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

• Market Cap: ¥8.92B
• Dividend Yield: 0.34%
• Average Volume (3M): 30.49K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.27
• Revenue Growth: 14.54%
• EPS Growth: 71.47%
• Country: JP
• Employees: 107
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Specialty
• EPS (TTM): 37.17
• Shares Outstanding: 2,824,300
• 10 Day Avg. Volume: 24,280
• 30 Day Avg. Volume: 30,493
• 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: ¥3,367.00
• Price Target Upside: 6.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,367.00 ▲(6.55% Upside)

Nippon Insure Co. Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis indicates strong momentum, though caution is advised due to overbought signals. The valuation suggests the stock might be overvalued, with a high P/E ratio and low dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective product offerings, supporting long-term business stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt management.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports sustainable growth and resilience against economic fluctuations.

Negative Factors

High Total Liabilities

High liabilities may strain financial resources, potentially impacting the company's ability to invest in growth and meet obligations.

Low Dividend Yield

A low dividend yield may deter income-focused investors, potentially affecting stock attractiveness and capital raising ability.

Valuation Concerns

High valuation may limit upside potential and increase vulnerability to market corrections, impacting investor sentiment and stock performance.

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 diverse range of insurance products and services. The company operates primarily in the life and non-life insurance sectors, offering policies that include life insurance, health insurance, property insurance, and casualty insurance. With a commitment to customer service and innovative solutions, Nippon Insure aims to cater to the evolving needs of individuals and businesses alike in a competitive insurance market.

How the Company Makes Money

Nippon Insure Co. Ltd. generates revenue primarily through the sale of insurance premiums from its various policy offerings. The company earns money by collecting premiums from policyholders in exchange for providing insurance coverage. This revenue model is bolstered by the investment of collected premiums in financial markets, which can yield returns and contribute to the company's profitability. Additionally, Nippon Insure may have partnerships with brokers and financial institutions that help distribute its products, further enhancing its market reach. The company also benefits from economies of scale and operational efficiencies as it grows, enabling it to manage claims costs effectively and maintain a healthy profit margin.

Nippon Insure Co. Ltd. Financial Statement Overview

Summary

Nippon Insure Co. Ltd. presents a strong financial profile with impressive revenue growth, solid profitability, and a robust balance sheet. The company effectively manages its leverage and demonstrates strong cash flow generation. While the financials are largely positive, careful monitoring of liabilities is advisable to maintain financial stability. Overall, the company is well-positioned for continued growth and stability in the insurance industry.

Income Statement

Nippon Insure Co. Ltd. demonstrates strong revenue growth with a 11.87% increase from the previous year, and a consistent upward trajectory over the past few years. The gross profit margin is robust at 68.74%, indicating effective cost management. Net profit margin has improved to 8.69%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 12.73% and 13.92%, respectively, showcasing operational efficiency. Overall, the company exhibits strong revenue growth and profitability.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.25, suggesting conservative leverage. Return on equity is impressive at 14.16%, indicating efficient use of equity capital. The equity ratio stands at 42.98%, reflecting a stable capital structure. While the balance sheet is strong, the relatively high total liabilities could pose a risk if not managed carefully.

Cash Flow

Nippon Insure Co. Ltd. shows a significant improvement in free cash flow, with a growth rate of 350.07% year-over-year. The operating cash flow to net income ratio is 0.70, indicating solid cash generation relative to net income. The free cash flow to net income ratio is 0.52, demonstrating effective conversion of income to cash. Overall, the cash flow position is strong, supporting the company's growth and operational needs.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.22B	2.88B	2.61B	2.17B
Gross Profit	2.22B	1.91B	1.77B	1.41B
EBITDA	448.91M	332.91M	443.51M	203.89M
Net Income	280.12M	196.88M	255.39M	105.19M
Balance Sheet
Total Assets	4.60B	3.41B	2.91B	2.26B
Cash, Cash Equivalents and Short-Term Investments	2.46B	1.73B	1.62B	1.33B
Total Debt	503.18M	502.22M	403.73M	342.38M
Total Liabilities	2.62B	2.31B	2.01B	1.60B
Stockholders Equity	1.98B	1.10B	905.61M	651.91M
Cash Flow
Free Cash Flow	145.17M	32.24M	256.13M	143.34M
Operating Cash Flow	196.63M	64.11M	278.11M	190.25M
Investing Cash Flow	-59.41M	-53.48M	-27.17M	-57.12M
Financing Cash Flow	593.50M	98.50M	39.41M	98.77M

Nippon Insure Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3160.00
• 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:5843, the sentiment is Neutral. The current price of 3160 is below the 20-day moving average (MA) of 3238.25, above the 50-day MA of 2786.24, and above the 200-day MA of 1857.33, indicating a neutral trend. The MACD of 83.34 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 26.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7325	76 Outperform	¥7.75B	17.10		2.75%	18.97%	24.82%
5843	73 Outperform	¥8.92B	21.60		0.34%	14.54%	71.47%
7343	71 Outperform	¥7.03B	29.95		3.50%	2.56%	-45.01%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
8700	64 Neutral	¥6.45B	20.07		3.71%	-9.52%	-42.24%
7345	55 Neutral	¥1.96B	1,103.57		0.67%	-2.04%	-168.42%
8798	47 Neutral	¥10.57B	―		10.84%	-26.24%	-48.73%