JAPAN POST HOLDINGS Co (6178) AI Stock Analysis

• Market Cap: ¥3.94T
• Dividend Yield: 3.77%
• Average Volume (3M): 7.56M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.80
• Revenue Growth: 6.19%
• EPS Growth: 21.48%
• Country: JP
• Employees: 221,387
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 34.84
• Shares Outstanding: 2,972,934,800
• 10 Day Avg. Volume: 5,936,490
• 30 Day Avg. Volume: 7,559,916
• PEG Ratio: -1.06
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.45
• 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: ¥1,635.18
• Price Target Upside: 23.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: ―

Japan Post Holdings Co is financially stable with strong profitability and a robust balance sheet, though it faces challenges in cash flow management. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and weak momentum indicators. Valuation is fair, with a reasonable P/E ratio and a solid dividend yield, but not sufficiently attractive to drive a higher score. The absence of recent earnings call data and corporate events limits additional evaluation, focusing the score on financial performance and technical analysis.

JAPAN POST HOLDINGS Co Business Overview & Revenue Model

Company Description

Japan Post Holdings Co., Ltd. provides postal, banking, and insurance services in Japan. The company engages in the postal, banking counter, and insurance counter operations; sale of documentary stamps, petroleum, and catalog products; operations consigned by local government entities; and provision of other bank, and life and non-life insurance agency services. It also provides distribution and delivery; and merchandise sale services, as well as international cargo transport and agency services. In addition, the company offers Yu-Pack, Yu-Mail, and other parcel delivery; deposits, securities investment, remittances, credit card, and personal loans; road, rail, ship, and air transportation; freight forwarding and other logistics; and asset management services. Further, it provides truck cargo transportation, automobile and machinery maintenance, vehicle maintenance and management, post office advertisements posting, automobile liability insurance agency, 3PL, and express services. Additionally, it provides contracting, hotel management, and management, investment, financial and management consulting, and telemarketing services. The company also engages in the planning, development, and sale of direct mail; and commissioning of design, development, maintenance, and operation of information systems. In addition, it owns, leases, and manages real estate; develops residential and commercial land; consults, plans and develops business systems and basic technologies; and operates 3 Teishin hospitals, MIELPARQUE hotels, and 35 Kanpo no Yado inns in Japan. Japan Post Holdings Co., Ltd. was founded in 1871 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Post Holdings Co. generates revenue through its diversified operations in postal, banking, and insurance services. The Japan Post segment earns income from mail and parcel delivery services, as well as logistics operations. Japan Post Bank provides banking services, including deposit products, loans, and investment services, generating interest and fee-based income. Japan Post Insurance offers life insurance policies, contributing to revenue through premium collections and investment income from its insurance assets. Significant factors contributing to its earnings include its expansive network of post offices, customer trust in its financial services, and strategic partnerships in logistics and financial sectors. The company also benefits from its majority ownership by the Japanese government, which provides stability and support.

JAPAN POST HOLDINGS Co Financial Statement Overview

Summary

Japan Post Holdings Co demonstrates solid profitability and a strong asset base, with effective cost controls reflected in its margins. While the balance sheet is robust, indicating low leverage and strong cash reserves, the cash flow statement highlights potential areas for improvement, particularly in generating positive free cash flow. Overall, the company is financially stable but could enhance its cash flow management to improve financial health further.

Income Statement

The company exhibits a stable gross profit margin with consistent revenue levels over the years. The TTM EBIT margin is strong at 48%, indicating efficient cost management. However, recent annual revenues have slightly declined, and the net profit margin has seen fluctuations, suggesting potential challenges in maintaining net profitability.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicative of low financial leverage. The equity ratio is healthy, signaling a strong capital base. However, the decreasing trend in stockholders' equity and the high level of cash and equivalents relative to debt might suggest underutilized capital.

Cash Flow

Cash flow management appears to be a challenge, with negative free cash flow in recent periods and volatile operating cash flows. The lack of positive free cash flow growth impacts the financial flexibility of the company, although the significant cash reserves provide some buffer.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.75T	11.24T	11.98T	11.14T	11.12T	11.72T
Gross Profit	11.70T	0.00	11.98T	11.14T	11.26T	11.72T
EBITDA	867.04B	762.88B	873.96B	923.84B	1.10T	980.98B
Net Income	311.69B	370.56B	268.69B	431.05B	501.69B	418.24B
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	71.37T	0.00	70.30T	70.24T	68.50T	62.72T
Total Debt	5.44T	36.92T	2.61T	2.13T	6.24T	4.53T
Total Liabilities	10.00T>	10.00T>	10.00T>	4.07T	10.00T>	10.00T>
Stockholders Equity	9.88T	9.09T	10.27T	10.08T	12.31T	13.79T
Cash Flow
Free Cash Flow	0.00	-407.63B	-2.68T	-8.47T	4.78T	6.74T
Operating Cash Flow	0.00	-197.55B	-2.36T	-8.15T	4.98T	6.97T
Investing Cash Flow	0.00	4.38T	-7.72T	9.35T	1.41T	2.02T
Financing Cash Flow	0.00	2.79T	-606.26B	549.64B	-621.04B	50.58B

JAPAN POST HOLDINGS Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1325.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6178, the sentiment is Negative. The current price of 1325.5 is below the 20-day moving average (MA) of 1348.72, below the 50-day MA of 1354.94, and below the 200-day MA of 1439.31, indicating a bearish trend. The MACD of -9.81 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6178.

JAPAN POST HOLDINGS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8316	80 Outperform	$14.07T	12.02	7.92%	3.42%	5.50%	24.85%
8411	78 Outperform	¥9.97T	11.35	8.45%	3.27%	7.33%	30.52%
8306	75 Outperform	¥22.45T	12.40	9.18%	3.93%	10.98%	28.45%
7182	65 Neutral	¥5.50T	13.43	4.38%	3.77%	-9.87%	18.54%
6178	62 Neutral	¥3.94T	11.11	3.78%	3.77%	6.19%	21.48%
Sector *	60 Neutral	C$14.55B	5.45	20.17%	6.08%	26.88%	-38.18%
7186	60 Neutral	$1.07T	13.06	6.37%	3.42%	8.79%	19.19%

JAPAN POST HOLDINGS Co Corporate Events

Japan Post Holdings Revises Financial Forecast Upwards for FY 2025

Japan Post Holdings Co., Ltd. has revised its consolidated financial results forecast for the fiscal year ended March 31, 2025, upwards due to increased investment income and a favorable investment environment. The revision reflects a significant expected increase in net income attributable to the company, despite uncertainties related to postal rate revisions by its subsidiary, Japan Post Co., Ltd. The company has maintained its dividends forecast.

Japan Post Holdings Completes Acquisition of Tonami Holdings

Japan Post Holdings Co., Ltd. announced the completion of a tender offer for Tonami Holdings Co., Ltd., which will become a consolidated subsidiary on April 17, 2025. This acquisition, conducted through its subsidiary JWT Co., Ltd., signifies a strategic expansion in Japan Post’s logistics capabilities, potentially enhancing its market positioning and operational scale.