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

• Market Cap: ¥7.87B
• Dividend Yield: 0.7%
• Average Volume (3M): 25.21K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.23
• Revenue Growth: 16.04%
• EPS Growth: 86.74%
• Country: JP
• Employees: 107
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 53.74
• Shares Outstanding: 2,869,800
• 10 Day Avg. Volume: 21,640
• 30 Day Avg. Volume: 25,213
• PEG Ratio: 3.54
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 15.97
• 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: 66 Neutral
• Price Target: ¥3,037.00 ▲(7.24% Upside)

Nippon Insure Co. Ltd. has a strong financial foundation with robust revenue growth and profitability, which is the most significant factor in its stock score. However, technical indicators suggest a bearish trend, and the valuation is moderate with a low dividend yield, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and operational stability.

Balance Sheet Health

Conservative leverage and a stable capital structure reduce financial risk, supporting long-term sustainability.

Negative Factors

High Liabilities

High liabilities may strain financial resources and limit strategic flexibility, potentially impacting long-term growth.

Low Dividend Yield

A low dividend yield may deter income-focused investors, affecting the company's attractiveness in the equity market.

Liability Management

Inadequate management of liabilities could lead to financial instability, impacting the company's ability to invest in growth.

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.

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	3.22B	2.88B	2.61B	2.17B
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: 2832.00
• 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:5843, the sentiment is Neutral. The current price of 2832 is above the 20-day moving average (MA) of 2785.40, below the 50-day MA of 2838.26, and above the 200-day MA of 2271.83, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 8.14 is Positive, 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	73 Outperform	¥8.32B	17.99	―	2.85%	12.33%	-15.46%
7343	71 Outperform	¥7.19B	21.76	―	3.39%	0.61%	-11.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5843	66 Neutral	¥7.87B	14.58	―	0.70%	16.04%	86.74%
8700	65 Neutral	¥6.49B	12.35	―	3.66%	4.48%	19.69%
7345	53 Neutral	¥1.99B	-172.28	―	0.66%	1.87%	51.81%
8798	38 Underperform	¥8.06B	-1.82	―	―	-16.91%	34.50%