In insurance, scale drives pricing, risk pooling and distribution efficiency; limited scale can slow market share gains and raise per-policy operating costs.

Nippon Insure Co. Ltd. Business Overview & Revenue Model

Company Description

Nippon Insure Co. Ltd. (5843) is a prominent insurance provider based in Japan, specializing in a wide array of insurance services. The company operates primarily in the life and non-life insurance sectors, offering products such as life insurance, health insurance, property and casualty insurance, and automobile insurance. With a strong emphasis on customer-centric solutions, Nippon Insure aims to cater to both individual and corporate clients, ensuring comprehensive risk management and financial security.

How the Company Makes Money

Nippon Insure generates revenue primarily through the collection of premiums from its various insurance products. The company earns money by underwriting policies, which involves assessing risk and setting appropriate premium rates for its customers. Key revenue streams include life insurance premiums, non-life insurance premiums (such as auto and property insurance), and investment income generated from the premiums collected. Additionally, Nippon Insure may have partnerships with financial institutions and corporations, allowing them to offer bundled insurance products or financial services, which can further enhance their earnings. Investment gains from managing the reserves held for future claims also contribute significantly to their overall revenue.

Nippon Insure Co. Ltd. Financial Statement Overview

Summary

Nippon Insure Co. Ltd. exhibits strong financial performance with consistent revenue and profit growth, efficient cost management, and a stable balance sheet. The company demonstrates effective cash flow management, though fluctuations in free cash flow growth warrant attention.

Income Statement

Nippon Insure Co. Ltd. has demonstrated strong revenue growth over the years, with a notable increase in total revenue from 2021 to 2025. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, suggesting operational efficiency. Overall, the income statement reflects a healthy financial performance with consistent growth and profitability.

Balance Sheet

The company's balance sheet shows a stable financial position with a manageable debt-to-equity ratio, indicating prudent leverage. The return on equity has been strong, showcasing effective use of shareholder funds to generate profits. The equity ratio is solid, reflecting a good balance between equity and total assets. However, the slight increase in total debt over the years warrants monitoring to ensure continued financial stability.

Cash Flow

Nippon Insure Co. Ltd. has experienced fluctuations in free cash flow growth, with a significant increase in recent years. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio is strong, suggesting effective cash management. However, the variability in free cash flow growth highlights potential volatility in cash flow generation.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	3.74B	3.22B	2.88B	2.61B	2.17B
Gross Profit	2.34B	3.22B	2.88B	2.61B	2.17B
EBITDA	813.05M	448.91M	332.91M	443.51M	203.89M
Net Income	528.47M	280.12M	196.88M	255.39M	105.19M
Balance Sheet
Total Assets	5.34B	4.60B	3.41B	2.91B	2.26B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.46B	1.73B	1.62B	1.33B
Total Debt	494.92M	503.18M	502.22M	403.73M	342.38M
Total Liabilities	2.84B	2.62B	2.31B	2.01B	1.60B
Stockholders Equity	2.49B	1.98B	1.10B	905.61M	651.91M
Cash Flow
Free Cash Flow	378.97M	145.17M	32.24M	256.13M	143.34M
Operating Cash Flow	383.75M	196.63M	64.11M	278.11M	190.25M
Investing Cash Flow	-65.07M	-59.41M	-53.48M	-27.17M	-57.12M
Financing Cash Flow	-19.30M	593.50M	98.50M	39.41M	98.77M

Nippon Insure Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2832.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5843, the sentiment is Positive. The current price of 2832 is above the 20-day moving average (MA) of 2509.90, above the 50-day MA of 2537.12, and above the 200-day MA of 2558.11, indicating a bullish trend. The MACD of 50.58 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5843.

Nippon Insure Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥83.29B	22.18	―	2.02%	13.52%	7.75%
8715	72 Outperform	¥90.99B	43.84	―	0.82%	11.18%	-16.50%
8713	71 Outperform	¥37.84B	13.04	4.94%	4.00%	10.72%	293.23%
7326	69 Neutral	¥57.86B	19.94	6.16%	1.10%	13.99%	85.66%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7157	67 Neutral	¥176.67B	24.27	―	―	20.22%	19.40%
5843	63 Neutral	¥7.58B	13.10	―	0.72%	16.04%	86.97%